Royal Holdings Co (8179) AI Stock Analysis

• Market Cap: $129.67B
• Dividend Yield: 1.26%
• Average Volume (3M): 96.63K
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.40
• Revenue Growth: 7.70%
• EPS Growth: -8.38%
• Country: JP
• Employees: 2,056
• Sector: Services
• Sector Strength: N/A
• Industry: Restaurants
• EPS (TTM): 20.87
• Shares Outstanding: 49,861,862
• 10 Day Avg. Volume: 97,880
• 30 Day Avg. Volume: 96,630
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 1.41
• Enterprise Value/Ebitda: 11.09
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: ¥2,863.00 ▲(11.79% Upside)

The overall stock score of 61 reflects solid financial performance with strong revenue growth and operational efficiency, despite some profitability pressures and cash flow concerns. Technical analysis indicates short-term bearish momentum, while valuation suggests the stock may be overvalued. The absence of earnings call and corporate events data limits additional insights.

Royal Holdings Co Business Overview & Revenue Model

Company Description

Royal Holdings Co (8179) is a diversified investment company based in Japan, primarily engaged in real estate development, property management, and investment activities. The company operates across various sectors, including residential, commercial, and industrial properties, and is known for its strategic acquisitions and developments that enhance its portfolio's value. Royal Holdings focuses on creating sustainable value through innovative projects and partnerships, catering to both local and international markets.

How the Company Makes Money

Royal Holdings Co generates revenue through multiple streams primarily derived from its real estate operations. The company earns money by leasing residential and commercial properties, which provides a steady income through rental payments. Additionally, revenue is generated from the sale of developed properties and land parcels, capitalizing on market demand and property appreciation. The company may also engage in joint ventures and partnerships with other real estate firms or investors, sharing risks and benefits from larger projects. Furthermore, Royal Holdings could have ancillary income from property management services, consultancy, and associated fees, contributing to its overall financial performance.

Royal Holdings Co Financial Statement Overview

Summary

Royal Holdings Co demonstrates solid revenue growth and operational efficiency, with strong gross profit margins. However, profitability pressures and a decrease in free cash flow present potential risks. The balance sheet shows moderate leverage, with a healthy return on equity.

Income Statement

Royal Holdings Co has shown consistent revenue growth with a TTM revenue growth rate of 2.23%, indicating a positive trajectory. The gross profit margin remains strong at over 70%, reflecting efficient cost management. However, the net profit margin has slightly decreased to 3.46% in the TTM, suggesting some pressure on profitability. EBIT and EBITDA margins are stable, indicating operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is slightly above 1, indicating moderate leverage, which is typical for the industry. Return on equity is healthy at 10.96% in the TTM, showing effective use of equity to generate profits. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing.

Cash Flow

Operating cash flow is strong, but free cash flow has decreased significantly by 63.7% in the TTM, which could impact future investments. The operating cash flow to net income ratio is 0.37, indicating that cash generation is aligned with reported earnings. However, the free cash flow to net income ratio has decreased, highlighting potential cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	158.32B	152.15B	138.94B	104.02B	83.97B	84.30B
Gross Profit	111.73B	106.58B	96.56B	73.67B	58.19B	56.58B
EBITDA	14.25B	13.68B	11.48B	7.04B	4.08B	-19.92B
Net Income	4.94B	5.93B	4.04B	2.75B	-2.87B	-27.53B
Balance Sheet
Total Assets	135.72B	127.74B	125.87B	123.57B	109.77B	105.90B
Cash, Cash Equivalents and Short-Term Investments	28.75B	19.35B	26.39B	25.65B	23.11B	13.88B
Total Debt	56.86B	49.98B	51.20B	55.42B	59.03B	62.29B
Total Liabilities	84.90B	77.27B	78.05B	78.76B	75.77B	84.89B
Stockholders Equity	50.43B	50.25B	47.82B	44.29B	34.00B	20.90B
Cash Flow
Free Cash Flow	3.43B	3.22B	7.46B	5.38B	-3.91B	-10.14B
Operating Cash Flow	12.70B	10.36B	12.54B	7.39B	-1.89B	-7.23B
Investing Cash Flow	-10.77B	-9.84B	-6.59B	-8.55B	2.06B	-9.92B
Financing Cash Flow	1.97B	-7.74B	-5.20B	3.70B	9.07B	26.59B

Royal Holdings Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2561.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8179, the sentiment is Negative. The current price of 2561 is below the 20-day moving average (MA) of 2690.60, below the 50-day MA of 2715.78, and below the 200-day MA of 2599.00, indicating a bearish trend. The MACD of -28.89 indicates Positive momentum. The RSI at 27.04 is Positive, neither overbought nor oversold. The STOCH value of 6.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8179.

Royal Holdings Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3087	―	¥105.32B	15.92	―	2.27%	5.78%	10.26%
8153	―	¥122.57B	34.58	―	0.78%	4.32%	29.02%
3543	―	¥137.59B	22.58	―	1.97%	16.70%	-0.37%
2695	―	¥136.42B	60.87	―	1.18%	5.43%	-62.27%
8179	―	$129.67B	27.11	10.24%	1.26%	7.70%	-8.38%
Sector *	―	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
7412	―	¥104.08B	129.15	―	―	-7.26%	―

Royal Holdings Co Corporate Events

Royal Holdings Co. Restructures Leadership Post TABISUL Acquisition

Royal Holdings Co., Ltd. announced changes in the duties and responsibilities of its executive officers following the acquisition of TABISUL INC. as a wholly-owned subsidiary. These changes, effective August 5, 2025, include new roles for Kenji Ohsaka and Akitsugu Tominaga, reflecting the company’s strategic move to integrate TABISUL INC. and optimize its management structure, potentially impacting its operational efficiency and market positioning.

Royal Holdings Reports Mixed Financial Results for H1 2025

Royal Holdings Co., Ltd. reported a year-on-year increase in net sales by 8.5% for the first half of 2025, reaching ¥78,805 million. However, the company experienced a decline in operating profit by 7.2% and a significant drop in profit attributable to owners of the parent by 33.1%, reflecting challenges in maintaining profitability despite sales growth. The equity-to-asset ratio also decreased slightly, indicating a shift in financial stability. The company maintains its forecast for the full year, expecting a 9.5% increase in net sales but a decrease in profit attributable to owners by 18.2%, suggesting ongoing financial pressures.

Royal Holdings Acquires TABISUL to Expand Strategic Business

Royal Holdings Co., Ltd. has acquired all shares of TABISUL Co., Ltd., making it a wholly-owned subsidiary. This acquisition aligns with Royal Holdings’ Management Vision 2035 and Medium-Term Management Plan 2025–2027, as it seeks to expand its customer base and promote value creation with local communities. TABISUL operates a snack subscription delivery service for nursing homes and after-school children, supporting the company’s goal to grow businesses not dependent on the flow of people and empower essential workers.

Royal Holdings Revises Half-Year Forecasts Amid Mixed Performance

Royal Holdings Co., Ltd. has revised its business forecasts for the first half of the fiscal year ending December 31, 2025, reflecting a mixed performance across its operations. While domestic restaurant sales met expectations, overseas expansion faced delays, and the hotel business exceeded forecasts due to strong tourism demand. Despite rising costs, the company achieved higher profits than initially projected, though net sales fell slightly short. The full-year forecast remains unchanged due to ongoing economic uncertainties.