Relo Group (8876) AI Stock Analysis

• Market Cap: ¥293.93B
• 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: 69 Neutral
• Price Target: ¥2,105.00 ▲(20.01% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is driven primarily by solid financial performance with strong recent cash generation and healthy operating profitability, partially offset by historical earnings volatility and a still-meaningful debt position. Technically, the uptrend is positive but momentum looks overextended, while valuation appears reasonable with a mid P/E and moderate dividend yield.

Positive Factors

Operating profitability

Sustained high operating margins indicate structural pricing power and efficient service delivery in outsourcing. Margin durability supports internal reinvestment and cash generation over 2–6 months, making core operations resilient to moderate demand swings and competitive pressure.

Strong cash generation

Robust free cash flow that closely tracks net income improves financial flexibility for debt reduction, capex, or shareholder returns. Consistent FCF conversion enhances earnings quality and gives management durable capacity to fund strategic initiatives and buffer shocks.

Recurring outsourcing revenue model

A business built on recurring management fees and long-term corporate relationships creates predictable revenue streams and high client retention. This structural demand for HR outsourcing supports steadier top-line visibility and long-term customer lifetime value.

Negative Factors

Elevated leverage

Material debt restrains capital flexibility and raises interest and refinancing risk, limiting ability to invest or pursue M&A without increasing leverage. Even with improvement, sustained debt levels can pressure cash flow allocation and strategic choices over the medium term.

Earnings volatility

Significant below-the-line swings and a notable net loss despite operating profits signal recurring non‑operating risks or one-offs. This undermines earnings predictability and complicates planning for dividends, buybacks, or long-term targets despite healthy core margins.

Uneven historical cash conversion

Variability in cash conversion and past weaker coverage creates uncertainty around timing of cash inflows and working-capital needs. Such variability can impede consistent deleveraging or reinvestment plans and raises execution risk for multi-quarter financial targets.

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

Healthy operating profitability and strong recent cash generation support the score (TTM net margin ~14%, operating margin ~21%, robust and improved free cash flow with solid cash conversion). Offsetting factors are meaningful bottom-line volatility (FY2024 net loss despite positive operating profitability) and a still-material debt load (TTM debt-to-equity ~1.34), even though leverage has improved versus prior years.

Income Statement

The company shows solid profitability and improving operating performance, with TTM (Trailing-Twelve-Months) net margin around 14% and strong operating margin (~21%). Revenue growth in TTM is exceptionally high versus the prior period, supporting momentum. The main offset is earnings volatility: FY2024 posted a large net loss despite positive operating profitability, indicating meaningful below-the-line swings (e.g., one-offs or non-operating impacts) and reducing confidence in earnings stability.

Balance Sheet

Leverage is moderate-to-elevated: TTM (Trailing-Twelve-Months) debt-to-equity is ~1.34, improved from much higher leverage in prior years (over 2x–4x historically), which is a clear positive trend. Equity has also strengthened versus the low point in FY2024. However, debt remains sizable in absolute terms and the business has shown periods where returns to shareholders were highly volatile (including negative return on equity in FY2024), keeping balance-sheet risk at a mid-range level.

Cash Flow

Cash generation is strong and relatively well-aligned with reported earnings. TTM (Trailing-Twelve-Months) free cash flow is robust and grew sharply, and free cash flow is high relative to net income (about 86%), supporting earnings quality. Operating cash flow also covers net income (>1x) in TTM, a positive shift versus weaker coverage in prior annual periods, though historical cash conversion has been uneven—especially in FY2023—introducing some variability risk.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	147.06B	142.91B	132.58B	123.70B	113.14B	156.07B
Gross Profit	59.81B	66.31B	60.54B	55.35B	66.27B	62.16B
EBITDA	48.59B	70.71B	41.56B	26.29B	24.36B	17.88B
Net Income	20.66B	43.32B	-27.81B	20.89B	15.64B	8.37B
Balance Sheet
Total Assets	296.73B	303.18B	290.17B	322.69B	301.60B	236.26B
Cash, Cash Equivalents and Short-Term Investments	62.37B	66.23B	52.23B	51.69B	50.20B	55.74B
Total Debt	104.60B	87.93B	110.63B	156.38B	149.09B	159.91B
Total Liabilities	216.61B	232.66B	249.81B	252.87B	246.46B	176.35B
Stockholders Equity	78.12B	68.20B	38.62B	68.61B	54.48B	38.51B
Cash Flow
Free Cash Flow	21.56B	19.83B	14.60B	1.28B	11.98B	19.68B
Operating Cash Flow	23.96B	25.95B	18.67B	5.39B	17.99B	24.03B
Investing Cash Flow	-8.01B	30.00B	-5.80B	10.02B	-4.95B	-5.44B
Financing Cash Flow	-16.76B	-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 1840.97, below the 50-day MA of 1787.36, and above the 200-day MA of 1738.50, indicating a bullish trend. The MACD of 35.97 indicates Negative momentum. The RSI at 73.19 is Negative, neither overbought nor oversold. The STOCH value of 89.77 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	¥17.10B	18.41	―	1.49%	1.23%	0.12%
4290	74 Outperform	¥87.75B	16.44	11.16%	3.41%	10.87%	-5.96%
8876	69 Neutral	¥293.93B	14.01	30.73%	2.20%	4.52%	―
9324	66 Neutral	¥72.55B	19.47	―	2.18%	12.03%	30.12%
9319	65 Neutral	¥32.46B	17.64	―	2.59%	4.02%	18.12%
9322	65 Neutral	¥22.48B	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.