SRE Holdings Corp. (2980) AI Stock Analysis

• Market Cap: ¥47.45B
• Dividend Yield: 0.45%
• Average Volume (3M): 133.03K
• Price to Earnings (P/E): 19.2
• Beta (1Y): 1.08
• Revenue Growth: -8.33%
• EPS Growth: -36.89%
• Country: JP
• Employees: 296
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 85.03
• Shares Outstanding: 16,250,935
• 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): 161
• Revenue Forecast (FY): ¥35.65B

• Rating: 64 Neutral
• Price Target: ¥2,948.00 ▼(-9.71% Downside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is primarily supported by strong financial performance (rapid revenue growth, solid margins, and improving free cash flow), but is held back by weak technical momentum (below major moving averages and negative MACD). Valuation is mixed with a mid-range P/E and a low dividend yield.

Positive Factors

Sustained Revenue Growth

SRE’s multi-year revenue expansion from ¥3.85B to ¥26.69B demonstrates durable demand capture and successful scaling of its services. Persistent top-line expansion supports reinvestment, network effects and negotiating leverage with suppliers, underpinning long-term competitive positioning and growth optionality.

Strong Gross Margin

A sustained gross margin near 36% indicates structural pricing power or operating efficiency in core services. High gross margins give SRE room to invest in growth, absorb SG&A, and defend profitability through economic cycles, supporting margin sustainability and long-term cash generation potential.

Improving Cash Generation

Transition to positive free cash flow signals improved convertibility of earnings into cash and lower reliance on external funding. Even modest FCF reduces refinancing risk, enables targeted reinvestment or deleveraging, and represents a structural improvement in the company’s ability to fund operations and strategic initiatives internally.

Negative Factors

Rising Leverage

An increasing debt-to-equity trend raises financial leverage and interest cost exposure over the medium term. Higher leverage can limit strategic flexibility, increase vulnerability to rate or cashflow shocks, and constrain capacity for opportunistic investment or dividends, making capital allocation more sensitive to macro conditions.

Volatile Operating Cash Flow

Fluctuating operating cash flow points to inconsistent cash conversion and potential sensitivity to timing, working capital or cyclical demand. This volatility complicates forecasting, can necessitate precautionary liquidity buffers, and increases reliance on external funding during down cycles, weakening financial resilience.

Modest Net Profit Margin

A mid-single-digit net margin limits retained earnings and the cushion available for reinvestment or debt reduction despite strong revenue. Modest net profitability can slow equity buildup and makes returns more sensitive to cost inflation or margin compression, reducing long-term capital formation compared with higher-margin peers.

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

Strong income statement trends with rapid revenue growth and solid gross margin (35.7% in 2025). Balance sheet remains reasonably healthy (45.2% equity ratio) but leverage has increased. Cash flow has improved to positive free cash flow in 2025, though operating cash flow has been volatile.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Neutral
• Last Price: 3265.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2980, the sentiment is Neutral. The current price of 3265 is above the 20-day moving average (MA) of 2718.25, above the 50-day MA of 3030.28, and above the 200-day MA of 3187.14, indicating a neutral trend. The MACD of -56.49 indicates Negative momentum. The RSI at 53.49 is Neutral, neither overbought nor oversold. The STOCH value of 57.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2980.

SRE Holdings Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8898	82 Outperform	¥12.08B	15.31	―	4.98%	3.29%	-1.74%
2991	67 Neutral	¥15.91B	6.50	―	1.47%	20.82%	9.86%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2980	64 Neutral	¥47.45B	19.15	―	0.45%	-8.33%	-36.89%
2986	64 Neutral	¥75.57B	11.40	―	5.71%	8.07%	12.06%
3252	62 Neutral	¥73.66B	9.56	―	2.89%	-3.09%	-35.66%
5532	61 Neutral	¥19.06B	18.67	―	―	23.19%	44.46%

SRE Holdings Corp. Corporate Events

SRE Holdings Lifts FY2025 3Q Profit as Life Tech Strategy Expands Across Sectors

SRE Holdings Corp. reported its FY2025 third-quarter financial performance with operating profit of ¥1,188 million and a full-year outlook targeting ¥3,400 million, underscoring growth momentum in its diversified tech-driven services. The company continues to expand its AI cloud, consulting, prop-tech and life and healthcare solutions businesses through real-world operations and alliances, aiming to deepen its presence across real estate, finance, IT, healthcare and logistics markets.

Management highlights that its “Life Tech” model integrates real business with technology, including smart property and asset management offerings that generate both stock and flow revenue. By focusing on collaboration with JV and alliance partners and addressing the needs of investors, property owners, property buyers and funds, SRE is working to strengthen its competitive positioning and broaden its customer base in multiple sectors.

The most recent analyst rating on (JP:2980) stock is a Hold with a Yen2597.00 price target. To see the full list of analyst forecasts on SRE Holdings Corp. stock, see the JP:2980 Stock Forecast page.

SRE Holdings Posts Profit Surge and Affirms Strong Outlook for FY2026

SRE Holdings reported strong growth for the nine months ended December 31, 2025, with net sales rising 21.9% year-on-year to ¥17.57 billion and operating profit surging 68.7%. Ordinary profit climbed 70.0%, profit attributable to owners more than doubled, and earnings per share rose to ¥86.65, underscoring a significant rebound in profitability.

The balance sheet expanded substantially, with total assets increasing to ¥52.66 billion and owners’ equity also higher, though the equity ratio declined due to asset growth. The company maintained its full-year forecast, projecting a 31.1% increase in net sales and a 30.8% rise in full-year profit attributable to owners, and plans to lift the annual dividend to ¥18 per share, signaling confidence in earnings momentum and shareholder returns.

The most recent analyst rating on (JP:2980) stock is a Hold with a Yen2597.00 price target. To see the full list of analyst forecasts on SRE Holdings Corp. stock, see the JP:2980 Stock Forecast page.

SRE Holdings 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.