Ichigo Inc. (JP:2337)
:2337
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Ichigo
(2337)
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Rating:62Neutral
Price Target:
¥524.00
▲(19.63% Upside)
Action:Downgraded
Date:05/20/26
The score is driven primarily by a profitable but financing-dependent financial profile (negative operating/free cash flow and high leverage), partially offset by an attractive valuation (low P/E and dividend). Technicals are mixed, with weaker near-term momentum despite a still-supportive longer-term trend.
Positive Factors
Earnings Power
Sustained improvement in net income and margins through 2025 indicates durable earnings power and operational leverage. Stronger profitability provides a structural buffer to fund reinvestment, service debt and support distributions, improving resilience over the next several months.
Negative Factors
High Leverage
A consistently high debt load materially reduces financial flexibility and raises refinancing risk in tightening markets. For a real estate operator, elevated leverage amplifies sensitivity to interest rates and asset-cycle downturns, limiting ability to invest or cushion shocks over coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Earnings Power
Sustained improvement in net income and margins through 2025 indicates durable earnings power and operational leverage. Stronger profitability provides a structural buffer to fund reinvestment, service debt and support distributions, improving resilience over the next several months.
Read all positive factors
Ichigo (2337) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥199.62B
Dividend Yield2.38%
Average Volume (3M)1.34M
Price to Earnings (P/E)11.1
Beta (1Y)0.76
Revenue Growth11.56%
EPS Growth14.99%
CountryJP
Employees552
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)40.07
Shares Outstanding445,784,300
10 Day Avg. Volume985,660
30 Day Avg. Volume1,344,833
Financial Highlights & Ratios
PEG Ratio0.73
Price to Book (P/B)1.57
Price to Sales (P/S)1.96
P/FCF Ratio-5.77
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)47.43
Revenue Forecast (FY)¥108.80B
Ichigo Business Overview & Revenue Model
Company Description
Ichigo Inc. owns and operates real estate properties in Japan. The company manages J-REIT and private equity real estate funds; and develops small-and mid-size assets and ground leases. It also acquires, manages, leases, and sells real estate prop...
How the Company Makes Money
Ichigo makes money primarily through (1) real estate operations and asset management and (2) renewable energy power generation. In its real estate business, it generates revenue from rents and other property income from owned assets and from gains...
Ichigo Earnings Call Summary
Earnings Call Date:Jan 14, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jul 09, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operating achievements: double-digit YTD profit and EPS growth, highly accretive buybacks and share cancellation, outsized hotel and Owners segment gains, environmental leadership, and strategic acquisitions/brand expansion. Notable negatives include segment volatility (sustainable real estate), asset-management fee timing risk, flat clean-energy near-term results, a paused security-token growth channel, and modest hotel exposure to reduced Chinese inbound traffic. Management emphasized structural strengths, durable competitive positioning amid construction inflation, and strong balance-sheet/funding access.Positive Updates
Strong YTD Profit and EPS Growth
Business profit year-to-date up 25%; EPS up 24%; cash EPS up 19%. Company forecasting and expects to hit record earnings, with growth in net income and EPS.
Negative Updates
Sustainable Real Estate Weakness and Volatility
Sustainable real estate segment down 19% YTD; management also referenced a component ('pull' earnings) down ~39%. Segment results noted as volatile with asset-sale timing affecting quarterly performance and Q4 expectations.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong YTD Profit and EPS Growth
Business profit year-to-date up 25%; EPS up 24%; cash EPS up 19%. Company forecasting and expects to hit record earnings, with growth in net income and EPS.
