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

• Market Cap: ¥1.40B
• Dividend Yield: N/A
• Average Volume (3M): 59.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: 3.63%
• EPS Growth: 63.69%
• Country: JP
• Employees: 215
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -44.62
• 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: ¥317.00 ▼(-12.43% Downside)
• Action: Reiterated Date: 11/08/25
• Date: Action: Reiterated 11/08/25

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

Reduced leverage trend

An improving debt-to-equity ratio indicates the company is making measurable progress reducing leverage. Over 2-6 months this materially lowers refinancing and interest risk, increases financial flexibility to fund operations or restructure, and improves solvency metrics for lenders and partners.

Improving EPS trend

Material positive EPS growth signals improving per‑share profitability dynamics versus prior periods. If sustained, this trend supports rebuilding retained earnings and improves the firm's ability to generate distributable profits or internally fund recovery initiatives, enhancing long‑term viability.

Exchange listing access

Being listed on the Tokyo Stock Exchange provides durable access to domestic capital markets, governance scrutiny and potential institutional investor support. This structural positioning aids future equity or bond raises, strategic partnerships and credibility when negotiating refinancing or development deals.

Negative Factors

Sustained revenue decline

A ~30% revenue decline is a structurally negative signal that erodes scale and weakens the firm's ability to cover fixed costs. Over months this compresses margins, limits reinvestment capacity in projects, and makes operational turnaround harder without new revenue streams or strategic pricing/portfolio changes.

Negative operating and free cash flow

Persistent negative operating and free cash flow means the core business is not self‑funding. Over a 2–6 month horizon this raises reliance on external financing, increases liquidity risk, and constrains capital spending or redevelopment, pressuring near‑term operational continuity and strategic choices.

Weak equity and profitability

A weak equity base combined with negative profitability reduces loss-absorption capacity and raises the effective cost of capital. Structurally, this limits ability to pursue projects, makes refinancing more expensive, and undermines investor confidence until sustained profitability and equity rebuilding occur.

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. 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Negative
• Last Price: 362.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7837, the sentiment is Negative. The current price of 362 is above the 20-day moving average (MA) of 340.10, above the 50-day MA of 358.36, and below the 200-day MA of 387.85, indicating a bearish trend. The MACD of -8.66 indicates Positive momentum. The RSI at 36.04 is Neutral, neither overbought nor oversold. The STOCH value of 33.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
2981	84 Outperform	¥12.62B	9.02	―	2.26%	33.87%	142.66%
2983	78 Outperform	¥22.62B	99.29	―	2.07%	15.56%	67.66%
3293	73 Outperform	¥6.38B	11.79	2.90%	4.53%	-15.55%	-41.48%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2984	65 Neutral	¥6.62B	-13.82	―	4.09%	-32.57%	-91.67%
8887	61 Neutral	¥16.45B	8.34	―	0.91%	206.98%	325.25%
7837	41 Neutral	¥1.40B	-2.03	―	―	3.63%	63.69%