Columbia Works Inc. (146A) AI Stock Analysis

• Market Cap: ¥32.29B
• Dividend Yield: 1.8%
• Average Volume (3M): 48.87K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 1.35
• Revenue Growth: 45.48%
• EPS Growth: 48.63%
• Country: JP
• Employees: 57
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 65.56
• Shares Outstanding: 7,716,600
• 10 Day Avg. Volume: 42,950
• 30 Day Avg. Volume: 48,866
• PEG Ratio: 0.13
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.65
• P/FCF Ratio: -4.18
• 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): 495
• Revenue Forecast (FY): ¥36.20B

• Rating: 69 Neutral
• Price Target: ¥4,583.00 ▲(32.84% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is driven by attractive valuation (low P/E with a dividend) and a generally constructive technical uptrend. These positives are meaningfully offset by financial risk: leverage is high and operating/free cash flow are consistently negative, increasing dependence on funding access despite strong reported growth and profitability.

Positive Factors

Revenue Growth

Sustained, large revenue expansion (76.8% reported) signals durable market demand and successful project execution in development. Over 2–6 months this supports backlog visibility, supplier bargaining power and the ability to scale fixed-cost absorption, strengthening long-term earnings potential.

Consistent Profitability

Consistent accounting profitability and solid operating/net margins indicate strong project economics and cost control. Durable margins provide internal funding capacity, support dividend policy and build credibility with lenders and partners, enabling sustained growth despite cyclical swings.

Equity Growth Supporting Expansion

Equity growth alongside asset expansion suggests retained earnings or capital raises are funding development, not just debt. This improves the company’s capital base over time, helping finance new projects, reduce relative leverage dilution risk, and support longer-term scaling.

Negative Factors

High Financial Leverage

A debt-to-equity ratio near 2.7–3.4x is structurally high for a development business, amplifying earnings volatility and refinancing risk. In a rising-rate or downturn environment this leverage can constrain strategic flexibility, increase interest burden, and pressure liquidity over the medium term.

Persistent Negative Cash Flow

Consistent negative operating and free cash flow means reported profits are not converting to cash, forcing dependence on external funding or asset sales. This structural cash shortfall raises liquidity and refinancing risk and limits the firm's ability to self-fund growth or weather funding market stress.

Margin Compression Risk

Observed margin compression in 2025 suggests rising costs or pricing pressure may be eroding project economics. Persisting margin decline would reduce free cash generation and the cushion against high leverage, making the business more vulnerable to competitive or input-cost shifts over the next several months.

Columbia Works Inc. Business Overview & Revenue Model

Company Description

Columbia Works Inc. provides real estate development, leasing, and management services in Japan. It also engages in the hotel management, and real estate consulting and revitalization activities. The company was incorporated in 2013 and is headquartered in Shibuya, Japan. Columbia Works Inc operates as a subsidiary of Nstyle co. Ltd.

How the Company Makes Money

Columbia Works Inc. generates revenue through multiple streams, including the sale of manufactured products, which constitute a significant portion of its earnings. The company also offers technology consulting services, providing expertise and solutions that help clients optimize their operations. Additionally, Columbia Works Inc. has established strategic partnerships with key industry players, allowing it to expand its market reach and enhance its product offerings. These collaborations often include joint ventures and co-development projects that contribute to the company's revenue. Furthermore, Columbia Works Inc. invests in research and development to innovate and introduce new products, thus continuously driving sales and attracting new customers.

Columbia Works Inc. Financial Statement Overview

Summary

Strong revenue growth and consistently positive profitability support the score, but it is held back by high leverage (debt-to-equity ~2.7–3.4x) and persistently negative operating and free cash flow, implying reliance on external funding and higher risk in a downturn or higher-rate environment.

Income Statement

The income statement is strong, highlighted by rapid top-line expansion (revenue rose sharply in 2025 versus 2024) and consistently positive profitability. Operating and net margins have remained solid across the period, indicating good project economics and cost control. The main weakness is margin compression in 2025 versus 2024 (gross, operating, and EBITDA margins all stepped down), which bears watching if growth is being bought through pricing or higher costs.

Balance Sheet

The balance sheet is leveraged, with debt running materially above equity across all years (debt-to-equity consistently around ~2.7–3.4x). While equity has grown alongside the business (supporting asset growth), the capital structure remains debt-heavy, which can amplify risk in a real estate downturn or higher-rate environment. Overall, the company appears to be scaling, but with meaningful financial leverage.

Cash Flow

Cash flow quality is weak: operating cash flow is negative in every reported year, and free cash flow is also consistently negative, including a sizable outflow in 2024 and still negative in 2025. While losses in cash flow narrowed in some years, the persistent gap between accounting earnings (positive net income) and cash generation suggests heavy working-capital and/or development investment needs, increasing reliance on external funding.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	23.71B	37.08B	20.98B	14.47B	11.01B	10.00B
Gross Profit	6.34B	8.66B	5.67B	3.85B	3.29B	2.24B
EBITDA	4.69B	6.42B	4.21B	2.82B	2.35B	1.34B
Net Income	2.37B	3.46B	2.24B	1.52B	1.17B	682.00M
Balance Sheet
Total Assets	61.33B	66.88B	52.19B	32.00B	26.98B	19.26B
Cash, Cash Equivalents and Short-Term Investments	3.48B	7.89B	4.29B	3.16B	3.07B	3.29B
Total Debt	46.88B	46.80B	37.65B	23.26B	19.66B	13.60B
Total Liabilities	48.93B	49.44B	40.09B	24.86B	21.18B	14.55B
Stockholders Equity	12.40B	17.44B	12.10B	7.14B	5.80B	4.71B
Cash Flow
Free Cash Flow	0.00	-5.76B	-15.92B	-2.71B	-5.87B	-3.87B
Operating Cash Flow	0.00	-4.32B	-14.35B	-1.57B	-5.48B	-2.17B
Investing Cash Flow	0.00	-1.71B	-1.60B	-1.59B	-345.00M	-1.94B
Financing Cash Flow	0.00	9.64B	17.09B	3.43B	5.96B	4.16B

Columbia Works Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3450.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:146A, the sentiment is Positive. The current price of 3450 is below the 20-day moving average (MA) of 4065.75, below the 50-day MA of 3638.86, and above the 200-day MA of 3181.09, indicating a bullish trend. The MACD of 168.53 indicates Positive momentum. The RSI at 57.65 is Neutral, neither overbought nor oversold. The STOCH value of 29.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:146A.

Columbia Works Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1847	79 Outperform	¥45.81B	4.48	―	3.01%	-1.93%	47.35%
2983	78 Outperform	¥22.77B	99.29	―	2.07%	15.56%	67.66%
1814	74 Outperform	¥43.94B	6.89	―	3.86%	14.97%	72.48%
146A	69 Neutral	¥32.29B	6.95	―	1.80%	45.48%	48.63%
3299	69 Neutral	¥60.31B	4.43	―	6.02%	1.33%	9.59%
8897	68 Neutral	¥55.79B	6.36	6.98%	7.35%	-21.50%	-56.82%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%