Hulic Co (3003) AI Stock Analysis

• Market Cap: ¥1.40T
• Dividend Yield: 3.25%
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.57
• Revenue Growth: 45.15%
• EPS Growth: 19.80%
• Country: JP
• Employees: 2,828
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 70.71
• Shares Outstanding: 767,907,700
• 10 Day Avg. Volume: 1,510,980
• 30 Day Avg. Volume: 1,563,270
• PEG Ratio: 0.95
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 1.79
• P/FCF Ratio: -8.29
• 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: 65 Neutral
• Price Target: ¥1,977.00 ▲(10.91% Upside)

The score is driven primarily by mixed fundamentals: solid profitability and a 2025 revenue rebound are offset by high and rising leverage and a sharp deterioration in cash generation (negative free cash flow). Technicals add support with a strong uptrend and positive momentum, while valuation and dividend yield are favorable.

Positive Factors

Revenue & Profit Growth

Sustained top-line and profit expansion indicates durable demand for Hulic's assets and effective cost control. This strengthens cash generation capacity, supports reinvestment and dividend policy, and provides a buffer against cyclical softness over a multi-quarter horizon.

Operating Cash Generation

Consistently positive operating cash flow shows core real estate operations convert earnings into cash reliably. That underpins debt servicing, capex funding for redevelopment, and shareholder distributions, improving financial flexibility across medium-term cycles.

Efficient Use of Equity (ROE)

A strong ROE signals management's ability to deploy capital into accretive property projects and operations. Combined with a stable equity ratio, this supports sustainable growth, potential for higher shareholder returns, and resilience when acquiring or redeveloping assets.

Negative Factors

Moderate Leverage Risk

Normal industry leverage raises refinancing and interest-rate sensitivity. In an economic slowdown or rising rates scenario, debt burdens can strain cash flow, limit redevelopment ability and capital flexibility, and increase default or covenant risks over coming quarters.

Free Cash Flow Volatility

Large, lumpy capex cycles for acquisitions and redevelopment create FCF variability, constraining predictable shareholder distributions and reducing the buffer for opportunistic investments. This makes liquidity planning and payout sustainability less reliable.

Exposure to Commercial Office Demand

Concentration in office and urban commercial assets leaves revenue and occupancy exposed to structural shifts like remote work and changing tenant needs. Such secular trends can pressure long-term leasing stability and require costly asset repurposing.

Hulic Co Business Overview & Revenue Model

Company Description

Hulic Co., Ltd. engages in the development, rental, sale, and brokerage of real estate properties in Japan. The company operates through three segments: Real Estate, Insurance, and Hotels and Inns. Its property portfolio includes office buildings, commercial buildings, residential rental buildings, hotels, and other properties. As of December 31, 2021, the company had a portfolio of approximately 265 lease properties. It also engages in the asset management and insurance agency businesses; and management of hotels and inns. Hulic Co., Ltd. was founded in 1931 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Hulic Co. generates revenue primarily through leasing and property management services. The company owns and manages a diverse portfolio of commercial properties, which provides a stable income stream from rental payments. Additionally, Hulic engages in property development, where it invests in new constructions and renovations, selling or leasing these properties upon completion. The firm also participates in real estate fund management, earning fees from managing investment funds that focus on real estate assets. Significant partnerships with local governments and other private entities for urban redevelopment projects further bolster its earnings by enabling access to prime locations and development incentives.

Hulic Co Financial Statement Overview

Summary

Profitability and revenue momentum are solid (2025 revenue up ~5.9% YoY; EBIT margin ~26.5%, net margin ~15.7%), but the financial profile is pressured by rising leverage (debt-to-equity ~2.42 in 2025) and weakening cash conversion with sharply negative free cash flow in 2025 (~-¥157B).

Income Statement

Revenue rebounded meaningfully in 2025 (up ~5.9% YoY) after a softer 2024 (~0.3% growth), showing improved top-line momentum. Profitability remains solid with 2025 operating and net margins still healthy (EBIT margin ~26.5%, net margin ~15.7%), but margins have generally compressed versus 2023 levels (when net margin was ~21.2%). Overall, the company shows good earnings power and recovery in growth, offset by some multi-year margin pressure.

