| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2030.95 | 47 |
| Intrinsic value (DCF) | 599.06 | -57 |
| Graham-Dodd Method | 1280.20 | -7 |
| Graham Formula | 1550.83 | 12 |
Koyou Rentia Co., Ltd. (7081.T) is a leading Japanese company specializing in rental services, space design, and product sales, catering primarily to corporate and construction sectors. Headquartered in Tokyo and founded in 1970, the company operates in Japan and internationally, offering equipment rentals for construction site offices, corporate events, and business offices. Additionally, Koyou Rentia provides interior design and construction services for condominiums, model room coordination, and office furniture sales. The company also supports sustainable practices by facilitating the proper disposal of office items post-relocation. With a market cap of approximately ¥11.98 billion, Koyou Rentia plays a vital role in Japan's industrial rental and leasing sector, combining functionality with aesthetic solutions for businesses. Its diversified service portfolio positions it as a key player in Japan's industrials sector, particularly in rental and space optimization services.
Koyou Rentia presents a stable investment opportunity with a low beta (0.185), indicating lower volatility relative to the market. The company reported solid financials for FY 2024, with revenue of ¥31.86 billion and net income of ¥1.55 billion, translating to a diluted EPS of ¥137.53. Operating cash flow stood at ¥2.35 billion, though capital expenditures were significant at ¥2.12 billion, reflecting potential reinvestment in growth. The company maintains a healthy cash position (¥2.1 billion) with manageable total debt (¥1.25 billion). A dividend of ¥30 per share adds to its appeal for income-focused investors. However, its niche focus on Japan's rental and design market may limit rapid expansion compared to global peers. Investors should weigh its steady domestic performance against sector-specific risks like economic downturns affecting corporate spending on rentals and interiors.
Koyou Rentia holds a competitive edge in Japan's rental and space design market through its integrated service model, combining equipment rentals with interior design and sales. Its specialization in corporate and construction-related rentals differentiates it from general rental service providers. The company's ability to offer end-to-end solutions—from rental to disposal—enhances customer retention and operational efficiency. However, its domestic focus may limit scalability compared to multinational rental firms. Koyou Rentia's strengths lie in its established reputation, diversified service offerings, and sustainable disposal practices, which align with growing corporate ESG priorities. Yet, it faces competition from larger industrial rental firms with broader geographic reach and greater financial resources. The company's relatively small market cap (¥11.98 billion) suggests it may lack the scale to compete aggressively on pricing or innovation with global giants. Its competitive positioning is strongest in Japan, where local expertise and customer relationships provide a moat against international players.