Sekisui House (1928) AI Stock Analysis

• Market Cap: $2.22T
• Dividend Yield: 4.17%
• Average Volume (3M): 1.90M
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.87
• Revenue Growth: 20.29%
• EPS Growth: -15.66%
• Country: JP
• Employees: 32,265
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 105.27
• Shares Outstanding: 663,122,200
• 10 Day Avg. Volume: 1,824,570
• 30 Day Avg. Volume: 1,897,183
• PEG Ratio: 1.24
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.57
• P/FCF Ratio: -168.16
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 4.37
• Enterprise Value/Ebitda: 10.17
• 1Y Price Target: $3,580.93
• Price Target Upside: 4.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥3,665.00 ▲(6.94% Upside)

Sekisui House's strong financial performance and attractive valuation are key strengths, though technical indicators suggest caution due to bearish momentum. Cash flow management remains a concern, requiring careful monitoring.

Sekisui House Business Overview & Revenue Model

Company Description

Sekisui House, Ltd. designs, constructs, and contracts built-to-order detached houses in Japan and internationally. The company operates through Custom Detached Houses, Rental Housing, Architectural/Civil Engineering, Remodeling, Real Estate Management Fees, Houses For Sale, Condominiums, Urban Redevelopment, and Overseas segments. It also engages in the design, construction, and contracting of built-to-order properties rental housing, medical and nursing care facilities, commercial facilities, and hotels; design, construction, and contracting of construction of civil engineering works; and construction of reinforced concrete rental housing and commercial buildings. In addition, the company is involved in the remodeling and renovation of houses, etc.; sub-lease, management, operation, and brokerage of real estate; sale of houses and residential land; design, construction, and sale of condominiums; and development of office and commercial buildings, as well as management and operation of owned properties. Sekisui House, Ltd. was incorporated in 1929 and is headquartered in Osaka, Japan.

How the Company Makes Money

Sekisui 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 demonstrates strong revenue growth and profitability with 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.21T	4.06T	3.11T	2.93T	2.59T	2.45T
Gross Profit	822.87B	785.99B	623.75B	584.30B	528.88B	473.51B
EBITDA	353.82B	366.60B	332.82B	303.28B	263.67B	211.38B
Net Income	196.32B	217.71B	202.32B	184.52B	153.91B	123.54B
Balance Sheet
Total Assets	4.66T	4.81T	3.35T	3.01T	2.80T	2.63T
Cash, Cash Equivalents and Short-Term Investments	335.39B	390.56B	293.15B	332.90B	515.28B	600.28B
Total Debt	1.87T	1.90T	750.80B	584.54B	542.01B	555.20B
Total Liabilities	2.72T	2.79T	1.56T	1.34T	1.28T	1.26T
Stockholders Equity	1.89T	1.96T	1.75T	1.63T	1.47T	1.33T
Cash Flow
Free Cash Flow	0.00	-13.81B	-61.25B	33.30B	35.08B	104.48B
Operating Cash Flow	0.00	62.88B	15.68B	125.46B	118.03B	191.97B
Investing Cash Flow	0.00	-697.69B	-69.12B	-165.41B	-113.71B	-95.50B
Financing Cash Flow	0.00	720.97B	6.48B	-155.78B	-111.70B	-77.61B

Sekisui House Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3427.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 3427 is above the 20-day moving average (MA) of 3313.50, above the 50-day MA of 3362.10, and above the 200-day MA of 3270.39, indicating a bullish trend. The MACD of -4.25 indicates Negative momentum. The RSI at 59.64 is Neutral, neither overbought nor oversold. The STOCH value of 95.69 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3291	74 Outperform	$645.49B	13.35	5.08%	4.11%	0.58%	40.75%
1928	72 Outperform	$2.22T	11.28	10.34%	4.17%	20.29%	-15.66%
1808	72 Outperform	€670.97B	18.77	7.34%	3.51%	5.67%	-31.15%
1911	68 Neutral	$1.05T	9.30	12.58%	2.88%	13.11%	-3.51%
8892	67 Neutral	¥99.01B	9.54	―	4.57%	27.02%	45.62%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1419	56 Neutral	¥106.81B	89.39	―	5.40%	-16.48%	-77.63%