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RenetJapanGroup, Inc. (3556) AI Stock Analysis

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JP:3556

RenetJapanGroup, Inc.

(TSE/TYO:3556)

Select Model
Rating:53Neutral
Price Target:JPY 933.00â–²(1.74% Upside)
Action:reiterated
Date:10/27/26

Weak financial performance driven by high leverage and negative free cash flow is the dominant factor; positive technical momentum and fair valuation provide partial offset.

Positive Factors
Strong Gross MarginGross margin of 75.21% indicates the company retains substantial value after direct costs in its collection and reuse operations. If maintained, this cushion can support investment in service capacity and help absorb cost pressure, even though downstream profitability remains modest.
Negative Factors
High Financial LeverageDebt-to-equity of 4.64 and a low equity ratio show heavy reliance on debt financing. That structure can reduce resilience when earnings weaken, increase the importance of maintaining lender access, and constrain management’s ability to fund growth or absorb operating volatility from internal resources.

RenetJapanGroup, Inc. (3556) vs. iShares MSCI Japan ETF (EWJ)

-30%-20%-10%0%10%20%30%JP:3556-6.52%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 13.44B
Dividend Yield
―
Average Volume (3M)
204.01K
Price to Earnings (P/E)
16.8
Beta (1Y)
0.50
Revenue Growth
46.30%
EPS Growth
65.86%
Country
Japan
Employees
254
Sector
Consumer Cyclical
Sector Strength
61
Industry
Specialty Retail

RenetJapanGroup, Inc. Business Overview & Revenue Model

Company Description

RenetJapanGroup,Inc. engages in internet reuse, recycling, and social care businesses in Japan and internationally. The company offers used books, CDs, DVDs, video games, game software, branded goods, precious metals, and figurines under the NET OFF...

RenetJapanGroup, Inc. Financial Statement Overview

Summary

Mixed income statement with solid gross margins offset by revenue decline and low net margins; high debt-to-equity and low equity ratio raise leverage concerns; negative free cash flow signals cash conversion challenges.

Income Statement

45Neutral

Balance Sheet

30Negative

Cash Flow

35Negative
Financial statement breakdown
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue13.36B10.41B11.68B11.06B8.59B7.75B
Gross Profit8.98B7.83B8.68B7.90B6.23B5.68B
EBITDA1.62B858.96M-1.54B232.32M729.80M628.27M
Net Income796.66M497.43M-1.88B-352.28M500.85M200.40M
Balance Sheet
Total Assets10.53B7.04B8.45B14.79B9.62B8.46B
Cash, Cash Equivalents and Short-Term Investments2.99B310.62M880.80M2.22B1.60B1.86B
Total Debt7.25B4.71B6.53B10.87B6.17B5.30B
Total Liabilities8.80B5.95B8.12B12.74B7.41B6.67B
Stockholders Equity1.64B1.02B290.38M2.01B2.21B1.78B
Cash Flow
Free Cash Flow-72.31M-72.31M333.39M-1.05B-226.22M398.98M
Operating Cash Flow116.62M116.62M654.22M-712.31M-16.16M554.34M
Investing Cash Flow-200.34M-200.34M-1.33B-567.24M-338.27M-231.61M
Financing Cash Flow-243.54M-243.54M-876.95M2.03B-201.40M-1.48B

RenetJapanGroup, Inc. Technical Analysis

Technical Analysis SentimentPositive
Last Price917.00

Price Trends

50DMA826.82Positive
100DMA816.75Positive
200DMA891.94Positive

Market Momentum

MACD20.93Negative
RSI57.24Neutral
STOCH77.02Neutral

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 917.00 is above the 20-day moving average (MA) of 886.10, above the 50-day MA of 826.82, and above the 200-day MA of 891.94, indicating a bullish trend. The MACD of 20.93 indicates Negative momentum. The RSI at 57.24 is Neutral, neither overbought nor oversold. The STOCH value of 77.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3556.

RenetJapanGroup, Inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:3556 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3181JP:318174OutperformJPY 3.89B8.65―0.94%11.84%46.54%
JP:3093JP:309372OutperformJPY 45.26B12.82―2.40%15.52%22.34%
JP:7685JP:768563NeutralJPY 157.50B17.79―0.51%57.65%100.02%
JP:9270JP:927063NeutralJPY 19.04B5.78―3.34%25.71%349.09%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
JP:9278JP:927861NeutralJPY 45.18B14.86―1.39%10.64%96.47%
JP:3556JP:355653NeutralJPY 13.99B16.82――46.30%65.86%

* Consumer Cyclical Sector Average

Performance Comparison

0%50%100%150%JP:3556JP:3093JP:3181JP:7685JP:9270JP:9278Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:3556 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:3556RenetJapanGroup, Inc.917.00-98.00-9.66%
JP:3093Treasure Factory Co., Ltd.1876.00269.1616.75%
JP:3181KAITORI OKOKU CO., LTD.1060.00225.5427.03%
JP:7685BuySell Technologies Co., Ltd.2433.00562.6930.09%
JP:9270Valuence Holdings, Inc.1347.00436.6647.97%
JP:9278BOOKOFF GROUP HOLDINGS LIMITED2595.001246.2992.41%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 27, 2026