Urbanet Corporation Co., Ltd. (3242) AI Stock Analysis

• Market Cap: ¥16.27B
• Dividend Yield: 4.7%
• Average Volume (3M): 229.89K
• Price to Earnings (P/E): 44.4
• Beta (1Y): 0.21
• Revenue Growth: -14.37%
• EPS Growth: -83.84%
• Country: JP
• Employees: 73
• Sector: Real Estate
• Sector Strength: 52
• Industry: Real Estate - Diversified
• EPS (TTM): -5.12
• Shares Outstanding: 34,774,100
• 10 Day Avg. Volume: 364,410
• 30 Day Avg. Volume: 229,893
• PEG Ratio: -0.69
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.50
• 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

• Rating: 64 Neutral
• Price Target: ―

Urbanet Corporation's stock is moderately positioned with strengths in profitability margins and a strong dividend yield. However, concerns about revenue decline, high leverage, and cash flow challenges weigh on the score. Technical analysis indicates short-term weakness, though long-term support is present.

Urbanet Corporation Co., Ltd. Business Overview & Revenue Model

Company Description

Urbanet Corporation Co., Ltd. (3242) is a Japan-based company primarily engaged in the real estate business. The company focuses on the planning, development, and sale of compact condominiums, mainly in the Tokyo metropolitan area. Its core products include the development and sale of residential properties, particularly targeting single-person households and working professionals who prefer urban living. Urbanet Corporation also engages in the real estate leasing business, offering rental properties to generate additional income.

How the Company Makes Money

Urbanet Corporation Co., Ltd. generates revenue through the sale of developed condominium units. The company strategically purchases land, develops residential properties, and sells these units to individual buyers and investors. Its revenue streams are primarily driven by the sales of these residential properties. Additionally, the company earns income from its real estate leasing operations, which involve renting out properties to tenants. The company's focus on compact condominiums in urban areas allows it to capitalize on the high demand for city living among professionals and single occupants. Urbanet Corporation may also engage in partnerships with construction companies, real estate agencies, and financial institutions to optimize its development projects and sales processes.

Urbanet Corporation Co., Ltd. Financial Statement Overview

Summary

Urbanet Corporation demonstrates solid profitability margins and operational efficiency. However, the decline in revenue growth and high leverage raise concerns about financial stability and future growth potential. Cash flow issues further stress the need for strategic improvements to enhance liquidity and reduce debt reliance.

Income Statement

Urbanet Corporation shows a strong gross profit margin at 18.4%, indicating effective cost management. However, the TTM revenue decreased to JPY 24.5B from JPY 27.97B annually, highlighting a slowdown. The net profit margin stands at 4%, which is modest, and the EBIT margin is at 10.9%. The EBITDA margin of 8.7% suggests operational efficiency, though there's room for improvement in profitability.

Balance Sheet

The company maintains a high debt-to-equity ratio of 2.66, reflecting substantial leverage which poses risks in volatile markets. The equity ratio is 25.9%, indicating a moderate level of financial stability. Return on equity is at 6.6%, showcasing a reasonable return but could be improved for higher shareholder value.

Cash Flow

Urbanet Corporation's free cash flow is negative at JPY -10.5B TTM, a concern despite positive financing activities. The operating cash flow to net income ratio is -8.63, emphasizing inefficiencies in cash conversion. However, the free cash flow to net income ratio is -10.72, pointing to cash flow challenges that need addressing.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	24.51B	27.97B	20.26B	19.61B	20.96B	22.02B
Gross Profit	4.52B	4.63B	4.04B	3.54B	3.80B	3.83B
EBITDA	2.18B	2.87B	2.58B	2.37B	2.46B	2.41B
Net Income	980.81M	1.70B	1.45B	1.31B	1.28B	1.51B
Balance Sheet
Total Assets	57.22B	46.97B	44.24B	38.09B	35.18B	34.00B
Cash, Cash Equivalents and Short-Term Investments	7.28B	8.53B	9.18B	8.53B	7.23B	8.94B
Total Debt	39.47B	29.21B	26.27B	20.97B	19.20B	18.53B
Total Liabilities	42.40B	31.91B	29.04B	23.70B	21.58B	21.19B
Stockholders Equity	14.82B	15.06B	13.55B	12.80B	12.04B	11.30B
Cash Flow
Free Cash Flow	-10.52B	2.86B	-2.86B	97.47M	-1.83B	307.84M
Operating Cash Flow	-8.46B	2.98B	-2.84B	490.94M	-1.43B	1.14B
Investing Cash Flow	-2.44B	-81.88M	-953.88M	-398.36M	-391.98M	-836.17M
Financing Cash Flow	8.70B	-3.52B	4.44B	1.20B	121.11M	3.30B

Urbanet Corporation Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 466.00
• 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:3242, the sentiment is Positive. The current price of 466 is below the 20-day moving average (MA) of 469.68, above the 50-day MA of 461.76, and above the 200-day MA of 418.78, indicating a bullish trend. The MACD of 1.81 indicates Positive momentum. The RSI at 55.92 is Neutral, neither overbought nor oversold. The STOCH value of 26.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3242.

Urbanet Corporation Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8940	73 Outperform	¥7.74B	4.01		718.83%	-0.58%	1546.93%
8927	70 Outperform	¥12.06B	12.13		2.69%	5.06%	-39.19%
8931	70 Outperform	¥16.26B	5.15		6.01%	3.36%	19.70%
3242	64 Neutral	¥16.27B	44.35		4.70%	-14.37%	-83.84%
1431	61 Neutral	¥15.55B	25.00		0.96%	10.88%	185.34%
Sector *	59 Neutral	C$1.24B	0.83	-8.20%	5.11%	9.89%	-25.14%

Urbanet Corporation Co., Ltd. Corporate Events

Urbanet Corporation Reports Decline in Financial Performance

Urbanet Corporation reported a significant decline in its financial performance for the nine months ending March 31, 2025, with net sales dropping by 32.5% and operating profit plummeting by 97% compared to the previous year. This downturn reflects challenges in the real estate market, impacting the company’s profitability and financial stability, though the company maintains its forecast for the fiscal year ending June 30, 2025.