Balance Sheet

The balance sheet is heavily leveraged, with debt-to-equity rising to ~2.42 in 2025 from ~1.89 in 2023, indicating increasing reliance on debt funding. Equity has grown (to ~¥913B in 2025), but debt is also up materially (to ~¥2.21T), which can limit flexibility if financing conditions tighten. Returns on equity were solid where reported (~11–13% in 2021–2024), but the elevated leverage profile remains the key risk.

Cash Flow

Cash generation quality has weakened: 2025 operating cash flow fell to ~¥269B from ~¥353B in 2024, and free cash flow swung sharply negative (~-¥157B in 2025 versus near-breakeven negative in 2024 and positive in 2023/2021). Operating cash flow covered only about ~55% of net income in 2025 (down from ~76% in 2024 and >100% in several earlier years), suggesting earnings are not translating into cash as consistently. While cash flow has been strong in some prior years, the recent negative free cash flow trend is a notable concern.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	686.84B	727.45B	591.62B	446.38B	523.42B	447.08B
Gross Profit	252.81B	276.80B	230.93B	196.51B	172.57B	155.41B
EBITDA	191.56B	213.01B	183.25B	165.26B	144.53B	131.81B
Net Income	103.10B	114.33B	102.34B	94.63B	79.15B	69.56B
Balance Sheet
Total Assets	3.42T	3.51T	3.05T	2.48T	2.32T	2.21T
Cash, Cash Equivalents and Short-Term Investments	169.70B	209.36B	134.46B	82.88B	138.40B	206.21B
Total Debt	2.23T	2.21T	1.87T	1.45T	1.44T	1.39T
Total Liabilities	2.56T	2.57T	2.19T	1.71T	1.63T	1.57T
Stockholders Equity	848.29B	913.36B	833.07B	765.66B	686.73B	637.80B
Cash Flow
Free Cash Flow	0.00	-157.01B	-11.32B	6.18B	-27.13B	78.06B
Operating Cash Flow	0.00	269.24B	353.39B	270.82B	266.11B	291.74B
Investing Cash Flow	0.00	-542.50B	-602.02B	-298.33B	-345.33B	-286.94B
Financing Cash Flow	0.00	270.27B	300.59B	-28.02B	11.44B	106.59B

Hulic Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1782.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3003, the sentiment is Positive. The current price of 1782.5 is below the 20-day moving average (MA) of 1789.07, above the 50-day MA of 1723.48, and above the 200-day MA of 1548.63, indicating a bullish trend. The MACD of 19.67 indicates Positive momentum. The RSI at 63.57 is Neutral, neither overbought nor oversold. The STOCH value of 48.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3003.

Hulic Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8804	78 Outperform	¥753.76B	12.64	10.73%	2.94%	-19.09%	16.31%
8830	76 Outperform	¥4.01T	20.08	8.82%	0.97%	0.49%	12.19%
2337	67 Neutral	¥178.17B	10.25	16.39%	2.38%	7.21%	112.45%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3003	65 Neutral	¥1.40T	12.22	12.91%	3.25%	45.15%	19.80%
8841	64 Neutral	¥78.24B	50.36	1.46%	1.18%	6.40%	230.12%
3231	57 Neutral	¥939.17B	15.91	8.38%	3.68%	3.52%	-17.58%

Hulic Co Corporate Events

Hulic Discloses ¥173.5 Billion Syndicated Loan for Raysum Tender Offer

Hulic Co., Ltd. has disclosed that it entered into a ¥173.5 billion unsecured syndicated loan agreement on June 25, 2025, to secure long-term funding for its tender offer for Raysum Co., Ltd., and acknowledged that this decision should have been reported earlier as the conclusion of a monetary loan agreement with financial covenants. The loan, provided by a syndicate of city banks and others, runs from the end of December 2025 through June 30, 2032 and includes covenants requiring Hulic to avoid consecutive consolidated ordinary losses and to maintain consolidated net assets at no less than 75% of the previous fiscal period’s level, with the company stating that the impact on its 2025 and 2026 financial results is immaterial while it strengthens internal controls over timely disclosure.

