RESOL HOLDINGS Co., Ltd. (5261) AI Stock Analysis

• Market Cap: ¥29.77B
• Dividend Yield: 1.72%
• Average Volume (3M): 3.17K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.37
• Revenue Growth: 10.96%
• EPS Growth: 75.10%
• Country: JP
• Employees: 557
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 96.11
• Shares Outstanding: 5,564,200
• 10 Day Avg. Volume: 2,960
• 30 Day Avg. Volume: 3,166
• PEG Ratio: 0.37
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 0.98
• P/FCF Ratio: 13.00
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥6,508.00 ▲(3.47% Upside)

The overall stock score is driven primarily by strong financial performance, supported by robust revenue growth and profitability. Technical analysis indicates a strong upward trend, though caution is advised due to overbought conditions. Valuation is reasonable, offering a balanced risk-reward profile.

Positive Factors

Revenue Growth

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

Profitability

High gross profit margins reflect efficient operations and cost management, which can sustain profitability even in competitive markets.

Cash Flow Efficiency

Strong cash conversion efficiency enhances financial flexibility, allowing for reinvestment in growth opportunities and debt management.

Negative Factors

Moderate Leverage

Moderate leverage requires careful monitoring to prevent financial strain, especially if market conditions change or interest rates rise.

EBIT Margin

A moderate EBIT margin indicates potential inefficiencies in operations, which could limit profitability improvements unless addressed.

Cash Flow Variability

Variability in cash flow can impact financial planning and investment capability, necessitating careful management of capital expenditures.

RESOL HOLDINGS Co., Ltd. Business Overview & Revenue Model

Company Description

RESOL HOLDINGS Co., Ltd. (5261) is a Japanese company primarily engaged in the manufacturing and sale of various industrial and commercial products, with a focus on chemical products, engineering solutions, and advanced materials. The company operates in multiple sectors including chemicals, healthcare, and environmental solutions, offering a diverse range of core products and services that cater to various industries.

How the Company Makes Money

RESOL HOLDINGS generates revenue through multiple streams, primarily by selling its chemical products and solutions to industrial clients. Key revenue streams include the sale of specialty chemicals, engineering services, and environmental technology solutions. The company also engages in strategic partnerships with other firms and research institutions to develop innovative products, which can lead to additional revenue opportunities. Additionally, RESOL HOLDINGS benefits from long-term contracts with clients in various sectors, ensuring a steady flow of income.

RESOL HOLDINGS Co., Ltd. Financial Statement Overview

Summary

RESOL HOLDINGS Co., Ltd. demonstrates strong revenue growth and profitability, with a high gross profit margin and improved net profit margin. The balance sheet is stable with moderate leverage, and cash flows are robust, indicating good cash conversion efficiency. However, there is room for operational improvement in EBIT margin and managing leverage.

Income Statement

The company has demonstrated strong revenue growth over the years, particularly from 2023 to 2025, with a CAGR of approximately 13.2%. Gross profit margin has been consistently high, around 70% in 2025, indicating efficient cost control. The net profit margin improved significantly, rising from 1.5% in 2021 to 6.9% in 2025, reflecting enhanced profitability. However, the EBIT margin remains moderate at 9.4%, suggesting room for operational improvement.

Balance Sheet

The company maintains a stable balance sheet with a healthy equity ratio of 37.2% in 2025, indicating financial stability. The debt-to-equity ratio of 0.94 suggests moderate leverage, which is manageable but could pose a risk if not monitored. Return on equity improved, reaching 12.1% in 2025, signaling effective use of equity to generate profits.

