Ichigo Inc. (JP:2337)
:2337
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Ichigo
(2337)
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Rating:63Neutral
Price Target:
¥484.00
▲(10.50% Upside)
Action:ReiteratedDate:01/22/26
The score is primarily held back by weak cash generation and higher leverage, despite strong profitability. Support comes from constructive earnings-call guidance and shareholder returns (buyback/share cancellation) plus reasonable valuation, while near-term technical momentum remains weak.
Positive Factors
Strong profitability and margins
Ichigo’s high and improving margins demonstrate durable earnings power across its real estate and operating businesses. Sustained gross/EBIT margins provide capacity to absorb cyclical rental volatility, support value‑add investments and fund distributions, reinforcing long‑term cash generation potential if conversion improves.
Negative Factors
Weak cash generation and negative FCF
Reported profits are not translating into cash: persistent negative operating and free cash flow strains liquidity and raises dependence on external funding. Over months, weak cash conversion limits capacity for capex, dividends or repeat buybacks and elevates refinancing and working‑capital risks for a capital‑intensive RE business.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and margins
Ichigo’s high and improving margins demonstrate durable earnings power across its real estate and operating businesses. Sustained gross/EBIT margins provide capacity to absorb cyclical rental volatility, support value‑add investments and fund distributions, reinforcing long‑term cash generation potential if conversion improves.
Read all positive factors
Ichigo (2337) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥207.06B
Dividend Yield2.38%
Average Volume (3M)1.34M
Price to Earnings (P/E)22.0
Beta (1Y)0.76
Revenue Growth7.21%
EPS Growth112.45%
CountryJP
Employees552
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)4.66
Shares Outstanding445,784,300
10 Day Avg. Volume985,660
30 Day Avg. Volume1,344,833
Financial Highlights & Ratios
PEG Ratio0.35
Price to Book (P/B)1.40
Price to Sales (P/S)1.86
P/FCF Ratio-4.67
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥420.00Price Target Upside-4.11% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)43.6
Revenue Forecast (FY)¥106.93B
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:Apr 20, 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
78
Positive
Balance Sheet
56
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 | Feb 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 99.75B | 84.16B | 82.84B | 68.09B | 56.95B | 61.37B |
| Gross Profit | 26.19B | 20.77B | 15.68B | 13.52B | 9.88B | 10.67B |
| EBITDA | 33.34B | 30.23B | 25.53B | 22.09B | 17.89B | 15.14B |
| Net Income | 16.82B | 15.19B | 12.11B | 9.41B | 6.47B | 5.03B |
Balance Sheet | ||||||
| Total Assets | 444.05B | 406.71B | 367.01B | 338.62B | 337.89B | 347.08B |
| Cash, Cash Equivalents and Short-Term Investments | 51.63B | 42.69B | 46.92B | 40.58B | 46.46B | 51.42B |
| Total Debt | 298.18B | 262.11B | 232.79B | 209.96B | 209.40B | 220.00B |
| Total Liabilities | 318.40B | 284.00B | 250.74B | 224.23B | 225.70B | 236.82B |
| Stockholders Equity | 114.50B | 111.71B | 105.51B | 103.84B | 101.78B | 100.06B |
Cash Flow | ||||||
| Free Cash Flow | -42.28B | -33.50B | -18.01B | -13.44B | 862.00M | -1.33B |
| Operating Cash Flow | -31.85B | -28.45B | -9.81B | -2.92B | 6.66B | 15.12B |
| Investing Cash Flow | -112.00M | 5.36B | -1.29B | 5.81B | 7.78B | -5.29B |
| Financing Cash Flow | 30.19B | 19.57B | 17.79B | -6.58B | -15.36B | 167.00M |
Ichigo Technical Analysis
Neutral
438.00
Price Trends
436.50
Positive
418.52
Positive
407.54
Positive
Market Momentum
11.79
Positive
50.10
Neutral
