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Material Group, Inc. (JP:156A)
:156A
Japanese Market
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Material Group, Inc. (156A) AI Stock Analysis

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JP:156A

Material Group, Inc.

(156A)

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Outperform 70 (OpenAI - Gpt-5.6Sol)
Rating:70Outperform
Price Target:
¥993.00
▲(15.06% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by strong financial health—especially the de-risked balance sheet and solid operating profitability—tempered by the 2025 decline in net margin and softer operating cash flow. Technicals are meaningfully negative (below key moving averages with weak momentum indicators), while valuation is supportive with a modest P/E and ~3.1% dividend yield.
Positive Factors
Steady revenue growth and strong gross margins
Consistent revenue expansion alongside gross margins around 60% indicates a resilient operating model with meaningful value creation. Maintaining strong gross profitability gives the company room to fund growth, absorb cost pressures, and preserve healthy EBIT and EBITDA margins over the coming quarters.
Negative Factors
Sharp decline in net margin
The substantial decline in net margin shows that strong gross and operating profitability did not translate into comparable bottom-line performance. If the pressure persists, it could constrain earnings growth, reduce cash available for reinvestment, and weaken the durability of shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady revenue growth and strong gross margins
Consistent revenue expansion alongside gross margins around 60% indicates a resilient operating model with meaningful value creation. Maintaining strong gross profitability gives the company room to fund growth, absorb cost pressures, and preserve healthy EBIT and EBITDA margins over the coming quarters.
Read all positive factors

Material Group, Inc. (156A) vs. iShares MSCI Japan ETF (EWJ)

Material Group, Inc. Business Overview & Revenue Model

Company Description
Material Group Inc. provides PR consulting and digital marketing services in Japan. The company operates through three segments: PR Consulting Business, Digital Marketing Business, and PR Platform Business segments. The PR Consulting Business segm...

Material Group, Inc. Financial Statement Overview

Summary
Fundamentals are solid overall: steady revenue growth through 2025, strong ~60%+ gross margins, and mid-teens EBIT/EBITDA margins. The balance sheet is a major strength with sharply reduced leverage (debt-to-equity down to 0.11 in 2025) and strong ROE. Offsetting these positives are the notable drop in 2025 net margin (to 7.5% from 13.4%) and weaker 2025 operating cash flow versus 2024, which adds near-term earnings/cash conversion risk.
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
74
Positive
BreakdownTTMAug 2025Aug 2024Aug 2023Aug 2022
Income Statement
Total Revenue8.24B6.29B5.28B4.66B4.18B
Gross Profit4.91B3.85B3.19B2.84B2.51B
EBITDA1.31B877.53M915.42M703.47M499.11M
Net Income646.14M468.95M709.63M437.86M208.28M
Balance Sheet
Total Assets6.45B3.90B3.26B2.64B2.81B
Cash, Cash Equivalents and Short-Term Investments1.44B1.26B1.12B614.87M851.11M
Total Debt2.19B228.01M274.18M374.86M913.81M
Total Liabilities4.06B1.69B1.24B1.21B1.82B
Stockholders Equity2.33B2.16B2.03B1.43B993.40M
Cash Flow
Free Cash Flow649.27M671.74M967.55M507.86M321.18M
Operating Cash Flow694.25M694.25M987.20M535.99M347.02M
Investing Cash Flow-58.33M-58.33M-176.88M-211.16M-53.15M
Financing Cash Flow-497.27M-497.27M-302.58M-561.06M-88.97M

Material Group, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price863.00
Price Trends
50DMA
832.73
Positive
100DMA
816.63
Positive
200DMA
805.30
Positive
Market Momentum
MACD
13.53
Negative
RSI
72.08
Negative
STOCH
53.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:156A, the sentiment is Positive. The current price of 863 is above the 20-day moving average (MA) of 834.28, above the 50-day MA of 832.73, and above the 200-day MA of 805.30, indicating a bullish trend. The MACD of 13.53 indicates Negative momentum. The RSI at 72.08 is Negative, neither overbought nor oversold. The STOCH value of 53.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:156A.

Material Group, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥10.41B10.701.17%18.28%57.06%
73
Outperform
¥20.01B10.751.67%2.86%70.83%
72
Outperform
¥5.06B12.255.11%-5.95%1.57%
72
Outperform
¥14.36B10.072.50%12.33%50.28%
70
Outperform
¥8.63B13.352.89%38.43%-4.55%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
43
Neutral
¥10.15B5.2110.01%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:156A
Material Group, Inc.
903.00
98.07
12.18%
JP:2411
Gendai Agency Inc.
470.00
49.18
11.69%
JP:2436
Kyodo Public Relations Co., Ltd.
596.00
139.88
30.67%
JP:6094
FreakOut Holdings, Inc.
568.00
53.00
10.29%
JP:7068
Feedforce Group Inc.
600.00
46.88
8.48%
JP:7354
Direct Marketing MiX Inc.
420.00
127.00
43.34%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 06, 2026