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

• Market Cap: ¥46.38B
• Dividend Yield: 1.42%
• Average Volume (3M): 3.17K
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.40
• 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: 71 Outperform
• Price Target: ¥9,227.00 ▲(27.27% Upside)
• Action: Reiterated Date: 11/30/25
• Date: Action: Reiterated 11/30/25

The overall stock score is driven primarily by strong financial performance, with robust revenue growth and profitability. Technical analysis indicates strong momentum but potential overbought conditions. Valuation is reasonable, supporting the stock's attractiveness. The absence of earnings call and corporate events data does not impact the score.

Positive Factors

Sustained Revenue Growth

A multi-year revenue CAGR near 13% indicates durable top-line expansion driven by growing demand for resort and stay-related services. Sustained revenue growth supports reinvestment in properties and experience offerings, improving scale and reducing per-unit costs over time.

High Gross and Improving Net Margins

Very high gross margins point to strong pricing power or low variable costs in core operations, while rising net margins show improved cost control and profitability. Together they create durable earnings capacity that can fund growth and cushion cyclical revenue swings.

Strong Cash Generation & Conversion

Consistent operating cash flow and good FCF conversion increase financial flexibility to fund renovations, service debt, and return capital. Reliable cash generation is a durable foundation for capital allocation in a capital-intensive resort business.

Negative Factors

Moderate Leverage

A near-1.0 debt/equity ratio reflects meaningful leverage for a mid-sized resort operator; while manageable in good times, it narrows the firm's buffer against downturns and raises refinancing and interest-rate exposure given the capital-intensive asset base.

Moderate EBIT Margin

An EBIT margin below 10% signals limited operating efficiency for the business. For long-lived resort assets, modest operating margins reduce internal funding capacity for maintenance and upgrades and leave less room to absorb demand shocks without cutting investment or raising prices.

Cash Flow Variability

Irregular CAPEX and financing swings make free cash generation less predictable, complicating multi-year planning for property refurbishments and debt maturities. In a cyclical travel industry, variable cash flow raises liquidity and reinvestment timing risk.

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

RESOL HOLDINGS Co., Ltd. shows 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 and monitoring of 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	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: Neutral
• 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 8134.00, below the 50-day MA of 7706.60, and above the 200-day MA of 5992.90, indicating a bullish trend. The MACD of 206.31 indicates Positive momentum. The RSI at 66.29 is Neutral, neither overbought nor oversold. The STOCH value of 60.36 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
6257	76 Outperform	¥21.86B	-4.71	―	5.22%	-58.15%	-183.95%
5261	71 Outperform	¥46.38B	19.79	―	1.42%	10.96%	75.10%
2418	68 Neutral	¥31.77B	6.62	21.87%	2.14%	15.35%	45.10%
6040	66 Neutral	¥22.17B	16.07	―	0.76%	20.69%	17.46%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2305	58 Neutral	¥34.07B	25.08	―	2.48%	-4.39%	31.40%
9656	55 Neutral	¥6.30B	12.92	―	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.