21.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2337, the sentiment is Neutral. The current price of 438 is below the 20-day moving average (MA) of 466.47, above the 50-day MA of 436.50, and above the 200-day MA of 407.54, indicating a neutral trend. The MACD of 11.79 indicates Positive momentum. The RSI at 50.10 is Neutral, neither overbought nor oversold. The STOCH value of 21.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥130.22B | 20.19 | 15.81% | 2.93% | 84.20% | 137.87% | |
73 Outperform | ¥4.32T | 16.16 | 9.64% | 0.97% | 0.49% | 12.19% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | ¥779.51B | 6.28 | 10.59% | 2.94% | -19.09% | 16.31% | |
63 Neutral | ¥207.06B | 21.96 | 16.39% | 2.38% | 7.21% | 112.45% | |
62 Neutral | ¥69.78B | 8.53 | ― | 2.89% | -3.09% | -35.66% | |
57 Neutral | ¥955.68B | 17.83 | 7.40% | 3.68% | 3.52% | -17.58% |
* Real Estate Sector Average
JP:2337
Ichigo
473.00
85.64
22.11%
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Nomura Real Estate Holdings
1,044.00
175.86
20.26%
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Sun Frontier Fudousan Co
2,682.00
689.52
34.61%
JP:8830
Sumitomo Realty & Development Co
4,627.00
1,622.70
54.01%
JP:8804
Tokyo Tatemono Co
3,753.00
1,210.03
47.58%
JP:3252
JINUSHI Co.,Ltd.
3,235.00
1,195.38
58.61%
Ichigo Corporate Events
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...
Ichigo Reshapes Finance and Planning Structure While Maintaining Core Leadership
Feb 19, 2026
Ichigo Inc. announced a series of officer and organizational changes effective March 1, 2026, largely maintaining its existing top management while appointing Yuji Kamo as Statutory Executive Officer in charge of Corporate Planning. The leadership...
Ichigo Launches New Stock Option Plan to Align Management and Employee Incentives
Feb 13, 2026
Ichigo Inc. will issue stock options to its directors, statutory executive officers, employees, and directors and corporate auditors of its subsidiaries under its twenty-third stock acquisition rights plan, effective February 27, 2026. The move is...
Ichigo Exceeds Renewable Power Forecast in January, Boosting CO2 Cuts
Feb 4, 2026
Ichigo reported combined January 2026 solar and wind power generation of 18,094,775 kWh from its own and Ichigo Green’s plants, translating into an estimated 7.8 million kilograms of CO2 reductions. Output was 14% above forecast, driven by a...
Ichigo Advances Share Buyback, Repurchasing Over 22.6 Million Shares in FY26
Feb 2, 2026
Ichigo Inc. reported progress on its ongoing share buyback program, disclosing that it repurchased 3,866,200 common shares for approximately JPY 1.66 billion in January 2026 through in-market purchases via a securities firm. Cumulatively, between ...
Ichigo Doubles Share Buyback and Cancels 30 Million Shares to Boost Shareholder Value
Jan 14, 2026
Ichigo Inc. has doubled the size of its ongoing share buyback program, raising the maximum purchase amount from ¥5 billion to ¥10 billion and the cap on shares from 15.2 million to 29.4 million, representing up to 7.11% of shares outstan...
Ichigo Delivers Strong Q3 Earnings and Confirms Full-Year FY26/2 Profit and Dividend Outlook
Jan 14, 2026
Ichigo reported robust results for the first nine months of the fiscal year ending February 2026, with revenue rising 27.6% year-on-year to ¥73.0 billion and operating profit jumping 46.5% to ¥15.1 billion, supported by higher business p...
Ichigo Posts Stable Renewable Output in December, First-Half Generation Up 3.2%
Jan 7, 2026
Ichigo reported that combined December 2025 solar and wind power generation from its own assets and those of Ichigo Green totaled 14.69 million kWh, roughly in line with internal forecasts but down 10.4% year-on-year due mainly to unusually strong...
Ichigo Advances Share Buyback, Nears Half of Authorized Budget
Jan 5, 2026
Ichigo Inc. has provided an update on its ongoing share buyback program, reporting that it repurchased 3,706,500 common shares in December 2025 for a total of JPY 1.546 billion via in-market purchases through a securities firm. Cumulatively, from ...
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.