Nippon Accommodations Fund Inc. (3226) AI Stock Analysis

• Market Cap: ¥296.04B
• Dividend Yield: 3.85%
• Average Volume (3M): 4.79K
• Price to Earnings (P/E): 26.1
• Beta (1Y): 0.16
• Revenue Growth: -3.25%
• EPS Growth: -2.56%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 57
• Industry: REIT - Diversified
• EPS (TTM): 4514.00
• Shares Outstanding: 2,517,360
• 10 Day Avg. Volume: 5,066
• 30 Day Avg. Volume: 4,793
• PEG Ratio: 122.61
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.71
• 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: ¥131,000.00
• Price Target Upside: 11.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ¥127,820 ▲(9.15%Upside)

The overall stock score for Nippon Accommodations Fund Inc. is primarily supported by its strong financial performance, characterized by consistent profitability and efficient operations. Technical analysis provides a moderate boost with neutral momentum indicators. However, the relatively high P/E ratio dampens the valuation score, suggesting potential overvaluation concerns. The absence of recent earnings call insights or notable corporate events means the score is primarily driven by these three factors.

Nippon Accommodations Fund Inc. Business Overview & Revenue Model

Company Description

Nippon Accommodations Fund Inc. (3226) is a Japan-based real estate investment trust (REIT) primarily engaged in the acquisition, ownership, and management of residential properties. The company focuses on investing in high-quality residential assets, including rental apartments and student dormitories, located mainly in metropolitan areas of Japan. As a part of its investment strategy, Nippon Accommodations Fund Inc. aims to achieve stable income and long-term capital growth for its investors.

How the Company Makes Money

Nippon Accommodations Fund Inc. generates revenue primarily through the rental income earned from its portfolio of residential properties. The company strategically invests in properties situated in prime locations across Japan to ensure high occupancy rates and stable rental income. Additionally, the company may periodically sell properties from its portfolio to realize capital gains, which also contributes to its earnings. The performance and profitability of Nippon Accommodations Fund Inc. are influenced by factors such as property market conditions, rental demand, and effective property management. Furthermore, partnerships with property management firms help optimize the operational efficiency and enhance the value of the properties in their portfolio.

Nippon Accommodations Fund Inc. Financial Statement Overview

Summary

Nippon Accommodations Fund Inc. demonstrates consistent profitability and efficient operations, with strong income statement metrics. The balance sheet shows stability but is highly leveraged, typical for the REIT industry. Cash flow metrics indicate effective cash management despite some volatility. Overall, the company is financially stable but should monitor leverage levels to mitigate future risks.

Income Statement

The company shows stable revenue with minor fluctuations over the years. Gross profit margin is consistent at around 59%, and net profit margin is strong, averaging around 45% in recent years. EBIT and EBITDA margins are robust, reflecting efficient operations. However, the revenue growth rate is minimal, indicating limited expansion, which could be a concern for long-term growth.

Balance Sheet

The company has a relatively high debt-to-equity ratio, indicating significant leverage, which is common in the REIT industry but poses a financial risk. The equity ratio is stable, suggesting a balanced capital structure. Return on equity is strong at around 7%, indicating effective use of equity capital. Overall, the balance sheet reflects stability but highlights potential risk due to high leverage.

Cash Flow

The company maintains strong operating cash flow relative to net income, showing effective cash management. Free cash flow has fluctuated but remains positive, reflecting the company's ability to generate cash after capital expenditures. The free cash flow growth rate has been variable, indicating potential volatility in cash generation capabilities.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	25.53B	25.29B	25.39B	24.65B	23.55B	22.92B
Gross Profit	13.10B	15.01B	14.94B	14.21B	13.34B	13.17B
EBITDA	15.99B	15.96B	15.99B	15.50B	14.73B	14.64B
Net Income	11.36B	11.34B	11.32B	10.57B	9.84B	9.76B
Balance Sheet
Total Assets	326.91B	325.69B	327.05B	328.47B	327.82B	305.84B
Cash, Cash Equivalents and Short-Term Investments	13.48B	11.49B	14.86B	13.05B	12.26B	9.49B
Total Debt	167.00B	166.00B	167.50B	169.50B	169.50B	157.50B
Total Liabilities	174.61B	173.61B	175.18B	177.30B	176.90B	164.63B
Stockholders Equity	152.31B	152.08B	151.87B	151.17B	150.93B	141.21B
Cash Flow
Free Cash Flow	11.19B	9.33B	14.48B	11.24B	-9.15B	5.89B
Operating Cash Flow	15.40B	15.20B	15.97B	15.09B	14.10B	13.62B
Investing Cash Flow	-4.24B	-5.90B	-1.60B	-3.91B	-23.22B	-7.79B
Financing Cash Flow	-11.84B	-12.63B	-12.61B	-10.37B	11.84B	-6.96B

