RISE Inc. (8836) AI Stock Analysis

• Market Cap: ¥3.26B
• Dividend Yield: N/A
• Average Volume (3M): 233.90K
• Price to Earnings (P/E): 251.1
• Beta (1Y): 0.83
• Revenue Growth: 9.80%
• EPS Growth: N/A
• Country: JP
• Employees: 12
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -0.46
• Shares Outstanding: 96,013,275
• 10 Day Avg. Volume: 123,540
• 30 Day Avg. Volume: 233,903
• PEG Ratio: -301.05
• Price to Book (P/B): 1.98
• Price to Sales (P/S): 8.52
• P/FCF Ratio: 58.29
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: ¥36.00 ▲(2.86% Upside)

RISE Inc.'s overall stock score is primarily influenced by its strong financial performance, which shows a promising recovery and solid balance sheet. However, the technical analysis indicates a bearish trend, and the valuation suggests potential overvaluation with a high P/E ratio and no dividend yield. These factors collectively result in a moderate overall stock score.

RISE Inc. Business Overview & Revenue Model

Company Description

RISE Inc. (8836) is a dynamic technology company focused on providing innovative solutions in the fields of renewable energy, smart infrastructure, and sustainable technology. By leveraging cutting-edge research and development, RISE Inc. aims to enhance energy efficiency and promote environmental sustainability through its core products, which include solar power systems, energy storage solutions, and smart grid technologies. The company operates primarily in the energy sector while also engaging in partnerships with municipal and private entities to implement smart city initiatives.

How the Company Makes Money

RISE Inc. generates revenue through multiple key streams including the sale of its renewable energy products, such as solar panels and energy storage systems, to both residential and commercial customers. Additionally, the company earns income from installation services and ongoing maintenance contracts for its products. A significant portion of its revenue comes from government contracts and collaborations with municipalities on smart city projects, where RISE Inc. provides technology solutions and implementation services. Partnerships with other technology firms and research institutions also contribute to joint ventures and grants that bolster its earnings. As the demand for sustainable energy solutions continues to grow, RISE Inc. capitalizes on market trends and regulatory incentives that favor renewable energy investments.

RISE Inc. Financial Statement Overview

Summary

RISE Inc. exhibits a promising recovery trajectory with notable improvements in revenue and profitability. The company's strong balance sheet and improved cash flow indicate sound financial health. However, the relatively low net profit margin and past reliance on financing activities suggest areas for further improvement to enhance long-term profitability and cash flow stability.

Income Statement

RISE Inc. shows a strong recovery trend with a positive revenue growth rate of 9.74% in the latest year and a significant improvement in net income from negative to positive. The gross profit margin remains robust at 83.81%, indicating efficient cost management. However, the net profit margin is low at 2.35%, suggesting room for improvement in operational efficiency. The EBIT and EBITDA margins are improving, reflecting better profitability over time.

Balance Sheet

The company has a solid balance sheet with a low debt-to-equity ratio of 0.03, indicating minimal leverage and financial stability. Return on equity stands at 0.55%, which is low but improving. The equity ratio of 90.25% showcases a strong capital structure with high equity financing, reducing financial risk.

Cash Flow

RISE Inc. demonstrates a dramatic turnaround in cash flow, with a free cash flow growth rate of 380% after recovering from negative figures. The operating cash flow to net income ratio is favorable, indicating effective cash generation relative to net income. However, the reliance on financing activities in previous years highlights potential challenges in sustaining cash flows independently.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	392.00M	383.00M	349.00M	339.00M	362.00M	359.00M
Gross Profit	333.00M	321.00M	291.00M	282.00M	298.00M	290.00M
EBITDA	86.25M	82.00M	62.00M	52.00M	49.00M	50.00M
Net Income	13.00M	9.00M	-11.00M	24.00M	-53.00M	-52.00M
Balance Sheet
Total Assets	1.80B	1.83B	2.30B	2.39B	2.40B	2.55B
Cash, Cash Equivalents and Short-Term Investments	393.00M	462.00M	886.00M	879.00M	752.00M	780.00M
Total Debt	34.00M	42.00M	75.00M	107.00M	140.00M	172.00M
Total Liabilities	149.00M	178.00M	251.00M	329.00M	364.00M	465.00M
Stockholders Equity	1.65B	1.65B	2.05B	2.06B	2.04B	2.09B
Cash Flow
Free Cash Flow	0.00	56.00M	-20.00M	11.00M	-30.00M	81.00M
Operating Cash Flow	0.00	58.00M	-18.00M	12.00M	-30.00M	81.00M
Investing Cash Flow	0.00	8.00M	58.00M	146.00M	35.00M	86.00M
Financing Cash Flow	0.00	-491.00M	-32.00M	-32.00M	-32.00M	-32.00M

RISE Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8836, the sentiment is Negative. The current price of 35 is below the 20-day moving average (MA) of 35.35, below the 50-day MA of 37.30, and above the 200-day MA of 34.03, indicating a bearish trend. The MACD of -0.78 indicates Negative momentum. The RSI at 42.47 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8836.

RISE Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9423	―	¥2.62B	100.92	―	2.43%	-1.13%	-81.83%
8996	―	¥3.80B	7.47	―	0.53%	16.67%	69.36%
3490	―	¥4.11B	6.01	―	1.08%	5.69%	15.12%
8912	―	¥2.65B	24.57	―	1.70%	6.32%	-10.34%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3494	―	¥3.25B	11.26	―	1.45%	46.64%	137.70%
8836	―	¥3.26B	251.11	―	―	9.80%	―