RenetJapanGroup, Inc. (3556) AI Stock Analysis

• Market Cap: ¥13.85B
• Dividend Yield: N/A
• Average Volume (3M): 168.77K
• Price to Earnings (P/E): 28.2
• Beta (1Y): 1.12
• Revenue Growth: -10.83%
• EPS Growth: N/A
• Country: JP
• Employees: 369
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 22.18
• Shares Outstanding: 14,606,700
• 10 Day Avg. Volume: 110,220
• 30 Day Avg. Volume: 168,773
• PEG Ratio: -0.22
• Price to Book (P/B): 12.98
• Price to Sales (P/S): 1.27
• P/FCF Ratio: -182.35
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: ¥876.00 ▼(-3.95% Downside)

The overall stock score is primarily influenced by the company's financial performance challenges, including high leverage and weak cash flow metrics. Technical analysis indicates a bearish trend, further impacting the score. The valuation is moderate, but the lack of a dividend yield reduces appeal for income investors.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin suggests that the company effectively manages its production costs, which can lead to sustainable profitability and competitive pricing over time.

High Return on Equity

High return on equity indicates that the company is efficiently using its shareholders' equity to generate profits, which can enhance investor confidence and support long-term growth.

Innovative Revenue Streams

Diverse and innovative revenue streams, such as cloud computing and software licensing, position the company well for future growth and resilience against market fluctuations.

Negative Factors

High Leverage

High leverage can increase financial risk and limit the company's ability to invest in growth opportunities, potentially impacting long-term stability.

Declining Revenue

Declining revenue growth can signal challenges in market demand or competitive pressures, which may affect the company's ability to sustain long-term growth.

Weak Cash Flow Metrics

Weak cash flow metrics indicate potential difficulties in generating sufficient cash to fund operations and growth, which could impact financial health and flexibility.

RenetJapanGroup, Inc. Business Overview & Revenue Model

Company Description

RenetJapanGroup, Inc. (3556) is a diversified company based in Japan, primarily operating in the technology and telecommunications sectors. The company focuses on providing innovative solutions and services, including cloud computing, network infrastructure, and software development. RenetJapanGroup aims to enhance operational efficiency for businesses through its advanced technology offerings, which cater to various industries such as finance, healthcare, and logistics.

How the Company Makes Money

RenetJapanGroup generates revenue through multiple streams. Its primary revenue model includes service fees from its cloud computing solutions and software licensing agreements. Additionally, the company earns income from consulting services, where it helps businesses implement and optimize technology solutions. Partnerships with major telecommunications providers and technology firms also contribute significantly to its earnings, allowing the company to expand its market reach and offer bundled services. Moreover, RenetJapanGroup invests in research and development to create proprietary technologies, which further enhance its portfolio and revenue potential.

RenetJapanGroup, Inc. Financial Statement Overview

Summary

RenetJapanGroup, Inc. is facing significant financial challenges with negative profitability and cash flow issues. The high leverage and low equity base raise concerns about financial stability. The company needs to address inefficiencies and improve cash flow management to enhance its financial health.

Income Statement

RenetJapanGroup, Inc. exhibits declining revenue and profitability metrics. The TTM data shows a negative EBIT and net income, indicating operational challenges. The gross profit margin remains relatively strong at 75.2%, but both EBIT and EBITDA margins are negative, reflecting inefficiencies and high operating costs. The net profit margin is also negative, suggesting poor bottom-line performance.

Balance Sheet

The company has a high debt-to-equity ratio of approximately 9.77, indicating significant leverage and potential financial risk. Return on equity is negative, highlighting poor profitability relative to shareholder investments. The equity ratio is low at around 7.3%, pointing to a heavy reliance on debt financing, which may affect financial stability.

Cash Flow

Cash flow metrics are concerning, with zero free cash flow in the TTM period and a negative operating cash flow in previous years. The operating cash flow to net income and free cash flow to net income ratios are not calculable due to zero or negative values, indicating liquidity issues and limited cash generation from operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.62B	10.41B	11.68B	11.06B	8.59B	7.75B
Gross Profit	8.10B	7.83B	8.68B	7.90B	6.23B	5.68B
EBITDA	534.34M	858.96M	-1.54B	232.32M	729.80M	628.27M
Net Income	38.33M	497.43M	-1.88B	-352.28M	500.85M	200.40M
Balance Sheet
Total Assets	6.55B	7.04B	8.45B	14.79B	9.62B	8.46B
Cash, Cash Equivalents and Short-Term Investments	510.51M	310.62M	880.00M	2.22B	1.60B	1.86B
Total Debt	4.57B	4.71B	6.53B	10.87B	6.17B	5.30B
Total Liabilities	5.80B	5.95B	8.12B	12.74B	7.41B	6.67B
Stockholders Equity	687.28M	1.02B	290.38M	2.01B	2.21B	1.78B
Cash Flow
Free Cash Flow	0.00	-72.31M	333.39M	-1.05B	-226.22M	398.98M
Operating Cash Flow	0.00	116.62M	654.22M	-712.31M	-16.16M	554.34M
Investing Cash Flow	0.00	-200.34M	-1.33B	-567.24M	-338.27M	-231.61M
Financing Cash Flow	0.00	-243.54M	-876.95M	2.03B	-201.40M	-1.48B

RenetJapanGroup, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 912.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3556, the sentiment is Positive. The current price of 912 is below the 20-day moving average (MA) of 931.75, below the 50-day MA of 968.06, and above the 200-day MA of 671.58, indicating a neutral trend. The MACD of -10.02 indicates Negative momentum. The RSI at 51.15 is Neutral, neither overbought nor oversold. The STOCH value of 76.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3556.

RenetJapanGroup, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3172	70 Outperform	¥4.92B	14.63	―	3.47%	-11.32%	1.10%
3190	66 Neutral	¥4.03B	13.66	―	1.75%	4.95%	17.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3396	60 Neutral	¥5.68B	16.28	―	1.76%	2.24%	―
3726	46 Neutral	¥5.73B	-22.08	―	―	8.12%	19.19%
3059	45 Neutral	¥4.05B	-4.65	―	2.40%	-3.69%	-11429.88%
3556	42 Neutral	¥13.85B	28.21	―	―	-10.83%	―