Nomura Real Estate Holdings (3231) AI Stock Analysis

• Market Cap: $794.09B
• Dividend Yield: 3.63%
• Average Volume (3M): 2.33M
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.79
• Revenue Growth: 3.52%
• EPS Growth: -17.58%
• Country: JP
• Employees: 7,695
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 9.49
• Shares Outstanding: 917,895,700
• 10 Day Avg. Volume: 2,551,950
• 30 Day Avg. Volume: 2,333,623
• PEG Ratio: 0.95
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.99
• P/FCF Ratio: -2.99
• Enterprise Value/Market Cap: 2.73
• Enterprise Value/Revenue: 2.79
• Enterprise Value/Gross Profit: 8.11
• Enterprise Value/Ebitda: 15.43
• 1Y Price Target: $953.57
• Price Target Upside: -0.06% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥966.00 ▲(1.25% Upside)

Nomura Real Estate Holdings' overall stock score is driven by strong financial performance, despite challenges with high leverage and negative cash flows. The valuation is attractive with a low P/E ratio and a solid dividend yield, but technical indicators suggest caution due to bearish trends. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and the ability to capture demand in the real estate sector, supporting long-term business sustainability.

Operational Efficiency

High gross profit margins reflect effective cost control and operational efficiency, which can sustain profitability even in competitive markets.

Return on Equity

A strong return on equity indicates efficient use of shareholder funds to generate profits, enhancing investor confidence and supporting future growth.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth opportunities or weather economic downturns.

Negative Cash Flows

Negative cash flows can strain liquidity, making it difficult to fund operations and growth initiatives without relying on external financing, which may not be sustainable long-term.

Profit Margin Pressure

A declining net profit margin suggests rising costs or pricing pressures, which could erode profitability if not addressed through strategic cost management or revenue enhancement.

Nomura Real Estate Holdings Business Overview & Revenue Model

Company Description

Nomura Real Estate Holdings, Inc. operates as a real estate company in Japan and internationally. The company develops, leases, and manages office buildings, commercial facilities, logistics facilities, hotels, and other properties; develops and sells condominiums and houses; operates housing with services for the elderly; develops rental properties; provides Internet advertising services for housing and living assistance services; and offers consignment services for planning and management for commercial facilities. It also provides asset management services for real estate securitization, including REITs and private placement funds; and real estate brokerage and consulting, insurance agency, and real estate information website management services. In addition, the company engages in the management of properties, such as condominiums and educational facilities; provision of renovation and repair work for tenants; remodeling of condominiums and housing; and provision of cleaning services for condominiums and office buildings. Further, it participates in, promotes, and supports urban development projects and reconstruction of housing complexes; and manages fitness clubs. Nomura Real Estate Holdings, Inc. was founded in 1957 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nomura Real Estate Holdings generates revenue primarily through the development and sale of residential properties, leasing of commercial and retail spaces, and property management services. The residential segment accounts for a significant portion of its revenue by delivering housing units to consumers and investors. In addition, the commercial leasing segment generates steady income from long-term leases with businesses. The company also earns fees from property management services and real estate investment activities. Strategic partnerships with local governments, financial institutions, and other developers enhance its market reach and operational efficiency, while also allowing for joint ventures that can result in shared revenue streams.

Nomura Real Estate Holdings Financial Statement Overview

Summary

Nomura Real Estate Holdings demonstrates strong revenue growth and operational efficiency, but faces challenges with high leverage and negative cash flows. The company needs to address its liquidity issues to ensure long-term financial stability. While profitability metrics remain strong, the high debt levels could pose risks if not managed carefully.

Income Statement

Nomura Real Estate Holdings shows a stable revenue growth trajectory with a TTM revenue growth rate of 2.71%. The gross profit margin is healthy at 34.36%, indicating efficient cost management. However, the net profit margin has slightly decreased to 9.46% in the TTM, reflecting some pressure on profitability. Overall, the company maintains strong EBIT and EBITDA margins, suggesting robust operational efficiency.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio of 2.10 in the TTM, indicating significant leverage, which could pose financial risk. However, the return on equity remains solid at 9.98%, showcasing effective utilization of equity. The equity ratio is moderate, reflecting a balanced asset structure.

