Renaissance,Incorporated (2378) AI Stock Analysis

• Market Cap: ¥19.08B
• Dividend Yield: 1.09%
• Average Volume (3M): 24.63K
• Price to Earnings (P/E): 25.6
• Beta (1Y): 0.45
• Revenue Growth: 37.10%
• EPS Growth: N/A
• Country: JP
• Employees: 1,868
• Sector: Communication Services
• Sector Strength: 89
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 1.95
• Shares Outstanding: 21,379,000
• 10 Day Avg. Volume: 41,060
• 30 Day Avg. Volume: 24,633
• PEG Ratio: -6.99
• Price to Book (P/B): 2.01
• 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: 57 Neutral
• Price Target: ―

Renaissance, Incorporated demonstrates strong revenue growth and profitability improvements but faces significant risks from high leverage and cash flow volatility. Technical indicators show bearish trends, while valuation metrics suggest potential overvaluation, balancing the overall stock score.

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, Incorporated generates revenue through a multi-faceted approach that includes the sale of proprietary software solutions, subscription-based healthcare management systems, and consultancy fees in financial services. The technology arm of the company licenses its software products to various industries, ensuring a steady stream of income from licensing and maintenance fees. In the healthcare sector, Renaissance offers comprehensive management systems that operate on a subscription model, providing a recurring revenue stream. Additionally, the company's financial services division capitalizes on its expertise in advisory and management services, charging fees for consultancy and portfolio management. Strategic partnerships with key industry players further enhance its market presence and contribute to revenue growth.

Renaissance,Incorporated Financial Statement Overview

Summary

Renaissance, Incorporated is experiencing strong revenue growth and improved profitability, indicated by a 34.8% revenue increase and a positive net income. However, high leverage with a debt-to-equity ratio of 2.30 and volatile cash flows highlight financial risks.

Income Statement

Renaissance, Incorporated showed substantial revenue growth with a TTM revenue increase of 34.8% over the previous annual period. Despite challenges, the company achieved a positive net income for TTM, marking a recovery from past losses. Gross profit margin improved to 8.86%, indicating better cost management, although still moderate due to industry competition. The EBIT and EBITDA margins reflect strong operational efficiency improvements.

Balance Sheet

The debt-to-equity ratio is high at 2.30, indicating significant leverage, but this is common in the industry. Return on equity improved to 6.22% in the TTM, showing better profitability. The equity ratio of 22.22% suggests moderate financial stability, but there's a need for cautious debt management.

Cash Flow

Free cash flow remains volatile, with recent periods showing negative values, highlighting operational cash challenges. With unavailable operating and free cash flow data for TTM, assessing cash flow adequacy is difficult. Past periods show a positive trend, but sustainability remains a concern.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
58.78B	43.63B	40.76B	37.12B	30.21B	45.05B
	Gross Profit
5.21B	3.67B	2.98B	3.01B	-2.27B	5.94B
	EBIT
1.89B	1.26B	680.39M	912.99M	-4.60B	3.27B
	EBITDA
4.46B	3.68B	2.39B	3.05B	-7.20B	5.25B
	Net Income Common Stockholders
743.24M	632.95M	-1.14B	513.57M	-8.71B	1.38B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.85B	6.21B	5.54B	4.86B	7.10B	6.20B
	Total Assets
53.76B	53.19B	42.27B	38.19B	41.72B	39.77B
	Total Debt
27.45B	27.29B	22.55B	18.88B	23.61B	15.21B
	Net Debt
20.60B	21.08B	17.03B	14.04B	16.53B	9.02B
	Total Liabilities
41.82B	41.77B	31.28B	27.87B	31.76B	23.67B
	Stockholders Equity
11.94B	11.43B	10.99B	10.32B	9.95B	16.09B
Cash Flow		Free Cash Flow
0.00	2.32B	-1.09B	2.34B	-7.88B	2.40B
	Operating Cash Flow
0.00	4.83B	1.61B	3.82B	-5.42B	5.16B
	Investing Cash Flow
0.00	-4.52B	-4.24B	-1.42B	-2.93B	-2.73B
	Financing Cash Flow
0.00	436.06M	3.35B	-4.56B	9.27B	999.80M

Renaissance,Incorporated Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1010.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2378, the sentiment is Negative. The current price of 1010 is below the 20-day moving average (MA) of 1033.60, below the 50-day MA of 1049.40, and below the 200-day MA of 1033.37, indicating a bearish trend. The MACD of -12.88 indicates Positive momentum. The RSI at 38.57 is Neutral, neither overbought nor oversold. The STOCH value of 11.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2378.

Renaissance,Incorporated Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6419	82 Outperform	¥48.26B	6.00		6.83%	29.41%	10.66%
9656	71 Outperform	¥6.46B	12.16		2.57%	0.52%	34.46%
6257	68 Neutral	¥21.86B	8.51		5.30%	0.55%	-24.89%
5261	68 Neutral	¥27.83B	14.27		1.98%	14.05%	0.91%
6040	67 Neutral	¥21.09B	14.78		0.74%	23.19%	31.50%
Sector *	60 Neutral	$14.12B	6.43	-3.56%	3.69%	2.49%	-35.43%
2378	57 Neutral	¥19.08B	25.58		1.09%	37.10%	―

Renaissance,Incorporated Corporate Events

Renaissance Inc. Reports Strong Q3 Performance and Revises Forecast Upwards

Renaissance Inc. reported strong financial performance for the third quarter of the fiscal year ending March 31, 2025, with significant increases in net sales and operating income compared to the previous year. The company also revised its full-year forecast upwards, reflecting confidence in ongoing growth and market demand, which is likely to positively impact stakeholders and enhance its industry positioning.