Mercuria Holdings Co., Ltd. (7347) AI Stock Analysis

• Market Cap: ¥14.80B
• Dividend Yield: 2.88%
• Average Volume (3M): 50.92K
• Price to Earnings (P/E): 30.3
• Beta (1Y): 1.20
• Revenue Growth: -4.73%
• EPS Growth: -51.89%
• Country: JP
• Employees: 23
• Sector: Financial
• Sector Strength: 82
• Industry: Asset Management
• EPS (TTM): -6.17
• Shares Outstanding: 21,549,900
• 10 Day Avg. Volume: 33,030
• 30 Day Avg. Volume: 50,920
• PEG Ratio: -0.85
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ―

Mercuria Holdings shows a strong financial foundation with a robust equity position and no debt, which enhances its stability. However, inconsistent revenue growth and cash flow pose challenges for sustained profitability. The stock's current technical indicators suggest a bearish trend, and its valuation is on the higher side, potentially limiting upside potential. The dividend yield offers some compensation for the elevated P/E ratio, making it moderately attractive for income-seeking investors.

Mercuria Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Mercuria Holdings Co., Ltd. (7347) is a Japan-based company primarily engaged in the investment management business. The company focuses on providing comprehensive asset management services, including real estate investment, private equity, and infrastructure investment. Mercuria Holdings works towards creating value for its clients through strategic investments in diverse sectors, leveraging its expertise in financial markets and asset management.

How the Company Makes Money

Mercuria Holdings Co., Ltd. generates revenue primarily through asset management fees and investment income. The company earns management fees from the assets it manages on behalf of its clients, which can include institutional investors, corporations, and high-net-worth individuals. It also generates income from its proprietary investments in real estate, private equity, and infrastructure projects. Additionally, Mercuria may receive performance fees tied to the success of its investment strategies. Key partnerships with financial institutions and other market players can enhance its investment capabilities and contribute to its revenue growth.

Mercuria Holdings Co., Ltd. Financial Statement Overview

Summary

Overall, Mercuria Holdings exhibits a stable financial position with strong equity and no debt burden, enhancing its financial resilience. However, fluctuations in revenue growth and cash flow generation highlight the need for careful management to sustain profitability and support growth. The company's ability to maintain operational efficiency and capitalize on its equity strength will be crucial for future success.

Income Statement

Mercuria Holdings has shown a mixed performance over recent years. The gross profit margin has been strong, reflecting effective cost management. However, the net profit margin has been fluctuating due to varying net income levels. The revenue growth rate has been inconsistent, with a recent decline in revenue leading to a negative growth rate. Despite this, the company maintains a healthy EBIT and EBITDA margin, indicating operational efficiency.

Balance Sheet

The balance sheet of Mercuria Holdings is robust, with a strong equity base and no long-term debt, which enhances financial stability. The company has a high equity ratio, reflecting strong capitalization. The return on equity has shown variability but remains positive, indicating profitability for shareholders. The absence of debt enhances financial flexibility and reduces risk exposure.

Cash Flow

Mercuria Holdings' cash flow performance demonstrates some volatility. While the operating cash flow has been positive in recent years, the free cash flow has experienced fluctuations due to changes in capital expenditures and cash flow from operations. The operating cash flow to net income ratio is favorable, indicating efficient cash generation. However, the free cash flow growth rate shows inconsistency, suggesting potential challenges in sustaining cash flow levels.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.57B	5.84B	4.60B	4.17B	6.18B
	Gross Profit
4.53B	4.03B	4.39B	3.64B	2.38B
	EBIT
975.32M	1.34B	2.05B	1.76B	48.67M
	EBITDA
1.05B	1.40B	2.12B	1.82B	12.87M
	Net Income Common Stockholders
505.72M	1.06B	1.56B	1.30B	757.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.47B	16.70B	16.44B	15.28B	2.88B
	Total Assets
21.05B	19.66B	19.98B	18.01B	456.74M
	Total Debt
0.00	88.23M	843.50M	873.50M	250.13M
	Net Debt
-3.37B	-3.00B	-2.17B	-3.80B	-2.63B
	Total Liabilities
2.16B	1.42B	2.44B	2.19B	3.03B
	Stockholders Equity
17.51B	17.09B	16.63B	15.11B	15.06B
Cash Flow		Free Cash Flow
653.00M	1.19B	-373.34M	145.34M	-254.73M
	Operating Cash Flow
655.00M	1.24B	-349.43M	178.60M	-248.90M
	Investing Cash Flow
-9.00M	497.85M	-583.05M	227.56M	-389.85M
	Financing Cash Flow
-416.03M	-1.74B	-796.97M	1.35B	-149.85M

Mercuria Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 761.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7347, the sentiment is Negative. The current price of 761 is below the 20-day moving average (MA) of 785.75, below the 50-day MA of 790.00, and below the 200-day MA of 805.09, indicating a bearish trend. The MACD of -5.68 indicates Positive momentum. The RSI at 37.92 is Neutral, neither overbought nor oversold. The STOCH value of 15.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7347.

