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

• Market Cap: ¥17.50B
• Dividend Yield: 4.27%
• Average Volume (3M): 224.63K
• Price to Earnings (P/E): 46.4
• Beta (1Y): 0.21
• Revenue Growth: -14.37%
• EPS Growth: -83.84%
• Country: JP
• Employees: 73
• Sector: Real Estate
• Sector Strength: 66
• Industry: Real Estate - Diversified
• EPS (TTM): -5.12
• Shares Outstanding: 35,574,100
• 10 Day Avg. Volume: 176,380
• 30 Day Avg. Volume: 224,633
• PEG Ratio: -0.70
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.56
• 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: 69 Neutral
• Price Target: ¥527.00 ▲(2.73%Upside)

Urbanet Corporation's overall stock score reflects strong technical momentum supported by bullish indicators, offset by high valuation concerns and financial challenges. The company's robust dividend yield adds an appealing aspect for yield-seeking investors, but the high P/E ratio and cash flow issues necessitate caution.

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 development, sale, and management of residential properties, mainly condominiums, tailored to the urban lifestyle. Urbanet Corporation's core services include real estate sales, property management, and real estate consulting, catering primarily to urban areas in Japan.

How the Company Makes Money

Urbanet Corporation Co., Ltd. generates its revenue primarily through the sale of developed residential properties, particularly condominiums in urban settings. The company's revenue streams include profits from property sales, fees from property management services, and consulting fees from real estate advisory services. Additionally, the company engages in partnerships with construction firms and real estate agencies to enhance its property development and sales capabilities. Urbanet Corporation's earnings are significantly influenced by the Japanese real estate market trends, urban housing demand, and its strategic investments in high-demand locations.

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

Urbanet Corporation Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 513.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 513 is above the 20-day moving average (MA) of 478.30, above the 50-day MA of 469.72, and above the 200-day MA of 427.37, indicating a bullish trend. The MACD of 8.23 indicates Negative momentum. The RSI at 86.87 is Negative, neither overbought nor oversold. The STOCH value of 66.62 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	¥7.53B	4.21		3.33%	-0.58%	1546.93%
8927	70 Outperform	¥11.68B	11.75		3.02%	5.06%	-39.19%
8931	70 Outperform	¥16.95B	4.72		4.55%	17.62%	60.92%
3242	69 Neutral	¥17.50B	46.43		4.27%	-14.37%	-83.84%
1431	69 Neutral	¥16.71B	26.87		0.88%	10.88%	185.34%
Sector *	54 Neutral	$1.23B	3.78	0.67%	6.14%	-2.39%	-129.28%

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.