The most recent analyst rating on (JP:3003) stock is a Buy with a Yen1955.00 price target. To see the full list of analyst forecasts on Hulic Co stock, see the JP:3003 Stock Forecast page.

Hulic Revamps Board, Adding Ex-GPIF Chief as External Director

Hulic Co., Ltd. has announced a series of board changes effective March 25, 2026, including the promotion of Executive Managing Officer Mikio Morikawa to director and the appointment of veteran financier Masataka Miyazono, a former president of the Government Pension Investment Fund, as an external director and candidate for independent director. Three current directors—Vice President Tadashi Nakajima, External Director and Chairperson of the Board Tsukasa Miyajima, and External Director Shinji Tsuji—will resign at the end of their terms, with Nakajima remaining at the company as a senior adviser, resulting in a net reduction of one board seat and signaling a refreshed governance structure that brings in high-profile institutional investment expertise to support Hulic’s strategic direction.

The most recent analyst rating on (JP:3003) stock is a Buy with a Yen1955.00 price target. To see the full list of analyst forecasts on Hulic Co stock, see the JP:3003 Stock Forecast page.

Hulic Prepares New 2026–2036 Management Plan After Strong 2025 Profit

Hulic Co., Ltd. has reported a consolidated ordinary profit of JPY 172.9 billion for the fiscal year ended December 31, 2025, marking solid progress toward the targets of its existing 2020–2029 medium- and long-term management plan. In response to evolving business conditions and building on this performance, the company is formulating a new medium- and long-term management plan covering 2026–2036, which is scheduled to be unveiled on February 3, 2026, signaling a potential recalibration of its growth strategy and capital allocation priorities for the coming decade.

The most recent analyst rating on (JP:3003) stock is a Buy with a Yen1955.00 price target. To see the full list of analyst forecasts on Hulic Co stock, see the JP:3003 Stock Forecast page.

Hulic to Raise FY2025 Year-End Dividend on Stronger Earnings

Hulic Co., Ltd. has announced that its board will propose a higher year-end dividend of ¥33.5 per share for fiscal 2025, with a record date of December 31, 2025, up from both the previously forecast ¥31.5 and the prior year’s ¥28.0 per share. The move, funded from retained earnings and bringing total annual dividends for FY2025 to ¥62.0 per share, reflects better-than-expected consolidated results and aligns with the company’s medium-term plan targeting a dividend payout ratio of 40% or higher, underscoring Hulic’s emphasis on stable and enhanced shareholder returns.

The most recent analyst rating on (JP:3003) stock is a Buy with a Yen1955.00 price target. To see the full list of analyst forecasts on Hulic Co stock, see the JP:3003 Stock Forecast page.

Hulic Delivers Double-Digit Profit Growth on Rising Revenues and Assets in FY2025

Hulic Co., Ltd., a major Japanese real estate and asset-focused company listed on the TSE Prime Market, reported strong growth in its consolidated results for the fiscal year ended December 31, 2025. The group continues to leverage a large balance sheet, with total assets rising to over ¥3.5 trillion and equity of more than ¥900 billion, underpinning its capacity for continued investment and stable returns to shareholders.

For 2025, operating revenue rose 22.9% year on year to ¥727.4 billion, while operating profit increased 14.3% to ¥186.8 billion and ordinary profit climbed 12.0% to ¥172.9 billion. Profit attributable to owners of the parent grew 11.7% to ¥114.3 billion, boosting EPS to ¥150.50 and lifting ROE to 13.0%. Hulic’s equity ratio stood at 26.0%, with net assets reaching ¥939.2 billion and net assets per share of ¥1,202.76. Although cash and cash equivalents at year-end dipped slightly to ¥130.7 billion due to heavy investment outflows, strong operating cash flow and robust financing inflows highlight the company’s continued balance between growth investments and financial stability, with implications of sustained earnings power and resilience for shareholders and creditors.

The most recent analyst rating on (JP:3003) stock is a Buy with a Yen1955.00 price target. To see the full list of analyst forecasts on Hulic Co stock, see the JP:3003 Stock Forecast page.