UPR Corp. (7065) AI Stock Analysis

• Market Cap: ¥6.78B
• Dividend Yield: 3.17%
• Average Volume (3M): 10.00K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.95
• Revenue Growth: -0.70%
• EPS Growth: -43.72%
• Country: JP
• Employees: 228
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 31.20
• Shares Outstanding: 7,660,000
• 10 Day Avg. Volume: 13,860
• 30 Day Avg. Volume: 9,996
• PEG Ratio: -0.41
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.39
• P/FCF Ratio: -15.98
• 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): 74.45
• Revenue Forecast (FY): ¥15.63B

• Rating: 59 Neutral
• Price Target: ¥925.00 ▲(10.25% Upside)
• Action: Reiterated Date: 01/20/26
• Date: Action: Reiterated 01/20/26

The score is held back primarily by weakening profitability and inconsistent free cash flow alongside moderate leverage. Technicals are supportive due to a strong uptrend, but overbought signals reduce confidence near-term. Valuation is reasonable with a moderate P/E and a modest dividend yield.

Positive Factors

Consistent operating cash flow

Sustained positive operating cash flow underpins the company's ability to service debt, fund routine investments, and maintain operations without relying on external financing. Over a multi-month horizon this reduces liquidity risk and supports steady execution of the rental business model.

Revenue stability and scale

Stable top-line performance indicates durable customer demand and a resilient rental footprint. Combined with increased total assets and equity growth, the company retains scale advantages that help absorb cyclical shocks and preserve service capacity over the medium term.

Solid gross profit dollars

Maintaining meaningful gross profit dollars provides a foundation to restore operating margins through cost control or pricing actions. This buffer supports reinvestment choices and improves the odds of margin recovery if management addresses operating inefficiencies.

Negative Factors

Compressed profitability

Material declines in operating profit and net income indicate eroding operating leverage or higher costs. Persistently lower margins reduce internal cash generation, constrain reinvestment capacity, and make returns more sensitive to revenue weakness over the coming months.

Volatile free cash flow

Irregular and sometimes negative free cash flow limits the company's ability to sustainably fund growth, pay down debt, or return capital. This inconsistency raises execution risk and reduces financial flexibility if operating performance weakens or capex needs rise.

Moderate-to-elevated leverage

Leverage near one times equity constrains strategic flexibility, increasing vulnerability to prolonged profit compression. With limited headroom, the company may face tougher choices on capex, dividends, or refinancing if earnings remain pressured over the medium term.

UPR Corp. Business Overview & Revenue Model

Company Description

UPR Corporation primarily engages in the rental and sale of pallets and logistics equipment in Japan. It also provides logistics consultation, positional information, car-sharing, remote monitoring, and second-hand dealer services. The company was founded in 1979 and is headquartered in Tokyo, Japan.

UPR Corp. Financial Statement Overview

Summary

Stable revenue but materially weaker profitability versus prior years, with compressed operating and net margins. Operating cash flow is consistently positive, but free cash flow is volatile and often negative, and leverage around ~1x debt-to-equity limits flexibility if earnings stay pressured.

Income Statement

Revenue has been broadly stable over the last several years, but growth has cooled materially and the latest annual period shows a slight decline versus the prior year. Profitability has compressed meaningfully from earlier peaks: net income and operating profit are down versus prior years, and margins have trended lower overall. A positive is that the business still generates solid gross profit dollars, but the trajectory of operating earnings and net profit is the key weakness.

Balance Sheet

The balance sheet shows moderate-to-elevated leverage for the industry, with debt running around equity (debt-to-equity roughly ~1.0 in recent annual periods), which limits flexibility if earnings remain pressured. Equity has grown over time and total assets have increased, supporting scale, but returns on equity have drifted down from earlier stronger levels—consistent with the margin and earnings decline. Overall: adequate capitalization, but leverage is a meaningful constraint.

Cash Flow

Operating cash flow is consistently positive and sizable, which supports debt servicing and ongoing operations. However, free cash flow is volatile and often negative (including the latest annual period), indicating heavy reinvestment needs and/or less efficient conversion of earnings into cash. While there are occasional strong years for free cash flow, the inconsistency reduces financial flexibility and raises execution risk if operating conditions weaken.

Breakdown	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	15.35B	15.46B	14.83B	13.33B	12.93B
Gross Profit	4.64B	4.83B	4.80B	4.09B	3.98B
EBITDA	3.42B	3.42B	3.45B	3.16B	3.09B
Net Income	336.21M	597.35M	743.78M	680.92M	561.51M
Balance Sheet
Total Assets	21.96B	21.47B	20.90B	19.60B	18.53B
Cash, Cash Equivalents and Short-Term Investments	3.27B	3.51B	3.21B	3.16B	2.71B
Total Debt	9.19B	8.68B	8.31B	7.95B	8.64B
Total Liabilities	12.65B	12.44B	12.39B	11.78B	11.31B
Stockholders Equity	9.15B	8.92B	8.44B	7.78B	7.20B
Cash Flow
Free Cash Flow	-375.31M	454.71M	220.61M	1.43B	-259.57M
Operating Cash Flow	3.06B	3.55B	3.39B	3.27B	2.91B
Investing Cash Flow	-3.72B	-3.52B	-3.63B	-2.10B	-3.18B
Financing Cash Flow	394.23M	266.68M	252.81M	-781.37M	-675.03M

UPR Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 839.00
• 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:7065, the sentiment is Negative. The current price of 839 is below the 20-day moving average (MA) of 953.15, below the 50-day MA of 1001.48, and above the 200-day MA of 818.98, indicating a neutral trend. The MACD of -27.15 indicates Positive momentum. The RSI at 35.07 is Neutral, neither overbought nor oversold. The STOCH value of 21.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7065.

UPR Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7081	76 Outperform	¥14.16B	7.37	―	3.03%	5.72%	60.38%
8596	68 Neutral	¥31.98B	8.57	―	4.66%	-13.01%	9.74%
8424	64 Neutral	¥397.28B	11.14	―	3.62%	-0.03%	-42.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7065	59 Neutral	¥6.78B	5.83	―	3.17%	-0.70%	-43.72%
5834	58 Neutral	¥45.31B	6.79	―	3.90%	0.17%	58.30%