REVOLUTION CO., LTD. (JP:8894)
:8894
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REVOLUTION CO., LTD.
(8894)
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Rating:40Underperform
Price Target:
¥24.00
▼(-52.94% Downside)
Action:Downgraded
Date:05/29/26
The score is primarily weighed down by weak financial performance: large losses, very high leverage, and poor operating cash generation despite strong revenue growth. Technicals add additional downside pressure as the stock is in a pronounced downtrend with weak momentum. Valuation provides limited support because the P/E is negative due to losses and no dividend yield is available.
Positive Factors
Strong Revenue Growth
Sustained top-line growth at ~78% indicates strong demand or successful expansion in core services. Over 2–6 months this supports scale benefits, market share gains, and provides a foundation for margin recovery if management improves operating efficiency and converts growth into profitable units.
Negative Factors
Very High Leverage
A debt-to-equity ratio near 10x signals extreme financial leverage that constrains strategic flexibility. Over months this amplifies solvency risk, increases interest burden, limits capacity for investment or opportunistic spending, and raises the likelihood of refinancing pressure if cash generation falters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Sustained top-line growth at ~78% indicates strong demand or successful expansion in core services. Over 2–6 months this supports scale benefits, market share gains, and provides a foundation for margin recovery if management improves operating efficiency and converts growth into profitable units.
Read all positive factors
REVOLUTION CO., LTD. (8894) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥4.12B
Dividend YieldN/A
Average Volume (3M)777.95K
Price to Earnings (P/E)―
Beta (1Y)0.16
Revenue Growth210.88%
EPS Growth-1986.52%
CountryJP
Employees56
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)-148.00
Shares Outstanding147,142,440
10 Day Avg. Volume671,950
30 Day Avg. Volume777,950
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)5.84
Price to Sales (P/S)0.20
P/FCF Ratio125.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 b...
REVOLUTION CO., LTD. Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
30
Negative
Cash Flow
40
Negative
| 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
Negative
51.00
Price Trends
44.16
Negative
48.30
Negative
56.49
Negative
Market Momentum
-4.68
Positive
15.08
Positive
8.44
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 51 is above the 20-day moving average (MA) of 35.15, above the 50-day MA of 44.16, and below the 200-day MA of 56.49, indicating a bearish trend. The MACD of -4.68 indicates Positive momentum. The RSI at 15.08 is Positive, neither overbought nor oversold. The STOCH value of 8.44 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥11.67B | 13.47 | ― | 4.98% | 6.29% | 6.28% | |
66 Neutral | ¥19.20B | 16.58 | ― | ― | 8.29% | -2.83% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | ¥23.19B | 37.49 | ― | ― | -2.59% | 61.28% | |
59 Neutral | ¥14.35B | 6.14 | ― | 1.47% | 15.19% | -6.43% | |
52 Neutral | ¥41.59B | 21.48 | ― | 0.45% | 23.11% | 8.31% | |
40 Underperform | ¥4.12B | -0.19 | ― | ― | 210.88% | -1986.52% |
* Real Estate Sector Average
JP:8894
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.