Royal Holdings Co (8179) AI Stock Analysis

• Market Cap: ¥126.23B
• Dividend Yield: 1.21%
• Average Volume (3M): 244.13K
• Price to Earnings (P/E): 24.3
• Beta (1Y): 0.43
• Revenue Growth: 8.35%
• EPS Growth: 21.91%
• Country: JP
• Employees: 2,056
• Sector: Consumer Defensive
• Sector Strength: 53
• Industry: Restaurants
• EPS (TTM): 19.48
• Shares Outstanding: 49,861,862
• 10 Day Avg. Volume: 106,220
• 30 Day Avg. Volume: 244,133
• PEG Ratio: -2.54
• Price to Book (P/B): 2.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 37.69
• 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: ¥2,859.67
• Price Target Upside: 8.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥2,860.00 ▲(8.46%Upside)

Royal Holdings Co shows strong financial performance with solid revenue growth, effective cost management, and strong cash flow metrics. The technical analysis presents a mixed trend with room for improvement, while the valuation indicates a moderate price level. The absence of recent earnings call insights and notable corporate events limits further analysis.

Royal Holdings Co Business Overview & Revenue Model

Company Description

Royal Holdings Co (8179) is a diversified company operating in various sectors, including retail, real estate, and investment management. The company is engaged in delivering a range of products and services that cater to different markets, leveraging its extensive network and expertise to maintain a robust portfolio. Royal Holdings Co is committed to innovation and sustainability, aiming to create value for its shareholders while supporting the communities in which it operates.

How the Company Makes Money

Royal Holdings Co generates revenue through its diversified business model. In the retail sector, it earns income from the sale of consumer goods and services, leveraging its extensive distribution channels and brand presence. In real estate, the company earns rental income from its property holdings and profits from property development and sales. Additionally, Royal Holdings Co engages in investment management, where it generates fees and commissions from managing assets and providing financial advisory services. The company's strategic partnerships and investments in high-growth sectors further contribute to its revenue streams, ensuring a steady flow of income from various sources.

Royal Holdings Co Financial Statement Overview

Summary

Royal Holdings Co is performing well with solid revenue growth and profitability metrics, although net income margins could be enhanced. The balance sheet is stable, with manageable leverage and solid equity. Cash flow metrics highlight strong cash generation and effective cash management, positioning the company well for future growth.

Income Statement

Royal Holdings Co has demonstrated strong revenue growth, with a significant increase from previous years. The gross profit margin is solid at approximately 70.34% TTM, indicating effective cost management. However, net profit margins have slightly decreased to 3.46% TTM, suggesting room for improvement in net income retention. EBITDA margin remains robust at 9.36% TTM, underscoring operational efficiency.

Balance Sheet

The company exhibits a stable financial position with an equity ratio of 37.6% TTM, reflecting a healthy balance between debt and equity. The debt-to-equity ratio is at 1.06, which is manageable but indicates a relatively high level of leverage. ROE is satisfactory at 10.86% TTM, showing decent returns on equity investment.

Cash Flow

Royal Holdings Co has shown strong cash flow management, with a free cash flow to net income ratio of 0.64 TTM, indicating efficient conversion of income to cash. Operating cash flow to net income ratio is 2.15, demonstrating strong cash generation ability relative to net income. Free cash flow growth rate is moderate, signaling steady cash flow improvements.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	152.15B	138.94B	104.02B	83.97B	84.30B
Gross Profit	106.58B	96.56B	73.67B	58.19B	56.58B
EBITDA	13.68B	11.48B	7.04B	4.08B	-19.92B
Net Income	5.93B	4.04B	2.75B	-2.87B	-28.55B
Balance Sheet
Total Assets	127.74B	125.87B	123.57B	109.77B	105.90B
Cash, Cash Equivalents and Short-Term Investments	19.35B	26.39B	25.65B	23.11B	13.88B
Total Debt	49.98B	51.20B	55.42B	59.03B	62.29B
Total Liabilities	77.27B	78.05B	78.76B	75.77B	84.89B
Stockholders Equity	50.25B	47.82B	44.29B	34.00B	20.90B
Cash Flow
Free Cash Flow	3.22B	7.46B	5.38B	-3.91B	-10.14B
Operating Cash Flow	10.36B	12.54B	7.39B	-1.89B	-7.23B
Investing Cash Flow	-9.84B	-6.59B	-8.55B	2.06B	-9.92B
Financing Cash Flow	-7.74B	-5.20B	3.70B	9.07B	26.59B

Royal Holdings Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2637.00
• 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:8179, the sentiment is Positive. The current price of 2637 is above the 20-day moving average (MA) of 2634.90, above the 50-day MA of 2596.42, and above the 200-day MA of 2507.12, indicating a bullish trend. The MACD of 10.95 indicates Positive momentum. The RSI at 53.68 is Neutral, neither overbought nor oversold. The STOCH value of 46.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8179.

Royal Holdings Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8179	73 Outperform	¥126.23B	24.29	10.78%	1.21%	8.35%	21.91%
2695	71 Outperform	¥160.61B	130.55		0.49%	4.82%	-79.12%
3543	70 Outperform	¥139.44B	23.20		1.80%	13.35%	1.23%
8153	70 Outperform	¥116.40B	36.97		0.79%	3.36%	22.37%
Sector *	65 Neutral	$27.25B	15.60	-4.43%	2.56%	1.05%	4.97%
3087	64 Neutral	¥110.67B	16.63		1.92%	6.24%	12.61%
7412	50 Neutral	¥128.22B	242.34		―	-3.98%	―

Royal Holdings Co Corporate Events

Royal Holdings Co. Announces Executive Officer Role Changes

Royal Holdings Co., Ltd. announced changes in the duties and responsibilities of its executive officers, effective July 1, 2025. These changes involve Satoru Kushida focusing on overseas business while maintaining his role as Managing Director & CEO of Royal Food Services (Singapore) Pte. Ltd., and Satoshi Fujioka concentrating solely on financial planning. This restructuring aims to streamline operations and enhance the company’s strategic focus on its core business areas.

Royal Holdings Co. Faces Profit Decline Despite Sales Growth in Q1 2025

Royal Holdings Co., Ltd. reported a 7.6% increase in net sales for the first quarter of 2025, reaching ¥38,351 million. However, the company experienced declines in operating profit and profit attributable to owners, with the latter dropping by 37.2% year-on-year. The financial results indicate challenges in maintaining profitability despite increased sales, potentially impacting stakeholder confidence and market positioning.