Ichigo (2337) AI Stock Analysis

• Market Cap: ¥175.06B
• Dividend Yield: 2.5%
• Average Volume (3M): 594.41K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.83
• Revenue Growth: 1.60%
• EPS Growth: 29.82%
• Country: JP
• Employees: 552
• Sector: Real Estate
• Sector Strength: 70
• Industry: Real Estate - Services
• EPS (TTM): 8.09
• Shares Outstanding: 445,670,400
• 10 Day Avg. Volume: 593,170
• 30 Day Avg. Volume: 594,406
• PEG Ratio: 0.30
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.98
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ―

Ichigo demonstrates commendable growth in revenue and net income, supported by effective cost management. However, concerns remain due to high leverage and negative cash flow. The technical indicators show positive momentum, and the stock's valuation appears attractive. The earnings call presented a mixed outlook with notable sector achievements and some operational challenges.

Ichigo Business Overview & Revenue Model

Company Description

Ichigo Inc. is a Japanese sustainable infrastructure company primarily focused on real estate and clean energy. The company operates in sectors including real estate asset management, real estate value-add, and renewable energy. Ichigo is dedicated to promoting sustainability and environmental responsibility through its various projects, which include acquiring and revitalizing properties to enhance their long-term value, as well as developing and managing solar power plants across Japan.

How the Company Makes Money

Ichigo Inc. generates revenue through a diversified model primarily consisting of real estate and renewable energy operations. In the real estate sector, Ichigo earns income by acquiring undervalued or underutilized properties, enhancing their value through strategic renovations, and either leasing them for rental income or selling them at a profit. The asset management division further contributes by managing real estate investment trusts (REITs) and private funds, earning management fees and performance incentives. In the renewable energy sector, Ichigo develops and operates solar power plants, selling the generated electricity to utility companies under long-term power purchase agreements (PPAs), thus securing a stable revenue stream. Strategic partnerships with financial institutions, real estate developers, and energy companies enhance Ichigo's operational capabilities and market reach.

Ichigo Financial Statement Overview

Summary

Ichigo shows strong revenue and net income growth, with improved profit margins. However, high leverage and negative cash flow pose financial stability challenges.

Income Statement

The income statement reflects strong growth with a revenue increase of 1.71% from the previous year and a significant rise in net income by 25.40%. The gross profit margin improved from 25.22% to 31.02%, indicating better cost management. Net profit margin increased from 14.63% to 18.05%, suggesting enhanced profitability. However, the EBIT and EBITDA margins show room for improvement.

Balance Sheet

The balance sheet presents a stable equity base with an equity ratio of 27.47%. However, the debt-to-equity ratio is high at 2.35, indicating significant leverage, which could pose financial risk. Return on equity has improved to 13.60%, reflecting better utilization of equity. Nonetheless, the high leverage remains a concern.

Cash Flow

The cash flow statement highlights challenges with negative free cash flow and negative operating cash flow, indicating potential liquidity issues. The free cash flow to net income ratio is negative, and operating cash flow has not been sufficient to cover net income, suggesting operational inefficiencies.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
84.16B	82.75B	68.09B	56.93B	61.37B
	Gross Profit
26.11B	20.87B	19.42B	16.18B	15.59B
	EBIT
17.63B	12.96B	12.49B	10.02B	9.67B
	EBITDA
22.58B	17.92B	18.01B	15.81B	14.59B
	Net Income Common Stockholders
15.19B	12.11B	9.41B	6.47B	5.03B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
42.69B	46.92B	40.58B	49.01B	51.42B
	Total Assets
406.71B	367.01B	338.62B	337.89B	347.08B
	Total Debt
262.11B	232.79B	209.96B	209.40B	220.00B
	Net Debt
219.42B	185.88B	169.42B	162.94B	169.17B
	Total Liabilities
284.00B	250.74B	224.23B	225.70B	236.82B
	Stockholders Equity
111.71B	105.51B	103.84B	101.78B	100.06B
Cash Flow		Free Cash Flow
-33.50B	-16.89B	-10.29B	1.95B	-2.45B
	Operating Cash Flow
-28.45B	-8.58B	254.00M	7.94B	15.46B
	Investing Cash Flow
5.36B	-2.52B	2.63B	6.50B	-15.63B
	Financing Cash Flow
19.57B	17.79B	-6.58B	-15.36B	10.17B

Ichigo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 400.00
• 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:2337, the sentiment is Positive. The current price of 400 is above the 20-day moving average (MA) of 382.65, above the 50-day MA of 379.68, and above the 200-day MA of 368.27, indicating a bullish trend. The MACD of 3.95 indicates Negative momentum. The RSI at 67.82 is Neutral, neither overbought nor oversold. The STOCH value of 81.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2337.

