High Gross MarginA 75.21% gross profit margin indicates durable unit economics in refurbishment and materials recovery. Over the next months this margin provides a structural buffer to absorb input cost volatility, supports reinvestment in processing capacity, and underpins profitable resale operations.

Strong Return On EquityROE near 49% shows management extracts high returns from equity-financed activities, reflecting efficient operational execution in core reuse/resale lines. This capacity to generate returns can support organic growth and justify reinvestment despite limited equity base.

Circular Reuse Business ModelA business centered on collection, refurbishment and resale aligns with long-term circular economy trends and regulatory emphasis on e-waste. Multiple revenue streams (service fees, refurbished sales, recycling proceeds) provide structural diversification and resilient demand over time.

Bears Say

Negative Free Cash FlowPersistent negative free cash flow and a very low operating-cash-to-income ratio indicate weak cash conversion from reported profits. Over 2-6 months this constrains capital expenditure, working capital management, and the ability to self-fund growth or absorb shocks without external financing.

High LeverageA debt-to-equity ratio above 4x signals heavy reliance on debt financing. This elevates refinancing and interest-rate risk, reduces financial flexibility for strategic initiatives, and increases the priority of debt service over investment in operations or margin improvement.

Declining Revenue And Low Net MarginRecent revenue decline combined with a modest 4.78% net margin weakens the company’s ability to build retained earnings and improve leverage metrics. If top-line erosion persists, margins and cash flows may compress further, limiting sustainable investments in scale or efficiency.

3556 FAQ

What was RenetJapanGroup, Inc.’s price range in the past 12 months?

RenetJapanGroup, Inc. lowest stock price was ¥210.00 and its highest was ¥1318.00 in the past 12 months.

What is RenetJapanGroup, Inc.’s market cap?

RenetJapanGroup, Inc.’s market cap is ¥17.25B.

When is RenetJapanGroup, Inc.’s upcoming earnings report date?

RenetJapanGroup, Inc.’s upcoming earnings report date is May 14, 2026 which is in 86 days.

How were RenetJapanGroup, Inc.’s earnings last quarter?

RenetJapanGroup, Inc. released its earnings results on Feb 09, 2026. The company reported ¥4.71 earnings per share for the quarter, beating the consensus estimate of N/A by ¥4.71.

Is RenetJapanGroup, Inc. overvalued?

According to Wall Street analysts RenetJapanGroup, Inc.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does RenetJapanGroup, Inc. pay dividends?

RenetJapanGroup, Inc. does not currently pay dividends.

What is RenetJapanGroup, Inc.’s EPS estimate?

RenetJapanGroup, Inc.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does RenetJapanGroup, Inc. have?

RenetJapanGroup, Inc. has 14,606,900 shares outstanding.

What happened to RenetJapanGroup, Inc.’s price movement after its last earnings report?

RenetJapanGroup, Inc. reported an EPS of ¥4.71 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 3.613%.

Which hedge fund is a major shareholder of RenetJapanGroup, Inc.?

Currently, no hedge funds are holding shares in JP:3556

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

RenetJapanGroup, Inc.

RenetJapanGroup,Inc. engages in internet reuse, recycling, and social care businesses in Japan and internationally. It offers used books, CDs, DVDs, game software, branded goods, and precious metals under the NET OFF brand. The company also provides used small electronic devices, etc. under the ReNet.jp brand. In addition, it engages in vehicle sales, leasing, and microfinance businesses. The company was founded in 1998 and is headquartered in Nagoya, Japan.