SRE Holdings Corp. (2980) AI Stock Analysis

• Market Cap: ¥46.94B
• Dividend Yield: 0.45%
• Average Volume (3M): 133.03K
• Price to Earnings (P/E): 43.9
• Beta (1Y): 1.20
• Revenue Growth: -8.33%
• EPS Growth: -36.89%
• Country: JP
• Employees: 296
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 2.83
• Shares Outstanding: 16,249,134
• 10 Day Avg. Volume: 140,270
• 30 Day Avg. Volume: 133,033
• PEG Ratio: 1.27
• Price to Book (P/B): 3.58
• Price to Sales (P/S): 1.85
• P/FCF Ratio: 266.14
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥3,067.00 ▼(-6.06% Downside)

SRE Holdings Corp. has a strong financial performance with significant revenue and profit growth, which is the most significant factor in its score. Technical analysis shows positive momentum but indicates potential overbought conditions. The valuation is a concern, with a high P/E ratio suggesting overvaluation. The absence of earnings call and corporate events data limits the analysis to these components.

Positive Factors

Multi-year Revenue Expansion

Sustained revenue growth over multiple years indicates successful business scaling and market penetration. This larger revenue base supports investment in product/service expansion, enhances bargaining power with suppliers, and provides a more durable revenue runway for the next 2–6 months and beyond.

Strong and Improving Margins

High gross margins and improving net margins signal sustainable unit economics and effective cost control. Margin strength supports cash generation and resilience to pricing pressure, enabling reinvestment, profitability stability, and competitive positioning across market cycles.

Positive Free Cash Flow and Cash Conversion

Return to positive free cash flow and improved cash conversion enhance financial flexibility for debt servicing, capex, and shareholder returns. Reliable cash generation reduces reliance on external financing and strengthens the firm's ability to fund strategic initiatives over the medium term.

Negative Factors

Rising Leverage

Increased leverage raises fixed financial obligations and reduces balance-sheet flexibility, making the company more sensitive to interest rates and cash-flow shocks. Over a 2–6 month horizon, higher debt levels constrain strategic options and heighten refinancing risk.

Earnings Per Share Decline

A large negative EPS growth rate reflects weakened reported earnings power, which can signal operational headwinds, margin pressure, or one-offs. Persistently falling EPS undermines reinvestment capacity and may limit the firm's ability to build retained earnings over the medium term.

Volatile Operating Cash Flow

Fluctuating operating cash flows reduce the predictability of free cash flow and complicate planning for capex, debt service, and dividends. Even with recent improvement, volatility increases the likelihood of short-term funding needs and constrains long-term capital allocation decisions.

SRE Holdings Corp. Business Overview & Revenue Model

Company Description

SRE Holdings Corporation engages in the AI cloud and consulting, and real estate tech businesses in Japan. The company offers packaged cloud tools and algorithms based on modules that leverage machine learning and other advanced technologies to enhance operations in the real estate industry. It is also involved in real estate brokerage; and developing and selling condominiums. The company was formerly known as Sony Real Estate Corporation and changed its name to SRE Holdings Corporation in June 2019. SRE Holdings Corporation was incorporated in 2014 and is headquartered in Tokyo, Japan.

How the Company Makes Money

SRE Holdings Corp. generates revenue through multiple streams primarily centered around its real estate operations. The company earns income from leasing commercial and residential properties, which provides a steady cash flow. Additionally, SRE Holdings engages in property development projects, where it generates profits by constructing and selling new properties or by increasing the value of existing assets. The company may also receive fees for property management services and consultancy, further contributing to its revenue. Strategic partnerships with other real estate firms and financial institutions can enhance its investment capabilities and access to capital, thus supporting its growth and profitability.

SRE Holdings Corp. Financial Statement Overview

Summary

SRE Holdings Corp. shows strong financial performance with robust revenue growth and improved profit margins. The balance sheet is stable, though leverage has increased. Cash flow management is improving, but past fluctuations indicate potential volatility.

Income Statement

SRE Holdings Corp. has demonstrated robust revenue growth over the past several years, with revenue increasing from ¥3.85 billion in 2020 to ¥26.69 billion in 2025. The gross profit margin has consistently remained strong, reaching 35.7% in 2025. The net profit margin has also improved to 6.4% in 2025 from 12.3% in 2020. EBIT and EBITDA margins show a positive trajectory, indicating efficient cost management and operational scalability.

Balance Sheet

SRE Holdings Corp. maintains a stable balance sheet with a growing equity base of ¥13.78 billion in 2025. The debt-to-equity ratio has increased, indicating a higher reliance on debt financing. However, the company has managed to maintain a healthy equity ratio of 45.2%, suggesting a balanced capital structure. Return on equity has been positive, showcasing effective use of equity capital.