Cash Flow

The cash flow statement highlights challenges with negative operating and free cash flows in the TTM, indicating liquidity issues. The free cash flow to net income ratio is high at 2.53, suggesting that the company is generating cash relative to its net income, but the negative growth in free cash flow is concerning.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	778.14B	757.64B	734.72B	654.74B	645.05B	580.66B
Gross Profit	267.36B	266.60B	244.47B	222.66B	205.31B	183.06B
EBITDA	140.50B	139.85B	132.56B	120.19B	110.30B	96.36B
Net Income	73.61B	74.83B	68.16B	64.52B	55.31B	42.20B
Balance Sheet
Total Assets	2.66T	2.69T	2.25T	2.11T	2.04T	1.92T
Cash, Cash Equivalents and Short-Term Investments	132.87B	140.32B	102.96B	61.38B	102.91B	100.39B
Total Debt	1.57T	1.55T	1.19T	1.12T	1.02T	1.01T
Total Liabilities	1.91T	1.94T	1.56T	1.45T	1.42T	1.33T
Stockholders Equity	749.14B	750.18B	691.28B	653.96B	619.69B	584.73B
Cash Flow
Free Cash Flow	-228.28B	-251.43B	4.87B	-86.87B	16.18B	-109.17B
Operating Cash Flow	-90.28B	-84.09B	70.88B	-42.81B	52.79B	-63.50B
Investing Cash Flow	-144.68B	-203.36B	-83.64B	-62.90B	-46.28B	-55.79B
Financing Cash Flow	253.50B	318.46B	39.92B	65.67B	-9.62B	112.38B

Nomura Real Estate Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 954.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3231, the sentiment is Positive. The current price of 954.1 is above the 20-day moving average (MA) of 907.56, above the 50-day MA of 923.83, and above the 200-day MA of 865.34, indicating a bullish trend. The MACD of 4.02 indicates Negative momentum. The RSI at 59.72 is Neutral, neither overbought nor oversold. The STOCH value of 92.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
8804	78 Outperform	$697.07B	11.62	10.73%	3.09%	-19.09%	16.31%
8830	76 Outperform	¥3.52T	17.64	8.82%	1.06%	0.49%	12.19%
3003	74 Outperform	$1.22T	11.20	12.91%	3.28%	45.15%	19.80%
1766	74 Outperform	¥189.71B	11.51	―	2.24%	6.74%	55.77%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3231	63 Neutral	$794.09B	11.72	8.38%	3.63%	3.52%	-17.58%
2337	56 Neutral	$175.50B	9.29	16.39%	2.49%	7.21%	112.45%

Nomura Real Estate Holdings Corporate Events

Nomura Real Estate Holdings Reports Mixed Half-Year Results Amid Profit Decline

Nomura Real Estate Holdings reported a mixed performance for the first half of the fiscal year 2025, with operating revenue increasing by 4.3% to 397,749 million yen, while profits saw a decline. Operating profit decreased by 16.3%, and profit attributable to owners of the parent fell by 26.2%. This downturn in profits is attributed to changes in business profit definitions and market conditions. Despite the profit decline, the company maintains a stable financial position with total assets of 2,775,077 million yen and a shareholders’ equity ratio of 27.0%. The company has also announced a stock split and adjusted its dividend forecasts accordingly. The forecast for the full fiscal year ending March 31, 2026, anticipates a 24.1% increase in operating revenue, indicating a positive outlook for future growth.

The most recent analyst rating on (JP:3231) stock is a Hold with a Yen1017.00 price target. To see the full list of analyst forecasts on Nomura Real Estate Holdings stock, see the JP:3231 Stock Forecast page.