Read all positive updates
Company Guidance
Management guided that Ichigo expects to hit record FY2026 earnings and to beat its full‑year forecasts, reporting strong YTD performance with business profit +25%, EPS +24%, cash EPS +19%, stock earnings +9% and flow earnings +31%; segment moves include hotels +103% YTD, Ichigo Owners +87% YTD, sustainable real estate -19% YTD and clean energy roughly flat. They doubled the buyback to JPY 10 billion and will cancel ~7% of shares outstanding to drive structural EPS/ROE upside, noting the shares trade at about 11x accounting earnings while cash earnings are ~30% higher; borrowing is long‑term with 61% of costs fixed and an average interest rate ~1.43% (up ~43 bps). Operating highlights and guidance: RevPAR +18% YoY, three new logistics centers brought online, one Osaka hotel and two logistics acquisitions in Q3, construction inflation running 2–3x general inflation (a net positive for Ichigo’s value‑add model), renewable energy now supplies 100% of their usage with CO2 reductions ~8x emissions, and CDP AA recognition (top ~1% globally).Ichigo Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
22
Negative
| Breakdown | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 93.89B | 84.16B | 82.84B | 68.09B | 56.95B |
| Gross Profit | 26.50B | 20.77B | 15.68B | 13.52B | 9.88B |
| EBITDA | 33.86B | 30.23B | 25.53B | 22.09B | 17.89B |
| Net Income | 16.63B | 15.19B | 12.11B | 9.41B | 6.47B |
Balance Sheet | |||||
| Total Assets | 435.82B | 406.71B | 367.01B | 338.62B | 337.89B |
| Cash, Cash Equivalents and Short-Term Investments | 42.06B | 42.69B | 46.92B | 40.58B | 46.46B |
| Total Debt | 297.23B | 262.11B | 232.79B | 209.96B | 209.40B |
| Total Liabilities | 319.06B | 284.00B | 250.74B | 224.23B | 225.70B |
| Stockholders Equity | 116.66B | 111.71B | 105.51B | 103.84B | 101.78B |
Cash Flow | |||||
| Free Cash Flow | -31.84B | -33.50B | -18.01B | -13.44B | 862.00M |
| Operating Cash Flow | -21.66B | -28.45B | -9.81B | -2.92B | 6.66B |
| Investing Cash Flow | 3.42B | 5.36B | -1.29B | 5.81B | 7.78B |
| Financing Cash Flow | 20.81B | 19.57B | 17.79B | -6.58B | -15.36B |
Ichigo Technical Analysis
Negative
438.00
Price Trends
488.48
Negative
458.90
Negative
427.96
Positive
Market Momentum
-7.67
Positive
31.02
Neutral
16.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2337, the sentiment is Negative. The current price of 438 is below the 20-day moving average (MA) of 486.10, below the 50-day MA of 488.48, and above the 200-day MA of 427.96, indicating a neutral trend. The MACD of -7.67 indicates Positive momentum. The RSI at 31.02 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2337.
Ichigo Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | ¥650.32B | 12.97 | 10.59% | 2.94% | -5.83% | -26.32% | |
62 Neutral | ¥199.62B | 11.12 | 16.39% | 2.38% | 11.56% | 14.99% | |
61 Neutral | ¥113.71B | 7.31 | 15.81% | 2.93% | 12.51% | 12.42% | |
57 Neutral | ¥63.11B | 9.28 | ― | 2.89% | 4.32% | 11.25% | |
56 Neutral | ¥822.40B | 9.33 | 7.40% | 3.68% | 24.40% | 11.46% | |
56 Neutral | ¥3.47T | 16.00 | 9.64% | 0.97% | 4.29% | 12.76% |
* Real Estate Sector Average
JP:2337
Ichigo
453.00
81.22
21.85%
JP:3231
Nomura Real Estate Holdings
895.00
80.52
9.89%
JP:8934
Sun Frontier Fudousan Co
2,360.00
348.06
17.30%
JP:8830
Sumitomo Realty & Development Co
3,652.00
905.68
32.98%
JP:8804
Tokyo Tatemono Co
3,116.00
634.83
25.59%
JP:3252
JINUSHI Co.,Ltd.
2,867.00
823.54
40.30%
Ichigo Corporate Events
Ichigo’s April Renewables Output Falls on Weather and Grid Constraints
May 8, 2026
Ichigo reported that in April 2026 its combined solar and wind output with Ichigo Green totaled 20,200,465 kWh, representing a 14.3% year-on-year decline from the prior-year period’s strong performance. The drop was attributed to heavy rainf...
Ichigo Accelerates Share Buyback, Uses Over 87% of Authorized Funds
May 1, 2026
Ichigo Inc. reported progress on its ongoing share buyback program, repurchasing 2,756,400 common shares in April 2026 for JPY 1.38 billion via in-market purchases through a securities firm. The buyback forms part of a broader capital allocation s...
