Central General Development Co., Ltd. (3238) AI Stock Analysis

• Market Cap: ¥4.20B
• Dividend Yield: 3.23%
• Average Volume (3M): 38.55K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.34
• Revenue Growth: 8.47%
• EPS Growth: -10.91%
• Country: JP
• Employees: 172
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -34.95
• Shares Outstanding: 9,681,600
• 10 Day Avg. Volume: 93,110
• 30 Day Avg. Volume: 38,550
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥465.00
• Price Target Upside: 5.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥465.00 ▲(5.92% Upside)

The stock's strong valuation and technical indicators are the primary strengths, suggesting potential undervaluation and short-term bullish momentum. However, financial performance is constrained by high leverage and negative cash flows, which could pose risks if not managed effectively.

Central General Development Co., Ltd. Business Overview & Revenue Model

Company Description

Central General Development Co., Ltd. engages in the real estate business in Japan. The company plans, constructs, and sells condominiums. It is also involved in the building and condominium rental and management services; and insurance agency business. The company was incorporated in 1959 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Central General Development Co., Ltd. generates revenue through various streams within the real estate industry. The primary source of income is the sale of residential and commercial properties developed by the company. Additionally, it earns from leasing office spaces and retail properties, providing a steady stream of rental income. The company may also offer property management services, which contribute to its revenue. Partnerships with construction firms and real estate agencies enhance its market reach and service offerings, further driving its profitability. Economic factors such as market demand and property valuations also significantly influence earnings.

Central General Development Co., Ltd. Financial Statement Overview

Summary

The company shows robust revenue growth and operational efficiency. However, challenges such as high leverage and negative cash flows present significant financial pressures. Improving its cash flow and managing debt are crucial for future stability.

Income Statement

The company demonstrated stable revenue growth with a consistent increase from 2020 to 2024, peaking in 2024 before a slight dip in 2025. Gross profit margin remained relatively stable, suggesting good operational control. However, net profit margin showed volatility, particularly with a significant drop in 2025. EBIT and EBITDA margins were consistent, indicating operational efficiency. Overall, the company shows a solid growth trajectory but faces challenges in maintaining net profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage. While total assets have grown, the equity ratio is moderate, reflecting a balanced asset financing mix. Return on equity shows improvement over time, but high leverage poses potential risks. The company's financial stability is decent, but high debt levels could affect long-term sustainability.

Cash Flow

Cash flow analysis highlights negative free cash flow in recent years, with operating cash flow consistently negative, indicating potential liquidity issues. The operating cash flow to net income ratio is unfavorable due to negative operating cash flow, suggesting reliance on external financing, as evidenced by positive financing cash flow. This reliance on external funding could pose a risk if access to capital markets becomes constrained.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.88B	30.88B	31.93B	30.39B	29.31B	26.03B
Gross Profit	5.76B	5.76B	6.10B	5.18B	5.06B	4.53B
EBITDA	1.40B	1.41B	1.84B	1.63B	1.25B	1.21B
Net Income	496.98M	497.35M	904.57M	845.48M	630.07M	574.73M
Balance Sheet
Total Assets	45.42B	45.42B	36.59B	28.96B	29.24B	28.12B
Cash, Cash Equivalents and Short-Term Investments	978.25M	978.25M	1.42B	2.53B	2.04B	1.30B
Total Debt	30.70B	30.70B	22.39B	15.27B	16.50B	17.43B
Total Liabilities	35.16B	35.16B	26.65B	19.88B	20.89B	20.96B
Stockholders Equity	10.26B	10.26B	9.94B	9.09B	8.35B	7.16B
Cash Flow
Free Cash Flow	0.00	-8.60B	-8.09B	1.87B	1.11B	-2.95B
Operating Cash Flow	0.00	-7.61B	-6.85B	2.66B	2.36B	-2.35B
Investing Cash Flow	0.00	-969.22M	-1.25B	-789.67M	-1.25B	-606.22M
Financing Cash Flow	0.00	8.14B	6.98B	-1.38B	-370.72M	2.59B

Central General Development Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 439.00
• 50DMA: Positive
• 100DMA: Positive
• 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:3238, the sentiment is Positive. The current price of 439 is above the 20-day moving average (MA) of 425.00, above the 50-day MA of 418.28, and above the 200-day MA of 435.44, indicating a bullish trend. The MACD of 6.82 indicates Negative momentum. The RSI at 59.83 is Neutral, neither overbought nor oversold. The STOCH value of 26.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3238.

Central General Development Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3495	81 Outperform	6.68B	6.48	13.72%	2.17%	17.83%	44.85%
3297	79 Outperform	3.07B	9.01	7.75%	3.42%	12.69%	61.19%
3238	72 Outperform	¥4.20B	8.37		3.23%	8.47%	-10.91%
3474	57 Neutral	4.41B	-7.41	-23.01%	―	5.43%	-1216.66%
3237	47 Neutral	4.42B	-9.39	-58.77%	―	-32.07%	-90.17%
8944	47 Neutral	4.31B	-1.98	-12.72%	2.76%	100.98%	-382.93%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%