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): 0.22
• Revenue Growth: 521.07%
• EPS Growth: -3637.52%
• Country: JP
• Employees: 56
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -6.25
• 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: 46 Neutral
• Price Target: ¥54.00 ▲(5.88% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is held down primarily by weak financial performance—large losses, very high leverage, and weak operating cash generation—despite strong revenue growth. Technicals provide some support with improving short-to-medium trend and moderate momentum, while valuation remains unattractive/unclear due to negative earnings and no dividend data.

Positive Factors

Revenue Growth

Sustained top-line expansion of ~78% indicates the company is gaining customers or expanding services in its market. Over 2–6 months this revenue momentum can underpin scale advantages, improve unit economics if fixed costs are leveraged, and create optionality for margin recovery or strategic reinvestment.

Free Cash Flow Conversion

A positive free cash flow to net income ratio shows the business can convert some accounting losses into real cash, supporting operational continuity. This structural cash generation provides a base to fund working capital and service obligations even while profitability improves over coming quarters.

Lean Operating Base

A small headcount suggests an asset-light or scalable service model that can expand revenue without proportionate fixed labor costs. If revenue growth persists, this structural leverage can drive significant margin improvement over several quarters as incremental revenue dilutes fixed operating expenses.

Negative Factors

Very High Leverage

Extremely high leverage materially limits financial flexibility and raises refinancing and solvency risk. Interest and principal demands will consume cash flow, constrain investment, and amplify downside in adverse conditions, making sustained operational turnarounds harder to execute over the medium term.

Deep Negative Profitability

Persistent large negative margins indicate operations are not yet economically viable at scale. Ongoing losses erode equity and restrict reinvestment capacity. Without durable margin improvement, revenue growth alone will not translate into sustainable shareholder value over coming quarters.

Poor Operating Cash Generation

Near-zero operating cash conversion means reported results are not yielding usable cash, creating liquidity pressure. This structural weakness raises the risk of needing external financing for operations and debt service, limiting management's ability to invest for growth or absorb shocks over the medium term.

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.

REVOLUTION CO., LTD. Financial Statement Overview

Summary

Despite very strong revenue growth (+78.04%), financial health is weak due to deeply negative profitability (net margin -49.85% with negative EBIT/EBITDA margins), very high leverage (debt-to-equity 9.98 and low equity ratio), and poor operating cash generation (operating cash flow to net income 0.0057).

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: Positive
• 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 equal to the 20-day moving average (MA) of 51.00, below the 50-day MA of 52.82, and below the 200-day MA of 61.66, indicating a neutral trend. The MACD of 0.59 indicates Negative momentum. The RSI at 55.00 is Neutral, neither overbought nor oversold. The STOCH value of 46.11 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	¥11.95B	11.85	―	4.98%	3.29%	-1.74%
2991	67 Neutral	¥14.04B	6.93	―	1.47%	20.82%	9.86%
2970	66 Neutral	¥18.05B	8.37	―	―	57.57%	57.09%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2980	64 Neutral	¥43.28B	9.84	―	0.45%	-8.33%	-36.89%
5532	61 Neutral	¥17.03B	5.83	―	―	23.19%	44.46%
8894	46 Neutral	¥7.94B	-2.12	―	―	521.07%	-3637.52%