RISE Inc. (8836) AI Stock Analysis

• Market Cap: ¥2.98B
• Dividend Yield: N/A
• Average Volume (3M): 233.90K
• Price to Earnings (P/E): 26.7
• Beta (1Y): 0.90
• Revenue Growth: 10.68%
• EPS Growth: N/A
• Country: JP
• Employees: 12
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -0.21
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ¥31.00 ▲(3.33% Upside)
• Action: Reiterated Date: 10/28/25
• Date: Action: Reiterated 10/28/25

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.

Positive Factors

Balance sheet strength

Extremely low leverage and a 90%+ equity ratio provide durable financial flexibility, reducing bankruptcy risk and enabling the company to fund operations or opportunistic investments internally. This capital structure supports stability across multi-quarter cycles.

Cash flow recovery

A dramatic FCF rebound and strong operating cash-to-net-income indicate improved cash generation capacity. Sustained cash conversion reduces reliance on external funding, funds capex or debt paydown, and materially improves long-term financial resilience.

Revenue growth and gross margin

Consistent top-line growth plus an exceptionally high gross margin point to a scalable, high-margin core business. Recovery from losses to profitability demonstrates operational resilience and a foundation to expand operating leverage over multiple quarters.

Negative Factors

Low net profit margin

A very low net margin despite high gross profitability implies heavy operating, financing, or non-operating costs that compress shareholder returns. This thin profit buffer makes sustained earnings growth vulnerable to cost inflation or revenue shocks over coming quarters.

Weak return on equity

ROE near zero signals limited efficiency in converting equity into profits. With an equity-heavy balance sheet, persistently low ROE can impede long-term shareholder value creation unless the company meaningfully improves operating margins or asset productivity.

Historical reliance on financing

Prior dependence on financing suggests the business has needed external capital during stress periods. Even after FCF recovery, this history raises the risk of future dilution or higher financing costs if cash generation weakens, limiting strategic optionality.

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. 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	151.00M	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: Positive
• Last Price: 30.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Positive. The current price of 30 is below the 20-day moving average (MA) of 30.90, below the 50-day MA of 30.68, and below the 200-day MA of 34.70, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 51.12 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8836.

RISE Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3494	70 Outperform	¥2.94B	19.57	―	1.68%	13.14%	34.11%
8996	67 Neutral	¥4.19B	5.42	―	0.50%	12.29%	139.06%
3490	66 Neutral	¥4.31B	13.50	―	1.03%	5.69%	15.12%
8912	66 Neutral	¥2.50B	15.82	―	2.00%	6.86%	10.06%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
9423	63 Neutral	¥2.72B	14.58	―	2.43%	11.80%	-41.76%
8836	55 Neutral	¥2.98B	26.67	―	―	10.68%	―