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

• Market Cap: ¥11.82B
• Dividend Yield: 2.81%
• Average Volume (3M): 4.25K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.15
• Revenue Growth: 2.12%
• EPS Growth: -6.76%
• Country: JP
• Employees: 893
• Sector: Industrials
• Sector Strength: 91
• Industry: Rental & Leasing Services
• EPS (TTM): 23.49
• Shares Outstanding: 11,053,800
• 10 Day Avg. Volume: 2,480
• 30 Day Avg. Volume: 4,246
• PEG Ratio: -1.94
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

Koyou Rentia Co., Ltd. presents a compelling investment opportunity with strong financial stability, robust valuation metrics, and moderate market momentum. Although there are minor declines in profitability and cash flow efficiency, the company's low leverage and consistent revenue growth highlight its strong position in the Rental & Leasing Services industry.

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

Company Description

Koyou Rentia Co., Ltd. (7081) is a company that operates in the rental and leasing services sector, focusing on providing a wide range of rental solutions for both individual and corporate clients. The company specializes in the leasing of vehicles, machinery, and various equipment, offering flexible rental plans and efficient service to meet diverse customer needs.

How the Company Makes Money

Koyou Rentia Co., Ltd. generates revenue primarily through its rental and leasing services. The company earns income by charging rental fees for vehicles, machinery, and equipment leased to clients. These fees can be structured as daily, weekly, or monthly payments, depending on the terms of the lease agreements. Additionally, the company may offer maintenance and support services as part of its rental packages, thereby enhancing its revenue streams. Key partnerships with manufacturers and suppliers can also contribute to its earnings by allowing access to a wide range of high-quality assets for lease. The company may also engage in sales of used equipment as part of its revenue diversification strategy.

Koyou Rentia Co., Ltd. Financial Statement Overview

Summary

Koyou Rentia Co., Ltd. exhibits a strong financial profile characterized by consistent revenue growth, robust margins, and a solid balance sheet with low leverage. Despite these strengths, slight declines in net profitability and cash flow efficiency suggest areas for potential improvement.

Income Statement

Koyou Rentia Co., Ltd. demonstrates a solid financial performance with consistent revenue growth, as evidenced by a Revenue Growth Rate of 2.91% in 2024. The company's Gross Profit Margin and EBITDA Margin remain robust at approximately 39.6% and 13.37% in 2024, respectively, indicating strong operational efficiency. However, there is a slight decline in Net Profit Margin from 5.18% in 2023 to 4.86% in 2024, reflecting competitive pressures or increased costs. Overall, the income statement reflects a stable and growing company with solid profitability metrics, albeit with slight margin compression.

Balance Sheet

The balance sheet reveals a strong equity position with an Equity Ratio of 60.43% in 2024, indicating financial stability. The Debt-to-Equity Ratio has improved to 0.11 in 2024 from 0.19 in 2023, reflecting effective debt management. However, the Return on Equity decreased slightly to 14.00% in 2024 from 16.41% in 2023, suggesting a minor decline in profitability relative to equity. Overall, the balance sheet shows a stable financial structure with low leverage and solid equity support, though some profitability metrics have seen a modest dip.

Cash Flow

Koyou Rentia's cash flow statement shows a decrease in Operating Cash Flow to Net Income Ratio from 2.42 in 2023 to 1.51 in 2024, indicating reduced cash flow efficiency. The Free Cash Flow improved to 222 million JPY in 2024 from 156.6 million JPY in 2023, reflecting better cash management. However, the Free Cash Flow to Net Income Ratio decreased to 0.14 in 2024, highlighting potential challenges in converting income to free cash flow. Overall, while cash flow generation remains positive, there are indicators of decreased cash efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
31.86B	30.96B	26.19B	23.99B	21.56B
	Gross Profit
12.62B	12.53B	11.49B	9.96B	8.37B
	EBIT
2.08B	2.44B	2.43B	2.52B	1.38B
	EBITDA
4.26B	4.27B	3.80B	4.02B	2.85B
	Net Income Common Stockholders
1.55B	1.60B	1.25B	1.53B	875.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.10B	2.93B	2.38B	2.11B	2.11B
	Total Assets
18.31B	19.26B	17.20B	15.35B	14.00B
	Total Debt
1.25B	1.87B	2.97B	2.62B	3.68B
	Net Debt
-858.22M	-1.06B	593.78M	506.99M	1.57B
	Total Liabilities
7.24B	9.49B	8.96B	8.13B	8.17B
	Stockholders Equity
11.06B	9.77B	8.24B	7.22B	5.83B
Cash Flow		Free Cash Flow
221.40M	1.57B	1.11B	1.87B	383.80M
	Operating Cash Flow
2.35B	3.88B	3.04B	3.26B	1.71B
	Investing Cash Flow
-2.25B	-1.96B	-2.81B	-1.99B	-1.35B
	Financing Cash Flow
-925.32M	-1.37B	32.96M	-1.27B	-158.22M

Koyou Rentia Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1072.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1072 is above the 20-day moving average (MA) of 1061.35, above the 50-day MA of 1044.92, and above the 200-day MA of 1041.50, indicating a bullish trend. The MACD of 6.89 indicates Negative momentum. The RSI at 54.39 is Neutral, neither overbought nor oversold. The STOCH value of 74.47 is Neutral, 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
2413	80 Outperform	¥1.34T	33.08	10.91%	1.01%	19.26%	-10.58%
7081	78 Outperform	¥11.82B	7.96		2.81%	2.12%	-6.76%
9719	74 Outperform	¥1.34T	29.74		1.66%	24.10%	11.27%
2175	74 Outperform	¥119.52B	19.24		2.09%	12.93%	-14.89%
6098	69 Neutral	¥12.16T	30.91	22.31%	0.28%	4.09%	13.88%
Sector *	64 Neutral	$4.43B	12.01	5.16%	249.23%	4.03%	-11.73%
4316	46 Neutral	¥1.25B	24.17		―	7.89%	-300.06%