Japan Reliance Service Corporation (4664) AI Stock Analysis

• Market Cap: ¥3.77B
• Dividend Yield: 2.05%
• Average Volume (3M): 6.50K
• Price to Earnings (P/E): 47.9
• Beta (1Y): -0.26
• Revenue Growth: -16.27%
• EPS Growth: -69.91%
• Country: JP
• Employees: 401
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 2.85
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥1,427.00 ▲(21.76% Upside)

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

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Low Leverage

Low leverage enhances financial flexibility and reduces risk, allowing the company to invest in growth opportunities without significant debt burden.

Diversified Revenue Streams

A diversified revenue base reduces dependency on a single market, enhancing resilience against sector-specific downturns and supporting stable cash flows.

Negative Factors

Declining Cash Flow Efficiency

Reduced cash flow efficiency can strain liquidity and limit the company's ability to fund operations and growth, posing a risk to financial health.

Decreasing Net Profit Margin

A declining net profit margin suggests rising costs or inefficiencies, which could impact profitability and shareholder returns if not addressed.

Weak Free Cash Flow

Weak free cash flow limits the company's ability to reinvest in its business, pay down debt, or return capital to shareholders, affecting long-term growth potential.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Positive
• Last Price: 1172.00
• 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:4664, the sentiment is Positive. The current price of 1172 is above the 20-day moving average (MA) of 1115.20, above the 50-day MA of 853.22, and above the 200-day MA of 650.86, indicating a bullish trend. The MACD of 100.99 indicates Positive momentum. The RSI at 57.79 is Neutral, neither overbought nor oversold. The STOCH value of 46.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
7811	83 Outperform	¥16.80B	9.21	―	3.62%	7.07%	79.18%
4664	72 Outperform	¥3.77B	47.90	―	2.05%	-16.27%	-69.91%
7919	68 Neutral	¥3.45B	7.49	―	3.69%	0.62%	-24.08%
7946	67 Neutral	¥1.36B	25.17	―	1.68%	3.07%	-32.45%
7939	64 Neutral	¥2.10B	9.84	―	3.72%	9.08%	40.91%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.62B	10.35	―	2.72%	-1.30%	―