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

• Market Cap: ¥6.77B
• Dividend Yield: N/A
• Average Volume (3M): 777.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: 781.93%
• EPS Growth: -2754.00%
• Country: JP
• Employees: 56
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 3.54
• Shares Outstanding: 116,678,360
• 10 Day Avg. Volume: 671,950
• 30 Day Avg. Volume: 777,950
• PEG Ratio: -0.73
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 5.85
• P/FCF Ratio: 31.54
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥64.00 ▲(16.36% Upside)

The overall stock score is primarily driven by strong financial performance, which is the most significant factor. However, technical analysis indicates a bearish trend, and valuation concerns due to a negative P/E ratio and lack of dividend yield weigh down the score.

REVOLUTION CO., LTD. Business Overview & Revenue Model

Company Description

REVOLUTION CO., LTD. (8894) is a dynamic company operating primarily in the technology and innovation sector, focusing on the development and commercialization of cutting-edge software solutions and digital services. The company specializes in providing advanced analytics tools, cloud-based applications, and data management systems that cater to a diverse clientele ranging from small businesses to large enterprises. With a commitment to delivering high-quality products and fostering innovation, REVOLUTION CO., LTD. aims to enhance operational efficiency and drive digital transformation for its customers.

How the Company Makes Money

REVOLUTION CO., LTD. generates revenue through multiple streams, primarily by selling software licenses and subscriptions for its proprietary applications. The company also earns income from providing consulting services related to digital transformation and data analytics, where it partners with organizations to implement its solutions effectively. Additionally, REVOLUTION CO., LTD. has established strategic partnerships with other technology firms, which allow it to expand its service offerings and reach new markets. The combination of direct sales, subscription models, and consulting services contributes significantly to the company's overall earnings.

REVOLUTION CO., LTD. Financial Statement Overview

Summary

REVOLUTION CO., LTD. demonstrates strong financial performance with significant improvements in revenue, profitability, and cash flow. The balance sheet is solid, though past volatility suggests the need for careful financial management. Overall, the company is on a positive trajectory, but must remain vigilant to maintain stability and growth.

Income Statement

The company has shown strong revenue growth with a significant increase from 2023 to 2024. Gross profit margin improved to 18.27% in 2024, indicating efficient cost management. The net profit margin also turned positive at 5.32%, reflecting improved profitability. EBIT and EBITDA margins are positive, suggesting operational efficiency. However, past years showed volatility with negative margins, indicating potential risks.

Balance Sheet

The balance sheet is robust with a healthy equity ratio of 35.77% and a manageable debt-to-equity ratio of 0.20. Return on equity improved significantly to 1.60% in 2024, indicating better utilization of equity. However, the company has experienced fluctuations in equity and liabilities over the years, which could pose risks if not managed carefully.

Cash Flow

The cash flow statement shows strong free cash flow growth, with a positive operating cash flow to net income ratio of 3.55, indicating efficient cash generation. The free cash flow to net income ratio is also strong at 3.49. Despite past fluctuations, the current cash flow position supports operational and strategic initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.42B	5.57B	2.40B	2.03B	1.09B	763.45M
Gross Profit	943.76M	1.02B	305.70M	541.71M	542.43M	211.93M
EBITDA	-17.53B	401.19M	-355.39M	55.79M	296.39M	-114.71M
Net Income	-16.65B	296.01M	-372.67M	3.03M	254.44M	-187.83M
Balance Sheet
Total Assets	47.72B	51.63B	1.95B	3.60B	2.20B	1.99B
Cash, Cash Equivalents and Short-Term Investments	3.70B	3.35B	1.09B	1.67B	743.43M	505.70M
Total Debt	14.52B	3.62B	397.15M	1.40B	186.07M	189.54M
Total Liabilities	46.41B	32.57B	660.62M	1.92B	540.64M	588.78M
Stockholders Equity	1.28B	18.47B	1.29B	1.68B	1.66B	1.41B
Cash Flow
Free Cash Flow	0.00	1.03B	585.00M	-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: 55.00
• 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:8894, the sentiment is Negative. The current price of 55 is below the 20-day moving average (MA) of 57.70, below the 50-day MA of 65.42, and below the 200-day MA of 93.38, indicating a bearish trend. The MACD of -3.37 indicates Negative momentum. The RSI at 45.00 is Neutral, neither overbought nor oversold. The STOCH value of 24.05 is Neutral, 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
5533	79 Outperform	¥6.71B	9.55	―	3.52%	9.43%	6.79%
2993	74 Outperform	¥9.54B	4.78	―	4.06%	7.75%	56.88%
8891	67 Neutral	¥6.33B	6.03	―	3.01%	-0.96%	-7.88%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8894	61 Neutral	¥6.77B	-0.42	―	―	781.93%	-2754.00%
2978	45 Neutral	¥5.54B	51.87	―	―	47.71%	-49.58%
8938	45 Neutral	¥4.89B	―	―	0.35%	7.33%	-282.83%