Recovery International Co.,Ltd. (9214) AI Stock Analysis

• Market Cap: ¥2.01B
• Dividend Yield: N/A
• Average Volume (3M): 2.65K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.79
• Revenue Growth: 32.45%
• EPS Growth: 58.25%
• Country: JP
• Employees: 280
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 57.09
• Shares Outstanding: 1,414,000
• 10 Day Avg. Volume: 4,210
• 30 Day Avg. Volume: 2,646
• PEG Ratio: -1.39
• Price to Book (P/B): 2.54
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 30.00
• 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: 69 Neutral
• Price Target: ¥1,588.00 ▲(9.52% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is primarily supported by strong multi-year growth and consistent profitability alongside a generally improved balance sheet. It is held back by 2025 cash-flow and earnings-quality deterioration and a recent increase in debt, while technicals are positive but mixed and valuation appears reasonable rather than clearly attractive.

Positive Factors

Multi-year revenue growth & sustained profitability

Revenue expanded consistently from 2020 through 2025 (2025 still posted healthy growth after a very strong 2024) while the company maintained positive operating profit and net income. This multi-year top-line expansion with recurring profitability supports durable demand, pricing power and the ability to reinvest in operations.

Material balance-sheet improvement

Equity growth and lower leverage over several years indicate improved financial resilience and capacity to absorb shocks. Stronger capitalization supports funding for capex or expansion without immediate reliance on short-term capital markets, enhancing long-term strategic optionality for the medical care facilities business.

Historically strong free cash generation (2021–2024)

A multi-year record of positive free cash flow and growth through 2023–2024 demonstrates the company's capability to convert earnings into cash to fund operations, maintenance capex and potential investments. That cash conversion history is a durable indicator of underlying business cash economics, even if 2025 weakened.

Negative Factors

2025 earnings and cash-flow quality deterioration

Net income falling while revenue rose and operating/free cash flow plunging in 2025 suggest degraded earnings quality or one-time distortions. Weaker cash conversion undermines the company's ability to self-fund growth and may signal working-capital stress or uncapitalized costs that could persist absent corrective action.

Recent increase in debt after unusually low 2024 level

Rising borrowings after a period of minimal debt reduces financial flexibility and raises interest and refinancing exposure. With cash generation weakening in 2025, higher leverage increases risk to coverage metrics and limits ability to pursue opportunistic investments without further dilutive or costly financing.

Margin compression and net income decline despite revenue growth

Sustained margin erosion implies rising costs, pricing pressure, or increased investment that reduces profitability and return on capital. If persistent, lower margins compress free cash flow and weaken the company's ability to finance growth or maintain payouts, making long-term returns more sensitive to cost control execution.

Recovery International Co.,Ltd. Business Overview & Revenue Model

Company Description

Recovery International Co.,Ltd. offers home-visit nursing and rehabilitation in-home nursing care services in Japan. It provides home-visit nursing care for people with illness or disability patients; physical, occupational therapists, and speech language pathologists services to maintain and restore mental and physical functions; and home-visit massage services for physically handicapped patients. The company was incorporated in 2013 and is based in Shinjuku-Ku, Japan.

How the Company Makes Money

Recovery International Co.,Ltd. generates revenue through a diverse range of waste management and recycling services. The company's key revenue streams include fees for waste collection and disposal services, sales of recycled materials, and contracts with municipalities and businesses for waste management solutions. Additionally, Recovery International Co.,Ltd. may engage in partnerships with governmental and private entities to enhance its operational capabilities and expand its market reach. The company focuses on optimizing its recycling processes to increase the yield of valuable materials, thereby enhancing profitability. Factors contributing to its earnings include market demand for recycled materials, regulatory incentives for sustainable waste management, and the company's ability to effectively manage operational costs.

Recovery International Co.,Ltd. Financial Statement Overview

Summary

Strong multi-year revenue growth and sustained profitability support the score, and the balance sheet improved materially versus 2020. Offsetting this, 2025 shows weaker quality of earnings: net income declined despite higher revenue, operating/free cash flow dropped sharply versus 2024, and debt increased from 2024’s unusually low level.

Income Statement

Revenue has grown strongly over the last several years (from 2020 through 2025 annual reports), with 2025 still posting healthy growth (+14.88%) after a very strong 2024. Profitability is solid with consistently positive operating profit and net income, supported by steady gross profitability in the low-40% range (where disclosed). The main weakness is margin compression versus earlier years: net margin and operating margin were higher in 2021–2022 than in 2023–2024, and 2025 net income declined versus 2024 despite higher revenue—suggesting higher costs and/or investment spend.

Balance Sheet

The balance sheet has strengthened meaningfully over time, with equity rising substantially (2020 to 2025) and leverage improving from high debt relative to equity in 2020 to low levels in recent years. That said, 2025 shows debt increasing versus 2024 (which reported zero debt), so leverage is moving up again from an unusually conservative level. Overall, assets and equity growth point to improving scale and resilience, but the recent uptick in borrowing is a watch item.

Cash Flow

Cash generation was strong in 2021–2024, with free cash flow generally tracking net income closely (where provided) and free cash flow growing in 2023–2024. However, 2025 shows a sharp drop in operating cash flow and free cash flow versus 2024 despite higher revenue, indicating weaker cash conversion (potentially working-capital drag or timing effects). The business remains free-cash-flow positive, but the volatility and recent step-down reduce confidence versus prior-year performance.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.34B	2.69B	2.04B	1.61B	1.39B	1.12B
Gross Profit	1.01B	1.15B	860.00M	647.34M	546.66M	456.07M
EBITDA	225.13M	215.18M	206.85M	161.06M	159.61M	154.45M
Net Income	145.85M	127.71M	145.73M	110.14M	108.30M	100.86M
Balance Sheet
Total Assets	1.30B	1.35B	1.04B	901.38M	784.03M	474.11M
Cash, Cash Equivalents and Short-Term Investments	592.58M	587.20M	509.38M	524.10M	451.81M	203.00M
Total Debt	196.67M	177.84M	0.00	17.35M	40.13M	66.46M
Total Liabilities	552.12M	573.56M	329.66M	246.65M	239.33M	244.66M
Stockholders Equity	743.91M	774.37M	708.02M	654.74M	544.69M	229.44M
Cash Flow
Free Cash Flow	0.00	65.61M	115.53M	108.09M	78.39M	98.61M
Operating Cash Flow	0.00	70.75M	119.56M	114.81M	87.70M	101.01M
Investing Cash Flow	0.00	-70.83M	-23.68M	-19.64M	9.57M	-24.34M
Financing Cash Flow	0.00	77.90M	-110.60M	-22.87M	171.54M	-18.25M

Recovery International Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1450.00
• 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:9214, the sentiment is Positive. The current price of 1450 is above the 20-day moving average (MA) of 1386.90, above the 50-day MA of 1403.62, and above the 200-day MA of 1448.24, indicating a neutral trend. The MACD of 4.15 indicates Negative momentum. The RSI at 57.01 is Neutral, neither overbought nor oversold. The STOCH value of 73.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9214.

Recovery International Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9220	81 Outperform	¥2.98B	6.24	―	2.82%	4.82%	9.78%
2425	75 Outperform	¥3.02B	13.13	―	2.56%	-3.06%	-38.56%
9214	69 Neutral	¥2.01B	15.20	―	―	32.45%	58.25%
7129	68 Neutral	¥3.30B	63.45	―	2.64%	4.69%	103.59%
7133	64 Neutral	¥7.79B	13.42	―	1.80%	18.58%	-6.30%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
7362	49 Neutral	¥1.22B	14.77	―	―	2.81%	-42.50%