Relo Group (8876) AI Stock Analysis

• Market Cap: $256.09B
• Dividend Yield: 1.94%
• Average Volume (3M): 591.25K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.55
• Revenue Growth: 7.79%
• EPS Growth: N/A
• Country: JP
• Employees: 3,100
• Sector: Industrials
• Sector Strength: 88
• Industry: Specialty Business Services
• EPS (TTM): 40.69
• Shares Outstanding: 153,016,200
• 10 Day Avg. Volume: 530,230
• 30 Day Avg. Volume: 591,253
• PEG Ratio: 0.47
• Price to Book (P/B): 4.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 251.44
• 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

• Rating: 70 Neutral
• Price Target: ¥1,885.00 ▲(12.10%Upside)

Relo Group's strong financial performance and attractive valuation are key strengths, suggesting potential for growth and value appreciation. However, technical analysis indicates bearish momentum, presenting a short-term risk. High leverage also poses potential financial risk, which investors should consider.

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 generates revenue primarily through its diverse range of relocation and lifestyle support services. Key revenue streams include fees from corporate clients for managing employee relocation processes, such as housing, visa arrangements, and settling-in support. The company also earns income through real estate management services, which include property leasing and maintenance. Additionally, Relo Group provides fringe benefit services to enhance employee satisfaction and retention, which contribute to its earnings. Strategic partnerships with multinational corporations and real estate firms further bolster its revenue by expanding its client base and service offerings.

Relo Group Financial Statement Overview

Summary

Relo Group shows a solid financial performance with strong revenue growth and improved profitability. Despite a high debt-to-equity ratio, strong ROE and cash flow generation mitigate some risks. Overall, financial health is sound, but leverage remains a concern.

Income Statement

Relo Group has demonstrated strong revenue growth, with a notable increase of approximately 7.8% from 2024 to 2025. The gross profit margin remains robust at 46.4%, indicating efficient cost management. Net profit margin has significantly improved, rebounding from a loss in 2024 to a healthy 30.3% in 2025. The EBIT and EBITDA margins are also solid at 21.3% and 33.4%, respectively. Overall, the income statement reflects a strong financial performance with improving profitability and growth.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.29, suggesting significant leverage, though it has improved from previous years. The return on equity is impressive at 63.5%, driven by strong net income performance. The equity ratio stands at 22.5%, indicating a moderate level of equity financing relative to total assets. While the company shows strong profitability, the high level of debt poses a potential risk.

Cash Flow

The cash flow statement reveals a strong operating cash flow to net income ratio of 0.6, indicating efficient cash generation relative to net income. Free cash flow has grown from the previous year, with a growth rate of approximately 49.9%. The free cash flow to net income ratio is 0.5, which is healthy. Overall, cash flow generation appears strong, supporting operational and investment needs.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
142.91B	132.58B	123.70B	156.57B	333.60B
	Gross Profit
66.31B	60.54B	55.35B	66.27B	62.16B
	EBIT
30.44B	27.61B	22.75B	18.50B	12.50B
	EBITDA
47.79B	41.56B	26.29B	23.61B	17.88B
	Net Income Common Stockholders
43.32B	-27.81B	20.89B	15.64B	8.37B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
64.02B	52.23B	51.69B	50.20B	50.20B
	Total Assets
303.18B	290.17B	322.69B	301.60B	236.26B
	Total Debt
87.93B	110.63B	156.38B	149.09B	105.02B
	Net Debt
23.91B	61.15B	112.68B	104.66B	54.83B
	Total Liabilities
232.66B	249.81B	252.87B	246.46B	176.35B
	Stockholders Equity
68.20B	38.62B	68.61B	54.48B	56.90B
Cash Flow		Free Cash Flow
21.88B	14.60B	1.28B	11.98B	19.68B
	Operating Cash Flow
25.95B	18.67B	5.39B	17.99B	24.03B
	Investing Cash Flow
30.00B	-5.80B	10.02B	-4.95B	-5.44B
	Financing Cash Flow
-41.28B	-7.79B	-16.97B	-19.07B	-5.53B

Relo Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1681.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 1681.5 is below the 20-day moving average (MA) of 1696.35, below the 50-day MA of 1771.96, and below the 200-day MA of 1816.07, indicating a bearish trend. The MACD of -32.66 indicates Negative momentum. The RSI at 41.94 is Neutral, neither overbought nor oversold. The STOCH value of 25.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8876.

