Koyou Rentia Co., Ltd. (7081) AI Stock Analysis

• Market Cap: ¥12.73B
• Dividend Yield: 3.38%
• Average Volume (3M): 1.97K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.15
• Revenue Growth: 1.58%
• EPS Growth: 28.43%
• Country: JP
• Employees: 893
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 55.78
• Shares Outstanding: 11,066,600
• 10 Day Avg. Volume: 2,130
• 30 Day Avg. Volume: 1,970
• PEG Ratio: -1.54
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 52.62
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥1,186.00 ▲(0.34% Upside)

Koyou Rentia Co., Ltd. receives a strong overall score driven by its solid financial performance and attractive valuation. While technical indicators suggest a neutral to bearish trend, the company's low P/E ratio and high dividend yield highlight its potential value. Concerns about profitability margins and cash flow volatility are notable risks.

Koyou Rentia Co., Ltd. Business Overview & Revenue Model

Company Description

Koyou Rentia Co., Ltd. engages in the rental-related, space design, and product sales business in Japan and internationally. The company is involved in the renting of equipment to companies in construction site offices, corporate event venues, and business offices; handling of phone line extensions, partitions, and interior construction works; and sale of used rental products, as well as supports the proper disposal of leftover items following office relocations and closures. It also engages in the design, planning, and construction of condominium galleries; rental of equipment, interior coordination of model rooms, and sale of furniture; offers redesign services for condo buyers; and sale of office furniture, office equipment, and other fixtures for government agencies and companies. Koyou Rentia Co., Ltd. was incorporated in 1970 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Koyou Rentia Co., Ltd. generates revenue primarily through the rental fees charged for its equipment and services. The company maintains a diverse inventory of rental products that cater to different industries, ensuring a steady demand. Key revenue streams include long-term rentals for construction projects, short-term leases for events, and emergency rentals for disaster relief efforts. Additionally, Koyou Rentia collaborates with construction companies and event organizers to secure ongoing rental agreements, enhancing its revenue stability and growth potential.

Koyou Rentia Co., Ltd. Financial Statement Overview

Summary

Koyou Rentia Co., Ltd. exhibits a strong financial position with consistent revenue growth and efficient operations. The company has managed its debt effectively, resulting in a stable balance sheet. However, concerns regarding profitability margins and free cash flow volatility slightly dampen the overall financial performance.

Income Statement

Koyou Rentia Co., Ltd. has demonstrated consistent revenue growth over the years, with a notable increase from 2020 to 2024. The gross profit margin has remained stable, indicating effective cost management. However, the net profit margin has slightly decreased in 2024 compared to 2023, suggesting some pressure on profitability. The EBIT and EBITDA margins are healthy, reflecting strong operational efficiency.

Balance Sheet

The company's balance sheet shows a solid equity base with a rising equity ratio, indicating financial stability. The debt-to-equity ratio has improved over the years, reflecting effective debt management. However, the return on equity has slightly declined, which may indicate challenges in generating returns on shareholder investments.

Cash Flow

Koyou Rentia's cash flow statement reveals fluctuating free cash flow growth, with a significant decrease in 2024 compared to 2023. The operating cash flow to net income ratio remains strong, indicating good cash generation from operations. However, the free cash flow to net income ratio has shown volatility, which could pose risks to liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.09B	31.86B	30.96B	26.19B	23.99B	21.56B
Gross Profit	13.26B	12.62B	12.53B	11.49B	9.96B	8.37B
EBITDA	4.73B	4.26B	4.39B	3.80B	4.02B	2.85B
Net Income	1.79B	1.55B	1.60B	1.25B	1.53B	875.42M
Balance Sheet
Total Assets	19.03B	18.31B	19.26B	17.20B	15.35B	14.00B
Cash, Cash Equivalents and Short-Term Investments	2.95B	2.10B	2.93B	2.38B	2.11B	2.11B
Total Debt	583.43M	1.25B	1.87B	2.97B	2.62B	3.68B
Total Liabilities	7.39B	7.24B	9.49B	8.96B	8.13B	8.17B
Stockholders Equity	11.64B	11.06B	9.77B	8.24B	7.22B	5.83B
Cash Flow
Free Cash Flow	0.00	221.40M	1.57B	1.11B	1.87B	383.80M
Operating Cash Flow	0.00	2.35B	3.88B	3.04B	3.26B	1.71B
Investing Cash Flow	0.00	-2.25B	-1.96B	-2.81B	-1.99B	-1.35B
Financing Cash Flow	0.00	-925.32M	-1.37B	32.96M	-1.27B	-158.22M

Koyou Rentia Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1182.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7081, the sentiment is Positive. The current price of 1182 is above the 20-day moving average (MA) of 1163.90, above the 50-day MA of 1164.30, and above the 200-day MA of 1081.83, indicating a bullish trend. The MACD of 3.33 indicates Negative momentum. The RSI at 56.74 is Neutral, neither overbought nor oversold. The STOCH value of 85.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7081.

Koyou Rentia Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9908	―	¥24.13B	8.80	―	4.27%	14.39%	-4.41%
9763	―	¥11.25B	8.55	―	3.95%	9.16%	6.01%
7081	―	¥12.73B	7.14	―	3.38%	1.58%	28.43%
7065	―	¥5.55B	16.51	―	3.47%	-0.71%	-43.76%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2445	―	¥16.63B	15.83	―	3.98%	0.02%	-36.92%
9223	―	¥7.54B	59.05	―	0.33%	7.34%	-162.02%