RenetJapanGroup, Inc. (3556) AI Stock Analysis

• Market Cap: ¥13.77B
• Dividend Yield: N/A
• Average Volume (3M): 168.77K
• Price to Earnings (P/E): 601.9
• Beta (1Y): 1.24
• Revenue Growth: -12.88%
• EPS Growth: N/A
• Country: JP
• Employees: 369
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 1.51
• Shares Outstanding: 14,602,600
• 10 Day Avg. Volume: 110,220
• 30 Day Avg. Volume: 168,773
• PEG Ratio: >-0.01
• Price to Book (P/B): 12.77
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 11.12
• 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: -36.16% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: ¥602.00 ▼(-36.16% 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) 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 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.62B	11.68B	11.06B	8.59B	7.75B	6.84B
Gross Profit	8.10B	8.68B	7.90B	6.23B	5.68B	4.44B
EBITDA	534.34M	-1.54B	232.32M	729.80M	628.27M	-1.27B
Net Income	38.33M	-1.88B	-352.28M	500.85M	200.40M	-1.60B
Balance Sheet
Total Assets	6.55B	8.45B	14.79B	9.62B	8.46B	9.50B
Cash, Cash Equivalents and Short-Term Investments	510.51M	880.00M	2.22B	1.60B	1.86B	3.14B
Total Debt	4.51B	6.53B	10.87B	6.17B	5.30B	6.40B
Total Liabilities	5.80B	8.12B	12.74B	7.41B	6.67B	7.81B
Stockholders Equity	687.28M	290.38M	2.01B	2.21B	1.78B	1.49B
Cash Flow
Free Cash Flow	0.00	333.39M	-1.05B	-226.22M	398.98M	-1.04B
Operating Cash Flow	0.00	654.22M	-712.31M	-16.16M	554.34M	-898.31M
Investing Cash Flow	0.00	-1.33B	-567.24M	-338.27M	-231.61M	-193.56M
Financing Cash Flow	0.00	-876.95M	2.03B	-201.40M	-1.48B	3.07B

RenetJapanGroup, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 943.00
• 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 943 is below the 20-day moving average (MA) of 989.05, above the 50-day MA of 901.92, and above the 200-day MA of 507.20, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 50.24 is Neutral, neither overbought nor oversold. The STOCH value of 79.92 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	¥4.87B	13.58	―	3.52%	-11.53%	12.13%
3190	69 Neutral	¥4.05B	13.98	―	1.74%	4.64%	8.70%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3396	60 Neutral	¥5.73B	16.43	―	1.74%	2.24%	―
3059	52 Neutral	¥4.09B	262.06	―	2.38%	-1.81%	-5177.46%
3556	51 Neutral	¥13.77B	601.86	―	―	-12.88%	―
3726	44 Neutral	¥5.16B	―	―	―	5.35%	-34.74%