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8876

Relo Group TSE:8876 Stock Report

Last Price

JP¥1.99k

Market Cap

JP¥303.6b

7D

10.0%

1Y

-5.9%

Updated

18 May, 2022

Data

Company Financials +
8876 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance4/6
Financial Health3/6
Dividends3/6

8876 Stock Overview

Relo Group, Inc. provides corporate fringe benefit outsourcing services in Japan.

Relo Group Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Relo Group
Historical stock prices
Current Share PriceJP¥1,986.00
52 Week HighJP¥2,709.00
52 Week LowJP¥1,548.00
Beta0.86
1 Month Change10.03%
3 Month Change15.94%
1 Year Change-5.92%
3 Year Change-29.40%
5 Year Change-10.90%
Change since IPO329.41%

Recent News & Updates

Shareholder Returns

8876JP Real EstateJP Market
7D10.0%1.5%0.6%
1Y-5.9%-1.3%-2.9%

Return vs Industry: 8876 underperformed the JP Real Estate industry which returned -1.3% over the past year.

Return vs Market: 8876 underperformed the JP Market which returned -2.9% over the past year.

Price Volatility

Is 8876's price volatile compared to industry and market?
8876 volatility
8876 Average Weekly Movement5.2%
Real Estate Industry Average Movement3.9%
Market Average Movement4.6%
10% most volatile stocks in JP Market9.2%
10% least volatile stocks in JP Market2.5%

Stable Share Price: 8876 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 8876's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19674,208Kenichi Nakamurahttps://www.relo.jp

Relo Group, Inc. provides corporate fringe benefit outsourcing services in Japan. The company offers leased corporate housing management services; and property management services. It also provides lifestyle support programs for employees, such as leisure activity and accommodation programs, as well as skill up, health check, childcare, and nursing programs; and overseas onsite support services for employees residing overseas that include residence management, setting up of daily life, international house moving, and multi-lingual problem handling.

Relo Group Fundamentals Summary

How do Relo Group's earnings and revenue compare to its market cap?
8876 fundamental statistics
Market CapJP¥303.63b
Earnings (TTM)JP¥15.64b
Revenue (TTM)JP¥156.57b

19.4x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
8876 income statement (TTM)
RevenueJP¥156.57b
Cost of RevenueJP¥90.30b
Gross ProfitJP¥66.27b
Other ExpensesJP¥50.63b
EarningsJP¥15.64b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)102.32
Gross Margin42.33%
Net Profit Margin9.99%
Debt/Equity Ratio164.0%

How did 8876 perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

18%

Payout Ratio

Valuation

Is Relo Group undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


30.7%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 8876 (¥1986) is trading below our estimate of fair value (¥2867.61)

Significantly Below Fair Value: 8876 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8876 is poor value based on its PE Ratio (19.4x) compared to the JP Real Estate industry average (10.4x).

PE vs Market: 8876 is poor value based on its PE Ratio (19.4x) compared to the JP market (12.1x).


Price to Earnings Growth Ratio

PEG Ratio: 8876 is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: 8876 is overvalued based on its PB Ratio (5.6x) compared to the JP Real Estate industry average (1x).


Future Growth

How is Relo Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8876's forecast earnings growth (8.7% per year) is above the savings rate (0.02%).

Earnings vs Market: 8876's earnings (8.7% per year) are forecast to grow faster than the JP market (8.6% per year).

High Growth Earnings: 8876's earnings are forecast to grow, but not significantly.

Revenue vs Market: 8876's revenue (4.6% per year) is forecast to grow faster than the JP market (4.1% per year).

High Growth Revenue: 8876's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 8876's Return on Equity is forecast to be high in 3 years time (25.4%)


Past Performance

How has Relo Group performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-2.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 8876 has high quality earnings.

Growing Profit Margin: 8876's current net profit margins (10%) are higher than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: 8876's earnings have declined by 2.3% per year over the past 5 years.

Accelerating Growth: 8876's earnings growth over the past year (67.2%) exceeds its 5-year average (-2.3% per year).

Earnings vs Industry: 8876 earnings growth over the past year (67.2%) exceeded the Real Estate industry 19.4%.


Return on Equity

High ROE: Whilst 8876's Return on Equity (29.21%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Relo Group's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 8876's short term assets (¥161.4B) exceed its short term liabilities (¥118.7B).

Long Term Liabilities: 8876's short term assets (¥161.4B) exceed its long term liabilities (¥127.7B).


Debt to Equity History and Analysis

Debt Level: 8876's net debt to equity ratio (73%) is considered high.

Reducing Debt: 8876's debt to equity ratio has increased from 54.3% to 164% over the past 5 years.

Debt Coverage: 8876's debt is not well covered by operating cash flow (19.9%).

Interest Coverage: 8876's interest payments on its debt are well covered by EBIT (25.3x coverage).


Balance Sheet


Dividend

What is Relo Group current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.11%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 8876's dividend (1.11%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.62%).

High Dividend: 8876's dividend (1.11%) is low compared to the top 25% of dividend payers in the JP market (3.64%).


Stability and Growth of Payments

Stable Dividend: 8876's dividend payments have been volatile in the past 10 years.

Growing Dividend: 8876's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (18.5%), 8876's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (28.1%), 8876's dividend payments are well covered by cash flows.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Kenichi Nakamura (55 yo)

11.58yrs

Tenure

Mr. Kenichi Nakamura has been a Representative Director of Relo Group, Inc. (formerly known as Relo Holdings, Inc.) since October 2010 and serves as its Chif Executive Officer since 2022 and served as its...


Leadership Team

Experienced Management: 8876's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: 8876's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Relo Group, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Relo Group, Inc.
  • Ticker: 8876
  • Exchange: TSE
  • Founded: 1967
  • Industry: Real Estate Services
  • Sector: Real Estate
  • Implied Market Cap: JP¥303.634b
  • Shares outstanding: 152.89m
  • Website: https://www.relo.jp

Number of Employees


Location

  • Relo Group, Inc.
  • 4-3-23, Shinjuku
  • Shinjuku-ku
  • Tokyo
  • 160-0022
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/18 00:00
End of Day Share Price2022/05/18 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.