De-levered Balance Sheet And Rising EquityA materially de-levered balance sheet (debt-to-equity ~0.03) and consistent equity growth materially improve financial flexibility and lower solvency risk. That durability supports sustainable capex for fleet renewal, steadier dividends or opportunistic M&A across cycles.

Improving Operating Profitability And MarginsSustained improvement in gross and operating margins (gross ~41%, EBIT ~8.7%, EBITDA ~15.1%) indicates better pricing, utilization or cost control in rental operations. Higher operating profitability supports stronger recurring cash generation and funds long-term fleet investment.

Steady Revenue Growth And Rental Revenue ModelA steady revenue trajectory with a 2025 step-up (4.9% growth) underpins a recurring rental fee model that builds customer relationships and predictable utilization. Diversified equipment mix across construction and industrial segments supports stable demand and utilization over time.

Bears Say

Volatile Free Cash Flow Year-to-yearFree cash flow volatility—sharp rebound to ~¥3.0B in 2025 after a large drop to ~¥0.2B in 2024—reduces predictability for capex, fleet refresh and dividends. Persistent variability raises financing and execution risk when planning multi-year investments.

Modest Net Margin With Limited Bottom-line CushionA modest net margin (~5.6%) leaves a thinner buffer against cost or pricing shocks and limits retained earnings for reinvestment. Even with operating margin gains, subdued net profitability constrains long-term capital accumulation and shareholder returns sustainability.

Returns On Equity Moderating As Equity Base GrowsROE weakening relative to prior years suggests profitability hasn't kept pace with equity expansion. Rising equity combined with moderating returns may signal declining capital efficiency and could pressure long-term return generation for shareholders if not reversed.

7081 FAQ

What was Koyou Rentia Co., Ltd.’s price range in the past 12 months?

Koyou Rentia Co., Ltd. lowest stock price was ¥954.00 and its highest was ¥1485.00 in the past 12 months.

What is Koyou Rentia Co., Ltd.’s market cap?

Koyou Rentia Co., Ltd.’s market cap is ¥15.13B.

When is Koyou Rentia Co., Ltd.’s upcoming earnings report date?

Koyou Rentia Co., Ltd.’s upcoming earnings report date is May 18, 2026 which is in 82 days.

How were Koyou Rentia Co., Ltd.’s earnings last quarter?

Koyou Rentia Co., Ltd. released its earnings results on Feb 12, 2026. The company reported ¥45.37 earnings per share for the quarter, beating the consensus estimate of N/A by ¥45.37.

Is Koyou Rentia Co., Ltd. overvalued?

According to Wall Street analysts Koyou Rentia Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Koyou Rentia Co., Ltd. pay dividends?

Koyou Rentia Co., Ltd. pays a Semiannually dividend of ¥26 which represents an annual dividend yield of 3.03%. See more information on Koyou Rentia Co., Ltd. dividends here

What is Koyou Rentia Co., Ltd.’s EPS estimate?

Koyou Rentia Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Koyou Rentia Co., Ltd. have?

Koyou Rentia Co., Ltd. has 11,122,600 shares outstanding.

What happened to Koyou Rentia Co., Ltd.’s price movement after its last earnings report?

Koyou Rentia Co., Ltd. reported an EPS of ¥45.37 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 3.519%.

Which hedge fund is a major shareholder of Koyou Rentia Co., Ltd.?

Currently, no hedge funds are holding shares in JP:7081

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Koyou Rentia Co., Ltd.

Koyou Rentia Co., Ltd. engages in the rental-related, space design, and product sales business in Japan and internationally. The company is involved in the renting of equipment to companies in construction site offices, corporate event venues, and business offices; handling of phone line extensions, partitions, and interior construction works; and sale of used rental products, as well as supports the proper disposal of leftover items following office relocations and closures. It also engages in the design, planning, and construction of condominium galleries; rental of equipment, interior coordination of model rooms, and sale of furniture; offers redesign services for condo buyers; and sale of office furniture, office equipment, and other fixtures for government agencies and companies. Koyou Rentia Co., Ltd. was incorporated in 1970 and is headquartered in Tokyo, Japan.