Cash Flow

The company has shown improvement in cash flow generation, with a positive free cash flow of ¥185 million in 2025, compared to negative figures in previous years. Operating cash flow to net income ratio indicates efficient cash conversion. Despite the positive trend, the company's cash flow from operations has fluctuated, highlighting potential volatility in operational cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.86B	26.69B	24.22B	18.54B	13.57B	7.34B
Gross Profit	8.69B	9.53B	7.46B	5.78B	4.17B	3.02B
EBITDA	3.05B	3.84B	2.51B	2.03B	1.57B	1.26B
Net Income	1.18B	1.70B	1.39B	1.15B	892.41M	667.02M
Balance Sheet
Total Assets	32.95B	30.47B	24.02B	21.96B	23.02B	12.34B
Cash, Cash Equivalents and Short-Term Investments	7.89B	7.67B	4.66B	5.23B	3.65B	3.47B
Total Debt	15.90B	12.13B	8.42B	8.67B	11.64B	3.19B
Total Liabilities	18.83B	16.12B	11.56B	10.64B	13.22B	4.46B
Stockholders Equity	13.53B	13.78B	12.27B	11.09B	9.80B	7.88B
Cash Flow
Free Cash Flow	0.00	185.31M	73.83M	3.78B	-8.16B	-3.82B
Operating Cash Flow	0.00	435.30M	452.64M	4.36B	-7.31B	-3.57B
Investing Cash Flow	0.00	-1.37B	-376.36M	-427.07M	-1.64B	-253.80M
Financing Cash Flow	0.00	1.94B	-554.26M	-3.13B	9.31B	3.28B

SRE Holdings Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3265.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2980, the sentiment is Negative. The current price of 3265 is above the 20-day moving average (MA) of 3129.40, below the 50-day MA of 3265.26, and above the 200-day MA of 3255.39, indicating a bearish trend. The MACD of -108.77 indicates Positive momentum. The RSI at 25.83 is Positive, neither overbought nor oversold. The STOCH value of 13.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2980.

SRE Holdings Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8935	77 Outperform	¥47.56B	6.46	―	3.64%	15.82%	22.32%
2986	76 Outperform	¥74.51B	12.98	―	5.71%	8.07%	12.06%
3496	75 Outperform	¥53.50B	27.22	―	2.10%	27.87%	40.22%
3245	69 Neutral	¥54.68B	9.21	―	5.74%	67.46%	68.52%
2980	66 Neutral	¥46.94B	43.89	―	0.45%	-8.33%	-36.89%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3482	65 Neutral	¥48.72B	7.71	―	2.38%	33.64%	-0.28%

SRE Holdings Corp. Corporate Events

SRE Holdings Finalizes Stock Options for Directors and Employees

SRE Holdings Corporation has finalized the details of stock acquisition rights for its directors and employees, as resolved in a recent board meeting. This initiative involves issuing a total of 7,315 stock acquisition rights, corresponding to 731,500 shares of common stock, aimed at aligning the interests of key personnel with the company’s growth objectives.

The most recent analyst rating on (JP:2980) stock is a Hold with a Yen3748.00 price target. To see the full list of analyst forecasts on SRE Holdings Corp. stock, see the JP:2980 Stock Forecast page.

SRE Holdings Reports FY2025 2Q Financial Results

SRE Holdings Corporation’s FY2025 2Q financial results highlight its focus on integrating technology into life and healthcare sectors. The company’s operations span across real estate, finance, and IT, offering AI cloud tools and consulting services. This strategic positioning aims to enhance its market presence and provide innovative solutions to stakeholders.

The most recent analyst rating on (JP:2980) stock is a Hold with a Yen2874.00 price target. To see the full list of analyst forecasts on SRE Holdings Corp. stock, see the JP:2980 Stock Forecast page.

SRE Holdings Corp. Reports Decline in Half-Year Financials but Projects Recovery

SRE Holdings Corporation reported a significant decline in its financial performance for the six months ending September 30, 2025, with net sales dropping by 20.3% and profits decreasing sharply compared to the previous year. Despite the downturn, the company maintains a positive outlook for the fiscal year ending March 31, 2026, projecting a 31.1% increase in net sales and a 30.8% rise in profit attributable to owners, indicating a potential recovery and growth in its operations.

The most recent analyst rating on (JP:2980) stock is a Hold with a Yen2874.00 price target. To see the full list of analyst forecasts on SRE Holdings Corp. stock, see the JP:2980 Stock Forecast page.

SRE Holdings Issues Stock Options to Boost Long-term Performance

SRE Holdings Corporation announced the issuance of paid stock options to its directors and employees, aiming to align their interests with the company’s long-term performance goals. This move is intended to enhance corporate value and shareholder value by setting performance-based criteria for exercising these options, which could result in a reasonable share dilution of approximately 4.5% if all options are exercised.

The most recent analyst rating on (JP:2980) stock is a Hold with a Yen2874.00 price target. To see the full list of analyst forecasts on SRE Holdings Corp. stock, see the JP:2980 Stock Forecast page.