Mercuria Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8473	77 Outperform	$1.35T	8.33	12.69%	3.40%	16.64%	36.46%
8609	77 Outperform	¥150.94B	11.85		4.38%	-2.66%	-10.44%
8601	74 Outperform	$1.31T	8.81	9.63%	5.50%	7.08%	28.63%
8604	71 Outperform	$2.64T	8.06	9.88%	6.20%	13.94%	109.60%
7347	68 Neutral	¥14.80B	30.25		2.88%	-4.73%	-51.89%
8725	67 Neutral	$5.48T	7.76	16.15%	2.75%	-1.15%	104.17%
Sector *	64 Neutral	$12.77B	9.77	7.59%	16985.66%	12.30%	-7.71%

Mercuria Holdings Co., Ltd. Corporate Events

Mercuria Holdings Announces Stake Details with Development Bank of Japan

Mercuria Holdings Co., Ltd. announced that the Development Bank of Japan Inc. holds 21.17% of its voting rights, facilitating collaboration in investment areas. Despite the shared investment focus, there is no competition between the two entities, and no significant transactions or controlling shareholder issues exist.

Mercuria Holdings Reports FY2024 Financial Highlights and Future Goals

Mercuria Holdings Co., Ltd. announced its financial highlights for FY2024, noting a decrease in revenue due to valuation losses, despite reaching the performance fee stage with Buyout Fund I. The company aims for record-high profits in FY2025 by establishing new funds and maintaining compliance with TSE Prime Market listing criteria, which requires a continuous increase in stock price.

Mercuria Holdings Reports Decline in 2024 Financial Performance

Mercuria Holdings Co., Ltd. reported a decline in its financial performance for 2024, with significant decreases in operating profit and profit attributable to owners of the parent. Despite the challenges, the company maintained a strong equity ratio and increased its dividend per share. The financial results indicate a challenging year for the company, impacting its profitability and potentially affecting stakeholder confidence.

Mercuria Holdings Announces Change in Auditing Firm

Mercuria Holdings Co., Ltd. has announced a change in its certified public accountant from KPMG AZSA LLC to Ernst & Young ShinNihon LLC, effective March 25, 2025. This decision was made as KPMG AZSA LLC’s term ends and they requested to withdraw due to staffing challenges in maintaining audit quality. The change is expected to enhance the company’s accounting governance with a fresh auditing perspective.

Mercuria Holdings to Enhance Governance with Structural Transition

Mercuria Holdings Co., Ltd. announced a shift to a company structure with an Audit & Supervisory Committee, pending shareholder approval at the upcoming annual meeting. This transition aims to enhance corporate governance by strengthening board supervision and expediting decision-making, intending to boost corporate value over the medium to long term.

Mercuria Holdings Announces Governance Transition and Officer Changes

Mercuria Holdings Co., Ltd. has announced a transition to a company with an audit and supervisory committee to enhance corporate governance and accelerate management decision-making, subject to shareholder approval at the upcoming annual general meeting. This strategic move aims to increase the company’s medium to long-term corporate value by strengthening the supervisory functions of the Board of Directors and delegating decision-making powers for business execution. Additionally, the company disclosed personnel changes to its officers, including the appointment of new directors and the retirement of others, effective after the shareholders’ meeting.

Mercuria Holdings Revises Earnings Forecast and Records Investment Loss

Mercuria Holdings Co., Ltd. reported a loss on valuation of operational investment securities amounting to 664 million yen due to its buyout fund’s performance in the fourth quarter of 2024. Consequently, the company revised its earnings forecast for the year, reflecting a significant decrease in expected profits compared to previous estimates. This has led to the cancellation of performance-related compensation for its top executives, although the dividend forecast remains unchanged.

Mercuria Holdings Reports 2024 Financial Results and Optimistic 2025 Forecast

Mercuria Holdings Co., Ltd. reported a decrease in its consolidated financial results for 2024, with operating revenue falling by 4.7% and profit attributable to owners dropping by 52.1%. Despite the downturn, the company has forecasted significant growth for 2025, predicting substantial increases in operating revenue and profit. The company continues to maintain a strong equity ratio and has increased its year-end dividend per share, reflecting resilience and confidence in its future performance.