RenetJapanGroup, Inc. (3556) AI Stock Analysis

• Market Cap: ¥9.27B
• Dividend Yield: N/A
• Average Volume (3M): 106.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: -8.69%
• EPS Growth: 41.07%
• Country: JP
• Employees: 369
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Specialty Retail
• EPS (TTM): 8.58
• Shares Outstanding: 14,602,600
• 10 Day Avg. Volume: 60,400
• 30 Day Avg. Volume: 106,743
• PEG Ratio: -0.25
• Price to Book (P/B): 13.25
• 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: ¥602.00
• Price Target Upside: -5.20% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: ¥602.00 ▼(-5.20%Downside)

The overall stock score is heavily influenced by poor financial performance and valuation metrics. However, strong technical indicators suggest short-term bullish momentum, which partially offsets the negative financial outlook. Investors should be cautious due to the financial instability and negative earnings.

RenetJapanGroup, Inc. Business Overview & Revenue Model

Company Description

RenetJapanGroup, Inc. (3556) operates primarily in the field of recycling and reuse, with a focus on electronic equipment. The company is engaged in the collection, refurbishment, and resale of used electronics, including computers, mobile phones, and other digital devices. Their operations are aimed at promoting environmental sustainability by reducing electronic waste and extending the lifecycle of electronic products.

How the Company Makes Money

RenetJapanGroup, Inc. generates revenue through several key streams. The primary source of income is the sale of refurbished electronic products, which are collected from consumers and businesses, refurbished to a functional state, and sold through various channels. Additionally, the company may earn money from recycling fees collected when they process electronic waste that cannot be refurbished. Partnerships with manufacturers or retailers for the disposal and recycling of obsolete equipment may also contribute to their revenue. The company's ability to efficiently refurbish and resell electronics is a significant factor in its earnings.

RenetJapanGroup, Inc. Financial Statement Overview

Summary

RenetJapanGroup, Inc. is facing significant financial challenges, with declining revenue, negative profitability, and cash flow issues. High leverage and a low equity base raise concerns about financial stability. The company needs to improve operational efficiency and cash flow management.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	11.68B	11.06B	8.59B	7.75B	6.84B
Gross Profit	8.68B	7.90B	6.23B	5.68B	4.44B
EBITDA	-1.54B	232.32M	729.80M	628.27M	-1.27B
Net Income	-1.88B	-352.28M	500.85M	200.40M	-1.60B
Balance Sheet
Total Assets	8.45B	14.79B	9.62B	8.46B	9.50B
Cash, Cash Equivalents and Short-Term Investments	880.00M	2.22B	1.73B	2.07B	3.14B
Total Debt	6.53B	10.87B	6.21B	5.30B	6.40B
Total Liabilities	8.12B	12.74B	7.41B	6.67B	7.81B
Stockholders Equity	290.38M	2.01B	2.21B	1.78B	1.49B
Cash Flow
Free Cash Flow	333.39M	-1.05B	-226.22M	398.98M	-1.04B
Operating Cash Flow	654.22M	-712.31M	-16.16M	554.34M	-898.31M
Investing Cash Flow	-1.33B	-567.24M	-338.27M	-231.61M	-193.56M
Financing Cash Flow	-876.95M	2.03B	-201.40M	-1.48B	3.07B

RenetJapanGroup, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 635.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 635 is above the 20-day moving average (MA) of 616.80, above the 50-day MA of 572.62, and above the 200-day MA of 349.18, indicating a bullish trend. The MACD of 13.56 indicates Positive momentum. The RSI at 61.00 is Neutral, neither overbought nor oversold. The STOCH value of 69.02 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
3190	68 Neutral	¥4.14B	14.30		1.70%	4.64%	8.70%
Sector *	67 Neutral	¥264.20B	13.61	6.49%	2.55%	5.08%	-13.04%
3172	59 Neutral	¥4.80B	14.99		3.40%	-10.86%	-28.97%
3396	58 Neutral	¥5.52B	37.08		1.82%	0.86%	―
3556	51 Neutral	¥9.27B	―		―	-8.69%	41.07%
3059	47 Neutral	¥4.07B	262.06		2.40%	-2.66%	-4994.64%
3726	43 Neutral	¥6.75B	―		―	5.11%	15.19%