Direct Marketing MiX Inc

The company maintains a market price of 277 JPY per share, with a market capitalization of 12.62 billion JPY. Its price-to-earnings ratio is 27.71, and its price-to-book ratio is 0.94, indicating a valuation that is in line with tangible book value. The enterprise value to EBITDA ratio is 18.33, and the enterprise value to revenue ratio is 2.42, suggesting a moderate valuation relative to earnings and revenue.

Profitability metrics show a return on equity of 3.39% and a return on assets of 1.79%, both of which are below the industry median for advertising and marketing firms. The company's operating margin is 13.18% (783.67 million JPY operating income on 5.94 billion JPY revenue), and its net margin is 7.66% (455.46 million JPY net income on 5.94 billion JPY revenue), which is in line with the industry's average operating margin but below the median net margin.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic fluctuations and client concentration risk. The company's revenue is entirely derived from its advertising and marketing services, with no material diversification into other product lines or geographic regions.

Looking ahead, the company is projected to experience a 1.2% year-over-year revenue decline in the current fiscal year, with a 0.8% decline expected in the following year. This trend is consistent with the broader advertising and marketing industry, which is facing headwinds from economic uncertainty and shifting consumer behavior. The company's operating cash flow is negative at -126.25 million JPY, but its free cash flow is positive at 663.34 million JPY, indicating that capital expenditures are being managed effectively.

The company faces moderate liquidity risk, with a current ratio of 1.19 and a debt-to-equity ratio of 0.41. The risk assessment highlights that net cash is negative after subtracting total debt, which could limit the company's ability to fund operations or pursue growth opportunities without external financing. The dilution risk is assessed as low, with no significant dilution expected in the near term.

Recent events include the filing of the latest financial report, which disclosed a net income of 455.46 million JPY and a revenue of 5.94 billion JPY. The company's shares outstanding remain unchanged at 45.56 million, with no recent share issuance or buyback activity reported. Analysts have noted the company's performance relative to estimates, with the last actual EPS at 28.97 JPY and the last actual revenue at 22.69 billion JPY.

Operating and net margins exceed 75th percentile of the Advertising & Marketing cohort, indicating superior profitability.

Net income surged 61.2% year-over-year in FY2026, demonstrating strong recent earnings momentum.

Operating income grew 48.7% year-over-year in FY2026, signaling improving operational efficiency and cost control.

Dilution risk is assessed as low, providing stability for existing shareholders' equity stakes.

Revenue declined at a 7.0% compound annual growth rate over the last four years.

Cash conversion ratio of -0.28 ranks in the bottom quartile of the Advertising & Marketing cohort.

Debt-to-equity ratio of 0.41 is significantly higher than the cohort median of 0.14.

The company faces medium liquidity and credit risks, potentially impacting financial stability.

Revenue ¥5.67B, +8,4% YoY; Operating income +80,3% YoY.

• ▍Revenue ¥5.67B, +8,4% YoY
• ▍Operating income +80,3% YoY
• ▍Net income +34,1% YoY
• ▍Free cash flow +8,4% YoY
• ▍Net margin 5.5%

Revenue ¥5.38B, +7,3% YoY; Operating income +222,1% YoY.

• ▍Revenue ¥5.38B, +7,3% YoY
• ▍Operating income +222,1% YoY
• ▍Net income +570,0% YoY
• ▍Free cash flow +36,2% YoY
• ▍Net margin 4.5%

Revenue ¥5.66B, +18,8% YoY; Operating income +94,7% YoY.

• ▍Revenue ¥5.66B, +18,8% YoY
• ▍Operating income +94,7% YoY
• ▍Net income +194,8% YoY
• ▍Free cash flow +5,0% YoY
• ▍Net margin 5.8%

Revenue ¥5.99B, +0,7% YoY; Operating income −4,7% YoY.

• ▍Revenue ¥5.99B, +0,7% YoY
• ▍Operating income −4,7% YoY
• ▍Net income +1,7% YoY
• ▍Free cash flow −18,0% YoY
• ▍Net margin 7.7%

Revenue ¥5.23B; Operating income ¥254.7M.

• ▍Revenue ¥5.23B
• ▍Operating income ¥254.7M
• ▍Net margin 4.4%

Revenue ¥5.02B; Operating income ¥122.8M.

• ▍Revenue ¥5.02B
• ▍Operating income ¥122.8M
• ▍Net margin 0.7%

Revenue ¥4.76B; Operating income ¥272.7M.

• ▍Revenue ¥4.76B
• ▍Operating income ¥272.7M
• ▍Net margin 2.4%

Revenue ¥5.94B; Operating income ¥783.7M.

• ▍Revenue ¥5.94B
• ▍Operating income ¥783.7M
• ▍Net margin 7.7%

Revenue ¥22.69B, +8,3% YoY; Operating income +48,7% YoY.

• ▍Revenue ¥22.69B, +8,3% YoY
• ▍Operating income +48,7% YoY
• ▍Net income +61,2% YoY
• ▍Free cash flow +3,9% YoY
• ▍Net margin 5.9%

Revenue ¥20.95B, −22,0% YoY; Operating income +17,5% YoY.

• ▍Revenue ¥20.95B, −22,0% YoY
• ▍Operating income +17,5% YoY
• ▍Net income +169,1% YoY
• ▍Free cash flow +105,9% YoY
• ▍Net margin 4.0%

Revenue ¥26.85B, −22,6% YoY; Operating income −78,8% YoY.

• ▍Revenue ¥26.85B, −22,6% YoY
• ▍Operating income −78,8% YoY
• ▍Net income −91,8% YoY
• ▍Free cash flow −79,3% YoY
• ▍Net margin 1.2%

Revenue ¥34.67B, +14,5% YoY; Operating income +20,7% YoY.

• ▍Revenue ¥34.67B, +14,5% YoY
• ▍Operating income +20,7% YoY
• ▍Net income +18,2% YoY
• ▍Free cash flow +37,2% YoY
• ▍Net margin 11.0%