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Mercuries F&B Co (7705) Fair Value & Analysis

Consumer Cyclical · TW · Market cap 2.0B TWD

MF Mercuries F&B Co 7705 · TW
Price31.20 TWD
Fair Value34.59 TWD
Upside+10.9%
Quality51/100
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Healthy Growth
Thin margins · 2.2% net margin
Low debt · generates free cash flow
5.25% dividend yield
Ranks above peers (11/14)
Narrow moat 32/100
Evidence: High Range 25.54 TWD – 43.64 TWD Share as image

Fair value as of: Jul 21, 2026

From 26 valuation models · updated 20 days ago

Share price +2.3% over the past month.

A solid business, screening 11% undervalued on our models.

What matters now

  • Our model range runs from 25.54 TWD (bear) to 43.64 TWD (bull), base 34.59 TWD. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 51/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (3 years)

92.14 TWD 28.88 TWD Fair Value 34.59 TWD Dec 2023 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 21, 2026.

How to read this chart

32‑month range 28.88 TWD – 92.14 TWD · fair‑value band 25.54 TWD – 43.64 TWD · the 31.20 TWD price screens below the 34.59 TWD fair value. Dashed = 300-day average. As of Jul 21, 2026.

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Analysis

Mercuries F&B Co (7705) currently trades at 31.20 TWD, while our model-based Fair Value estimate is 34.59 TWD, implying the stock looks roughly 10.9% undervalued today. The Quality Score stands at 51/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Mercuries F&B Co generated revenue of 6.6B TWD at a net margin of 2.2%. Revenue grew 6.2% year over year. It earns a return on equity of 9.1%. Net debt stands at 107M TWD. Fundamentals as of Jul 21, 2026

Our scenario range runs from 25.54 TWD (bear case) to 43.64 TWD (bull case); at 31.20 TWD, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 39% below its 52-week high and 3% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -47% fair-value upside, at 11%, 7705 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF 99.76 TWD 146.14 TWD 211.36 TWD 80
Residual Income 19.52 TWD 20.97 TWD 23.19 TWD 76
Rev-Margin DCF 50.21 TWD 66.36 TWD 86.01 TWD 74
All 26 models by family
DCF Models
FCF DCF 98.98 TWD 152.80 TWD 234.14 TWD 38
Owner Earnings 89.32 TWD 137.56 TWD 210.48 TWD 31
5Y Revenue Exit 50.21 TWD 65.00 TWD 82.40 TWD 39
5Y EBITDA Exit 115.04 TWD 189.07 TWD 276.85 TWD 41
5Y P/E Exit 55.54 TWD 75.21 TWD 95.37 TWD 38
10Y Revenue Exit 66.80 TWD 84.88 TWD 107.17 TWD 36
10Y EBITDA Exit 108.13 TWD 170.14 TWD 255.39 TWD 37
10Y P/E Exit 70.70 TWD 91.90 TWD 117.06 TWD 35
Earnings-Based
Graham-Dodd 13.08 TWD 45.36 TWD 60.94 TWD 54
Lynch FV 10.51 TWD 15.02 TWD 19.53 TWD 50
PEG = 1.0 10.51 TWD 15.02 TWD 19.53 TWD 46
EPV 20.25 TWD 22.53 TWD 24.50 TWD 59
Dividend Discount
Gordon GGM 33.37 TWD 66.50 TWD 100.70 TWD 70
DDM Multi-Stage 33.37 TWD 57.03 TWD 70.20 TWD 61
Multiples
P/E Multiple 28.85 TWD 38.46 TWD 48.08 TWD 63
P/S Multiple 24.52 TWD 32.70 TWD 40.87 TWD 58
P/B Multiple 24.52 TWD 32.70 TWD 40.87 TWD 55
EV/EBIT 32.96 TWD 42.01 TWD 51.06 TWD 53
EV/EBITDA 137.67 TWD 181.63 TWD 225.58 TWD 54
EV/Revenue 24.10 TWD 31.95 TWD 39.79 TWD 43
Asset-Based
NCAV (Graham) 11.70 TWD 15.68 TWD 23.41 TWD 50
Growth DCF
Growth DCF 99.76 TWD 146.14 TWD 211.36 TWD 80
Rev-Margin DCF 50.21 TWD 66.36 TWD 86.01 TWD 74
Economic Profit
Residual Income 19.52 TWD 20.97 TWD 23.19 TWD 76
ROIC Compounder 20.25 TWD 22.53 TWD 25.83 TWD 72
Growth Earnings
Growth-Adj P/E 24.95 TWD 35.64 TWD 46.33 TWD 68

Widest divergence: DCF Models (91.90 TWD) versus Earnings-Based (15.02 TWD). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 6.6B TWD
Revenue growth (YoY) +6.2%
Net margin 2.2%
Return on equity 9.1%
Free cash flow 554M TWD FY2025
P/E ratio 16.4
More key figures
Operating margin 1.9%
EPS (TTM) 1.92 TWD
Dividend yield 5.2%
EPS growth (YoY) +676%
Net debt 107M TWD FY2025

Figures from reported company fundamentals · as of Jul 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 51/100

Of which business quality 54 · Market factors (momentum, volatility) 41

Profitability 58
Margins and returns on capital today
Quality Growth 26
Are margins and returns improving?
Cashflow 60
Earnings quality: real cash, not paper profit
Fin. Strength 53
Balance sheet, leverage, solvency risk
Investment 56
Disciplined investing over empire-building
Low Volatility 98
Calm price path (market factor)
Momentum 24
Price trend over the last 3–12 months (market factor)
52W Momentum 7
Distance to the 52-week high (market factor)
Net Issuance 66
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Mercuries F&B Co., Ltd., together with its subsidiaries, operates restaurants in Taiwan and Japan. The company engages in ready-to-eat meal manufacturing; food and beverage retail; consulting services; provision of online ordering, delivery services, and self-service ordering kiosks; electronic payment solutions; and membership management and development.

