REVOLUTION CO., LTD. (8894) AI Stock Analysis

• Market Cap: ¥9.22B
• Dividend Yield: N/A
• Average Volume (3M): 6.64M
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.67
• Revenue Growth: 341.55%
• EPS Growth: -0.36%
• Country: JP
• Employees: 56
• Sector: Real Estate
• Sector Strength: 64
• Industry: Real Estate - Services
• EPS (TTM): N/A
• Shares Outstanding: 116,678,360
• 10 Day Avg. Volume: 15,826,810
• 30 Day Avg. Volume: 6,638,846
• PEG Ratio: 0.04
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥65.00
• Price Target Upside: -17.72% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ¥85.00 ▲(7.59%Upside)

REVOLUTION CO., LTD. shows strong financial performance with improvements in revenue and profitability, contributing positively to the score. However, technical indicators suggest caution with mixed signals, and the negative P/E ratio raises valuation concerns. The absence of earnings call data and corporate events limits additional insights.

REVOLUTION CO., LTD. Business Overview & Revenue Model

Company Description

REVOLUTION CO., LTD. (8894) is a dynamic enterprise specializing in the development and production of innovative technology solutions across various sectors including telecommunications, renewable energy, and consumer electronics. The company focuses on delivering high-quality products that enhance connectivity and sustainability, with a commitment to leveraging cutting-edge research and development to meet the evolving needs of its clients. Core offerings include advanced telecommunications equipment, solar energy solutions, and smart devices designed to improve user experience and efficiency.

How the Company Makes Money

REVOLUTION CO., LTD. generates revenue through multiple streams including the sale of telecommunications equipment and services, licensing of proprietary technology, and partnerships with other firms in the renewable energy sector. The company earns a significant portion of its income from long-term contracts with telecommunications providers and government agencies for infrastructure projects. Additionally, strategic alliances with global tech firms enhance its market reach and allow it to co-develop products, further diversifying its revenue sources. The company also invests in R&D to innovate new products, which can lead to additional revenue through patents and technology licensing.

REVOLUTION CO., LTD. Financial Statement Overview

Summary

Revolution Co., Ltd. showed strong financial performance with significant revenue and profit growth, improved operational efficiency, and a solid balance sheet with conservative leverage. Cash flow generation was robust, reflecting efficient operations.

Income Statement

Revolution Co., Ltd. reported strong revenue growth with a remarkable increase from JPY 2.4 billion in 2023 to JPY 5.6 billion in 2024, marking a 131.6% growth rate. Gross profit margin improved significantly to 18.3%, driven by higher revenue and effective cost management. The company turned around its profitability with a net profit margin of 5.3% compared to a loss in the previous year. The EBIT and EBITDA margins also improved substantially, indicating enhanced operational efficiency.

Balance Sheet

The balance sheet reflects solid financial health with a low debt-to-equity ratio of 0.2, suggesting conservative leverage. The equity ratio stands at a robust 35.8%, indicating a strong equity position. Return on equity surged to 1.6% from a negative position, reflecting improved profitability. The company's assets grew significantly, enhancing its financial stability.

Cash Flow

Revolution Co., Ltd. demonstrated impressive cash flow performance with a strong free cash flow growth rate of 77.7%. Operating cash flow to net income ratio is robust at 3.5, indicating efficient cash generation from operations. The free cash flow to net income ratio is substantially positive, showcasing effective cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.57B	2.40B	2.03B	1.09B	763.45M
Gross Profit	1.02B	305.70M	541.71M	542.43M	211.93M
EBITDA	401.19M	-355.39M	-18.70M	296.39M	-100.50M
Net Income	296.01M	-372.67M	3.03M	254.44M	-187.83M
Balance Sheet
Total Assets	51.63B	1.95B	3.60B	2.20B	1.99B
Cash, Cash Equivalents and Short-Term Investments	3.35B	1.09B	1.67B	743.43M	505.70M
Total Debt	3.62B	397.15M	1.40B	186.07M	189.54M
Total Liabilities	32.57B	660.62M	1.92B	540.64M	588.78M
Stockholders Equity	18.47B	1.29B	1.68B	1.66B	1.41B
Cash Flow
Free Cash Flow	1.03B	581.02M	-724.11M	133.75M	129.97M
Operating Cash Flow	1.05B	610.00M	-712.35M	149.36M	142.09M
Investing Cash Flow	1.46B	87.07M	-43.93M	102.86M	-71.66M
Financing Cash Flow	-39.26M	-1.07B	1.21B	-3.47M	151.36M

REVOLUTION CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 79.00
• 50DMA: Positive
• 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:8894, the sentiment is Neutral. The current price of 79 is above the 20-day moving average (MA) of 71.55, above the 50-day MA of 67.00, and below the 200-day MA of 250.85, indicating a neutral trend. The MACD of 4.29 indicates Negative momentum. The RSI at 55.74 is Neutral, neither overbought nor oversold. The STOCH value of 25.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8894.

REVOLUTION CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8891	76 Outperform	¥6.14B	6.21		2.81%	4.57%	-8.86%
2993	75 Outperform	¥8.72B	4.32		1.72%	6.93%	63.17%
5533	72 Outperform	¥6.12B	9.03		3.29%	9.95%	13.53%
8894	66 Neutral	¥9.22B	27.06		―	341.55%	-0.36%
Sector *	54 Neutral	$1.23B	3.77	0.67%	6.13%	-2.39%	-129.28%
2978	52 Neutral	¥6.75B	114.71		―	42.72%	-110.19%
8938	49 Neutral	¥5.98B	85.46		0.30%	65.02%	―