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

• Market Cap: ¥12.56B
• Dividend Yield: 3.56%
• Average Volume (3M): 3.29K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.13
• Revenue Growth: 1.58%
• EPS Growth: 28.43%
• Country: JP
• Employees: 893
• Sector: Industrials
• Sector Strength: 76
• Industry: Rental & Leasing Services
• EPS (TTM): 55.78
• Shares Outstanding: 11,066,600
• 10 Day Avg. Volume: 3,820
• 30 Day Avg. Volume: 3,290
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,186.00
• Price Target Upside: 5.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥1,186.00 ▲(5.61% Upside)

Koyou Rentia Co., Ltd. scores well due to its strong financial performance and attractive valuation. The consistent revenue growth and effective debt management are significant strengths. However, technical indicators suggest a cautious market sentiment, and concerns about profitability margins and cash flow volatility slightly temper the overall outlook.

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

Company Description

Koyou Rentia Co., Ltd. (7081) is a Japan-based company primarily engaged in the rental business. The company offers a wide range of rental services, including construction equipment, temporary housing units, and event-related equipment. Koyou Rentia serves various sectors such as construction, events, and disaster recovery, providing reliable and flexible rental solutions tailored to the specific needs of its clients.

How the Company Makes Money

Koyou Rentia Co., Ltd. generates revenue primarily through the rental fees charged for its equipment and services. The company maintains a diverse inventory of rental products that cater to different industries, ensuring a steady demand. Key revenue streams include long-term rentals for construction projects, short-term leases for events, and emergency rentals for disaster relief efforts. Additionally, Koyou Rentia collaborates with construction companies and event organizers to secure ongoing rental agreements, enhancing its revenue stability and growth potential.

Koyou Rentia Co., Ltd. Financial Statement Overview

Summary

Koyou Rentia Co., Ltd. demonstrates consistent revenue growth and robust margins, with a strong equity position and low leverage. However, slight declines in net profitability and cash flow efficiency indicate areas for improvement.

Income Statement

Koyou Rentia Co., Ltd. demonstrates a solid financial performance with consistent revenue growth, as evidenced by a Revenue Growth Rate of 2.91% in 2024. The company's Gross Profit Margin and EBITDA Margin remain robust at approximately 39.6% and 13.37% in 2024, respectively, indicating strong operational efficiency. However, there is a slight decline in Net Profit Margin from 5.18% in 2023 to 4.86% in 2024, reflecting competitive pressures or increased costs. Overall, the income statement reflects a stable and growing company with solid profitability metrics, albeit with slight margin compression.

Balance Sheet

The balance sheet reveals a strong equity position with an Equity Ratio of 60.43% in 2024, indicating financial stability. The Debt-to-Equity Ratio has improved to 0.11 in 2024 from 0.19 in 2023, reflecting effective debt management. However, the Return on Equity decreased slightly to 14.00% in 2024 from 16.41% in 2023, suggesting a minor decline in profitability relative to equity. Overall, the balance sheet shows a stable financial structure with low leverage and solid equity support, though some profitability metrics have seen a modest dip.

Cash Flow

Koyou Rentia's cash flow statement shows a decrease in Operating Cash Flow to Net Income Ratio from 2.42 in 2023 to 1.51 in 2024, indicating reduced cash flow efficiency. The Free Cash Flow improved to 222 million JPY in 2024 from 156.6 million JPY in 2023, reflecting better cash management. However, the Free Cash Flow to Net Income Ratio decreased to 0.14 in 2024, highlighting potential challenges in converting income to free cash flow. Overall, while cash flow generation remains positive, there are indicators of decreased cash efficiency.

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

Koyou Rentia Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1123.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 1123 is above the 20-day moving average (MA) of 1108.30, above the 50-day MA of 1090.74, and above the 200-day MA of 1051.95, indicating a bullish trend. The MACD of 12.66 indicates Negative momentum. The RSI at 59.04 is Neutral, neither overbought nor oversold. The STOCH value of 51.53 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
9908	81 Outperform	¥24.09B	8.87		4.22%	14.39%	-4.41%
7065	74 Outperform	¥6.12B	14.06		1.88%	-1.27%	-26.39%
7081	71 Outperform	¥12.56B	7.02		3.56%	1.58%	28.43%
9763	71 Outperform	¥11.38B	8.65		3.68%	9.16%	6.01%
2445	68 Neutral	¥16.12B	15.34		3.93%	0.02%	-36.92%
Sector *	59 Neutral	AU$1.71B	11.24	-2.47%	3.53%	6.84%	3.98%
9223	52 Neutral	¥7.61B	59.05		0.32%	7.34%	-162.02%