Rise Consulting Group,Inc. (9168) AI Stock Analysis

• Market Cap: ¥11.82B
• Dividend Yield: 1.04%
• Average Volume (3M): 161.34K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.49
• Revenue Growth: 23.25%
• EPS Growth: 14.29%
• Country: JP
• Employees: 264
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 10.68
• Shares Outstanding: 24,727,670
• 10 Day Avg. Volume: 225,410
• 30 Day Avg. Volume: 161,340
• PEG Ratio: 1.26
• Price to Book (P/B): 2.41
• Price to Sales (P/S): 1.98
• P/FCF Ratio: 10.55
• 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): 89
• Revenue Forecast (FY): ¥12.58B

• Rating: 68 Neutral
• Price Target: ¥521.00 ▼(-37.38% Downside)
• Action: Reiterated Date: 01/16/26
• Date: Action: Reiterated 01/16/26

The score is supported primarily by strong financial performance (solid growth, high margins, improving leverage, and strong ROE). However, the overall rating is held back by very weak technicals (price well below key moving averages with bearish momentum). Reasonable valuation provides a partial offset.

Positive Factors

Revenue Growth

Sustained ~12% TTM revenue growth and a multi-year expansion indicate durable demand for the firm's consulting services and successful client retention or new wins. That trajectory supports scale economies, predictable top-line momentum and underpins longer-term earnings visibility over 2–6 months.

High Profitability / ROE

Consistently high ROE and strong gross/operating margins reflect structural profitability and efficient capital deployment in the business model. Durable margins and elevated ROE support reinvestment capacity and resilience to moderate demand swings, sustaining long-term cash generation.

Improving Leverage and Balance Sheet

Marked reduction in debt-to-equity signals materially stronger financial flexibility and lower refinancing risk. A healthier capital structure provides room for strategic investments, cushions operating volatility, and improves credit resilience across the medium term.

Negative Factors

Weak Free Cash Flow Momentum

A ~-10% decline in FCF growth despite FCF roughly matching net income points to weakening cash momentum. Persistent negative FCF growth can constrain capital allocation, limit buybacks or dividends, and reduce buffer against cyclical downturns over the coming months.

Margin Normalization Risk

Recent margin contraction from peak levels suggests pressure on pricing or rising costs. If margins remain below historic peaks, earnings leverage from revenue growth will be muted, reducing the company's ability to expand profits under similar revenue trajectories.

Absolute Debt Remains Material

Even with a lower debt-to-equity ratio, a still-material absolute debt load can limit strategic flexibility and elevate interest exposure if rates rise or earnings soften. This structural liability increases downside risk in adverse operating scenarios.

Rise Consulting Group,Inc. Business Overview & Revenue Model

Company Description

Rise Consulting Group, Inc. offers management consulting services in Japan. It offers project management, digital, strategy, IT, fintech, merger and acquisition, new tech, overseas expansion, new business, and BPR consulting services. Rise Consulting Group, Inc. was founded in 2010 and is based in Minato, Japan.

Rise Consulting Group,Inc. Financial Statement Overview

Summary

Fundamentals are strong: revenue is up ~12% TTM with consistently high profitability. Balance sheet quality has improved materially as leverage fell (debt-to-equity ~0.24 in TTM) while ROE remains strong (~24%). Cash flow conversion is generally solid (FCF ~ net income), but recent FCF growth is negative (~-10%) and cash conversion has shown some variability.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up ~12% versus the latest annual period, extending a strong multi-year growth run. Profitability is a clear strength with consistently high gross and operating margins, though margins have eased from the 2024 peak and net margin is slightly lower in TTM (~18%) than prior years (~20%+). Overall, the income statement reflects strong scale and durable profitability with some recent margin normalization.

Balance Sheet

Leverage has improved meaningfully over time, with debt-to-equity falling from ~1.27 (2022) to ~0.24 in TTM (Trailing-Twelve-Months), indicating a much more conservative capital structure. Equity has grown steadily and returns on equity remain strong (~22–26% historically; ~24% in TTM), supporting quality earnings. The main watch item is that total debt remains material in absolute terms, but the balance sheet trend is clearly strengthening.

Cash Flow

Cash generation is solid: TTM (Trailing-Twelve-Months) free cash flow is essentially in line with net income (free cash flow to net income ~1.0), suggesting reported profits are converting well to cash. However, free cash flow growth turned negative in TTM (about -10%), and operating cash flow relative to net income is only modestly above 1x in TTM after being below 1x in several annual periods, indicating some variability in cash conversion. Overall cash flow quality is good, but recent momentum is softer.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	8.56B	7.68B	6.16B	4.76B	3.43B
Gross Profit	4.67B	4.23B	3.55B	2.63B	1.95B
EBITDA	2.09B	2.02B	1.88B	1.45B	1.15B
Net Income	1.48B	1.42B	1.32B	965.84M	682.56M
Balance Sheet
Total Assets	9.48B	9.30B	8.65B	7.53B	7.03B
Cash, Cash Equivalents and Short-Term Investments	2.81B	2.46B	1.89B	1.15B	780.83M
Total Debt	1.48B	1.91B	2.47B	3.04B	3.50B
Total Liabilities	2.34B	2.99B	3.49B	3.80B	4.28B
Stockholders Equity	7.15B	6.31B	5.16B	3.73B	2.75B
Cash Flow
Free Cash Flow	1.62B	1.44B	1.22B	860.60M	858.30M
Operating Cash Flow	1.62B	1.45B	1.23B	884.52M	915.96M
Investing Cash Flow	-15.03M	-16.52M	-1.55M	-23.93M	-57.67M
Financing Cash Flow	-791.27M	-864.71M	-483.58M	-489.33M	-351.48M

Rise Consulting Group,Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 832.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9168, the sentiment is Negative. The current price of 832 is above the 20-day moving average (MA) of 495.19, above the 50-day MA of 545.86, and below the 200-day MA of 871.70, indicating a bearish trend. The MACD of -16.85 indicates Negative momentum. The RSI at 37.20 is Neutral, neither overbought nor oversold. The STOCH value of 8.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9168.

Rise Consulting Group,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9644	72 Outperform	¥24.09B	16.33	―	3.50%	15.91%	36.39%
6532	71 Outperform	¥680.66B	28.67	―	1.30%	25.07%	26.47%
7033	71 Outperform	¥22.23B	8.70	―	2.18%	17.87%	5.31%
2170	69 Neutral	¥55.61B	-15.07	―	2.96%	10.63%	7.42%
9168	68 Neutral	¥11.82B	20.71	―	1.04%	23.25%	14.29%
4792	64 Neutral	¥31.54B	31.60	―	4.39%	2.46%	-31.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%