Royal Holdings Co (8179) AI Stock Analysis

• Market Cap: ¥130.38B
• Dividend Yield: 1.17%
• Average Volume (3M): 96.63K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.33
• Revenue Growth: 8.16%
• EPS Growth: -6.01%
• Country: JP
• Employees: 2,056
• Sector: Services
• Sector Strength: N/A
• Industry: Restaurants
• EPS (TTM): 30.24
• Shares Outstanding: 49,861,862
• 10 Day Avg. Volume: 97,880
• 30 Day Avg. Volume: 96,630
• PEG Ratio: 0.35
• Price to Book (P/B): 2.35
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 36.57
• 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: 69 Neutral
• Price Target: ¥2,979.00 ▲(10.46% Upside)

Royal Holdings Co's overall stock score is driven by strong financial performance and positive technical indicators. The company's robust revenue growth and profitability metrics are significant strengths. However, the high debt-to-equity ratio and relatively high P/E ratio suggest potential risks and valuation concerns. The absence of notable earnings call insights or corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, enhancing long-term sustainability.

Cash Flow Generation

Robust cash generation enhances financial flexibility, enabling strategic investments and debt management, supporting long-term growth.

Gross Profit Margin

A strong gross profit margin reflects operational efficiency and cost control, contributing to sustained profitability and competitive advantage.

Negative Factors

High Debt-to-Equity Ratio

High leverage can increase financial risk, potentially impacting cash flow and limiting the company's ability to invest in growth opportunities.

Net Profit Margin Pressure

Decreasing net profit margins can signal rising costs or pricing pressures, which may affect long-term profitability and shareholder returns.

Cash Flow Efficiency

Low cash flow efficiency suggests potential challenges in converting income to cash, which could impact liquidity and investment capacity.

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. Overall, the company is on a positive growth trajectory but should monitor cash flow closely to sustain future growth.

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	161.79B	152.15B	138.94B	104.02B	83.97B	84.30B
Gross Profit	114.41B	106.58B	96.56B	73.67B	58.19B	56.58B
EBITDA	14.77B	13.68B	11.48B	7.04B	4.08B	-19.92B
Net Income	4.99B	5.93B	4.04B	2.75B	-2.87B	-27.53B
Balance Sheet
Total Assets	135.97B	127.74B	125.87B	123.57B	109.77B	105.90B
Cash, Cash Equivalents and Short-Term Investments	21.77B	19.35B	26.39B	25.65B	23.11B	13.88B
Total Debt	53.85B	49.98B	51.20B	55.42B	59.03B	62.29B
Total Liabilities	83.13B	77.27B	78.05B	78.76B	75.77B	84.89B
Stockholders Equity	52.36B	50.25B	47.82B	44.29B	34.00B	20.90B
Cash Flow
Free Cash Flow	4.75B	3.22B	7.46B	5.38B	-3.91B	-10.14B
Operating Cash Flow	14.33B	10.36B	12.54B	7.39B	-1.89B	-7.23B
Investing Cash Flow	-16.68B	-9.84B	-6.59B	-8.55B	2.06B	-9.92B
Financing Cash Flow	1.19B	-7.74B	-5.20B	3.70B	9.07B	26.59B

Royal Holdings Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2697.00
• 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:8179, the sentiment is Positive. The current price of 2697 is below the 20-day moving average (MA) of 2708.70, above the 50-day MA of 2668.34, and above the 200-day MA of 2638.43, indicating a bullish trend. The MACD of 15.51 indicates Negative momentum. The RSI at 55.87 is Neutral, neither overbought nor oversold. The STOCH value of 70.70 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
3087	70 Outperform	¥113.81B	16.85	―	2.10%	5.78%	10.26%
8153	70 Outperform	¥131.97B	31.43	―	0.70%	5.15%	47.13%
8179	69 Neutral	¥130.38B	26.95	9.66%	1.17%	8.16%	-6.01%
3543	69 Neutral	¥140.13B	22.99	―	1.88%	16.70%	-0.37%
2695	58 Neutral	¥129.68B	36.04	―	0.61%	4.32%	11.78%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
7412	41 Neutral	¥102.73B	145.73	―	―	-12.01%	―

Royal Holdings Co Corporate Events

Royal Holdings Announces Stock Split and Shareholder Program Changes

Royal Holdings Co., Ltd. has announced a stock split, amendment to its Articles of Incorporation, and revision of its shareholder benefit program. The stock split aims to make the company’s shares more accessible to investors by reducing the investment unit price, thereby improving liquidity and expanding the investor base. The amendment to the Articles of Incorporation will increase the total number of authorized shares, while the shareholder benefit program will adjust its criteria to reflect the stock split ratio, maintaining the benefits’ substance.

Royal Holdings Co. Announces Strategic Organizational Restructuring

Royal Holdings Co., Ltd. announced significant organizational changes effective December 1, 2025, aimed at strengthening its management structure. These changes include the creation of new departments for overseas and domestic business development, and brand marketing, while abolishing certain existing divisions. The restructuring is expected to enhance the company’s operational efficiency and market positioning. Additionally, there are changes in the responsibilities of directors and executive officers, indicating a strategic shift to align leadership roles with the company’s growth objectives.

Royal Holdings Co. Reports Mixed Financial Results for Nine Months Ended September 2025

Royal Holdings Co., Ltd. reported its consolidated financial results for the nine months ended September 30, 2025, showing a year-on-year increase in net sales by 8.6% to ¥122,049 million. However, the company experienced a decline in operating profit by 2.8% and a significant drop in profit attributable to owners of the parent by 21.2%. Despite these challenges, the company maintains its forecast for the full year, expecting a 9.5% increase in net sales, though profit attributable to owners is projected to decrease by 18.2%. This financial performance indicates a mixed impact on the company’s operations, with growth in sales but pressure on profitability, which may affect stakeholder confidence.