Japan Reliance Service Corporation (4664) AI Stock Analysis

• Market Cap: ¥3.05B
• Dividend Yield: 2.05%
• Average Volume (3M): 6.50K
• Price to Earnings (P/E): 39.7
• Beta (1Y): -0.30
• 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: 69 Neutral
• Price Target: ¥1,266.00 ▼(-2.76% Downside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is primarily supported by strong revenue growth and a solid, low-leverage balance sheet, but is held back by weak cash flow conversion and a rich valuation (high P/E). Technicals are moderately positive overall but mixed due to a negative MACD.

Positive Factors

Low leverage / strong balance sheet

A debt-to-equity ratio of 0.17 signals low leverage and strong solvency, giving the company durable financial flexibility. This reduces refinancing and default risk, supports capital spending or opportunistic M&A, and helps sustain operations across economic cycles.

Sustained revenue growth with healthy gross margin

Consecutive years of meaningful top-line growth (9.2% and prior 34.3%) combined with a ~16.8% gross margin indicate continued demand and pricing or cost structure that preserves core profitability. That mix supports durable revenue expansion and capacity to invest in product or sales.

Free cash flow recovery trend

A recovering free cash flow trend suggests management is improving cash conversion and operational cash generation. If sustained, this enhances ability to fund capex, dividends, or debt repayment without relying on external financing, improving long-term financial resilience.

Negative Factors

Weak operating cash flow conversion

OCF/Net Income of 0.12 indicates earnings are poorly backed by cash, pointing to weak earnings quality or working capital drains. Persistently low conversion constrains internal funding, raises refinancing risk if external credit tightens, and pressures long-term sustainability.

Declining and low net/operating margins

A falling net margin and single-digit EBIT/EBITDA margins reduce the company's ability to absorb cost shocks and invest. Low absolute margins limit retained earnings and reduce returns on new investments, weakening long-term competitiveness if cost structure isn't improved.

Material EPS contraction

Nearly 49% EPS decline signals significant pressure on per-share profitability, which can reflect lower underlying operating results or one-off impacts. Sustained EPS weakness limits reinvestment, dividend capacity, and investor confidence over the medium term.

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

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Japan Reliance Service Corporation Financial Statement Overview

Summary

Strong revenue growth and a healthy gross margin support results, and low leverage (debt-to-equity 0.17) adds stability. Offsetting these positives are weaker profitability (net margin down to 2.11%) and notably reduced cash flow efficiency (operating cash flow to net income down to 0.12; weak free cash flow conversion).

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	1.49B	1.49B	1.45B	1.10B	1.09B	1.07B
EBITDA	342.08M	360.13M	345.86M	222.07M	247.54M	235.91M
Net Income	180.16M	186.98M	244.84M	127.93M	164.36M	147.25M
Balance Sheet
Total Assets	4.02B	4.18B	4.22B	4.29B	3.49B	3.56B
Cash, Cash Equivalents and Short-Term Investments	1.94B	1.77B	1.93B	1.69B	1.45B	1.65B
Total Debt	382.93M	387.67M	452.55M	560.66M	359.54M	444.04M
Total Liabilities	1.85B	2.00B	2.16B	2.39B	1.71B	1.90B
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	36.11M	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: 1302.00
• 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:4664, the sentiment is Positive. The current price of 1302 is above the 20-day moving average (MA) of 943.35, above the 50-day MA of 1002.38, and above the 200-day MA of 799.66, indicating a neutral trend. The MACD of 26.16 indicates Negative momentum. The RSI at 51.11 is Neutral, neither overbought nor oversold. The STOCH value of 59.30 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
4658	78 Outperform	¥53.96B	20.65	―	3.33%	9.63%	11.40%
4659	75 Outperform	¥37.37B	9.65	10.19%	3.21%	6.55%	5.32%
6044	71 Outperform	¥11.07B	14.99	―	1.08%	18.17%	191.50%
4664	69 Neutral	¥3.05B	39.71	―	2.05%	-16.27%	-69.91%
6086	67 Neutral	¥23.15B	14.17	―	1.34%	16.06%	31.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6544	61 Neutral	¥295.85B	44.54	―	0.87%	16.30%	23.34%