Nippon Accommodations Fund Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 117100.00
• 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:3226, the sentiment is Neutral. The current price of 117100 is below the 20-day moving average (MA) of 117965.00, above the 50-day MA of 116808.00, and above the 200-day MA of 116310.54, indicating a neutral trend. The MACD of 456.29 indicates Positive momentum. The RSI at 50.77 is Neutral, neither overbought nor oversold. The STOCH value of 21.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3226.

Nippon Accommodations Fund Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3309	73 Outperform	$332.99B	15.14	7.47%	4.66%	18.76%	77.88%
3249	71 Outperform	¥308.40B	17.40	7.72%	5.66%	30.28%	0.44%
3279	70 Outperform	¥292.29B	20.73	5.11%	4.71%	-9.21%	-17.53%
3226	70 Outperform	¥296.04B	26.05		3.85%	-3.25%	-2.56%
Sector *	70 Neutral	¥231.55B	14.14	10.67%	19.67%	17.32%	17.90%
3234	67 Neutral	¥257.36B	20.58		4.59%	5.93%	-1.63%

Nippon Accommodations Fund Inc. Corporate Events

Nippon Accommodations Fund Extends Commitment Line Agreements

Nippon Accommodations Fund Inc. has announced an extension of the termination dates for its commitment line agreements with Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, and Mizuho Bank. The new termination date is set for July 31, 2028, providing the company with an additional year of financial flexibility. This move is expected to enhance NAF’s financial stability and operational capacity, with no significant changes to its investment risk profile.

The most recent analyst rating on (JP:3226) stock is a Hold with a Yen131000.00 price target. To see the full list of analyst forecasts on Nippon Accommodations Fund Inc. stock, see the JP:3226 Stock Forecast page.

Nippon Accommodations Fund Secures 2 Billion Yen Loan

Nippon Accommodations Fund Inc. announced a borrowing of 2.0 billion yen from Sumitomo Mitsui Trust Bank, Limited, with an interest rate of 0.64864%, to be repaid by August 29, 2025. This borrowing does not alter the company’s total interest-bearing debt, which remains at 169.5 billion yen, indicating stable financial management and no significant change in investment risks.

The most recent analyst rating on (JP:3226) stock is a Buy with a Yen632000.00 price target. To see the full list of analyst forecasts on Nippon Accommodations Fund Inc. stock, see the JP:3226 Stock Forecast page.

Nippon Accommodations Fund Inc. Secures 3.0 Billion Yen Loan

Nippon Accommodations Fund Inc. has announced a borrowing of 3.0 billion yen from Sumitomo Mitsui Banking Corporation, with an interest rate of 1.069%, to be repaid by May 2029. This borrowing does not alter the company’s total interest-bearing debt, which remains at 169.5 billion yen, and there is no significant change in the loan repayment risk as per the latest securities report.

The most recent analyst rating on (JP:3226) stock is a Buy with a Yen632000.00 price target. To see the full list of analyst forecasts on Nippon Accommodations Fund Inc. stock, see the JP:3226 Stock Forecast page.

Nippon Accommodations Fund Inc. Proposes Amendments and Director Elections

Nippon Accommodations Fund Inc. announced proposed amendments to its Articles of Incorporation and the election of directors, which will be discussed at the upcoming General Meeting of Unitholders. Key amendments include enabling investments in shinkin banks and credit unions, aligning with new regulations, and modifying asset management fees to better align with unitholder interests. Additionally, NAF plans to enhance its brand by incorporating Mitsui Fudosan into its trade name. The election of a new Executive Director and three Supervisory Directors is also proposed, along with two substitute Executive Directors to ensure continuity.

Nippon Accommodations Fund Inc. Reports Increased Revenues and Net Income for Fiscal Period

Nippon Accommodations Fund Inc. reported its financial results for the fiscal period ending February 28, 2025, showing a slight increase in total revenues and net income compared to the previous period. The company conducted an investment unit split, which affected the calculation of net income per unit, and maintained a 100% payout ratio, reflecting stable financial management and commitment to shareholder returns.