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

• Market Cap: ¥13.61B
• Dividend Yield: 2.19%
• Average Volume (3M): 74.44K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.94
• 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: ¥1,846.00 ▲(11.88% 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

Performance-based business model

A performance-based affiliate model aligns revenue with measurable outcomes, creating durable cash generation as advertisers pay for conversions. This structure scales with advertiser demand, leverages network effects among publishers, and keeps fixed-cost intensity low, supporting steady long-term margins and profitability.

Improving margins and profitability

High and improving gross and net margins reflect strong cost control and pricing power in the platform business. Platform-driven economics enable operating leverage as volumes rise, making margins more sustainable and supporting reinvestment or shareholder returns over the medium term if revenue growth persists.

Strong cash flow generation

Consistent positive free cash flow and a substantial operating cash flow to net income ratio indicate the company converts profits into cash efficiently. This strengthens funding for organic growth, product development and dividends without reliance on external financing, improving strategic flexibility over months.

Negative Factors

Rising leverage risk

Total debt rising over multiple years and a debt-to-equity around 1.05 increase financial risk. Higher leverage can pressure interest and coverage ratios if cash flows weaken, constrain discretionary investment or dividend policy, and reduce resilience to industry slowdowns over the medium term.

Revenue volatility history

A past revenue decline signals sensitivity to advertiser demand and campaign volumes typical in affiliate marketing. Such volatility can make forecasting and capacity planning harder, potentially compressing margins and cash generation during ad-market slowdowns and affecting multi-quarter stability.

Limited investor communication

Absent earnings call details and guidance reduce transparency into strategy, risk management and near-term outlook. Limited investor communication can hinder market understanding of structural initiatives and make it harder for stakeholders to assess management execution and capital allocation over the coming months.

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 primarily earns revenue through performance-based advertising (affiliate marketing). Under this model, advertisers list campaigns (e.g., customer acquisition, lead generation, or purchase conversions) and pay fees when predefined outcomes occur (such as a sale or qualified inquiry). Rentracks tracks referrals/conversions, collects the performance fee from advertisers, and shares a portion of that fee with the media partners that delivered the conversion; the difference (or a platform/handling fee component) becomes the company’s revenue. Key revenue drivers typically include the volume of active campaigns, conversion rates and transaction volumes generated by media partners, pricing/commission rates agreed with advertisers, and the breadth/quality of its media partner network and tracking/attribution capabilities. Information on specific major partnerships, customer concentration, or segment-level revenue breakdowns is null.

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 1752.85, below the 50-day MA of 1748.30, and above the 200-day MA of 1463.73, indicating a neutral trend. The MACD of -16.71 indicates Positive momentum. The RSI at 42.23 is Neutral, neither overbought nor oversold. The STOCH value of 48.51 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	¥30.58B	194.87	―	5.35%	58.08%	29.89%
2130	69 Neutral	¥14.73B	12.09	―	2.51%	10.17%	327.27%
6045	68 Neutral	¥13.61B	22.31	―	2.19%	14.43%	10.99%
7095	66 Neutral	¥20.75B	10.84	―	2.01%	15.43%	12.47%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2491	57 Neutral	¥14.64B	29.59	―	7.85%	-3.20%	34.08%
6094	50 Neutral	¥12.78B	2.40	―	―	-2.68%	91.68%