Relo Group (8876) AI Stock Analysis

• Market Cap: ¥270.61B
• Dividend Yield: 2.2%
• Average Volume (3M): 386.07K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.50
• Revenue Growth: 4.52%
• EPS Growth: N/A
• Country: JP
• Employees: 3,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 38.17
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥1,843.00 ▲(5.07% Upside)

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

The company's robust revenue growth indicates a strong market position and effective business model, supporting long-term expansion and stability.

Operational Efficiency

Sustained operational efficiency suggests effective management and cost control, which can enhance profitability and competitive advantage over time.

Cash Flow Generation

Improved cash flow generation enhances financial flexibility, enabling the company to invest in growth opportunities and manage debt effectively.

Negative Factors

High Leverage

Significant leverage can increase financial risk, potentially impacting the company's ability to invest in growth and weather economic downturns.

Declining Net Profit Margins

Deteriorating profit margins may indicate rising costs or pricing pressures, which could affect long-term profitability and shareholder returns.

Cash Flow Management Issues

Low cash flow conversion from operations suggests inefficiencies in cash management, potentially limiting the company's ability to fund operations and growth.

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	145.76B	142.91B	132.58B	123.70B	113.14B	156.07B
Gross Profit	68.35B	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: Neutral
• 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 above the 20-day moving average (MA) of 1726.10, above the 50-day MA of 1705.76, and above the 200-day MA of 1741.33, indicating a bullish trend. The MACD of 10.96 indicates Negative momentum. The RSI at 60.40 is Neutral, neither overbought nor oversold. The STOCH value of 90.17 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
4658	79 Outperform	¥47.57B	13.51	―	3.33%	9.63%	11.40%
4290	74 Outperform	¥95.51B	17.97	11.16%	3.41%	10.87%	-5.96%
6088	69 Neutral	¥74.59B	17.08	―	2.56%	8.08%	10.43%
8876	68 Neutral	¥270.61B	12.94	30.73%	2.20%	4.52%	―
6183	64 Neutral	¥109.31B	11.52	―	4.17%	0.44%	44.52%
9216	64 Neutral	¥24.08B	174.53	―	4.78%	-3.81%	-82.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Relo Group Corporate Events

Relo Group Reports Mixed Financial Results for Q2 FY2026

Relo Group reported its financial results for the second quarter of the fiscal year ending March 31, 2026, showing a slight increase in revenue by 4.1% compared to the previous year. However, the company experienced significant declines in operating profit and profit attributable to owners of the parent, with decreases of 5.2% and 69.2% respectively. This downturn in profitability suggests challenges in maintaining operational efficiency and could impact stakeholder confidence. Despite these challenges, the company maintains a stable equity ratio and has not made any changes in accounting policies or significant subsidiaries.

The most recent analyst rating on (JP:8876) stock is a Hold with a Yen1881.00 price target. To see the full list of analyst forecasts on Relo Group stock, see the JP:8876 Stock Forecast page.