Ichigo Strengthens Independent Board with New Director Nomination
Apr 20, 2026
Ichigo Inc. has nominated a slate of directors for approval at its annual general meeting on May 24, 2026, maintaining a board where independent directors form the majority in line with Japan’s Corporate Governance Code. The company is reinf...
Ichigo Replaces J.League Shareholder Perks With New Monthly Gift Program
Apr 14, 2026
Ichigo Inc. will end its long-running Ichigo J.League Shareholder Program as it concludes its role as a J.League Top Partner when the current agreement expires in mid-2026. The program, launched in 2019, distributed around 50,000 J.League match ti...
Ichigo to End J.League Top Partnership, Refocus on Club Management and Sports Facilities
Apr 14, 2026
Ichigo will end its role as a J.League Top Partner when the current agreement expires on June 30, 2026, concluding a sponsorship it has held since 2019 to support community-based professional football clubs. Alongside this move, the company is als...
Ichigo Delivers Record Profit on Surging Sustainable Real Estate Asset Sales
Apr 14, 2026
Ichigo Inc. reported strong results for the fiscal year ending February 28, 2026, with revenue rising 10.9% year on year to JPY 92.7 billion and operating profit increasing 25.4% to JPY 20.4 billion. Business profit climbed 12.8% to JPY 28.0 billi...
Ichigo Lifts DOE Target to Above 5% on Record Earnings Outlook
Apr 14, 2026
Ichigo has raised its Dividend on Equity (DOE) target from above 4% to above 5%, reflecting stronger earnings and a strategy focused on sustainable, stock-based income. The company reported record-high earnings for FY26/2 and projects another reco...
Ichigo Lifts Profit and Dividend, Signals Stronger Cash Generation Ahead
Apr 14, 2026
Ichigo reported solid growth for the fiscal year ended February 2026, with revenue rising 10.9% to ¥92.7 billion and operating profit up 25.4%, aided by gains on sales of sustainable real estate and hotel assets. Net income climbed 9.5%, retu...
Ichigo Reports Higher March Renewables Output and Growing CO2 Cuts
Apr 3, 2026
Ichigo Inc. reported that combined March 2026 solar and wind power generation from its own assets and those of Ichigo Green reached 22,555,427 kWh, up 8.8% year on year but about 3% below its independent P50 forecast. This output translated into a...
Ichigo Advances Share Buyback, Repurchasing Over Half of Authorized Shares
Apr 1, 2026
Ichigo Inc. reported progress on its ongoing share repurchase program, buying back 5,320,400 common shares in March 2026 for about JPY 2.51 billion through in-market purchases via a securities firm. This brings cumulative repurchases since Novembe...
Ichigo Beats Renewable Power Forecasts as FY26/2 Output and CO2 Cuts Rise
Mar 4, 2026
Ichigo reported that its combined solar and wind power generation with Ichigo Green reached 18.84 million kWh in February 2026, about 9% above forecast, driven by stronger-than-expected productive daylight hours under a favorable high-pressure wea...
Ichigo Advances Aggressive Share Buyback Program Ahead of FY End
Mar 2, 2026
Ichigo Inc., a Tokyo Stock Exchange Prime-listed real estate and asset management company, continues to emphasize shareholder returns through active capital management, including substantial share repurchase programs. The firm positions these buyb...
Ichigo Sets Premium Exercise Price for New Stock Options Allocation
Feb 26, 2026
Ichigo Inc. has set the exercise price for 2,950,000 stock options under its 23rd stock acquisition rights plan at JPY 501, equal to 115% of the company’s latest closing share price. The options will be allocated to a broad group of stakehol...
Ichigo Expands Tokyo Residential Portfolio Via New SPC and Private Fund
Feb 26, 2026
Ichigo’s wholly owned subsidiary Ichigo Owners plans to acquire 100% of a new special purpose company, HELIX TK GK, which will hold trust beneficiary interests in five newly built residential assets in Tokyo’s 23 wards. The SPC, to be ...
Ichigo Issues Correction to Organizational Change Disclosure
Feb 20, 2026
Ichigo Inc. announced a correction to its previously disclosed changes in officers and corporate organization scheduled to take effect on March 1, 2026. The revision concerns the company’s organizational chart, adjusting how its internal str...
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.