ENVALITH
株式会社レント logo

RENT CORPORATION

372A・Standard Market・Services

株式会社レント logo
RENT CORPORATION372A

Business

Rent Co., Ltd. is a comprehensive rental company for industrial and construction machinery, etc., founded in 1984. It holds approximately 7,000 types and over 600,000 units of rental assets, and operates as a semi-wide-area major player with 63 domestic branches (Hokkaido, Tohoku, Kanto, Tokai, Kansai, Kyushu). Leveraging its strength in a wide product lineup including vehicles, aerial work platforms, excavators, cranes, generators, and surveying equipment, the company targets not only the construction industry but also non-construction customers (approximately 59% of sales) such as manufacturing, transportation, public plants, and private plants. It also has overseas subsidiaries and affiliates in Thailand, Indonesia, and Vietnam, and is advancing business expansion into ASEAN. The company listed on the Standard Market of the Tokyo Stock Exchange in June 2025.

Business Model

The company procures rental assets through in-house ownership and leasing, generating recurring rental income by lending them to customers on a short-term or long-term basis. Beyond simple rental, it adds "Value Plus Service" offerings—such as equipment selection proposals, calibration management, clean room support, training services, and battery regeneration—to avoid price competition and build long-term relationships with customers. In FY2025 (ending May 2025), Value Plus Service revenue reached ¥6,866 million (15.1% of net sales), enhancing the quality of earnings.

Company Strengths

Manufacturing, transportation, public plants, private plants, and other non-construction customers account for approximately 59% of sales. This reflects the continued pursuit of new customer development in industries where equipment rental adoption has lagged behind that of the construction industry, and provides a risk diversification effect against cyclical fluctuations in construction investment.

Sales of the Value Plus Service group—which includes value-added services such as calibration management, clean room support, training services, and battery reconditioning—expanded for five consecutive fiscal years, rising from ¥4,298 million in FY2021 (ended May 2021) to ¥6,866 million in FY2025 (ended May 2025), with its share of total sales increasing from 12.6% to 15.1%. This has contributed to avoiding simple price competition and building stronger customer relationships.

Sales expanded for five consecutive fiscal years, rising from ¥35,706 million in FY2021 (ended May 2021) to ¥49,088 million in FY2025 (ended May 2025). The ordinary income margin improved from 3.4% to 7.0% over the same period, while the net D/E ratio declined from 3.1x to 1.5x. Growth, profitability, and financial soundness have all improved simultaneously.

ENVALITH's Perspective

In FY2026 (ending May 2026), the company achieved revenue of ¥52,945 million (+7.9% YoY) and operating profit of ¥4,382 million (+12.2% YoY), marking six consecutive years of revenue and profit growth. However, cash flow from operating activities dropped sharply from ¥1,997 million in the previous period to ¥410 million in the current period. The main cause was a significant decrease in accounts payable (electronic recorded monetary claims payable) (-¥3,195 million), but the scale of investment is also large, with rental asset acquisition expenditure of ¥9,341 million against depreciation of ¥8,714 million, resulting in a structure where free cash flow remains negative. Continued attention is needed on the pace of recovery of asset investments and the increase in interest-bearing debt (borrowings +¥6,529 million).

As for market conditions, construction investment for FY2026 is projected to increase 5.4% year over year, and capital expenditure demand remains strong for national resilience projects, semiconductor plants, data centers, and other facilities, keeping the external environment favorable. On the other hand, interest-bearing debt (total of borrowings, corporate bonds, and lease obligations) reached over ¥37,449 million at the end of the current period, while the equity ratio remained low at 29.3%. In a rising interest rate environment, an increase in interest expenses (¥639 million in the current period, +37% YoY) risks pressuring ordinary profit, and the high level of financial leverage continues to be an important consideration for investment decisions.

The company's forecast for FY2027 (ending May 2027) calls for revenue of ¥58,000 million (+9.5% YoY) and operating profit of ¥4,950 million (+12.9% YoY), representing continued revenue and profit growth, while ordinary profit is expected to be ¥4,250 million (+7.7% YoY), falling below the growth rate of operating profit. This suggests a continuing pattern in which rising interest expenses push up non-operating expenses, and the dividend payout ratio is expected to rise from 28.8% to 30.3%. The planned dividend per share increase from ¥220 to ¥235 reflects a commendable stance on shareholder returns, but the low growth rate of net profit (+3.4%) warrants careful assessment from the perspective of earnings quality.

Growth Strategy

Pursuing sustainable growth along three axes: strengthening the urban network, expanding Value Plus Service, and ASEAN expansion

The company has been planning to steadily increase rental assets (owned and leased) each period, expanding the total to ¥28,078 million (net) at the end of the current fiscal year. It continues to promote reviews of rental rates, improving the operating margin to 8.3%. The policy is to continue enhancing assets in FY2027 (ending May 2027) as well.

The company continues to differentiate itself from competitors by focusing on high-value-added services that meet customers' needs for environment, safety, and efficiency. It aims to maintain and expand the non-construction customer ratio of 59% and enhance resilience to economic cycles through expansion into new fields.

The company is promoting network expansion through new store openings in major metropolitan and core urban areas. The subsidiarization of Kanagawa Sekiyu Hanbai Co., Ltd. strengthens the vehicle maintenance system in the Kanagawa and Tokyo areas, enhancing competitiveness in urban regions.

The company made Rent Vietnam Co., Ltd. (Vietnam) and PT. Rent Indonesia Asia (Indonesia) wholly owned subsidiaries, achieving faster decision-making and more effective use of management resources. It has established a framework to independently promote business expansion across ASEAN countries.

The company is promoting operational efficiency improvements and new service development utilizing digital technology and AI, aiming to enhance productivity and develop new business areas. It is advancing personnel reinforcement and next-generation talent development in parallel to build a foundation for sustainable growth.

Last updated: July 17, 2026