RISE Inc. (8836) AI Stock Analysis

• Market Cap: ¥2.88B
• Dividend Yield: N/A
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: 9.74%
• EPS Growth: 1.26%
• Country: JP
• Employees: 12
• Sector: Real Estate
• Sector Strength: 63
• Industry: Real Estate - Services
• EPS (TTM): -0.49
• Shares Outstanding: 96,013,275
• 10 Day Avg. Volume: 1,273,360
• 30 Day Avg. Volume: 1,722,306
• PEG Ratio: 0.29
• Price to Book (P/B): 0.19
• 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

• Rating: 60 Neutral
• Price Target: ¥32.00 ▲(10.34%Upside)

RISE Inc.'s financial recovery and strong balance sheet are key strengths, driving its stock score. However, the negative P/E ratio, lack of dividend yield, and bearish short-term technical indicators are significant concerns. The stock's long-term potential is balanced by short-term bearish signals and valuation challenges.

RISE Inc. Business Overview & Revenue Model

Company Description

RISE Inc. (8836) is a company engaged in providing comprehensive services and solutions across various sectors. The company focuses on delivering innovative products and services that cater to the evolving needs of its clients, leveraging advanced technologies and expertise to enhance efficiency and effectiveness across industries.

How the Company Makes Money

RISE Inc. generates revenue through a diverse range of services and solutions that it offers to its clients. This includes consultancy services, technology implementation, and managed services. The company partners with leading technology providers and industry experts to deliver customized solutions, ensuring high-quality and value-driven outcomes for its clients. Revenue streams primarily include service fees, subscription models, and long-term contracts with organizations seeking to optimize their operations through RISE Inc.'s offerings.

RISE Inc. Financial Statement Overview

Summary

RISE Inc. shows strong cost management and a solid balance sheet with minimal leverage, providing financial stability. However, challenges include negative net income, zero cash flow metrics, and inconsistent revenue growth, indicating risks in profitability and cash generation.

Income Statement

RISE Inc. shows mixed performance in its income statement. The TTM Gross Profit Margin is strong at 84.04%, indicating effective cost management. However, the company is struggling with profitability as reflected by the negative Net Profit Margin of -1.86% for TTM. Revenue growth is inconsistent, with a 7.74% increase from 2023 to 2024, yet past fluctuations suggest volatility. The EBIT Margin is 12.77% for TTM, demonstrating moderate operational efficiency, but the persistent negative net income remains a concern.

Balance Sheet

The balance sheet of RISE Inc. is robust, highlighted by a low Debt-to-Equity Ratio of 0.02, indicating minimal financial leverage. The Return on Equity is negative at -0.34% for TTM, due to negative net income, which is a concern. The Equity Ratio is high at 90.80%, reflecting strong equity financing and low leverage, providing stability and a solid foundation for growth.

Cash Flow

RISE Inc.'s cash flow statement reveals significant challenges. Operating Cash Flow is zero for the TTM, reflecting cash generation issues. The Free Cash Flow is also zero, showing an inability to generate surplus cash for reinvestment. Historical cash flow data shows high volatility, indicating potential liquidity risks. The company's ability to convert net income to cash remains a critical concern.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
376.00M	349.00M	339.00M	362.00M	359.00M	294.00M
	Gross Profit
316.00M	291.00M	282.00M	298.00M	290.00M	236.00M
	EBIT
48.00M	15.00M	3.00M	-6.00M	-14.00M	-50.00M
	EBITDA
83.25M	62.00M	52.00M	49.00M	38.00M	3.00M
	Net Income Common Stockholders
-7.00M	-11.00M	24.00M	-53.00M	-52.00M	28.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
883.00M	886.00M	879.00M	752.00M	780.00M	644.00M
	Total Assets
2.40B	2.30B	2.39B	2.40B	2.55B	2.56B
	Total Debt
115.00M	75.00M	107.00M	140.00M	172.00M	204.00M
	Net Debt
-768.00M	-811.00M	-772.00M	-612.00M	-608.00M	-440.00M
	Total Liabilities
336.00M	251.00M	329.00M	364.00M	465.00M	415.00M
	Stockholders Equity
2.07B	2.05B	2.06B	2.04B	2.09B	2.14B
Cash Flow		Free Cash Flow
0.00	-20.00M	11.00M	-30.00M	81.00M	204.00M
	Operating Cash Flow
0.00	-18.00M	12.00M	-30.00M	81.00M	206.00M
	Investing Cash Flow
0.00	58.00M	146.00M	35.00M	86.00M	-392.00M
	Financing Cash Flow
0.00	-32.00M	-32.00M	-32.00M	-32.00M	-192.00M

RISE Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8836, the sentiment is Negative. The current price of 29 is below the 20-day moving average (MA) of 32.60, below the 50-day MA of 32.36, and above the 200-day MA of 26.11, indicating a neutral trend. The MACD of -0.90 indicates Positive momentum. The RSI at 39.71 is Neutral, neither overbought nor oversold. The STOCH value of 11.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8836.

RISE Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9423	77 Outperform	¥2.69B	31.16		2.34%	6.21%	-22.35%
8996	69 Neutral	¥3.27B	5.99		5.58%	38.27%	172.66%
3494	64 Neutral	¥2.89B	9.87		1.44%	40.40%	130.68%
8912	64 Neutral	¥2.71B	25.70		1.65%	5.34%	0.92%
Sector *	61 Neutral	$2.82B	10.84	0.42%	8439.00%	5.74%	-20.95%
3490	61 Neutral	¥2.95B	6.22		1.25%	8.03%	-29.47%
8836	60 Neutral	¥2.88B	―		―	9.74%	1.26%