Ichigo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1766	81 Outperform	¥184.19B	11.67		2.41%	8.04%	167.85%
8877	76 Outperform	¥67.89B	7.28		4.32%	18.03%	24.11%
8919	74 Outperform	¥181.46B	19.25	21.92%	2.38%	2.22%	11.89%
2337	73 Outperform	¥175.06B	11.48	13.76%	2.50%	1.60%	29.82%
8818	67 Neutral	¥72.83B	17.32		2.76%	1.42%	15.98%
8848	67 Neutral	€193.16B	10.81	24.21%	1.64%	2.17%	-57.25%
Sector *	61 Neutral	$2.83B	10.89	0.41%	9.34%	5.96%	-21.31%

Ichigo Corporate Events

Ichigo Inc. Faces Renewable Energy Production Challenges in May 2025

Ichigo Inc. reported a 9% shortfall in its May 2025 solar and wind power generation compared to forecasts, primarily due to adverse weather conditions and increased suspension of renewable energy purchases in certain regions. This operational challenge highlights the volatility in renewable energy production and its potential impact on Ichigo’s market performance and stakeholder interests.

Ichigo Inc. Maintains Independence and Protects Minority Shareholders

Ichigo Inc. announced that its controlling shareholder, Ichigo Trust Pte. Ltd., holds 52.84% of its voting rights, yet maintains an independent decision-making process. The company ensures the protection of minority shareholders by implementing rigorous compliance and audit procedures in any transactions involving Ichigo Trust Pte. Ltd.

Ichigo Inc. Strengthens Board Governance with Annual Evaluation

Ichigo Inc. has conducted its annual evaluation of the Board of Directors to ensure effective governance and alignment with Japan’s Corporate Governance Code. The evaluation confirmed the Board’s effective decision-making and oversight capabilities, and Ichigo plans to continue these evaluations to improve corporate governance and shareholder communication.

Ichigo Inc. Reports Growth in Renewable Energy Generation for April 2025

Ichigo Inc. reported a significant increase in its solar and wind power generation for April 2025, reaching 23,565,014 kWh, which aligns with their forecast. This growth in power generation also led to a substantial CO2 reduction, reflecting the company’s commitment to sustainability and enhancing its position in the renewable energy market.

Ichigo Inc. Strengthens Board with Independent Directors

Ichigo Inc. has announced its director candidates for the upcoming shareholder meeting, emphasizing strong independent board oversight. The majority of the board will consist of independent directors, aligning with Japan’s Corporate Governance Code, which is expected to enhance corporate governance and stakeholder confidence.

Ichigo Inc. Announces Dividend Increase Amid Record Earnings

Ichigo Inc. has announced an increase in its dividend to JPY 10.5 per share, reflecting a 16.7% rise from the previous fiscal year, subject to shareholder approval. This decision aligns with Ichigo’s commitment to a progressive dividend policy and its updated KPI under the Ichigo 2030 vision, which emphasizes dividend stability and growth. The company achieved a record high in stock earnings, with a significant increase in net income, reinforcing its strategy to enhance shareholder value. Ichigo’s governance structure, which includes a majority of independent directors, supports its shareholder-oriented approach, and the company seeks shareholder input on key decisions to strengthen its governance.

Ichigo Reports 12% Shortfall in March Power Generation

Ichigo Inc. reported a 12% shortfall in solar and wind power generation for March 2025, attributed to adverse weather conditions and a suspension of renewable energy purchases. This decrease in power generation impacts the company’s operational efficiency and may affect its market positioning in the renewable energy sector.