Rentracks Co., Ltd. (6045) AI Stock Analysis

• Market Cap: ¥13.55B
• Dividend Yield: 2.19%
• Average Volume (3M): 74.44K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.96
• Revenue Growth: 14.43%
• EPS Growth: 10.99%
• Country: JP
• Employees: 130
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 18.49
• Shares Outstanding: 7,975,800
• 10 Day Avg. Volume: 41,810
• 30 Day Avg. Volume: 74,440
• PEG Ratio: 0.13
• Price to Book (P/B): 2.32
• Price to Sales (P/S): 2.15
• P/FCF Ratio: 5.27
• 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: 68 Neutral
• Price Target: ¥1,893.00 ▲(14.73% Upside)
• Action: Reiterated Date: 10/21/25
• Date: Action: Reiterated 10/21/25

Rentracks Co., Ltd. demonstrates strong financial performance with improving profitability and efficient cash flow management, which are the most significant factors contributing to the score. The technical analysis indicates some short-term bearish momentum, but potential for a rebound exists. The valuation is reasonable with a decent dividend yield, adding to the stock's attractiveness. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue & Margin Expansion

Sustained improvement in gross and net margins alongside revenue growth indicates durable operational leverage and effective cost control. Higher margins enhance cash generation and reinvestment capacity, supporting long-term competitiveness and resilience through business cycles.

Strong Cash Generation

Consistent positive free cash flow and healthy operating cash flow relative to net income signal the company can self-fund growth, R&D, or shareholder returns without heavy external financing. This strengthens strategic optionality and long-term financial stability.

Healthy Capital Structure & ROE

A balanced leverage profile with a solid equity base and rising ROE reflects efficient capital use. This combination supports sustainable profitability and provides capacity to absorb shocks while preserving flexibility for targeted investments or selective leverage reduction.

Negative Factors

Increasing Debt Trend

A multi-year rise in total debt raises refinancing and interest-cost risk, especially if revenue or margins weaken. Even with balanced leverage today, continued debt growth can constrain investments, raise fixed charges, and reduce structural financial flexibility over the medium term.

Revenue Volatility

Historical swings in revenue, including a notable dip, suggest sensitivity to market cycles or campaign volumes. Persistent volatility complicates planning, may pressure margins in down cycles, and requires larger cash buffers or diversification to stabilize medium-term cashflows.

Affiliate Model Sensitivity

Dependence on performance-based affiliate revenues ties results to advertiser budgets, conversion rates and publisher supply. Structural shifts in digital ad pricing, privacy/regulatory changes, or advertiser demand reductions could materially affect transaction volumes and revenue durability.

Rentracks Co., Ltd. Business Overview & Revenue Model

Company Description

Rentracks Co.,Ltd. offers WEB consulting and Internet media services in Japan and internationally. The company's WEB consulting services include SEO, SEM, customer attraction websites building, web production, and advertising agency services; and Internet media services comprise planning, production, and operation of various websites. It also operates as a closed affiliate service provider; and offers GAME FEAT that provides advertising services to support monetization of game apps, as well as RT Management, a cloud type personnel affairs system service. The company was formerly known as Coel Co, Ltd. and changed its name to Rentracks Co.,Ltd. in January 2006. Rentracks Co.,Ltd. was founded in 2005 and is based in Tokyo, Japan.

How the Company Makes Money

Rentracks Co., Ltd. generates revenue primarily through its performance-based marketing solutions, charging advertisers based on the results achieved, such as clicks, leads, or sales generated through their platforms. The company's key revenue streams include commissions earned from affiliate marketing transactions, subscription fees for access to their marketing tools and analytics, and advertising fees from businesses seeking to promote their products through the Rentracks network. Additionally, partnerships with various publishers and advertisers bolster their revenue, as these collaborations often lead to increased campaign effectiveness and broader market reach, further enhancing their earnings potential.

