Japan Reliance Service Corporation (4664) AI Stock Analysis

• Market Cap: ¥2.81B
• Dividend Yield: 2.05%
• Average Volume (3M): 6.50K
• Price to Earnings (P/E): 28.9
• Beta (1Y): -0.32
• Revenue Growth: -16.27%
• EPS Growth: -69.91%
• Country: JP
• Employees: 401
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 8.55
• Shares Outstanding: 3,120,000
• 10 Day Avg. Volume: 11,910
• 30 Day Avg. Volume: 6,503
• PEG Ratio: -0.41
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 154.10
• 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: 72 Outperform
• Price Target: ¥1,009.00 ▼(-22.50% Downside)
• Action: Reiterated Date: 12/12/25
• Date: Action: Reiterated 12/12/25

The stock's overall score is driven by strong technical indicators and solid financial performance, despite a high P/E ratio indicating potential overvaluation. The company's robust revenue growth and low leverage are positive, but attention is needed on cash flow management and net profit margins.

Positive Factors

Low leverage and solid balance sheet

A debt-to-equity of 0.17 and strong equity ratio provide durable financial flexibility, lowering refinancing risk and enabling investment or cushion during downturns. Low leverage supports long-term resilience and strategic optionality, important over the next several quarters.

Sustained revenue growth trend

Consecutive year revenue gains indicate persistent market demand and successful commercial execution. Durable top-line expansion expands scale, supports operating leverage opportunities, and provides a foundation for margin recovery and reinvestment in services and capabilities.

Healthy gross profit margin

A ~16.8% gross margin signals solid unit economics in core services, offering a buffer to absorb SG&A or targeted investments. This level of gross profitability supports sustainable operations and improves prospects for translating revenue growth into durable operating income over time.

Negative Factors

Declining net profit margin

A fall in net margin from 3.02% to 2.11% suggests rising costs or weaker operating efficiency. With a slim net margin, earnings are more sensitive to revenue fluctuations and cost pressures, constraining retained earnings and long-term reinvestment capacity.

Severe operating cash flow deterioration

A collapse in cash conversion (OCF/net income from 1.33 to 0.12) signals structural cash-generation issues. Weak operating cash flow undermines the company's ability to self-fund capex, dividends, and working capital, increasing reliance on external financing and raising execution risk.

Material EPS decline

Nearly 50% EPS decline indicates volatile or deteriorating profitability despite revenue growth. This gap points to margin compression, one-off charges, or rising operating costs, reducing earnings visibility and complicating medium-term planning and investor confidence.

Japan Reliance Service Corporation Business Overview & Revenue Model

Company Description

Japan Reliance Service Corporation provides various security, building maintenance, human resource, general construction, condominium management services in Japan. It offers architectural design, reception, facility management, cleaning, temporary staffing, and nursing care services. The company was incorporated in 1971 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Japan Reliance Service Corporation generates revenue through multiple streams primarily centered around its outsourcing services. The company charges clients for workforce management solutions on a contractual basis, which includes the provision of temporary and permanent staffing. Additionally, revenue is derived from logistics services, where the company manages supply chain operations for clients, charging fees based on volume and service complexity. IT services, including software development and support, also contribute significantly to revenue, often structured as project-based fees or retainer agreements. Strategic partnerships with technology firms enhance its service offerings and market reach, while a focus on efficiency and cost reduction for clients fosters long-term contracts, providing stable revenue. Overall, the company's diversified service portfolio and customer-centric approach are key factors driving its financial performance.

Japan Reliance Service Corporation Financial Statement Overview

Summary

Japan Reliance Service Corporation demonstrates strong revenue growth and low leverage, contributing to financial stability. However, the decline in net profit margin and reduced cash flow efficiency indicate areas needing attention. The company shows a stable balance sheet with a solid equity base, but cash flow management should be a focus for future improvement.

Income Statement

The company shows strong revenue growth with a 9.2% increase from 2024 to 2025, following a robust 34.3% rise the previous year. Gross profit margin remains healthy at approximately 16.8% in 2025. However, net profit margin decreased to 2.11% from 3.02%, indicating rising costs or operational inefficiencies. The EBIT margin stands at 3.4%, reflecting steady operational performance, although EBITDA margin decreased slightly to 4.1%.

Balance Sheet

The balance sheet is solid with a debt-to-equity ratio of 0.17, highlighting low leverage and financial stability. Return on equity is moderate at 8.6%, showing decent profitability relative to shareholder investment. The equity ratio is strong at 52.3%, indicating a healthy balance between equity and total assets, although slight fluctuations in total assets were observed.

Cash Flow

Operating cash flow has seen a significant decline, impacting the ratio of operating cash flow to net income, which is now at 0.12, down from 1.33 the previous year. Free cash flow growth is recovering, with a positive trend after a substantial drop in 2024. This points to a potential improvement in cash flow management, though the free cash flow to net income ratio remains weak at 0.06.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.73B	8.84B	8.10B	6.03B	5.74B	5.94B
Gross Profit	1.51B	1.49B	1.48B	1.10B	1.09B	1.07B
EBITDA	359.86M	362.85M	439.00M	232.07M	272.80M	266.56M
Net Income	180.12M	186.98M	244.84M	127.93M	164.36M	147.25M
Balance Sheet
Total Assets	4.02B	4.16B	4.20B	4.25B	3.45B	3.53B
Cash, Cash Equivalents and Short-Term Investments	1.94B	1.77B	1.93B	1.69B	1.45B	1.65B
Total Debt	382.93M	380.50M	446.60M	552.97M	356.36M	442.82M
Total Liabilities	1.85B	1.98B	2.14B	2.35B	1.68B	1.88B
Stockholders Equity	2.17B	2.18B	2.06B	1.90B	1.77B	1.66B
Cash Flow
Free Cash Flow	0.00	11.21M	318.49M	245.53M	-21.99M	171.09M
Operating Cash Flow	0.00	22.09M	324.96M	251.44M	82.81M	193.04M
Investing Cash Flow	0.00	22.66M	43.06M	-115.99M	-138.54M	-34.09M
Financing Cash Flow	0.00	-163.85M	-157.37M	152.47M	-162.19M	31.62M

Japan Reliance Service Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1302.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4664, the sentiment is Neutral. The current price of 1302 is above the 20-day moving average (MA) of 959.55, above the 50-day MA of 1095.22, and above the 200-day MA of 767.44, indicating a neutral trend. The MACD of -51.95 indicates Positive momentum. The RSI at 38.73 is Neutral, neither overbought nor oversold. The STOCH value of 16.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4664.

Japan Reliance Service Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4658	78 Outperform	¥59.00B	17.38	―	3.33%	9.63%	11.40%
4659	75 Outperform	¥37.33B	14.63	8.56%	3.21%	6.55%	5.32%
4664	72 Outperform	¥2.81B	28.93	―	2.05%	-16.27%	-69.91%
6044	71 Outperform	¥12.05B	14.34	―	1.08%	18.17%	191.50%
6086	67 Neutral	¥26.69B	19.06	―	1.34%	16.06%	31.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6544	61 Neutral	¥290.04B	43.42	―	0.87%	16.30%	23.34%