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

• Market Cap: ¥16.49B
• Dividend Yield: 2.59%
• Average Volume (3M): 33.32K
• Price to Earnings (P/E): 239.3
• Beta (1Y): 1.10
• Revenue Growth: 11.20%
• EPS Growth: -93.41%
• Country: JP
• Employees: 23
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): -0.41
• Shares Outstanding: 21,549,900
• 10 Day Avg. Volume: 23,580
• 30 Day Avg. Volume: 33,323
• PEG Ratio: -0.58
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 2.74
• P/FCF Ratio: 23.34
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ¥886.00 ▲(4.24% Upside)

Mercuria Holdings' strong financial stability and lack of debt are significant positives, but the high P/E ratio raises concerns about overvaluation. Technical indicators suggest a neutral market sentiment, lacking strong momentum. The absence of earnings call data and corporate events means these factors do not influence the score.

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

Company Description

Mercuria Holdings Co., Ltd., together with its subsidiaries, engages in the fund management business. It is also involved in the Spring real estate investment trust management and operation; investment advisory and management; and asset management activities. The company was incorporated in 2021 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mercuria Holdings generates revenue through multiple streams, primarily derived from its real estate investments and management fees. The company earns rental income from its managed properties and capital gains from real estate transactions. Additionally, revenue is generated from its investments in renewable energy projects, which benefit from government subsidies and long-term power purchase agreements. The financial services sector provides further income through asset management fees, as Mercuria offers tailored investment products to clients. Strategic partnerships with other investment firms and technology providers also enhance its earning potential by diversifying its portfolio and leveraging new market opportunities.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.41B	5.57B	5.84B	4.60B	4.17B	6.18B
Gross Profit	4.66B	4.53B	4.03B	4.39B	3.64B	2.38B
EBITDA	1.00B	1.05B	1.40B	2.12B	1.82B	821.11M
Net Income	487.81M	505.72M	1.06B	1.56B	1.30B	525.13M
Balance Sheet
Total Assets	19.73B	21.05B	19.66B	19.98B	18.01B	15.06B
Cash, Cash Equivalents and Short-Term Investments	2.20B	18.47B	16.70B	3.01B	4.67B	2.88B
Total Debt	590.00M	47.61M	88.23M	843.50M	873.50M	1.36B
Total Liabilities	2.09B	2.16B	1.42B	2.44B	2.19B	2.59B
Stockholders Equity	16.33B	17.51B	17.09B	16.63B	15.11B	11.91B
Cash Flow
Free Cash Flow	0.00	653.00M	1.19B	-373.34M	145.34M	-254.73M
Operating Cash Flow	0.00	655.00M	1.24B	-349.43M	178.60M	-248.90M
Investing Cash Flow	0.00	-9.79M	497.85M	-583.05M	227.56M	-389.85M
Financing Cash Flow	0.00	-416.03M	-1.74B	-796.97M	1.35B	-149.85M

Mercuria Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 850.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7347, the sentiment is Positive. The current price of 850 is above the 20-day moving average (MA) of 838.90, above the 50-day MA of 841.54, and above the 200-day MA of 792.37, indicating a bullish trend. The MACD of 1.78 indicates Negative momentum. The RSI at 54.47 is Neutral, neither overbought nor oversold. The STOCH value of 71.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
9257	77 Outperform	¥16.72B	5.81	―	0.27%	―	―
8737	73 Outperform	¥16.30B	6.11	―	5.62%	17.92%	15.44%
3772	69 Neutral	¥21.08B	13.50	―	1.82%	-30.94%	26.14%
3454	69 Neutral	¥16.52B	10.49	―	5.69%	36.31%	52.62%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7347	62 Neutral	¥16.49B	239.29	―	2.59%	11.20%	-93.41%
8783	39 Underperform	¥10.42B	-1.73	―	―	-17.04%	46.36%

Mercuria Holdings Co., Ltd. Corporate Events

Mercuria Holdings Expects Record High Profits Amid Strategic Moves

Mercuria Holdings Co., Ltd. has announced its financial highlights for the second quarter of the fiscal year ending December 31, 2025. The company is expecting record high profits for the full year, despite a low achievement rate in the second quarter. This is attributed to unrealized performance fees, currency fluctuations, and valuation losses. Mercuria aims to realize performance fees through exits from Buyout Fund I and is making progress with Buyout Fund II. Additionally, the company is focusing on meeting the Tokyo Stock Exchange Prime Market’s listing maintenance criteria by enhancing disclosure and strategic activities.

Mercuria Holdings Reports Decline in First Half 2025 Financial Performance

Mercuria Holdings Co., Ltd. reported a significant decline in its financial performance for the first half of 2025, with operating revenue and profit figures showing substantial decreases compared to the previous year. The company faces challenges in maintaining profitability, as indicated by the negative figures in its operating and ordinary profits. Despite these setbacks, Mercuria Holdings maintains a strong equity ratio, suggesting a stable financial position. The company’s forecast for the full year remains uncertain, with a wide range of potential outcomes due to difficulties in accurately predicting investment income and performance fees.

Mercuria Holdings Announces Change in Major Shareholder

Mercuria Holdings Co., Ltd. has announced a change in its major shareholder, with SilverCape Investments Limited increasing its stake to 10.92% as of August 25, 2025. This change reflects a strategic shift in shareholder composition, but the company states there are no significant implications for its future outlook.

Mercuria Holdings Reports Decline in Financial Performance for H1 2025

Mercuria Holdings Co., Ltd. reported a significant decline in its financial performance for the first half of 2025, with operating revenue and profit figures showing substantial decreases compared to the previous year. The company is facing challenges in maintaining its profitability, as indicated by the negative profit attributable to owners of the parent and comprehensive income. Despite these setbacks, Mercuria Holdings maintains a strong equity ratio, reflecting a stable financial position, and has not revised its dividend forecast for the year.