Mercari (MCARY) AI Stock Analysis

• Market Cap: $2.80B
• Dividend Yield: N/A
• Average Volume (3M): 228.00
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.57
• Revenue Growth: 2.46%
• EPS Growth: 96.14%
• Country: US
• Employees: 2,080
• Sector: Consumer Cyclical
• Sector Strength: 79
• Industry: Specialty Retail
• EPS (TTM): 0.30
• Shares Outstanding: 329,245,270
• 10 Day Avg. Volume: 100
• 30 Day Avg. Volume: 228
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: 0.03
• Enterprise Value/Ebitda: 0.17
• 1Y Price Target: $9.00
• Price Target Upside: 5.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: $9.00 ▲(5.63% Upside)

Mercari's overall stock score is driven by strong financial performance, characterized by revenue growth and profitability, but offset by challenges in cash flow management and operating expenses. Technical analysis indicates bearish momentum, which affects the stock's attractiveness. The valuation is reasonable but does not provide income through dividends.

Mercari Business Overview & Revenue Model

Company Description

Mercari, Inc. engages in the planning, development, and operation of the Mercari marketplace applications in Japan and the United States. Mercari, Inc. was incorporated in 2013 and is based in Tokyo, Japan.

How the Company Makes Money

Mercari generates revenue primarily through transaction fees charged to sellers. When an item is sold on the platform, Mercari takes a percentage of the sale price as a commission. This fee structure incentivizes Mercari to facilitate numerous transactions and ensures the platform's profitability with each successful sale. Additionally, Mercari offers optional paid services such as promotional listings to increase the visibility of sellers' items, which provides an ancillary revenue stream. The company also benefits from strategic partnerships and collaborations that enhance its service offerings and expand its market reach, further contributing to its financial performance.

Mercari Financial Statement Overview

Summary

Mercari shows strong revenue growth and profitability with a robust gross profit margin of 69.2%. However, the net profit margin is lower at 7.18%, and cash flow challenges are notable with negative free cash flow growth. The balance sheet is solid with a healthy ROE of 18.74%, but the leverage is moderate with a debt-to-equity ratio of 2.69.

Income Statement

Mercari has shown a consistent revenue growth trajectory, with a 8.93% increase from 2023 to 2024. The gross profit margin is robust at approximately 69.2% in 2024, indicating strong profitability. However, the net profit margin is relatively lower at 7.18%, suggesting that operating expenses are significant. EBIT and EBITDA margins stand at 10.07% and 10.89%, respectively, showing operational efficiency but room for improvement in cost management.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 2.69, indicating moderate leverage. The return on equity (ROE) is healthy at 18.74%, showing effective utilization of equity. The equity ratio of 14.32% suggests a balanced capital structure, though there is potential risk due to significant liabilities relative to assets.

Cash Flow

Mercari's cash flow statement reveals challenges, with negative free cash flow growth, highlighting potential cash management issues. The operating cash flow to net income ratio is negative, indicating that operating activities are not generating sufficient cash relative to net income. However, the company has managed financing activities well, with significant cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	182.62B	187.41B	172.06B	147.05B	106.11B	76.28B
Gross Profit	124.63B	129.73B	114.42B	95.14B	81.80B	55.61B
EBITDA	19.79B	20.42B	17.96B	-2.95B	6.03B	-18.63B
Net Income	12.51B	13.46B	13.07B	-7.57B	5.72B	-22.77B
Balance Sheet
Total Assets	501.77B	501.77B	415.29B	339.86B	262.53B	198.01B
Cash, Cash Equivalents and Short-Term Investments	197.31B	197.31B	202.05B	211.41B	171.46B	141.01B
Total Debt	193.31B	193.31B	157.53B	131.35B	71.15B	52.45B
Total Liabilities	429.63B	429.63B	360.06B	301.87B	222.52B	162.65B
Stockholders Equity	71.84B	71.84B	54.67B	37.68B	39.63B	34.78B
Cash Flow
Free Cash Flow	-43.49B	-43.49B	-37.35B	-26.89B	2.95B	11.76B
Operating Cash Flow	-43.34B	-43.34B	-36.88B	-26.22B	3.37B	12.53B
Investing Cash Flow	-877.00M	-877.00M	-632.00M	-671.00M	6.91B	-2.65B
Financing Cash Flow	32.09B	32.09B	26.84B	62.06B	19.77B	465.00M

Mercari Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCARY, the sentiment is Positive. The current price of 8.52 is above the 20-day moving average (MA) of 7.72, above the 50-day MA of 8.20, and above the 200-day MA of 7.51, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 65.14 is Neutral, neither overbought nor oversold. The STOCH value of 92.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MCARY.

Mercari Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBAY	77 Outperform	$41.41B	20.02	42.63%	1.26%	3.05%	-10.82%
RERE	69 Neutral	$1.04B	39.50	5.65%	―	27.53%	―
MCARY	67 Neutral	$2.80B	15.81	31.21%	―	2.46%	96.14%
TDUP	63 Neutral	$1.33B	―	-58.93%	―	-10.39%	14.92%
Sector *	61 Neutral	$17.64B	14.17	-5.23%	3.04%	1.43%	-15.11%
ETSY	57 Neutral	$5.25B	42.39	-39.97%	―	2.38%	-38.88%
LOGC	41 Neutral	$197.98M	―	-10.81%	―	-100.00%	93.34%