R.C.Core Co., Ltd. (7837) AI Stock Analysis

• Market Cap: ¥1.58B
• Dividend Yield: N/A
• Average Volume (3M): 59.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: 3.63%
• EPS Growth: 63.69%
• Country: JP
• Employees: 215
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 3.20
• Shares Outstanding: 4,536,400
• 10 Day Avg. Volume: 169,950
• 30 Day Avg. Volume: 59,346
• PEG Ratio: 0.02
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.12
• P/FCF Ratio: -1.46
• 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: 41 Neutral
• Price Target: ¥389.00 ▲(7.46% Upside)

The overall stock score of 40.6 reflects significant financial challenges, including declining revenues and negative profitability. Technical indicators suggest a bearish trend with weak momentum. The negative P/E ratio highlights valuation concerns, further impacting the stock's attractiveness.

Positive Factors

Revenue Growth

Despite financial challenges, the company has managed to achieve positive revenue growth, indicating potential market demand and resilience in its core business operations.

Business Model

The dual revenue model of game sales and in-game purchases provides a diversified income stream, enhancing revenue stability and potential growth through microtransactions.

Intellectual Property Licensing

Licensing agreements for intellectual property offer additional revenue streams and leverage the company's creative assets, potentially increasing profitability over time.

Negative Factors

Profitability Challenges

The company faces ongoing profitability issues with negative margins and weak cash flow, which could hinder its ability to invest in growth and sustain operations long-term.

High Leverage

High leverage indicates financial risk, as significant liabilities compared to equity can strain resources and limit financial flexibility, impacting future growth and stability.

Cash Flow Management

Negative operating cash flow reflects inefficiencies in converting income to cash, posing challenges in funding operations and strategic initiatives, potentially affecting long-term viability.

R.C.Core Co., Ltd. Business Overview & Revenue Model

Company Description

R. C. Core Co., Ltd., together with its subsidiaries, plans, manufactures, and sells log and natural individualized housing in Japan. The company offers construction contracts for log houses; develops and sells residential lands; and provides maintenance and renovation works. It is also involved in brokerage and sale of residential land and condominiums; and sale and operation management villas. R. C. Core Co., Ltd. was incorporated in 1985 and is based in Shibuya, Japan.

How the Company Makes Money

R.C.Core Co., Ltd. generates revenue primarily through the sale of its video games and in-game purchases. The company monetizes its products by offering both premium and free-to-play titles, with the latter often featuring microtransactions that allow players to purchase virtual goods or enhancements. Additionally, R.C.Core engages in licensing agreements with other companies for the use of its intellectual property, which contributes to its earnings. Strategic partnerships with major gaming platforms and collaborations with other developers also enhance its market reach and sales potential, further solidifying its revenue streams.

R.C.Core Co., Ltd. Financial Statement Overview

Summary

R.C.Core Co., Ltd. is facing significant financial challenges with declining revenues, negative profitability margins, and weak cash flow generation. The balance sheet shows high leverage and low equity, indicating financial instability. The company needs strategic improvements to stabilize its financial position and enhance profitability.

Income Statement

The company has experienced declining revenues over the years, with a significant drop in 2025. Gross profit margins have been decreasing, and the company is operating at a net loss, indicating profitability challenges. EBIT and EBITDA margins are negative, reflecting operational inefficiencies.

Balance Sheet

The debt-to-equity ratio has shown improvement, indicating reduced leverage, but the company still faces high liabilities relative to equity. The equity ratio is weak, and return on equity has been negative, primarily due to persistent net losses.

Cash Flow

Operating cash flow has been negative, indicating cash burn from operations. Free cash flow has also been negative, suggesting challenges in generating cash from core business activities. The company does not efficiently convert net income into cash flow, reflecting weak cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.39B	10.99B	12.14B	13.94B	16.34B	15.79B
Gross Profit	3.17B	3.07B	3.27B	3.11B	4.02B	4.40B
EBITDA	-426.91M	-490.66M	3.52B	-1.39B	-41.67M	-160.92M
Net Income	-397.83M	-530.77M	2.12B	-1.34B	-436.52M	-534.74M
Balance Sheet
Total Assets	5.90B	6.49B	7.88B	11.20B	12.02B	13.20B
Cash, Cash Equivalents and Short-Term Investments	2.93B	3.11B	4.09B	3.20B	3.13B	5.17B
Total Debt	610.00M	818.59M	988.76M	5.41B	5.16B	6.13B
Total Liabilities	3.64B	4.09B	4.92B	10.31B	9.83B	10.34B
Stockholders Equity	2.26B	2.40B	2.97B	881.74M	2.19B	2.86B
Cash Flow
Free Cash Flow	0.00	-912.66M	-439.96M	-698.72M	-898.05M	-126.76M
Operating Cash Flow	0.00	-870.16M	-269.41M	-539.51M	-568.03M	421.66M
Investing Cash Flow	0.00	67.20M	5.66B	360.00M	-361.99M	-577.20M
Financing Cash Flow	0.00	-129.45M	-4.54B	239.61M	-1.11B	1.80B

R.C.Core Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 362.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7837, the sentiment is Neutral. The current price of 362 is above the 20-day moving average (MA) of 355.20, below the 50-day MA of 381.32, and below the 200-day MA of 385.49, indicating a neutral trend. The MACD of -2.89 indicates Negative momentum. The RSI at 55.57 is Neutral, neither overbought nor oversold. The STOCH value of 86.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7837.

R.C.Core Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3293	73 Outperform	¥6.33B	11.36	3.32%	4.53%	-15.55%	-41.48%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2984	65 Neutral	¥6.51B	46.57	―	4.09%	-32.57%	-91.67%
8887	61 Neutral	¥16.32B	4.69	―	0.91%	206.98%	325.25%
7837	41 Neutral	¥1.58B	-3.88	―	―	3.63%	63.69%