Koyou Rentia Co., Ltd. (7081) AI Stock Analysis

• Market Cap: ¥13.80B
• Dividend Yield: 3.22%
• Average Volume (3M): 1.97K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.16
• Revenue Growth: 5.72%
• EPS Growth: 60.38%
• Country: JP
• Employees: 893
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 50.51
• Shares Outstanding: 11,066,600
• 10 Day Avg. Volume: 2,130
• 30 Day Avg. Volume: 1,970
• PEG Ratio: -1.54
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 52.62
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥1,290.00 ▲(3.86% Upside)

Koyou Rentia Co., Ltd. demonstrates strong financial performance with consistent revenue growth and efficient operations, although profitability margins and cash flow volatility pose some risks. The stock's valuation is attractive, with a low P/E ratio and a healthy dividend yield. Technical indicators suggest a balanced market sentiment, with potential for bullish momentum.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Operational Efficiency

Strong operational efficiency with stable margins reflects effective cost management, enhancing profitability and competitive positioning.

Financial Stability

Improved financial stability through effective debt management ensures resilience against economic fluctuations and supports future growth.

Negative Factors

Net Profit Margin Decline

A decline in net profit margins suggests potential challenges in maintaining profitability, which could affect long-term financial health.

Free Cash Flow Volatility

Volatile free cash flow poses risks to liquidity and may limit the company's ability to invest in growth opportunities or manage debt.

Return on Equity Decline

A decline in return on equity indicates challenges in generating returns on shareholder investments, potentially impacting investor confidence.

Koyou Rentia Co., Ltd. Business Overview & Revenue Model

Company Description

Koyou Rentia Co., Ltd. (7081) is a prominent player in the rental and leasing industry, primarily focusing on providing high-quality rental services for construction machinery and equipment. The company operates across various sectors, including construction, agriculture, and industrial services, catering to both local and regional markets. Koyou Rentia offers a diverse range of products, including excavators, cranes, and other heavy machinery, ensuring that clients have access to the equipment they need for their projects.

How the Company Makes Money

Koyou Rentia generates revenue primarily through the rental of its machinery and equipment to construction companies, contractors, and other businesses requiring heavy-duty tools for their operations. The company charges rental fees based on the duration of the lease and the type of equipment used. Additionally, Koyou Rentia may earn income from maintenance and servicing of the rented equipment, as well as from selling used machinery. Strategic partnerships with construction firms and other industry stakeholders also enhance its market presence and contribute to revenue growth. The demand for construction and industrial services in the region further bolsters its earnings potential.

Koyou Rentia Co., Ltd. Financial Statement Overview

Summary

Koyou Rentia Co., Ltd. shows consistent revenue growth and strong operational efficiency, as indicated by stable gross profit margins and healthy EBIT and EBITDA margins. However, there are concerns about declining net profit margins and free cash flow volatility, which could impact long-term profitability and liquidity.

Income Statement

Koyou Rentia Co., Ltd. has demonstrated consistent revenue growth over the years, with a notable increase from 2020 to 2024. The gross profit margin has remained stable, indicating effective cost management. However, the net profit margin has slightly decreased in 2024 compared to 2023, suggesting some pressure on profitability. The EBIT and EBITDA margins are healthy, reflecting strong operational efficiency.

Balance Sheet

The company's balance sheet shows a solid equity base with a rising equity ratio, indicating financial stability. The debt-to-equity ratio has improved over the years, reflecting effective debt management. However, the return on equity has slightly declined, which may indicate challenges in generating returns on shareholder investments.

Cash Flow

Koyou Rentia's cash flow statement reveals fluctuating free cash flow growth, with a significant decrease in 2024 compared to 2023. The operating cash flow to net income ratio remains strong, indicating good cash generation from operations. However, the free cash flow to net income ratio has shown volatility, which could pose risks to liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.09B	31.86B	30.96B	26.19B	23.99B	21.56B
Gross Profit	13.26B	12.62B	12.53B	11.49B	9.96B	8.37B
EBITDA	4.73B	4.26B	4.39B	3.80B	4.02B	2.85B
Net Income	1.79B	1.55B	1.60B	1.25B	1.53B	875.42M
Balance Sheet
Total Assets	19.03B	18.31B	19.26B	17.20B	15.35B	14.00B
Cash, Cash Equivalents and Short-Term Investments	2.95B	2.10B	2.93B	2.38B	2.11B	2.11B
Total Debt	668.77M	1.25B	1.87B	2.97B	2.62B	3.68B
Total Liabilities	7.39B	7.24B	9.49B	8.96B	8.13B	8.17B
Stockholders Equity	11.64B	11.06B	9.77B	8.24B	7.22B	5.83B
Cash Flow
Free Cash Flow	0.00	221.40M	1.57B	1.11B	1.87B	383.80M
Operating Cash Flow	0.00	2.35B	3.88B	3.04B	3.26B	1.71B
Investing Cash Flow	0.00	-2.25B	-1.96B	-2.81B	-1.99B	-1.35B
Financing Cash Flow	0.00	-925.32M	-1.37B	32.96M	-1.27B	-158.22M

Koyou Rentia Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1242.00
• 50DMA: Positive
• 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:7081, the sentiment is Positive. The current price of 1242 is above the 20-day moving average (MA) of 1237.75, above the 50-day MA of 1195.54, and above the 200-day MA of 1110.98, indicating a bullish trend. The MACD of 13.56 indicates Positive momentum. The RSI at 57.76 is Neutral, neither overbought nor oversold. The STOCH value of 78.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7081.

Koyou Rentia Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9763	81 Outperform	¥12.73B	8.25	―	3.55%	6.66%	13.62%
9908	75 Outperform	¥25.79B	8.37	―	4.11%	13.63%	17.47%
7081	72 Outperform	¥13.80B	6.72	―	3.22%	5.72%	60.38%
2445	70 Outperform	¥19.00B	14.29	―	3.34%	-1.56%	-3.60%
7065	68 Neutral	¥6.08B	18.09	―	3.13%	-0.70%	-43.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9223	48 Neutral	¥6.78B	-41.99	―	0.37%	11.65%	-210.62%