Relo Group (8876) AI Stock Analysis

• Market Cap: ¥294.46B
• Dividend Yield: 2.2%
• Average Volume (3M): 386.07K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.56
• Revenue Growth: 4.52%
• EPS Growth: N/A
• Country: JP
• Employees: 3,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 29.46
• Shares Outstanding: 153,016,200
• 10 Day Avg. Volume: 378,870
• 30 Day Avg. Volume: 386,073
• PEG Ratio: -0.03
• Price to Book (P/B): 4.10
• Price to Sales (P/S): 1.96
• P/FCF Ratio: 14.11
• 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): 138.77
• Revenue Forecast (FY): ¥151.41B

• Rating: 68 Neutral
• Price Target: ¥2,100.00 ▲(19.73% Upside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

Relo Group's overall stock score is driven by strong financial performance, particularly in revenue growth and operational efficiency, despite challenges in profitability and leverage. The valuation is attractive with a reasonable P/E ratio and a solid dividend yield. Technical indicators suggest a neutral to slightly bearish short-term outlook, which tempers the overall score.

Positive Factors

Revenue Growth

TTM revenue growth of 20.6% indicates expanding demand for Relo's outsourced welfare and housing services and strengthens its recurring fee base. Sustained top-line growth improves scale economics, enhances client stickiness, and creates room to reinvest in service capabilities and sales coverage.

Margin Stability

Gross margins near 46% and healthy EBIT/EBITDA margins reflect durable operational efficiency in service delivery and some pricing power. Stable structural margins help absorb input cost inflation, support reinvestment and dividends, and underpin longer-term cash flow predictability.

Cash Generation

A 48.4% TTM increase in free cash flow and an FCF-to-net-income ratio of 82.7% show strong cash conversion ability. Durable free cash generation provides flexibility to fund capex, dividends or debt reduction, supporting strategic options without immediate reliance on equity markets.

Negative Factors

High Leverage

A debt-to-equity ratio of 1.31 signals significant leverage that constrains financial flexibility. Elevated debt raises interest expense vulnerability, limits capacity for acquisitions or cyclical shocks, and prioritizes deleveraging to sustainably lower financing costs and preserve strategic optionality.

Declining Net Profit Margin

Net margin contraction from 30.3% to 16.4% materially reduces retained earnings and suggests either rising operating costs, nonrecurring charges, or pricing pressure. If persistent, margin erosion weakens long-term profitability, dividend capacity and the sustainability of high ROE.

Weak Operating Cash Conversion

An OCF-to-net-income ratio of 0.20 indicates earnings are not well matched by immediate cash receipts, implying working-capital strain or noncash items. Poor cash conversion undermines earnings quality and could force reliance on financing to fund operations or service debt.

Relo Group Business Overview & Revenue Model

Company Description

Relo Group, Inc. provides corporate fringe benefit services in Japan. The company offers leased corporate housing management services; and residential property management services. It also provides life support services, such as leisure and accommodation services, as well as upskilling, medical examination, childcare, and nursing services. In addition, the company offers global relocation support services, including services related to working visa applications, medical examinations, vaccinations, and moving house overseas; and other services, such as the creation of overseas transfer regulations, arranging tickets for business trips, and house management during a transfer. Further, it engages in the operation of resorts, as well as in the insurance business. The company was formerly known as Relo Holdings, Inc. and changed its name to Relo Group, Inc. in July 2016. Relo Group, Inc. was incorporated in 1967 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Relo Group makes money primarily through its comprehensive relocation services, which are offered to corporations and individuals undergoing domestic and international moves. The company's revenue streams include fees for relocation management, home-finding services, and cultural orientation programs. Relo Group also generates income from its employee support services, which may include housing management and administrative assistance for expatriates. Its partnerships with various companies and real estate agents enhance its service offerings, thereby contributing to its earnings. Additionally, Relo Group may earn from consulting services related to global mobility and workforce management.

Relo Group Financial Statement Overview

Summary

Relo Group demonstrates strong revenue growth and operational efficiency, but faces challenges with declining net profit margins and high leverage. Cash flow generation is improving, though cash flow management could be optimized further. Overall, the company is on a positive trajectory with areas for improvement in profitability and leverage management.

