Japan Reliance Service Corporation (4664) AI Stock Analysis

• Market Cap: ¥1.84B
• Dividend Yield: 3.66%
• Average Volume (3M): 6.50K
• Price to Earnings (P/E): 10.2
• Beta (1Y): >-0.01
• 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: 2,940,000
• 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: 74 Outperform
• Price Target: ¥980.00 ▲(12.00% Upside)

The overall stock score of 74 reflects strong technical analysis indicators and solid financial performance, despite high valuation concerns. The stock's bullish momentum and stable financials are significant strengths, while the high P/E ratio and cash flow challenges are notable risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for services and effective market strategies, supporting long-term business expansion.

Low Leverage

Low leverage enhances financial stability and flexibility, 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 segment, providing resilience against sector-specific downturns.

Negative Factors

Declining Net Profit Margin

A declining net profit margin suggests rising costs or inefficiencies, which could pressure profitability if not addressed.

Reduced Cash Flow Efficiency

Reduced cash flow efficiency limits the company's ability to fund operations and growth internally, potentially increasing reliance on external financing.

Decreased EBITDA Margin

A decrease in EBITDA margin can indicate operational challenges or increased competition, affecting the company's ability to maintain profitability.

Japan Reliance Service Corporation Business Overview & Revenue Model

Company Description

Japan Reliance Service Corporation (4664) is a prominent player in the Japanese market, primarily focusing on providing comprehensive outsourcing services. The company operates in various sectors including logistics, human resources, and IT services, catering to a diverse clientele ranging from small businesses to large enterprises. Its core offerings include workforce management solutions, supply chain logistics, and software development services, aimed at enhancing operational efficiency and reducing costs for its customers.

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, declining net profit margin and reduced cash flow efficiency indicate areas needing attention. The balance sheet is stable 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	378.63M	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: 875.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 875 is above the 20-day moving average (MA) of 697.25, above the 50-day MA of 670.90, and above the 200-day MA of 603.61, indicating a bullish trend. The MACD of 22.94 indicates Positive momentum. The RSI at 55.39 is Neutral, neither overbought nor oversold. The STOCH value of 17.00 is Positive, 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	¥16.19B	8.88	―	3.76%	7.07%	79.18%
4664	74 Outperform	¥1.84B	10.25	―	3.66%	-16.27%	-69.91%
7919	68 Neutral	¥3.28B	7.11	―	3.97%	0.62%	-24.08%
7946	67 Neutral	¥1.29B	24.06	―	1.61%	3.07%	-32.45%
7939	64 Neutral	¥2.06B	9.64	―	3.87%	9.08%	40.91%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.21B	9.59	―	2.99%	-1.30%	―