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

• Market Cap: ¥7.94B
• Dividend Yield: N/A
• Average Volume (3M): 777.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: 521.07%
• EPS Growth: -3637.52%
• Country: JP
• Employees: 56
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): N/A
• Shares Outstanding: 147,142,440
• 10 Day Avg. Volume: 671,950
• 30 Day Avg. Volume: 777,950
• PEG Ratio: <0.01
• Price to Book (P/B): 5.84
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 125.17
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: ¥52.00 ▲(1.96% Upside)
• Action: Upgraded Date: 03/07/26
• Date: Action: Upgraded 03/07/26

The score is driven primarily by weak financial performance: severe losses, very high leverage, and poor operating cash flow outweigh strong revenue growth. Technical signals are also generally bearish (negative MACD; price below longer-term averages), while valuation is constrained by a negative P/E and no dividend yield data.

Positive Factors

Revenue Growth

Sustained top-line expansion signals growing market demand or successful customer acquisition; over months this supports scale economics, potential to absorb fixed costs, and room to invest in product and distribution. Durable benefit depends on converting growth into margins.

Lean Operating Base

A headcount of 56 implies a lean operating structure, lowering fixed overhead and enabling faster operating leverage as revenue scales. This supports flexibility in allocating cash to growth or deleveraging over a 2-6 month horizon versus payroll-heavy peers.

Positive Free Cash Flow Conversion

Moderately positive free cash flow to net income indicates the business can generate some cash after investments, providing a buffer for operations and debt servicing. Over several months this supports modest deleveraging or working capital funding despite weak OCF metrics.

Negative Factors

Very High Leverage

Debt-to-equity near 10x creates substantial fixed financial obligations, constraining strategic flexibility. High leverage raises refinancing and covenant risk, increases interest burden, and limits capacity for capital spending or acquisitions without material balance-sheet repair.

Deep Negative Profitability

Wide negative margins show core operations are unprofitable, signaling structural pricing, cost, or operational issues. Persistent losses erode equity and limit reinvestment; without clear margin recovery the business risks undermining growth and its ability to meet financial obligations.

Poor Operating Cash Generation

Near-zero operating cash flow relative to net income indicates earnings do not convert to cash, creating liquidity strain. This harms day-to-day operations and debt service capacity, increasing reliance on external financing absent measurable OCF improvement.

REVOLUTION CO., LTD. Business Overview & Revenue Model

Company Description

Revolution Co., Ltd. engages in the real estate resale business in Japan. The company operates through three segments: Real Estate Business, Investment Business, and Finance Business. The Real Estate Business segment offers real estate sales and brokerage services, as well as manages general rental properties. The Investment Business segment invests in SPCs, domestic, and foreign companies, as well as financial products, such as securities. The Finance Business segment operates a wholesale financial business that offers back financing funds to lenders who handle real estate-backed loans. The company is also involved in the asset management, rental, and metropolitan property buying and selling businesses. The company was formerly known as Harakosan Co., Ltd. and changed its name to Revolution Co., Ltd. in November 2019. Revolution Co., Ltd. was founded in 1986 and is headquartered in Tokyo, Japan. Revolution Co., Ltd. operates as a subsidiary of FO1 LLC.

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

Despite strong revenue growth (+78.04%), profitability is deeply negative (net margin -49.85% with negative EBIT/EBITDA margins). Financial risk is elevated due to very high leverage (debt-to-equity 9.98) and weak cash generation (operating cash flow to net income 0.0057), indicating strained operating quality and balance-sheet pressure.

Income Statement

The company has shown significant revenue growth of 78.04% in the latest year, indicating strong top-line expansion. However, profitability metrics are concerning, with a negative net profit margin of -49.85% and negative EBIT and EBITDA margins, reflecting operational challenges and inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 9.98, indicating significant leverage and potential financial risk. The return on equity is negative, suggesting that the company is not generating sufficient returns on shareholder investments. The equity ratio is low, highlighting a reliance on debt financing.

Cash Flow

The cash flow statement shows a weak operating cash flow to net income ratio of 0.0057, indicating poor cash generation relative to earnings. Free cash flow to net income is moderately positive at 0.28, but overall cash flow metrics suggest liquidity challenges.

Breakdown	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	34.57B	5.57B	2.40B	2.03B	1.09B
Gross Profit	829.87M	1.02B	305.70M	541.71M	542.43M
EBITDA	-16.18B	401.19M	-355.39M	55.79M	296.39M
Net Income	-17.23B	296.01M	-372.67M	3.03M	254.44M
Balance Sheet
Total Assets	46.80B	51.63B	1.95B	3.60B	2.20B
Cash, Cash Equivalents and Short-Term Investments	2.78B	3.35B	1.09B	1.67B	743.43M
Total Debt	11.69B	3.62B	397.15M	1.40B	186.07M
Total Liabilities	45.29B	32.57B	660.62M	1.92B	540.64M
Stockholders Equity	1.17B	18.47B	1.29B	1.68B	1.66B
Cash Flow
Free Cash Flow	54.68M	1.03B	585.00M	-724.11M	133.75M
Operating Cash Flow	197.66M	1.05B	610.00M	-712.35M	149.36M
Investing Cash Flow	-8.75B	1.46B	87.07M	-43.93M	102.86M
Financing Cash Flow	8.02B	-39.26M	-1.07B	1.21B	-3.47M

REVOLUTION CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 51.00
• 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 Positive. The current price of 51 is above the 20-day moving average (MA) of 50.50, below the 50-day MA of 52.78, and below the 200-day MA of 61.98, indicating a neutral trend. The MACD of 0.32 indicates Negative momentum. The RSI at 57.54 is Neutral, neither overbought nor oversold. The STOCH value of 49.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8894.

REVOLUTION CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8898	82 Outperform	¥11.99B	11.85	―	4.98%	3.29%	-1.74%
2991	67 Neutral	¥14.64B	6.93	―	1.47%	20.82%	9.86%
2970	66 Neutral	¥17.88B	8.37	―	―	57.57%	57.09%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2980	64 Neutral	¥44.12B	9.84	―	0.45%	-8.33%	-36.89%
5532	61 Neutral	¥17.39B	5.83	―	―	23.19%	44.46%
8894	41 Neutral	¥7.94B	-0.40	―	―	521.07%	-3637.52%