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Ichigo
(2337)
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Rating:54Neutral
Price Target:
¥453.00
▲(4.86% Upside)
Action:Reiterated
Date:07/16/26
The score is primarily held back by weak financial quality—high leverage and persistently negative operating/free cash flow despite strong reported margins. Technical signals are neutral with negative MACD and mixed moving-average positioning. Valuation is a relative positive, supported by a modest P/E and a ~2.6% dividend yield.
Positive Factors
High profitability margins
Sustained high gross, operating and net margins indicate durable pricing power and efficient property operations. In real estate, strong reported margins support earnings stability across cycles, enabling reinvestment or distributions even if top-line growth is uneven.
Negative Factors
Elevated leverage
A debt-to-equity ratio around 2.5x materially increases sensitivity to interest-rate moves and asset-value volatility. Elevated leverage reduces financial flexibility, raises refinancing and covenant risk, and can amplify earnings pressure if market conditions or rents weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability margins
Sustained high gross, operating and net margins indicate durable pricing power and efficient property operations. In real estate, strong reported margins support earnings stability across cycles, enabling reinvestment or distributions even if top-line growth is uneven.
Read all positive factors
Ichigo (2337) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥169.15B
Dividend Yield2.78%
Average Volume (3M)1.34M
Price to Earnings (P/E)9.9
Beta (1Y)0.68
Revenue Growth27.38%
EPS Growth29.98%
CountryJP
Employees729
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)41.83
Shares Outstanding416,600,200
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)47.99
Revenue Forecast (FY)¥99.57B
Ichigo Business Overview & Revenue Model
Company Description
Ichigo Inc., together with its subsidiaries, engages in real estate business in Japan. It operates in five segments: Asset Management, Shinzuki, Strawberry Owners, Hotel, and Clean Energy. The company manages real estate investment trusts, infrast...
How the Company Makes Money
Ichigo’s earnings are generated mainly from (1) revenue tied to real estate ownership and operation and (2) revenue tied to managing real estate for investors. For owned or controlled properties, it makes money from rental income and other propert...
Ichigo Earnings Call Summary
Earnings Call Date:Jan 14, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Oct 08, 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
74
Positive
Balance Sheet
46
Neutral
Cash Flow
28
Negative
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 91.57B | 93.89B | 84.16B | 82.84B | 68.09B | 56.95B |
| Gross Profit | 25.20B | 26.50B | 20.77B | 15.68B | 13.52B | 9.88B |
| EBITDA | 36.44B | 33.86B | 30.23B | 25.53B | 22.09B | 17.89B |
| Net Income | 17.18B | 16.63B | 15.19B | 12.11B | 9.41B | 6.47B |
Balance Sheet | ||||||
| Total Assets | 445.10B | 435.82B | 406.71B | 367.01B | 338.62B | 337.89B |
| Cash, Cash Equivalents and Short-Term Investments | 34.26B | 42.06B | 42.69B | 46.92B | 40.58B | 46.46B |
| Total Debt | 316.66B | 297.23B | 262.11B | 232.79B | 209.96B | 209.40B |
| Total Liabilities | 336.05B | 319.06B | 284.00B | 250.74B | 224.23B | 225.70B |
| Stockholders Equity | 108.96B | 116.66B | 111.71B | 105.51B | 103.84B | 101.78B |
Cash Flow | ||||||
| Free Cash Flow | -44.12B | -31.84B | -33.50B | -18.01B | -13.44B | 862.00M |
| Operating Cash Flow | -34.29B | -21.66B | -28.45B | -9.81B | -2.92B | 6.66B |
| Investing Cash Flow | 15.05B | 3.42B | 5.36B | -1.29B | 5.81B | 7.78B |
| Financing Cash Flow | 17.12B | 20.81B | 19.57B | 17.79B | -6.58B | -15.36B |
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% | |
61 Neutral | ¥842.19B | 10.58 | 10.89% | 4.23% | 17.22% | 1.86% | |
61 Neutral | ¥143.50B | 7.65 | 14.49% | 2.93% | 12.51% | 12.42% | |
59 Neutral | ¥703.49B | 14.01 | 8.82% | 3.34% | -5.83% | -26.32% | |
57 Neutral | ¥63.03B | 9.38 | ― | 2.89% | 4.32% | 11.25% | |
56 Neutral | ¥3.33T | 15.78 | 9.02% | 1.20% | 4.29% | 12.72% | |
54 Neutral | ¥169.15B | 9.90 | 15.16% | 2.66% | 27.38% | 29.98% |
* Real Estate Sector Average
JP:2337
Ichigo
399.00
-14.63
-3.54%
JP:3231
Nomura Real Estate Holdings
903.80
21.87
2.48%
JP:8934
Sun Frontier Fudousan Co
2,458.00
305.33
14.18%
JP:8830
Sumitomo Realty & Development Co
3,502.00
555.95
18.87%
JP:8804
Tokyo Tatemono Co
3,432.00
763.20
28.60%
JP:3252
JINUSHI Co.,Ltd.
