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

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Koyou Rentia Co., Ltd.

(TSE/TYO:7081)

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Rating:73Outperform

Price Target:JPY 1,407.00▲(12.47% Upside)

Action:reiterated

Date:11/05/26

The score is driven primarily by strong financial performance (notably balance sheet de-risking and improved operating profitability) and attractive valuation (low P/E with a dividend). These positives are partially offset by weak technicals, with price below major moving averages and bearish momentum indicators.

Positive Factors

Deleveraged balance sheetThe sharp reduction in leverage materially lowers financial risk and improves flexibility. A debt-to-equity ratio near zero should reduce financing pressure, support resilience through changing demand, and leave more capacity for asset investment or shareholder returns.

Negative Factors

Modest net profitabilityThe modest net margin shows that a meaningful portion of operating profit does not reach the bottom line. Its failure to recover to the 2021 level suggests continuing below-operating-line pressure, which may limit retained cash generation and reduce earnings resilience.

Koyou Rentia Co., Ltd. (7081) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 13.80B
Dividend Yield: 2.88%
Average Volume (3M): 4,208
Price to Earnings (P/E): 7.2
Beta (1Y): 0.22
Revenue Growth: 1.07%
EPS Growth: -22.61%
Country: Japan
Employees: 893
Sector: General
Sector Strength: 55
Industry: Rental & Leasing Services

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

Company Description

Koyou Rentia Co., Ltd., an international firm founded in 1970 and headquartered in Tokyo, Japan, operates across three core business areas: equipment rentals, space design, and product sales. The company's rental division supplies a wide range of equ...

How the Company Makes Money

Koyou Rentia generates revenue primarily by renting out equipment and charging customers recurring rental fees for the duration of use. Key revenue streams typically include (1) rental fees based on contract length and item type, (2) service-related...

Koyou Rentia Co., Ltd. Financial Statement Overview

Summary

Fundamentals are solid overall: steady revenue growth with a 2025 step-up, improved operating profitability (EBIT margin ~8.7%, EBITDA margin ~15.1%), and a much stronger, de-levered balance sheet (debt-to-equity ~0.03). Offsetting factors are modest net margin (~5.6%) and historically volatile free cash flow despite a strong 2025 rebound.

Income Statement

74Positive

Balance Sheet

88Very Positive

Cash Flow

63Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	34.43B	34.70B	31.86B	30.96B	26.19B	23.99B
Gross Profit	14.60B	14.31B	12.62B	12.53B	11.49B	9.96B
EBITDA	5.29B	5.25B	4.38B	4.39B	3.80B	4.02B
Net Income	1.92B	1.94B	1.55B	1.60B	1.25B	1.53B
Balance Sheet
Total Assets	19.97B	20.53B	18.55B	19.56B	17.44B	15.45B
Cash, Cash Equivalents and Short-Term Investments	3.90B	3.56B	2.10B	2.93B	2.38B	2.11B
Total Debt	289.33M	323.69M	1.25B	1.87B	2.97B	2.62B
Total Liabilities	6.71B	8.16B	7.49B	9.78B	9.20B	8.23B
Stockholders Equity	13.26B	12.63B	11.06B	9.78B	8.24B	7.22B
Cash Flow
Free Cash Flow	0	3.04B	221.40M	1.57B	1.11B	1.87B
Operating Cash Flow	0	5.05B	2.35B	3.88B	3.04B	3.26B
Investing Cash Flow	0	-2.11B	-2.25B	-1.96B	-2.81B	-1.99B
Financing Cash Flow	0	-1.57B	-925.32M	-1.37B	32.96M	-1.27B

Koyou Rentia Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1251.00

Price Trends

50DMA1282.86Negative

100DMA1299.41Negative

200DMA1303.37Negative

Market Momentum

MACD-10.94Positive

RSI33.29Neutral

STOCH36.85Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7081, the sentiment is Negative. The current price of 1251.00 is below the 20-day moving average (MA) of 1270.50, below the 50-day MA of 1282.86, and below the 200-day MA of 1303.37, indicating a bearish trend. The MACD of -10.94 indicates Positive momentum. The RSI at 33.29 is Neutral, neither overbought nor oversold. The STOCH value of 36.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7081.

Koyou Rentia Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7081 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:9699	75Outperform	JPY 123.64B	9.94	―	3.03%	0.17%	3.63%
JP:7081	73Outperform	JPY 14.03B	7.24	―	2.88%	1.07%	-22.61%
JP:5834	61Neutral	JPY 40.61B	5.93	―	4.71%	47.13%	16.70%
JP:8596	59Neutral	JPY 33.41B	7.24	―	4.07%	16.65%	29.40%
JP:8424	57Neutral	JPY 366.21B	10.00	―	4.00%	21.37%	37.39%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:7081 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7081	Koyou Rentia Co., Ltd.	1251.00	47.67	3.96%
JP:5834	SBI Leasing Services Co.,Ltd.	2550.00	107.86	4.42%
JP:8424	Fuyo General Lease Co., Ltd.	4127.00	263.71	6.83%
JP:8596	Kyushu Leasing Service Co., Ltd.	1500.00	258.23	20.80%
JP:9699	NISHIO HOLDINGS CO. LTD.	4495.00	346.21	8.34%
JP:372A	Rent Corporation	6160.00	624.83	11.29%

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 05, 2026

Koyou Rentia Co., Ltd. AI Stock Analysis