Nomura Real Estate Holdings (3231) AI Stock Analysis

• Market Cap: $766.64B
• Dividend Yield: 0.03%
• Average Volume (3M): 2.71M
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.78
• Revenue Growth: 3.12%
• EPS Growth: 10.52%
• Country: JP
• Employees: 7,695
• Sector: Real Estate
• Sector Strength: 69
• Industry: Real Estate - Services
• EPS (TTM): 14.50
• Shares Outstanding: 917,474,700
• 10 Day Avg. Volume: 2,330,880
• 30 Day Avg. Volume: 2,706,316
• PEG Ratio: 0.43
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.96
• 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: $917.55
• Price Target Upside: 9.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 70 Outperform
• Price Target: ¥928.00 ▲(10.75%Upside)

Nomura Real Estate Holdings is supported by strong financial performance, notably robust revenue growth and profitability. Despite potential risks from increased leverage and negative cash flows, the stock's attractive valuation with a low P/E ratio and high dividend yield enhances its investment appeal. Technical indicators suggest moderate stability without strong momentum.

Nomura Real Estate Holdings Business Overview & Revenue Model

Company Description

Nomura Real Estate Holdings, Inc. is a prominent Japanese real estate company engaged in a diverse range of activities within the real estate sector. The company operates primarily in development, leasing, and management of residential, office, and commercial properties. Its core services include real estate development, property sales, and property management, catering to both individual and corporate clients. Nomura Real Estate Holdings is recognized for its comprehensive approach to urban development, focusing on creating sustainable and innovative living and working spaces.

How the Company Makes Money

Nomura Real Estate Holdings generates revenue through several key streams. The primary source of income is its development sector, where the company engages in the planning, design, and construction of residential, office, and commercial buildings. Sales of these developed properties, particularly condominiums and office spaces, contribute significantly to its earnings. Additionally, the company earns revenue from property leasing and management services, providing long-term income through rental agreements and property management contracts. Nomura Real Estate also benefits from its involvement in real estate investment trusts (REITs) and partnerships with other real estate and construction firms, which enhance its market presence and financial performance. The company's strategic focus on urban redevelopment and sustainable projects further supports its revenue growth by attracting investments and meeting the evolving demands of modern urban environments.

Nomura Real Estate Holdings Financial Statement Overview

Summary

Nomura Real Estate Holdings shows robust revenue growth and improved profitability margins. However, increased leverage and recent negative cash flows highlight potential financial risks. Monitoring cash flow management and leverage levels is crucial for sustaining long-term growth.

Income Statement

Nomura Real Estate Holdings has shown a consistent growth trajectory, with Total Revenue increasing from 580.66B JPY in 2021 to 757.64B JPY in 2025. The Gross Profit Margin increased from 31.52% in 2021 to 35.19% in 2025, indicating stronger profitability. Net Profit Margin improved to 9.87% in 2025 from 7.27% in 2021, showing enhanced efficiency in converting revenue to profit. However, the company faces challenges with fluctuating EBIT and EBITDA margins, which suggests some volatility in operational efficiency.

Balance Sheet

The balance sheet reflects a solid equity base with Stockholders' Equity growing from 584.73B JPY in 2021 to 750.18B JPY in 2025. The Debt-to-Equity ratio increased from 1.72 in 2021 to 2.06 in 2025, indicating rising leverage, which could pose a risk if not managed carefully. The Equity Ratio decreased slightly over the years, suggesting increased reliance on debt. Despite this, the company has maintained a strong asset base.

Cash Flow

The company's cash flow statement shows a challenging scenario with negative Free Cash Flow in 2025 at -251.43B JPY, a significant decline from a positive 4.87B JPY in 2024. The Operating Cash Flow also turned negative in 2025, indicating operational cash challenges. Despite these issues, the company has managed substantial Financing Cash Flows, which have helped support its capital expenditures and debt obligations.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
757.64B	734.72B	654.74B	645.05B	580.66B
	Gross Profit
266.60B	244.47B	222.66B	205.31B	183.06B
	EBIT
118.96B	112.11B	99.60B	91.21B	76.33B
	EBITDA
139.85B	132.56B	120.19B	110.30B	96.36B
	Net Income Common Stockholders
74.83B	68.16B	64.52B	55.31B	42.20B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
140.32B	102.96B	61.38B	102.91B	100.39B
	Total Assets
2.69T	2.25T	2.11T	2.04T	1.92T
	Total Debt
1.55T	1.19T	1.12T	1.02T	1.01T
	Net Debt
1.51T	1.14T	1.09T	953.70B	936.88B
	Total Liabilities
1.94T	1.56T	1.45T	1.42T	1.33T
	Stockholders Equity
750.18B	691.28B	653.96B	619.69B	584.73B
Cash Flow		Free Cash Flow
-251.43B	4.87B	-86.87B	16.18B	-109.17B
	Operating Cash Flow
-84.09B	70.88B	-42.81B	52.79B	-63.50B
	Investing Cash Flow
-203.36B	-83.64B	-62.90B	-46.28B	-55.79B
	Financing Cash Flow
318.46B	39.92B	65.67B	-9.62B	112.38B

Nomura Real Estate Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 837.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3231, the sentiment is Negative. The current price of 837.9 is below the 20-day moving average (MA) of 844.58, below the 50-day MA of 855.15, and above the 200-day MA of 798.69, indicating a neutral trend. The MACD of -3.43 indicates Negative momentum. The RSI at 44.54 is Neutral, neither overbought nor oversold. The STOCH value of 41.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3231.

Nomura Real Estate Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1766	81 Outperform	¥182.85B	11.59		2.43%	8.04%	167.85%
8804	76 Outperform	$540.09B	7.87	12.90%	4.10%	26.88%	75.98%
3003	75 Outperform	$1.11T	10.65	12.74%	0.02%	45.14%	17.11%
2337	73 Outperform	$171.56B	11.25	13.76%	0.02%	1.60%	29.82%
8830	72 Outperform	$2.75T	14.34	8.93%	1.15%	4.81%	8.37%
3231	70 Outperform	$766.64B	9.66	10.23%	0.03%	3.12%	10.52%
Sector *	61 Neutral	$2.83B	10.72	0.40%	6.10%	5.80%	-21.26%

Nomura Real Estate Holdings Corporate Events

Nomura Real Estate Unveils Ambitious 2030 Business Plan

Nomura Real Estate Group has announced a new business plan extending to 2030, following the successful achievement of its previous targets. The plan outlines a long-term management policy and a three-year strategy to enhance customer-centric value creation, financial growth, and sustainable development. The company aims for high profit growth, improved asset and capital efficiency, and robust collaboration across its sectors to secure a strong market position and meet evolving customer needs.

Nomura Real Estate Holdings Reports Strong Financial Growth and Announces Stock Split

Nomura Real Estate Holdings reported a significant increase in its financial performance for the fiscal year ending March 31, 2025, with comprehensive income rising by 36.7% compared to the previous year. The company also announced a stock split and an increase in dividends, reflecting its strong financial position and commitment to returning value to shareholders.