Renaissance,Incorporated (2378) AI Stock Analysis

• Market Cap: ¥22.27B
• Dividend Yield: 1.12%
• Average Volume (3M): 65.99K
• Price to Earnings (P/E): 35.9
• Beta (1Y): 0.47
• Revenue Growth: 19.01%
• EPS Growth: -18.93%
• Country: JP
• Employees: 1,868
• Sector: Communication Services
• Sector Strength: 97
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): -1.65
• Shares Outstanding: 23,471,000
• 10 Day Avg. Volume: 37,510
• 30 Day Avg. Volume: 65,993
• PEG Ratio: 1.20
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 62.67
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ¥1,241.00 ▲(15.98% Upside)

Renaissance, Incorporated's overall stock score is driven by strong financial performance, particularly in revenue growth and profitability. However, high leverage and operational efficiency remain areas for improvement. Technical analysis shows mixed signals, with some bullish momentum but not enough to offset valuation concerns. The high P/E ratio suggests potential overvaluation, which impacts the overall score.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective business strategies, positioning the company well for future expansion.

Cash Generation

Robust cash generation enhances financial flexibility, enabling the company to invest in growth opportunities and manage debt effectively.

Profitability Improvement

Improved profitability through better cost management strengthens the company's financial health and supports sustainable growth.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting the company's ability to invest in new projects and affecting long-term stability.

Operational Efficiency

Suboptimal operational efficiency may hinder profitability and competitiveness, requiring strategic improvements to enhance margins.

Capital Expenditures

High capital expenditures can constrain free cash flow, limiting the company's ability to invest in other growth initiatives or reduce debt.

Renaissance,Incorporated Business Overview & Revenue Model

Company Description

Renaissance,Incorporated engages in sports club business in Japan. It operates fitness clubs, swimming schools, tennis schools, golf schools, etc. The company also provides health promotional services for local municipalities, companies, etc.; nursing care and rehabilitation support services; small-scale facilities expansion services; and store development support services. In addition, it promotes Synapsology, a brain activation method; and offers support services for health education. Renaissance,Incorporated was founded in 1979 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Renaissance generates revenue primarily through a subscription-based model for its software services, which includes business intelligence platforms and cloud solutions. This recurring revenue stream is bolstered by annual maintenance and support contracts, ensuring ongoing customer engagement. Additionally, the company earns income from consulting services, helping organizations implement and optimize their technology solutions. Partnerships with major cloud service providers and strategic alliances with industry leaders also play a vital role in expanding its market reach and enhancing its product offerings, ultimately contributing to its financial growth.

Renaissance,Incorporated Financial Statement Overview

Summary

Renaissance, Incorporated has demonstrated significant revenue growth and improved profitability, reflecting a positive trajectory. However, high leverage remains a potential risk, and operational efficiency could be enhanced further. The company's cash flow generation is strong, but capital expenditures are substantial, impacting free cash flow.

Income Statement

Renaissance, Incorporated has shown a strong recovery in revenue with a growth rate of 46.06% from 2024 to 2025. The gross profit margin improved to 8.91% in 2025, indicating better cost management. The net profit margin also increased to 1.20%, reflecting enhanced profitability. However, the EBIT margin of 3.05% and EBITDA margin of 7.81% suggest room for improvement in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio stands at 2.39, indicating a high level of leverage, which could pose financial risks. The return on equity improved to 6.32%, showing better returns for shareholders. The equity ratio is 21.85%, suggesting a moderate level of financial stability. While the company has strengthened its equity base, the high leverage remains a concern.