Full company description

Mercuries F&B Co., Ltd., together with its subsidiaries, operates restaurants in Taiwan and Japan. The company engages in ready-to-eat meal manufacturing; food and beverage retail; consulting services; provision of online ordering, delivery services, and self-service ordering kiosks; electronic payment solutions; and membership management and development. It offers its products and services under the Sanshang Qiaofu, Napoli Pizza, Fusheng Pavilion, San Shang Xian Wu Donburi, Shinagawa Ran, BANCO sticks, Sanshang Fried Chicken, Qiaofu PLUS, Tiger Dumplings, Cloud Kitchen, and Curry brand names. The company was formerly known as Napoli Co., Ltd. and changed its name to Mercuries F&B Co., Ltd. in January 2019. Mercuries F&B Co., Ltd. was founded in 1964 and is based in Taipei, Taiwan. Mercuries F&B Co., Ltd. is a subsidiary of Mercuries & Associates Holding, Ltd.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Mercuries F&B Co reported revenue of 6.5B TWD in FY2025 versus 4.8B TWD in FY2021, a compound +8.1%/yr. Reported net income was 127M TWD in FY2025, compounding −14.0%/yr from FY2021.

Growth Quality 76/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
6.5B TWD
Latest YoY
+3.3%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.9%
Revenue +8.1%/yr
FY21 4.8B TWD
FY22 5.2B TWD
FY23 5.8B TWD
FY24 6.3B TWD
FY25 6.5B TWD
Net income −14.0%/yr
FY21 232M TWD
FY22 154M TWD
FY23 188M TWD
FY24 250M TWD
FY25 127M TWD

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Cite: Fair Value Calculator (2026). "Mercuries F&B Co Fair Value". https://www.fairvalue-calculator.com/stock/7705

Peer Group

Restaurants · 227 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 51 · Below median
Fair Value upside +11% · Above median
Return on equity (TTM) 9% · Above median
Return on assets 3% · Below median
Net margin (TTM) 2% · Above median
Operating margin (TTM) 2% · Below median
Revenue growth 6% · Above median
Dividend yield (TTM) 5.3% · Top 25%

Valuation Multiples vs Restaurants median · lower = cheaper

P/E (TTM) 15.9× · Cheaper than median
P/B 1.31× · Cheaper than median
P/S (TTM) 0.31× · Cheaper than median
P/FCF 0.1× · Cheaper than 75% of peers
EV/EBITDA 3.5× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 48 · sector 28
FUTURE 31 · sector 20
PAST 36 · sector 16
HEALTH 100 · sector 97
DIVIDEND 100 · sector 58

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Restaurants stocks, each showing price versus our Fair Value estimate (as of Jul 21, 2026).

Stock Price Fair Value vs Fair Value
McDonald's Corporation MCDS C$24.01 C$10.84 -55%
Starbucks Corporation SBUX $105.49 $35.83 -66%
Chipotle Mexican Grill, Inc CMG $34.63 $18.43 -47%
Yum! Brands, Inc YUM $163.54 $59.66 -64%
Restaurant Brands International Inc QSR C$104.19 C$36.37 -65%
Darden Restaurants, Inc DRI $195.74 $173.68 -11%
Yum China Holdings YUMC $43.90 $55.10 +26%
Texas Roadhouse, Inc TXRH $197.03 $104.89 -47%
Dutch Bros Inc BROS $68.36 $12.80 -81%
Domino's Pizza, Inc DPZ $322.18 $231.96 -28%

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Frequently asked questions

Is Mercuries F&B Co (7705) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of 34.59 TWD versus a price of 31.20 TWD, about +11% (undervalued).
What is the fair value of 7705?
Our model-based fair value for Mercuries F&B Co is 34.59 TWD (as of Jul 21, 2026), built from audited fundamentals. The current price is 31.20 TWD.
What is the quality score of 7705?
Mercuries F&B Co has a Quality Score of 51/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Mercuries F&B Co (7705)?
Mercuries F&B Co reported trailing-twelve-month revenue of about 6.6B TWD (latest available figure, as of Jul 21, 2026).
What is the net profit margin of 7705?
The net profit margin of Mercuries F&B Co is about 2.2%, meaning it keeps roughly 2.2% of revenue as net income. Based on the latest reported figures.
Does Mercuries F&B Co pay a dividend?
Mercuries F&B Co currently shows a dividend yield of about 5.16% relative to its recent price (as of Jul 21, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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