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Sekisui House (JP:1928)
:1928
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Sekisui House (1928) AI Stock Analysis

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JP:1928

Sekisui House

(OTC:1928)

Rating:76Outperform
Price Target:
¥3,708.00
▲(12.95%Upside)
Sekisui House's overall score is driven by its solid financial performance, attractive valuation, and positive technical indicators. Strong revenue and profit growth, alongside an appealing P/E ratio and dividend yield, make it a robust stock in the residential construction industry. However, cash flow management requires attention, and the technical analysis suggests a potential for short-term caution due to nearing overbought conditions.

Sekisui House (1928) vs. iShares MSCI Japan ETF (EWJ)

Sekisui House Business Overview & Revenue Model

Company DescriptionSekisui House (1928) is a leading Japanese homebuilder and one of the largest residential construction companies in the world. Established in 1960, the company operates across various sectors including housing construction, urban development, and environmental technologies. Sekisui House is renowned for its innovative approaches to sustainable housing and urban planning, offering a wide range of products from custom-built homes to community development projects.
How the Company Makes MoneySekisui House generates revenue through several key streams, primarily through the design, construction, and sale of residential properties. The company engages in the development of custom-built homes, rental housing, and condominium projects, which form the core of its revenue base. Additionally, Sekisui House has a thriving real estate business, involving the acquisition, development, and management of commercial properties. The company also invests in international markets, expanding its revenue sources by participating in overseas construction and development projects. Strategic partnerships with local governments and other developers further bolster its earnings, as does its focus on sustainability and environmental technologies, which appeal to environmentally-conscious consumers and investors.

Sekisui House Financial Statement Overview

Summary
Sekisui House exhibits strong revenue and profit growth, supported by improving margins and efficient operations. The balance sheet is solid, with a reasonable debt level and strong equity base. However, cash flow management presents potential risks due to negative free cash flow.
Income Statement
85
Very Positive
Sekisui House has demonstrated strong revenue growth, increasing from ¥2.41 trillion to ¥4.06 trillion over the past five years. The gross profit margin has consistently improved, reaching 19.37% in the latest year. Net profit margin stands at 5.37%, supported by a solid EBIT margin of 8.16% and an EBITDA margin of 9.03%, indicating operational efficiency and profitability. The revenue growth rate from 2024 to 2025 was an impressive 30.63%, showcasing robust market demand and effective business strategies.
Balance Sheet
78
Positive
The balance sheet reveals a significant increase in total assets to ¥4.81 trillion, with a healthy equity ratio of 40.81%, reflecting financial stability. The debt-to-equity ratio is 0.94, indicating manageable leverage levels. Return on equity is strong at 11.09%, suggesting efficient use of shareholders' funds. However, the rise in total debt to ¥1.85 trillion warrants monitoring to ensure continued balance sheet health.
Cash Flow
65
Positive
Sekisui House's operating cash flow has been positive, with a ratio of operating cash flow to net income at 0.29, indicating good cash conversion from earnings. The free cash flow to net income ratio is negative, reflecting current capital expenditures exceeding operating cash flow, which could pressure liquidity if sustained long-term. Free cash flow growth has been volatile, highlighting a potential risk in cash management practices.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.06T3.11T2.93T2.59T2.45T
Gross Profit785.99B623.75B584.30B528.88B473.51B
EBITDA366.60B332.82B303.28B263.67B211.38B
Net Income217.71B202.32B184.52B153.91B123.54B
Balance Sheet
Total Assets4.81T3.35T3.01T2.80T2.63T
Cash, Cash Equivalents and Short-Term Investments390.56B293.15B332.90B515.28B600.28B
Total Debt1.90T750.80B584.54B542.01B555.20B
Total Liabilities2.79T1.56T1.34T1.28T1.26T
Stockholders Equity1.96T1.75T1.63T1.47T1.33T
Cash Flow
Free Cash Flow-13.81B-61.25B33.30B35.08B104.48B
Operating Cash Flow62.88B15.68B125.46B118.03B191.97B
Investing Cash Flow-697.69B-69.12B-165.41B-113.71B-95.50B
Financing Cash Flow720.97B6.48B-155.78B-111.70B-77.61B

Sekisui House Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3283.00
Price Trends
50DMA
3167.64
Positive
100DMA
3230.06
Positive
200DMA
3407.97
Negative
Market Momentum
MACD
23.35
Negative
RSI
65.99
Neutral
STOCH
92.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1928, the sentiment is Positive. The current price of 3283 is above the 20-day moving average (MA) of 3184.90, above the 50-day MA of 3167.64, and below the 200-day MA of 3407.97, indicating a neutral trend. The MACD of 23.35 indicates Negative momentum. The RSI at 65.99 is Neutral, neither overbought nor oversold. The STOCH value of 92.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1928.

Sekisui House Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥982.00B8.5313.35%10.93%16.63%3.38%
76
Outperform
¥2.14T10.6010.67%4.11%31.47%-4.48%
74
Outperform
€609.28B17.696.56%3.81%7.58%-39.48%
70
Outperform
¥585.14B11.775.13%4.25%1.42%36.70%
69
Neutral
¥97.77B9.50
4.65%18.25%19.09%
64
Neutral
¥103.15B69.04
5.36%-6.65%-8.54%
63
Neutral
$17.10B10.62-8.48%2.94%1.62%-25.72%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1928
Sekisui House
3,283.00
-386.80
-10.54%
JP:1419
Tama Home Co., Ltd.
3,635.00
-617.90
-14.53%
JP:8892
ES-CON JAPAN Ltd.
1,032.00
38.18
3.84%
JP:1808
Haseko
2,229.50
448.46
25.18%
JP:3291
Iida Group Holdings Co
2,117.00
-26.06
-1.22%
JP:1911
Sumitomo Forestry Co
1,564.00
-494.91
-24.04%

Sekisui House Corporate Events

Sekisui House Strengthens Corporate Governance and Reduces Cross-Shareholdings
Mar 18, 2025

Sekisui House has announced its commitment to enhancing corporate governance by adhering to the principles of the Corporate Governance Code. The company is actively reducing cross-shareholdings to improve capital efficiency, targeting a reduction to 3% or less of consolidated net assets by the end of January 2026. This move is part of their Sixth Medium-Term Management Plan, reflecting a strategic effort to optimize asset management and strengthen stakeholder trust.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025