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

• Market Cap: ¥49.61B
• Dividend Yield: 1.42%
• Average Volume (3M): 3.17K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.42
• Revenue Growth: 10.96%
• EPS Growth: 75.10%
• Country: JP
• Employees: 557
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 287.57
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥9,824.00 ▲(35.50% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by strong financial performance (growth, improving margins, and solid operating cash flow) and reinforced by bullish technicals (price above key moving averages with positive MACD). Valuation is reasonable but not especially cheap, and the dividend yield is modest.

Positive Factors

Revenue Growth

A sustained revenue CAGR of ~13.2% from 2023–2025 indicates growing demand and successful execution in resort and hospitality offerings. Multi-year top-line expansion supports scalable operations, funds reinvestment in properties and services, and underpins longer-term margin and cash flow improvements.

High Gross Margins

Consistently high gross margins (~70% in 2025) reflect strong unit economics and pricing power in experience-driven hospitality. High gross margins provide a durable buffer for operating expenses, enable reinvestment in guest experience, and improve resilience of cash generation through cycles.

Cash Generation

Robust operating cash flow and favorable free cash flow conversion indicate the business reliably turns earnings into cash. Strong cash generation supports maintenance and growth capex, debt servicing, and strategic investments, improving financial flexibility and long-term capital allocation.

Negative Factors

Moderate Leverage

A debt-to-equity ratio near 0.94 is moderate for a hospitality operator but raises interest and refinancing exposure. If macro conditions tighten or revenues soften, leverage can limit financial flexibility, increase financing costs, and constrain the ability to pursue larger investments or acquisitions.

Moderate EBIT Margin

Despite high gross margins, an EBIT margin of 9.4% indicates operating costs and overheads still temper overall profitability. Structural improvement in operating efficiency or SG&A control is required to convert strong top-line and gross profit into sustainably higher operating returns.

Cash Flow Variability

Notable swings in capex and financing create variability in free cash flow timing, complicating long-term budgeting for property upkeep and growth. This increases execution risk for multi-year projects and may pressure liquidity during off-cycle periods or when pursuing strategic expansions.

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

Company Description

RESOL HOLDINGS Co.,Ltd., through its subsidiaries, engages in the hotel, golf, and resort management businesses in Japan. The company provides welfare programs, including life support services. It is also involved in the renewable energy; and real estate related/investment revitalization businesses. The company was formerly known as Resort Solution Co., Ltd. and changed its name to RESOL HOLDINGS Co.,Ltd. in October 2016. RESOL HOLDINGS Co.,Ltd. was founded in 1931 and is headquartered in Tokyo, Japan.

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

Strong multi-year revenue growth and high gross margins (~70% in 2025) support a solid score. Profitability has improved (net margin up to 6.9% in 2025) and operating cash flow is robust with good cash conversion. Offsetting factors include moderate EBIT margin (9.4%), moderate leverage (debt-to-equity 0.94), and some variability from capex/financing swings.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 7250.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

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 7250 is below the 20-day moving average (MA) of 8222.00, below the 50-day MA of 7766.40, and above the 200-day MA of 6026.55, indicating a bullish trend. The MACD of 209.28 indicates Positive momentum. The RSI at 73.06 is Negative, neither overbought nor oversold. The STOCH value of 69.32 is Neutral, 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	79 Outperform	¥49.61B	21.16	―	1.42%	10.96%	75.10%
6257	76 Outperform	¥22.07B	-4.76	―	5.22%	-58.15%	-183.95%
2418	68 Neutral	¥33.29B	6.94	21.87%	2.14%	15.35%	45.10%
6040	66 Neutral	¥22.55B	16.35	―	0.76%	20.69%	17.46%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2305	58 Neutral	¥33.97B	25.00	―	2.48%	-4.39%	31.40%
9656	55 Neutral	¥6.33B	12.99	―	2.41%	<0.01%	23.81%

RESOL HOLDINGS Co., Ltd. Corporate Events

RESOL HOLDINGS Lifts Full-Year Earnings and Dividend Forecast on Strong Hotel Demand

RESOL HOLDINGS revised its full-year forecast for the fiscal year ending March 2026, projecting net sales of ¥30.6 billion and profit attributable to owners of parent of ¥2.3 billion, both above its previous outlook, driven largely by stronger-than-expected performance in its hotel operation business amid rising inbound demand and successful branding and service-improvement initiatives. Reflecting this improved earnings outlook and its policy of stable, continuous shareholder returns, the company also raised its forecast for the year-end cash dividend from ¥100 to ¥110 per share, signaling confidence in sustained performance and a willingness to enhance returns while balancing future business development and financial strength.

The most recent analyst rating on (JP:5261) stock is a Buy with a Yen8972.00 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 Lifts Full-Year Outlook on Strong Nine-Month Earnings and Higher Dividend Plan

RESOL HOLDINGS reported solid growth for the nine months ended December 31, 2025, with net sales rising 8.3% year on year to ¥23.6 billion and operating profit up 21.0% to ¥3.08 billion, driving a 15.5% increase in profit attributable to owners of parent to ¥2.94 billion and higher basic earnings per share of ¥529.36. The company’s financial position also strengthened, with total assets of ¥43.6 billion, net assets up to ¥18.6 billion and the equity ratio improving from 37.2% to 42.6%, supporting an upward revision to its full-year forecasts: net sales of ¥30.6 billion, operating profit of ¥3.2 billion and profit attributable to owners of parent of ¥2.3 billion for the fiscal year ending March 31, 2026, alongside a planned increase in the annual dividend to ¥110 per share, signaling management’s confidence in earnings momentum and commitment to shareholder returns.

The most recent analyst rating on (JP:5261) stock is a Buy with a Yen8972.00 price target. To see the full list of analyst forecasts on RESOL HOLDINGS Co., Ltd. stock, see the JP:5261 Stock Forecast page.