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

• Market Cap: ¥13.15B
• Dividend Yield: 2.19%
• Average Volume (3M): 74.44K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.95
• 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: ¥1,820.00 ▲(10.30% 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 pay-for-performance affiliate model aligns revenue with measurable advertiser outcomes, creating durable cash flow tied to conversions rather than impressions. This model scales with network effects as more publishers and advertisers join, supporting long-term client ROI focus and predictable transaction volumes.

Improving margins

Material margin gains indicate durable operational leverage in a digital platform business: high gross margins reflect low incremental costs per conversion, while rising net margins show disciplined cost control. Sustained margins support reinvestment, dividend capacity, and resilience to cyclical ad spend shifts.

Strong cash generation and solid equity base

Consistent free cash flow growth and a high operating cash flow to net income ratio show the business converts profits into cash reliably. Coupled with a 33.60% equity ratio and improving ROE, this supports funding growth, product investment, and reduces dependency on external financing over the medium term.

Negative Factors

Rising leverage trend

An upward debt trend raises structural risk: higher interest and principal obligations can constrain strategic flexibility and absorb cash flow in downturns. If debt growth outpaces cash generation, leverage could limit ability to invest in product development or weather cyclical reductions in advertiser spend.

Revenue volatility history

Past revenue declines demonstrate that affiliate-driven revenues can be lumpy and tied to advertiser budgets or campaign cycles. This structural variability complicates long-term planning, capital allocation, and may increase the need for larger cash buffers despite overall multi-year growth trends.

Limited scale

A relatively small headcount suggests limited scale versus major ad-tech competitors, potentially constraining product development pace, sales reach, and bargaining power with large advertisers. Scale limits can slow market share gains and make sustained investment in technology and compliance more challenging.

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	1.34B	1.16B	672.25M	1.11B	848.20M	491.30M
Net Income	735.25M	668.38M	339.89M	198.66M	438.71M	218.90M
Balance Sheet
Total Assets	9.18B	10.73B	9.35B	8.38B	6.25B	5.10B
Cash, Cash Equivalents and Short-Term Investments	3.94B	6.11B	4.82B	3.30B	2.77B	2.62B
Total Debt	2.53B	3.74B	3.77B	2.69B	1.59B	1.22B
Total Liabilities	5.53B	7.15B	6.26B	5.57B	3.56B	2.85B
Stockholders Equity	3.65B	3.58B	3.10B	2.81B	2.69B	2.25B
Cash Flow
Free Cash Flow	0.00	1.57B	624.60M	-373.53M	-85.85M	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 1720.50, below the 50-day MA of 1757.66, and above the 200-day MA of 1490.40, indicating a neutral trend. The MACD of -16.02 indicates Positive momentum. The RSI at 39.55 is Neutral, neither overbought nor oversold. The STOCH value of 35.64 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	¥28.09B	3.66	―	5.35%	58.08%	29.89%
2130	69 Neutral	¥14.43B	12.09	―	2.51%	10.17%	327.27%
6045	68 Neutral	¥13.15B	22.31	―	2.19%	14.43%	10.99%
7095	66 Neutral	¥19.07B	8.10	―	2.01%	15.43%	12.47%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2491	57 Neutral	¥13.93B	29.59	―	7.85%	-3.20%	34.08%
6094	50 Neutral	¥11.67B	2.40	―	―	-2.68%	91.68%