Cash Flow

Operating cash flow has been robust, growing steadily with a notable increase in 2025. The free cash flow to net income ratio is favorable, indicating good cash conversion efficiency. However, fluctuations in capital expenditures and financing activities introduce some variability in cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.02B	28.40B	25.72B	22.06B	20.90B	19.53B
Gross Profit	20.66B	20.19B	17.83B	12.87B	11.69B	11.12B
EBITDA	3.94B	3.73B	2.88B	2.13B	2.31B	2.28B
Net Income	2.10B	1.95B	1.41B	722.79M	474.10M	310.58M
Balance Sheet
Total Assets	43.68B	43.48B	43.00B	42.66B	39.06B	38.43B
Cash, Cash Equivalents and Short-Term Investments	4.14B	4.10B	3.59B	5.22B	3.45B	4.31B
Total Debt	14.80B	15.20B	15.28B	17.79B	17.32B	18.91B
Total Liabilities	27.25B	27.30B	28.34B	29.14B	25.38B	25.03B
Stockholders Equity	16.42B	16.17B	14.64B	13.50B	13.46B	13.36B
Cash Flow
Free Cash Flow	0.00	2.14B	2.38B	243.90M	1.64B	3.68B
Operating Cash Flow	0.00	4.14B	3.61B	1.42B	2.29B	6.09B
Investing Cash Flow	0.00	-2.01B	-1.28B	1.26B	-1.71B	-2.54B
Financing Cash Flow	0.00	-1.62B	-3.96B	-908.99M	-1.44B	-2.12B

RESOL HOLDINGS Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6290.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5261, the sentiment is Positive. The current price of 6290 is above the 20-day moving average (MA) of 5920.00, above the 50-day MA of 5614.80, and above the 200-day MA of 5294.88, indicating a bullish trend. The MACD of 223.84 indicates Negative momentum. The RSI at 86.38 is Negative, neither overbought nor oversold. The STOCH value of 97.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5261.

RESOL HOLDINGS Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5261	74 Outperform	¥29.77B	14.20	―	1.72%	10.96%	75.10%
6257	68 Neutral	¥22.21B	25.05	―	5.28%	-58.15%	-183.95%
9656	68 Neutral	¥6.40B	11.78	―	2.42%	<0.01%	23.81%
6040	66 Neutral	¥24.48B	14.97	―	0.65%	26.88%	44.66%
2418	64 Neutral	€29.91B	4.58	21.87%	2.18%	15.35%	45.10%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2305	58 Neutral	¥34.61B	21.85	―	2.43%	-4.39%	31.40%

RESOL HOLDINGS Co., Ltd. Corporate Events

RESOL HOLDINGS Enhances Shareholder Benefit Program

RESOL HOLDINGS Co., Ltd. has announced enhancements to its shareholder benefit program, effective March 31, 2026. The changes aim to increase shareholder returns and make investing in the company more attractive by significantly increasing the number of gift certificates offered to shareholders with larger holdings.

The most recent analyst rating on (JP:5261) stock is a Hold with a Yen5499.00 price target. To see the full list of analyst forecasts on RESOL HOLDINGS Co., Ltd. stock, see the JP:5261 Stock Forecast page.

RESOL HOLDINGS Renames Welfare Segment to Focus on Well-being

RESOL HOLDINGS Co., Ltd. announced a change in the naming of its reporting segments, specifically renaming the ‘Welfare business’ to ‘Well-being business’ to better reflect its focus on comprehensive well-being services. This change aligns with the growing interest in well-being amid diverse work styles and human capital management, and it aims to expand the company’s offerings in this area without affecting its segment classification or business results.

The most recent analyst rating on (JP:5261) stock is a Hold with a Yen5499.00 price target. To see the full list of analyst forecasts on RESOL HOLDINGS Co., Ltd. stock, see the JP:5261 Stock Forecast page.

RESOL HOLDINGS Reports Strong Financial Growth for First Half of 2025

RESOL HOLDINGS Co., Ltd. reported a significant increase in its financial performance for the six months ending September 30, 2025, with net sales rising by 8.6% and profit attributable to owners of the parent increasing by 29.3% compared to the previous year. This improvement in financial results suggests a positive impact on the company’s operations and strengthens its position in the market, indicating potential benefits for stakeholders.

The most recent analyst rating on (JP:5261) stock is a Hold with a Yen5499.00 price target. To see the full list of analyst forecasts on RESOL HOLDINGS Co., Ltd. stock, see the JP:5261 Stock Forecast page.