Income Statement

Relo Group shows strong revenue growth with a TTM increase of 20.6% and consistent gross profit margins around 46%. However, net profit margin has decreased significantly in the TTM to 16.4% from 30.3% in the previous annual report, indicating some profitability pressure. The EBIT and EBITDA margins remain healthy, reflecting operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 1.31 in the TTM, which is a decrease from previous years but still indicates significant leverage. Return on equity is strong at 37.1%, showing effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset structure.

Cash Flow

Free cash flow has grown by 48.4% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is low at 0.20, suggesting potential cash flow management issues. However, the free cash flow to net income ratio is robust at 82.7%, highlighting strong cash conversion.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	145.76B	142.91B	132.58B	123.70B	113.14B	156.07B
Gross Profit	63.70B	66.31B	60.54B	55.35B	66.27B	62.16B
EBITDA	47.48B	70.71B	41.56B	26.29B	24.36B	17.88B
Net Income	20.51B	43.32B	-27.81B	20.89B	15.64B	8.37B
Balance Sheet
Total Assets	304.94B	303.18B	290.17B	322.69B	301.60B	236.26B
Cash, Cash Equivalents and Short-Term Investments	65.23B	66.23B	52.23B	51.69B	50.20B	55.74B
Total Debt	85.06B	87.93B	110.63B	156.38B	149.09B	159.91B
Total Liabilities	230.40B	232.66B	249.81B	252.87B	246.46B	176.35B
Stockholders Equity	72.04B	68.20B	38.62B	68.61B	54.48B	38.51B
Cash Flow
Free Cash Flow	21.37B	19.83B	14.60B	1.28B	11.98B	19.68B
Operating Cash Flow	24.77B	25.95B	18.67B	5.39B	17.99B	24.03B
Investing Cash Flow	-8.25B	30.00B	-5.80B	10.02B	-4.95B	-5.44B
Financing Cash Flow	-12.86B	-41.28B	-7.79B	-16.97B	-19.07B	-5.53B

Relo Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1754.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8876, the sentiment is Positive. The current price of 1754 is below the 20-day moving average (MA) of 1832.42, below the 50-day MA of 1783.43, and above the 200-day MA of 1737.68, indicating a bullish trend. The MACD of 33.73 indicates Negative momentum. The RSI at 74.46 is Negative, neither overbought nor oversold. The STOCH value of 91.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8876.

Relo Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9307	78 Outperform	¥17.76B	18.41	―	1.49%	1.23%	0.12%
4290	74 Outperform	¥89.28B	16.44	11.16%	3.41%	10.87%	-5.96%
8876	68 Neutral	¥294.46B	14.01	30.73%	2.20%	4.52%	―
9324	66 Neutral	¥73.92B	19.47	―	2.18%	12.03%	30.12%
9319	65 Neutral	¥32.84B	17.64	―	2.59%	4.02%	18.12%
9322	65 Neutral	¥22.80B	34.12	―	1.13%	3.37%	9.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Relo Group Corporate Events

Relo Group Posts Higher Revenue but Profit Slump for Nine-Month Period

Relo Group reported consolidated revenue of ¥108.97 billion for the nine months to December 31, 2025, up 4.0% year on year, while operating profit slipped 1.6% to ¥21.36 billion. Profit before income taxes dropped 51.4% to ¥21.36 billion and profit attributable to owners of the parent fell 60.8% to ¥14.62 billion, reflecting a sharp decline in profitability compared with the previous year.

Despite the profit contraction, the company’s financial position improved, with total equity attributable to owners rising to ¥78.12 billion and the equity ratio strengthening to 26.3% as of December 31, 2025. Relo Group maintained its full-year forecast for fiscal 2026, projecting modest revenue and operating profit growth but a steep year-on-year fall in net profit, while also planning to raise the ordinary year-end dividend to ¥49 per share from the prior year’s ¥42, which had included a special component.

The most recent analyst rating on (JP:8876) stock is a Hold with a Yen2005.00 price target. To see the full list of analyst forecasts on Relo Group stock, see the JP:8876 Stock Forecast page.