Cash Flow

The free cash flow growth rate was 36.25% from 2024 to 2025, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 4.58 highlights robust cash flow relative to net income. However, the free cash flow to net income ratio is 0.41, suggesting that a significant portion of cash flow is absorbed by capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	63.86B	63.74B	43.63B	40.76B	37.12B	30.21B
Gross Profit	5.08B	5.68B	3.67B	2.98B	3.01B	-2.27B
EBITDA	4.34B	4.98B	3.68B	2.39B	3.05B	-7.20B
Net Income	618.65M	766.00M	632.95M	-1.14B	513.57M	-8.71B
Balance Sheet
Total Assets	56.30B	55.44B	53.19B	42.27B	38.19B	41.72B
Cash, Cash Equivalents and Short-Term Investments	8.20B	7.68B	6.21B	5.54B	4.86B	7.10B
Total Debt	29.82B	29.01B	27.29B	22.55B	18.88B	23.61B
Total Liabilities	44.30B	43.32B	41.77B	31.28B	27.87B	31.76B
Stockholders Equity	12.00B	12.12B	11.43B	10.99B	10.32B	9.95B
Cash Flow
Free Cash Flow	0.00	315.94M	2.32B	-1.09B	2.34B	-7.88B
Operating Cash Flow	0.00	3.51B	4.83B	1.61B	3.82B	-5.42B
Investing Cash Flow	0.00	-3.16B	-4.52B	-4.24B	-1.42B	-2.93B
Financing Cash Flow	0.00	1.09B	436.06M	3.35B	-4.56B	9.27B

Renaissance,Incorporated Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1070.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2378, the sentiment is Positive. The current price of 1070 is above the 20-day moving average (MA) of 1048.35, above the 50-day MA of 1053.06, and below the 200-day MA of 1078.82, indicating a neutral trend. The MACD of 0.74 indicates Negative momentum. The RSI at 59.33 is Neutral, neither overbought nor oversold. The STOCH value of 87.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2378.

Renaissance,Incorporated Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6419	74 Outperform	¥53.79B	8.14	―	4.70%	-25.28%	-24.84%
5261	71 Outperform	¥39.50B	17.38	―	1.42%	10.96%	75.10%
6257	68 Neutral	¥21.98B	-5.20	―	5.22%	-58.15%	-183.95%
9656	68 Neutral	¥6.40B	15.23	―	2.41%	<0.01%	23.81%
6040	66 Neutral	¥21.94B	15.76	―	0.76%	20.69%	17.46%
2378	62 Neutral	¥22.27B	35.89	―	1.12%	19.01%	-18.93%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Renaissance,Incorporated Corporate Events

Renaissance Inc. Expands Rehabilitation Services with ‘Myreha’ Acquisition

Renaissance Incorporated has announced the acquisition of five ‘Myreha’ day service facilities, specializing in rehabilitation, from Leben Community Co., Ltd. This strategic move aligns with Renaissance’s philosophy and business model, aiming to enhance their nursing care rehabilitation services and expand their presence in areas where they previously had no facilities. The acquisition is expected to support local community health and address the growing demand for home rehabilitation services amidst a challenging nursing care environment.

Renaissance, Inc. Announces Key Personnel Changes Post-Acquisition

Renaissance, Incorporated has announced significant personnel changes following its acquisition of shares in Kaede no Kaze Co., Ltd., which will now operate as a consolidated subsidiary. The Board of Directors has appointed new directors and Audit & Supervisory Board Members to align with this strategic move, indicating a focus on strengthening management and integration within the subsidiary.

Renaissance Inc. Acquires Kaede no Kaze to Expand Health Solutions

Renaissance Incorporated has announced its acquisition of Kaede no Kaze Co., Ltd., a company known for its advanced day care and rehabilitation services in Japan. This acquisition, effective December 1, 2025, aims to enhance Renaissance’s offerings in the nursing care sector, leveraging Kaede no Kaze’s expertise to provide added value to users and expand the group’s reach in addressing health issues, particularly in the context of an aging population.

Renaissance, Inc. Reports Q2 Financial Results Amidst Merger with Sports Oasis

Renaissance, Incorporated reported its consolidated financial results for the second quarter of the fiscal year ending March 31, 2026, showing a slight increase in net sales by 1.1% to 31,702 million yen. However, the company experienced a significant decline in operating income and profit attributable to owners of the parent, reflecting challenges in maintaining profitability. The merger with Sports Oasis Co., Ltd. is expected to influence future financial performance, and the company has revised its full-year consolidated forecasts.