Sekisui House (1928) AI Stock Analysis

• Market Cap: ¥2.50T
• Dividend Yield: 4.17%
• Average Volume (3M): 1.95M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.90
• Revenue Growth: 9.27%
• EPS Growth: -11.27%
• Country: JP
• Employees: 32,265
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 70.13
• Shares Outstanding: 663,122,200
• 10 Day Avg. Volume: 1,960,440
• 30 Day Avg. Volume: 1,950,790
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥3,892.01
• Price Target Upside: 1.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 366.84
• Revenue Forecast (FY): ¥4.35T

• Rating: 74 Outperform
• Price Target: ¥4,283.00 ▲(11.94% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

Sekisui House's strong financial performance and attractive valuation are the most significant factors contributing to its score. The technical analysis suggests a neutral market sentiment, with no strong trends indicated. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Strong revenue and margin expansion

Sekisui House has delivered sustained top-line expansion and improving gross margins, driven by higher sales and operational efficiency. The company reported a 30.63% revenue increase in the latest year and healthy EBIT/EBITDA margins, indicating durable demand and scope for continued operating leverage across housing and development businesses.

Solid balance sheet and capital efficiency

A 40.8% equity ratio and ROE above 11% reflect financial resilience and efficient use of capital in a cyclical industry. Manageable leverage (D/E ~0.94) provides capacity to fund development pipelines and absorb housing demand swings, supporting long-term project execution and investor returns without immediate refinancing stress.

Positive operating cash flow conversion

Positive operating cash flow and a 0.29 OCF-to-net-income ratio indicate the company converts a meaningful portion of earnings into cash from underlying operations. That cash conversion supports recurring property management activities and construction cycles, underpinning liquidity for working capital and recurring-service revenue persistence.

Negative Factors

Negative free cash flow

Free cash flow being negative means capital investment and development spending currently outpace operating cash generation. If sustained, this capital intensity could pressure liquidity, necessitate external financing, and constrain discretionary spending such as dividends or opportunistic land acquisitions over the coming months.

Rising total debt level

An increase in total debt to ¥1.85 trillion elevates leverage risk even with a reasonable equity ratio. Continued debt growth could increase interest and refinancing exposure and reduce financial flexibility for land purchases or new developments, making balance sheet management a material monitoring point for medium-term stability.

Negative EPS growth

Reported negative EPS growth despite rising revenue suggests margin pressure, non-recurring items, or dilution effects. Persisting declines in per-share earnings can undermine shareholder returns and signal operational or financial factors that need remediation to restore sustainable profitability on a per-share basis.

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 primarily through the sale of residential properties, including prefabricated homes and custom-built houses. Key revenue streams include direct home sales, construction services, and real estate development projects. The company also earns income from property management and leasing activities. Significant partnerships with local governments and other construction firms enhance its project capabilities and market reach. Additionally, Sekisui House invests in sustainable technologies and eco-friendly building materials, which can attract environmentally conscious buyers and influence pricing strategies positively. The company's diversified portfolio and focus on innovation help ensure steady revenue growth.

Sekisui House Financial Statement Overview

Summary

Sekisui House demonstrates strong revenue and profit growth 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, which requires careful attention.

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	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
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: 3826.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 3826 is above the 20-day moving average (MA) of 3693.10, above the 50-day MA of 3545.93, and above the 200-day MA of 3287.62, indicating a bullish trend. The MACD of 80.66 indicates Negative momentum. The RSI at 72.56 is Negative, neither overbought nor oversold. The STOCH value of 85.71 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
1928	74 Outperform	¥2.50T	12.40	11.12%	4.17%	9.27%	-11.27%
3291	74 Outperform	¥762.90B	13.83	5.12%	4.02%	0.20%	44.96%
1808	73 Outperform	¥903.55B	17.14	7.50%	2.92%	7.42%	-16.64%
8892	66 Neutral	¥109.20B	12.37	―	4.20%	27.02%	45.62%
1911	64 Neutral	¥1.05T	9.73	11.28%	3.21%	10.17%	-19.40%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1419	56 Neutral	¥117.22B	47.87	―	5.49%	-16.48%	-77.63%