2,838.00
511.54
21.99%
Ichigo Corporate Events
Ichigo Q1 Profit Rises on Asset Sales Despite Revenue Decline
Jul 15, 2026
Ichigo Inc. reported a weaker top line for the first quarter of FY27/2, with revenue down 15.9% year-on-year and operating profit falling 25.4%, while recurring profit declined 37.8% and shareholders’ equity ratio eased to 24.4%. Despite thi...
Ichigo Reports June Renewables Output Miss on Weather and Grid Constraints
Jul 3, 2026
Ichigo reported that combined June 2026 solar and wind output from its own plants and those of Ichigo Green reached 18,051,388 kWh, representing an 11% shortfall versus forecast and an 18.5% year-on-year decline, with associated CO2 reductions tot...
Ichigo Completes Nearly JPY 10 Billion Share Buyback Program
Jun 5, 2026
Ichigo has completed a share buyback program involving 22,284,000 common shares at a total cost of approximately JPY 10 billion, executed through in-market purchases via a securities firm between November 7, 2025, and June 5, 2026. The company emp...
Ichigo’s Renewable Output Rises Modestly as Grid Curtailments Hit May Forecasts
Jun 3, 2026
Ichigo reported combined May 2026 solar and wind generation of 22.4 million kWh across its own portfolio and Ichigo Green, a modest 1% year-on-year increase that nonetheless came in 7% below forecast due to more frequent suspensions of renewable e...
Ichigo Nears Full Execution of ¥10bn Share Buyback Program
Jun 1, 2026
Ichigo reported progress on its ongoing share buyback program, repurchasing 1,976,700 common shares in May 2026 via in‑market transactions for about JPY 968 million. Over the current fiscal year starting March 2026, it has bought more than 1...
Ichigo Details 56% Controlling Shareholder and Minority Protection Framework
May 25, 2026
Ichigo Inc. has disclosed that Ichigo Trust Pte. Ltd., a wholly owned subsidiary of the overseas-domiciled Ichigo Trust, is its controlling shareholder with 56 percent of voting rights, managed by Ichigo Asset Management International. The firm em...
Ichigo Shareholders Approve Board Slate and Dividend as Governance Framework Strengthened
May 24, 2026
Ichigo’s shareholders approved a dividend and the election of nine directors at the company’s twenty-sixth annual general meeting, with turnout exceeding 80% of voting rights and all proposals passing by comfortable majorities. The boa...
Ichigo Highlights Effective Board Governance in Annual Evaluation
May 20, 2026
Ichigo Inc. reported on its latest annual evaluation of its nine-member Board of Directors, which includes a majority of independent directors, underscoring its focus on strong corporate governance and sustainable shareholder value. Under the over...
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...
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.