Relo Group (8876) AI Stock Analysis

• Market Cap: ¥280.70B
• Dividend Yield: 2.09%
• Average Volume (3M): 468.65K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.45
• Revenue Growth: 5.49%
• EPS Growth: N/A
• Country: JP
• Employees: 3,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 29.50
• Shares Outstanding: 153,016,200
• 10 Day Avg. Volume: 337,370
• 30 Day Avg. Volume: 468,650
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,926.30
• Price Target Upside: 4.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥1,927.00 ▲(4.96% Upside)

Relo Group's strong financial performance, characterized by robust revenue growth and profitability, is the most significant factor driving the score. However, high leverage and declining cash flow growth are notable risks. The stock's valuation is attractive, with a low P/E ratio and a decent dividend yield. Technical indicators suggest short-term bearish momentum, but potential oversold conditions could present a buying opportunity.

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 profitability, with robust margins and efficient equity utilization. However, high leverage and declining free cash flow growth present potential risks. The company needs to focus on improving cash flow generation and managing debt levels to sustain its growth trajectory.

Income Statement

Relo Group shows strong revenue growth with a TTM growth rate of 78.3%, indicating robust expansion. The gross profit margin is healthy at 46.4%, and the net profit margin is impressive at 30.3%, reflecting strong profitability. However, the EBIT margin has decreased from the previous annual report, suggesting some operational cost pressures.

Balance Sheet

The company has a high debt-to-equity ratio of 1.29, indicating significant leverage, which could pose risks if not managed properly. However, the return on equity is strong at 70.1%, showcasing efficient use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset structure.

Cash Flow

The free cash flow growth rate is negative at -1.59%, indicating a decline in cash generation. The operating cash flow to net income ratio is low at 0.21, suggesting potential challenges in converting income into cash. However, the free cash flow to net income ratio is relatively healthy at 0.81, indicating decent cash profitability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	144.03B	142.91B	132.58B	123.70B	113.14B	156.07B
Gross Profit	67.06B	66.31B	60.54B	55.35B	66.27B	62.16B
EBITDA	47.34B	70.71B	41.56B	26.29B	24.36B	17.88B
Net Income	23.69B	43.32B	-27.81B	20.89B	15.64B	8.37B
Balance Sheet
Total Assets	299.45B	303.18B	290.17B	322.69B	301.60B	236.26B
Cash, Cash Equivalents and Short-Term Investments	59.03B	66.23B	52.23B	51.69B	50.20B	55.74B
Total Debt	85.89B	87.93B	110.63B	156.38B	149.09B	159.91B
Total Liabilities	231.42B	232.66B	249.81B	252.87B	246.46B	176.35B
Stockholders Equity	65.72B	68.20B	38.62B	68.61B	54.48B	38.51B
Cash Flow
Free Cash Flow	21.27B	19.83B	14.60B	1.28B	11.98B	19.68B
Operating Cash Flow	25.73B	25.95B	18.67B	5.39B	17.99B	24.03B
Investing Cash Flow	-6.08B	30.00B	-5.80B	10.02B	-4.95B	-5.44B
Financing Cash Flow	-29.73B	-41.28B	-7.79B	-16.97B	-19.07B	-5.53B

Relo Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1836.00
• 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:8876, the sentiment is Positive. The current price of 1836 is above the 20-day moving average (MA) of 1776.88, above the 50-day MA of 1775.48, and above the 200-day MA of 1796.83, indicating a bullish trend. The MACD of 15.60 indicates Negative momentum. The RSI at 62.77 is Neutral, neither overbought nor oversold. The STOCH value of 76.47 is Neutral, 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
4658	79 Outperform	45.97B	14.00	11.96%	3.02%	9.42%	7.97%
4290	74 Outperform	87.37B	17.13	10.52%	3.49%	9.23%	-7.00%
6183	72 Outperform	100.31B	12.16	11.62%	4.45%	-1.89%	29.78%
8876	69 Neutral	¥280.70B	11.64	38.93%	2.09%	5.49%	―
6088	67 Neutral	81.26B	18.49	30.79%	2.25%	13.81%	20.00%
9216	65 Neutral	21.75B	47.95	5.06%	5.00%	-4.78%	-75.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Relo Group Corporate Events

Relo Group’s Q1 2025 Financial Results: Revenue Growth Amid Profit Decline

Relo Group reported its financial results for the first quarter ending June 30, 2025, showing a slight increase in revenue by 3.2% compared to the previous year. However, the company experienced a significant decline in profits, with operating profit down by 9% and profit before income taxes dropping by 75.5%. This indicates challenges in maintaining profitability despite revenue growth, impacting stakeholders’ expectations.

Relo Group Completes Treasury Stock Disposal with Minor Adjustments

Relo Group has completed the payment procedures for the disposal of treasury stock as restricted stock compensation, with a change in the number of shares due to a partial loss of rights. The impact on the company’s financial results is expected to be minor, and any significant future developments will be promptly disclosed.

Relo Group Implements Restricted Stock Plan to Boost Corporate Value

Relo Group, Inc. announced the disposal of 715,400 treasury shares as part of a restricted stock remuneration plan aimed at fostering a sense of ownership among its directors and employees. This strategic move is designed to align the interests of its workforce with those of shareholders, promoting long-term corporate value growth and enhancing stakeholder engagement.

Relo Group Announces Stock Acquisition Rights Issuance

Relo Group, Inc. has announced the issuance of stock acquisition rights to its directors and employees, as well as those of its subsidiaries. This move, confirmed following a board resolution, involves 6,824 allotment units, translating to 682,400 common shares, and is aimed at aligning the interests of key personnel with the company’s long-term goals.