Relo Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8876	70 Neutral	$256.09B	5.84	79.30%	1.94%	7.79%	―
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
PGINF		$545.34M	17.08	10.64%	3.71%	―	―
6088	81 Outperform	¥111.87B	24.71		1.64%	17.33%	35.52%
4658	79 Outperform	¥37.84B	12.10		3.67%	10.66%	13.36%
9216	77 Outperform	¥20.76B	17.19		5.23%	-3.81%	-41.33%
6183	73 Outperform	¥93.77B	11.59		4.76%	-3.44%	6.05%

Relo Group Corporate Events

Relo Group Nominates New Director to Strengthen Tourism Business

Relo Group, Inc. announced the nomination of Yoshikatsu Tamura as a new director, highlighting his role in expanding the company’s tourism business and promoting sustainable management practices. This leadership change, set to be confirmed at the upcoming Annual General Meeting, reflects the company’s strategic focus on strengthening its core business areas and enhancing its management team.

Relo Group Introduces Restricted Stock Plan to Boost Employee Engagement

Relo Group, Inc. has announced the introduction of a Restricted Stock Compensation Plan, aimed at enhancing motivation and morale among its directors and employees. This initiative is part of the company’s ‘Fourth Olympic Plan,’ a medium-term business strategy targeting significant revenue and profit growth by 2029. The plan encourages long-term stock holding to align the interests of employees with those of shareholders, fostering a sense of ownership and participation in management.

Relo Group Introduces Restricted Stock Plan to Boost Growth

Relo Group, Inc. has announced the introduction of a Restricted Stock Remuneration Plan as part of its ‘Fourth Olympic Plan,’ a medium-term business strategy aimed at achieving significant revenue and profit targets by March 2029. This plan is designed to motivate directors and employees by fostering a sense of ownership and encouraging long-term stock holding, aligning their interests with those of shareholders and enhancing corporate value.

Relo Group Issues Stock Acquisition Rights to Boost Performance

Relo Group announced the issuance of stock acquisition rights to its directors and employees, aiming to motivate and align them with the company’s medium-term business plan, ‘the Fourth Olympic Plan.’ This initiative is expected to foster a sense of ownership among employees, drive business growth, and improve corporate value, despite a potential share dilution of 0.52%.

Relo Group Announces Increased Dividends Amid Record Profits

Relo Group, Inc. has announced a dividend payment from retained earnings, reflecting its strong financial performance for the fiscal year ending March 31, 2025. The company achieved record profits due to gains in its core business areas and a strategic sale of shares in Nihon Housing Co., Ltd. Consequently, the board decided to issue a special dividend, raising the total year-end dividend to 42 yen per share. Additionally, Relo Group has increased its dividend payout ratio target from 30% to 35% for future fiscal years, underscoring its commitment to shareholder returns.

Relo Group Unveils ‘Fourth Olympic Plan’ for Strategic Growth

Relo Group, Inc. has announced the establishment of a new medium-term management plan called ‘the Fourth Olympic Plan,’ which will guide the company’s operations from the fiscal year ending March 2026 through March 2029. This strategic initiative is expected to influence the company’s operational focus and potentially impact its market positioning over the next four years.

Relo Group Reports Strong Financial Recovery for Fiscal Year 2025

Relo Group, Inc. reported a significant financial turnaround for the fiscal year ending March 31, 2025, with notable increases in revenue and profit compared to the previous year. The company achieved a revenue of 142,908 million yen, a 7.8% increase, and a profit attributable to owners of the parent of 43,317 million yen, marking a substantial improvement from the previous year’s loss. This financial performance reflects positively on the company’s operations and may enhance its position in the market, potentially benefiting stakeholders.

Relo Group Announces Executive Leadership Changes

Relo Group, Inc. has announced changes in its executive leadership, effective April 1, 2025. Yasushi Kadota has been appointed as Director, CFO, and CIO, while Kenji Koshinaga will serve as Director and Advisor, and Takeshi Kawano will take on the role of Director and COO. These changes reflect a strategic realignment within the company’s leadership structure, potentially impacting its operational focus and stakeholder engagement.