RESOL HOLDINGS Co., Ltd. (5261) AI Stock Analysis

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RESOL HOLDINGS Co., Ltd.

(TSE/TYO:5261)

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Rating:65Neutral

Price Target:JPY 9,030.00▲(17.73% Upside)

Action:reiterated

Date:11/06/26

RESOL HOLDINGS earns an above-average score driven primarily by improving fundamentals: strong revenue growth, materially wider margins, a sixfold rise in net income and steady deleveraging that has lifted ROE toward the mid-teens. Offsetting this are still-elevated debt levels and lumpy free cash flow in an asset-heavy, cyclical leisure business exposed to discretionary spending. Technically, the shares sit comfortably above all major moving averages, confirming a durable uptrend, though short-term momentum indicators suggest the stock is currently consolidating. Valuation at ~16.8x earnings is fair relative to the growth profile, while the 1.46% dividend yield adds only modest support.

Positive Factors

Profitability ExpansionThe substantial increase in net margin, alongside consistently high gross margins, indicates stronger earnings power across the operating model. This provides greater resilience against cost pressure and creates more internal capacity to maintain facilities, invest in services, and support shareholder returns over the next several quarters.

Negative Factors

Moderating Revenue GrowthAlthough revenue has grown over several years, the latest rate has slowed, indicating that expansion may be becoming harder to sustain at the previous pace. Persistent moderation could limit operating leverage, reduce the speed of earnings growth, and make future margin improvement more dependent on cost control.

RESOL HOLDINGS Co., Ltd. (5261) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 42.62B
Dividend Yield: 1.43%
Average Volume (3M): 4,675
Price to Earnings (P/E): 18.5
Beta (1Y): 0.47
Revenue Growth: 3.90%
EPS Growth: 2.03%
Country: Japan
Employees: 647
Sector: General
Sector Strength: 55
Industry: Travel Services

RESOL HOLDINGS Co., Ltd. Business Overview & Revenue Model

Company Description

RESOL HOLDINGS Co.,Ltd., through its subsidiaries, engages in the hotel and golf operation businesses in Japan. It operates through six segments: Hotel Operation Business, Golf Operation Business, RESOL NO MORI Business, Welfare Business, Renewable E...

How the Company Makes Money

RESOL HOLDINGS’ earnings are generated through operating revenue from its leisure/hospitality businesses and related facility management activities. Key revenue streams typically include (i) lodging and resort usage fees (room revenue and ancillary s...

RESOL HOLDINGS Co., Ltd. Financial Statement Overview

Summary

RESOL HOLDINGS shows a solid post-pandemic recovery: revenue has grown roughly 45% over five years to ¥28.4bn (¥30.4bn projected for FY2026), gross margins expanded from ~57% to ~71%, and net income rose more than sixfold to ¥1.95bn with ¥2.7bn guided for FY2026 (Income Statement: 72). The balance sheet is improving but remains the weakest link (58), with debt down to ¥15.2bn and debt-to-equity falling from 1.42x to 0.94x, yet leverage is still meaningful for an asset-heavy, cyclical leisure business. Cash flow (65) is consistently positive — ¥4.1bn operating and ¥2.1bn free cash flow in FY2025 — supporting deleveraging, though it has been volatile (FCF fell to ¥244m in FY2023) and conversion is only moderate due to heavy reinvestment. ROE improving to ~12% (14.8% projected) is a clear positive.

Income Statement

72Positive

Balance Sheet

58Neutral

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	30.68B	30.40B	28.40B	25.72B	22.06B	20.90B
Gross Profit	21.71B	21.59B	20.19B	17.83B	12.87B	11.69B
EBITDA	4.47B	4.60B	3.73B	2.88B	2.13B	2.31B
Net Income	2.54B	2.71B	1.95B	1.41B	722.79M	474.10M
Balance Sheet
Total Assets	44.19B	43.90B	43.48B	43.00B	42.66B	39.06B
Cash, Cash Equivalents and Short-Term Investments	3.93B	3.97B	4.10B	3.59B	5.22B	3.45B
Total Debt	12.73B	13.42B	15.20B	15.28B	17.79B	17.32B
Total Liabilities	25.84B	25.57B	27.30B	28.34B	29.14B	25.38B
Stockholders Equity	18.35B	18.31B	16.17B	14.64B	13.50B	13.46B
Cash Flow
Free Cash Flow	0	2.74B	2.14B	2.38B	243.90M	1.64B
Operating Cash Flow	0	4.76B	4.14B	3.61B	1.42B	2.29B
Investing Cash Flow	0	-1.64B	-2.01B	-1.28B	1.26B	-1.71B
Financing Cash Flow	0	-3.26B	-1.62B	-3.96B	-908.99M	-1.44B

RESOL HOLDINGS Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price7670.00

Price Trends

50DMA7643.80Positive

100DMA7648.30Positive

200DMA7604.37Positive

Market Momentum

MACD0.80Positive

RSI49.99Neutral

STOCH14.67Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5261, the sentiment is Positive. The current price of 7670.00 is below the 20-day moving average (MA) of 7705.00, above the 50-day MA of 7643.80, and above the 200-day MA of 7604.37, indicating a neutral trend. The MACD of 0.80 indicates Positive momentum. The RSI at 49.99 is Neutral, neither overbought nor oversold. The STOCH value of 14.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5261.

RESOL HOLDINGS Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:5261 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:9726	83Outperform	JPY 52.68B	6.53	―	0.52%	2.74%	-2.66%
JP:4681	74Outperform	JPY 385.01B	16.09	14.76%	1.95%	9.26%	11.17%
JP:6040	67Neutral	JPY 23.40B	10.62	―	1.01%	9.91%	34.53%
JP:5261	65Neutral	JPY 42.61B	18.53	―	1.43%	3.90%	2.03%
JP:9656	61Neutral	JPY 6.16B	11.50	―	2.52%	2.01%	26.87%
JP:3193	60Neutral	JPY 31.87B	-147.87	―	2.51%	10.56%	-23.43%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:5261 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5261	RESOL HOLDINGS Co., Ltd.	7670.00	1740.33	29.35%
JP:4681	Resorttrust	1793.50	-49.35	-2.68%
JP:3193	Eternal Hospitality Group Co.,Ltd.	1373.00	-201.16	-12.78%
JP:6040	Nippon Ski Resort Development Co., Ltd.	496.00	-16.05	-3.14%
JP:9656	Greenland Resort Company Limited	596.00	-10.96	-1.81%
JP:9726	KNT-CT Holdings Co., Ltd.	1928.00	475.00	32.69%

RESOL HOLDINGS Co., Ltd. Corporate Events

RESOL Holdings Sales Rise as Six-Month Profit Declines

Nov 5, 2026

RESOL Holdings, which operates in Japan’s leisure and hospitality sector through golf, resort, hotel and related real estate businesses, reported six-month net sales of ¥15.459 billion for the period ended September 30, 2026, up 2.3% year on year. Op...

RESOL HOLDINGS Posts Profit Decline but Keeps Annual Outlook and Boosts Dividend

Aug 6, 2026

RESOL HOLDINGS reported a modest 3.6% rise in first-quarter net sales to ¥7.94 billion, but profits declined as operating income fell 19.7% to ¥741 million and profit attributable to owners of parent dropped 21.3% to ¥636 million. Despite weaker earn...

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: Nov 06, 2026

RESOL HOLDINGS Co., Ltd. AI Stock Analysis