RISE Inc. (8836) AI Stock Analysis

• Market Cap: ¥3.55B
• Dividend Yield: N/A
• Average Volume (3M): 248.70K
• Price to Earnings (P/E): 258.5
• 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: 173,860
• 30 Day Avg. Volume: 248,700
• 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: ¥39.00
• Price Target Upside: 11.43% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: ¥39.00 ▲(11.43% Upside)

RISE Inc.'s overall stock score is primarily driven by its strong financial performance, reflecting a solid recovery and financial stability. However, technical indicators suggest a lack of short-term momentum, and the high P/E ratio raises concerns about overvaluation. The absence of a dividend yield further detracts from its valuation appeal.

RISE Inc. Business Overview & Revenue Model

Company Description

RISE Inc. operates in the real estate business in Japan. It engages in the real estate leasing and management businesses. The company was incorporated in 1947 and is based in Tokyo, Japan.

How the Company Makes Money

RISE Inc. generates revenue primarily through the sale of its software products and subscription-based services. The company employs a SaaS (Software as a Service) model, where clients pay recurring fees to access its cloud-based applications. Additionally, RISE Inc. offers customized software solutions and consulting services, providing tailored technology strategies to meet specific business requirements. Key partnerships with technology firms and ongoing investments in research and development also play a crucial role in expanding its market reach and enhancing its product offerings, thereby contributing to its earnings.

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: Neutral
• Last Price: 35.00
• 50DMA: Negative
• 100DMA: Negative
• 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:8836, the sentiment is Neutral. The current price of 35 is below the 20-day moving average (MA) of 37.50, below the 50-day MA of 39.26, and above the 200-day MA of 33.11, indicating a neutral trend. The MACD of -0.66 indicates Negative momentum. The RSI at 45.92 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8836.

RISE Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9423	77 Outperform	¥2.67B	103.75	―	2.36%	-1.13%	-81.83%
8912	69 Neutral	¥2.25B	21.57	―	1.49%	6.32%	-10.34%
3490	66 Neutral	¥4.00B	6.34	―	1.06%	5.69%	15.12%
8996	66 Neutral	¥3.80B	7.45	―	0.53%	16.67%	69.36%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8836	59 Neutral	¥3.55B	258.49	―	―	9.80%	―
3494	59 Neutral	¥3.37B	11.67	―	1.48%	46.64%	137.70%