Rentracks Co., Ltd. Financial Statement Overview

Summary

Rentracks Co., Ltd. presents a solid financial footing with improving profitability, stable leverage, and efficient cash flow management. The company has managed to grow its top line while improving margins, reflecting strong operational execution. The balance sheet remains healthy with a balanced capital structure. Cash flows are strong, supporting both operations and strategic investments. While historical revenue volatility and increasing debt levels present challenges, the overall financial health remains positive.

Income Statement

Rentracks Co., Ltd. has shown robust revenue growth with a significant increase from 2020 to 2025. The gross profit margin improved, reaching 69.27% in 2025, indicating strong cost management. The net profit margin also improved to 17.30% in 2025, signaling enhanced profitability. EBIT and EBITDA margins have increased, reflecting efficient operations. However, the revenue dip in 2021 highlights volatility in revenue streams.

Balance Sheet

The company's balance sheet reflects a solid equity base with an equity ratio of 33.60% in 2025, indicating financial stability. The debt-to-equity ratio is 1.05, suggesting a balanced leverage. Return on Equity (ROE) improved to 18.68% in 2025, showcasing effective use of equity to generate profits. However, the increasing total debt from 2020 to 2025 could pose potential risks if not managed cautiously.

Cash Flow

Rentracks Co., Ltd. has demonstrated strong cash flow management, with positive free cash flow growth showcasing operational efficiency. The operating cash flow to net income ratio is substantial, indicating healthy cash generation relative to profits. The free cash flow to net income ratio is also strong, supporting its ability to fund operations and investments without relying heavily on external financing. Nonetheless, some fluctuations in operating cash flow in earlier years warrant attention.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.91B	3.86B	3.30B	3.30B	2.46B	12.35B
Gross Profit	2.72B	2.68B	2.29B	2.37B	1.91B	1.45B
EBITDA	1.27B	1.16B	620.07M	399.03M	794.58M	415.36M
Net Income	735.17M	668.38M	339.89M	198.66M	438.71M	218.90M
Balance Sheet
Total Assets	9.18B	10.65B	9.28B	8.38B	6.25B	5.09B
Cash, Cash Equivalents and Short-Term Investments	3.94B	6.11B	4.82B	3.20B	2.67B	2.62B
Total Debt	2.53B	3.74B	3.77B	2.69B	1.59B	1.22B
Total Liabilities	5.53B	7.07B	6.18B	5.57B	3.56B	2.84B
Stockholders Equity	3.65B	3.58B	3.10B	2.81B	2.69B	2.25B
Cash Flow
Free Cash Flow	0.00	1.57B	619.55M	-383.06M	-91.81M	463.27M
Operating Cash Flow	0.00	1.58B	626.07M	-298.55M	-84.57M	484.71M
Investing Cash Flow	0.00	-87.55M	-27.26M	-178.20M	-55.94M	-31.89M
Financing Cash Flow	0.00	-196.52M	915.25M	1.02B	282.12M	363.78M

Rentracks Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1650.00
• 50DMA: Negative
• 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:6045, the sentiment is Negative. The current price of 1650 is below the 20-day moving average (MA) of 1782.40, below the 50-day MA of 1739.60, and above the 200-day MA of 1451.19, indicating a neutral trend. The MACD of -8.41 indicates Positive momentum. The RSI at 43.81 is Neutral, neither overbought nor oversold. The STOCH value of 62.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6045.

Rentracks Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6535	75 Outperform	¥30.06B	13.16	―	5.35%	58.08%	29.89%
2130	69 Neutral	¥15.31B	14.99	―	2.51%	10.17%	327.27%
6045	68 Neutral	¥13.55B	21.11	―	2.19%	14.43%	10.99%
7095	66 Neutral	¥20.16B	7.57	―	2.01%	15.43%	12.47%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2491	57 Neutral	¥13.86B	19.09	―	7.85%	-3.20%	34.08%
6094	50 Neutral	¥13.01B	16.25	―	―	-2.68%	91.68%