RenetJapanGroup, Inc. (3556) AI Stock Analysis

• Market Cap: ¥8.08B
• Dividend Yield: N/A
• Average Volume (3M): 164.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: -8.69%
• EPS Growth: 41.07%
• Country: JP
• Employees: 369
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Specialty Retail
• EPS (TTM): 8.58
• Shares Outstanding: 14,602,600
• 10 Day Avg. Volume: 278,570
• 30 Day Avg. Volume: 164,200
• PEG Ratio: 0.09
• Price to Book (P/B): 2.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -27.76
• 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: 57 Neutral
• Price Target: ¥595.00 ▲(7.01%Upside)

RenetJapanGroup, Inc.'s stock score is largely influenced by its financial challenges, including negative profitability and cash flow issues, which weigh heavily on the score. However, strong technical indicators suggest bullish market momentum. The stock's unattractive valuation further impacts the score negatively. The absence of earnings call data and corporate events has no influence on the score due to their exclusion.

RenetJapanGroup, Inc. Business Overview & Revenue Model

Company Description

RenetJapanGroup, Inc. (3556) operates in the recycling and reuse industry, focusing on the collection and recycling of electronics and other household items. The company provides comprehensive services including collection, recycling, and resale of used goods, thereby promoting a circular economy. Its core products and services include the management of recycling facilities, logistics for collection, and an online platform for resale and auction of refurbished items.

How the Company Makes Money

RenetJapanGroup, Inc. generates revenue through several key streams. The primary source of income is the collection and recycling of electronic waste and other household items, which is facilitated by partnerships with municipalities and corporations for waste management services. The company monetizes these activities by reselling refurbished goods through its online platform and auctions, extracting value from items that would otherwise be discarded. Additionally, the company may earn revenue from recycling fees charged to businesses and municipalities, as well as from selling raw materials recovered during the recycling process. Strategic partnerships and collaborations with local governments and businesses enhance its revenue potential by expanding its reach and capacity in waste management and recycling operations.

RenetJapanGroup, Inc. Financial Statement Overview

Summary

RenetJapanGroup, Inc. faces significant financial challenges, with negative profitability and cash flow issues. The high leverage and low equity base raise concerns about financial stability. Despite a strong gross profit margin, the company suffers from inefficiencies and high operating costs.

Income Statement

RenetJapanGroup, Inc. exhibits declining revenue and profitability metrics. The TTM data shows a negative EBIT and net income, indicating operational challenges. The gross profit margin remains relatively strong at 75.2%, but both EBIT and EBITDA margins are negative, reflecting inefficiencies and high operating costs. The net profit margin is also negative, suggesting poor bottom-line performance.

Balance Sheet

The company has a high debt-to-equity ratio of approximately 9.77, indicating significant leverage and potential financial risk. Return on equity is negative, highlighting poor profitability relative to shareholder investments. The equity ratio is low at around 7.3%, pointing to a heavy reliance on debt financing, which may affect financial stability.

Cash Flow

Cash flow metrics are concerning, with zero free cash flow in the TTM period and a negative operating cash flow in previous years. The operating cash flow to net income and free cash flow to net income ratios are not calculable due to zero or negative values, indicating liquidity issues and limited cash generation from operations.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
11.46B	11.68B	11.06B	8.59B	7.75B	6.84B
	Gross Profit
8.61B	8.68B	7.90B	6.23B	5.68B	4.44B
	EBIT
-797.14M	-1.26B	73.74M	500.61M	518.30M	214.06M
	EBITDA
-1.05B	-1.54B	232.32M	729.80M	628.27M	-1.27B
	Net Income Common Stockholders
-1.48B	-1.88B	-352.28M	500.85M	200.40M	-1.60B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
700.00M	880.00M	2.22B	1.73B	2.07B	3.14B
	Total Assets
7.08B	8.45B	14.79B	9.62B	8.46B	9.50B
	Total Debt
5.06B	6.53B	10.87B	6.21B	5.30B	6.40B
	Net Debt
4.36B	5.65B	8.65B	4.62B	3.44B	3.50B
	Total Liabilities
6.51B	8.12B	12.74B	7.41B	6.67B	7.81B
	Stockholders Equity
518.00M	290.38M	2.01B	2.21B	1.78B	1.49B
Cash Flow		Free Cash Flow
0.00	333.39M	-1.05B	-226.22M	398.98M	-1.04B
	Operating Cash Flow
0.00	654.22M	-712.31M	-16.16M	554.34M	-898.31M
	Investing Cash Flow
0.00	-1.33B	-567.24M	-338.27M	-231.61M	-193.56M
	Financing Cash Flow
0.00	-876.95M	2.03B	-201.40M	-1.48B	3.07B

RenetJapanGroup, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 556.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3556, the sentiment is Positive. The current price of 556 is above the 20-day moving average (MA) of 461.00, above the 50-day MA of 354.26, and above the 200-day MA of 294.21, indicating a bullish trend. The MACD of 62.16 indicates Negative momentum. The RSI at 79.14 is Negative, neither overbought nor oversold. The STOCH value of 88.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3556.

RenetJapanGroup, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3190	70 Outperform	¥4.19B	12.53		1.68%	4.34%	63.23%
3396	67 Neutral	¥5.50B	43.73		1.81%	-0.53%	―
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
3172	62 Neutral	¥5.04B	15.75		3.38%	-10.86%	-28.97%
3726	58 Neutral	¥7.25B	―		―	5.11%	15.19%
3556	57 Neutral	¥8.08B	―		―	-8.69%	41.07%
3059	47 Neutral	¥4.15B	262.06		2.35%	-2.66%	-4452.83%