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

• Market Cap: ¥6.88B
• Dividend Yield: N/A
• Average Volume (3M): 1.62M
• 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: 67
• Industry: Real Estate - Services
• EPS (TTM): -6.79
• Shares Outstanding: 116,678,360
• 10 Day Avg. Volume: 1,650,660
• 30 Day Avg. Volume: 1,622,666
• PEG Ratio: -187.21
• Price to Book (P/B): 33.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -77.34
• 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: 58 Neutral
• Price Target: ¥65.00 ▲(10.17%Upside)

Revolution Co., Ltd. shows strong financial performance with significant revenue and profit growth, coupled with solid balance sheet and cash flow metrics. However, technical analysis indicates bearish market momentum, and valuation metrics are concerning with a negative P/E ratio and no dividend yield, which significantly impact the overall score.

REVOLUTION CO., LTD. Business Overview & Revenue Model

Company Description

REVOLUTION CO., LTD. (8894) operates in the [insert industry sector, e.g., technology, manufacturing, etc.] sector, focusing on providing [insert core products or services, e.g., consumer electronics, industrial solutions, etc.]. The company is dedicated to [insert mission or key focus, e.g., innovation, sustainability, customer satisfaction, etc.], delivering high-quality products and services to its customers domestically and internationally.

How the Company Makes Money

REVOLUTION CO., LTD. generates revenue through the sale of its [insert core products or services]. The company may also engage in [insert any additional revenue streams, e.g., licensing agreements, service contracts, etc.], leveraging its expertise and market position to secure profitable partnerships. Additionally, strategic partnerships with key industry players and continuous investment in research and development contribute to the company's ability to innovate and maintain competitive pricing, further driving its earnings.

REVOLUTION CO., LTD. Financial Statement Overview

Summary

Revolution Co., Ltd. exhibited strong financial performance in 2024 with substantial revenue and profit growth. The company improved its operational efficiency, resulting in higher margins and better profitability. The balance sheet remains solid with conservative leverage and strong equity. Cash flow generation is robust, reflecting efficient operations and cash management.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.14B	5.57B	2.40B	2.03B	1.09B	763.45M
	Gross Profit
173.82M	1.02B	305.70M	541.71M	542.43M	211.93M
	EBIT
-330.04M	333.32M	-415.14M	-69.42M	206.59M	-32.78M
	EBITDA
-278.56M	401.19M	-355.39M	-18.70M	296.39M	-100.50M
	Net Income Common Stockholders
-290.36M	296.01M	-372.67M	3.03M	254.44M	-187.83M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
597.00M	3.35B	1.09B	1.67B	743.43M	505.70M
	Total Assets
3.55B	51.63B	1.95B	3.60B	2.20B	1.99B
	Total Debt
1.78B	3.62B	397.15M	1.40B	186.07M	189.54M
	Net Debt
1.18B	323.99M	-401.10M	223.16M	-440.12M	-266.00M
	Total Liabilities
2.00B	32.57B	660.62M	1.92B	540.64M	588.78M
	Stockholders Equity
1.55B	18.47B	1.29B	1.68B	1.66B	1.41B
Cash Flow		Free Cash Flow
0.00	1.03B	581.02M	-724.11M	133.75M	129.97M
	Operating Cash Flow
0.00	1.05B	610.00M	-712.35M	149.36M	142.09M
	Investing Cash Flow
0.00	1.46B	87.07M	-43.93M	102.86M	-71.66M
	Financing Cash Flow
0.00	-39.26M	-1.07B	1.21B	-3.47M	151.36M

REVOLUTION CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 59.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8894, the sentiment is Negative. The current price of 59 is below the 20-day moving average (MA) of 64.95, below the 50-day MA of 65.94, and below the 200-day MA of 287.07, indicating a bearish trend. The MACD of -3.27 indicates Positive momentum. The RSI at 31.39 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	81 Outperform	¥5.95B	5.95		2.90%	4.57%	-9.09%
5533	74 Outperform	¥6.09B	8.99		3.31%	9.95%	13.53%
2993	66 Neutral	¥8.57B	4.25		1.75%	6.93%	63.41%
Sector *	61 Neutral	$2.85B	10.72	0.40%	6.07%	5.80%	-21.26%
8894	58 Neutral	¥6.88B	27.06		―	341.55%	-0.36%
8938	55 Neutral	¥6.27B	92.23		0.29%	65.02%	―
2978	54 Neutral	¥8.43B	114.71		―	42.72%	-110.19%