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Urbanet Corporation Co., Ltd. (JP:3242)
:3242
Japanese Market
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Urbanet Corporation Co., Ltd. (3242) AI Stock Analysis

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JP:3242

Urbanet Corporation Co., Ltd.

(3242)

Rating:69Neutral
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. (3242) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionUrbanet 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 MoneyUrbanet 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
75
Positive
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
65
Positive
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
55
Neutral
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.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue27.97B20.26B19.61B20.96B22.02B
Gross Profit4.63B4.04B3.54B3.80B3.83B
EBITDA2.87B2.58B2.37B2.46B2.41B
Net Income1.70B1.45B1.31B1.28B1.51B
Balance Sheet
Total Assets46.97B44.24B38.09B35.18B34.00B
Cash, Cash Equivalents and Short-Term Investments8.53B9.18B8.53B7.23B8.94B
Total Debt29.21B26.27B20.97B19.20B18.53B
Total Liabilities31.91B29.04B23.70B21.58B21.19B
Stockholders Equity15.06B13.55B12.80B12.04B11.30B
Cash Flow
Free Cash Flow2.86B-2.86B97.47M-1.83B307.84M
Operating Cash Flow2.98B-2.84B490.94M-1.43B1.14B
Investing Cash Flow-81.88M-953.88M-398.36M-391.98M-836.17M
Financing Cash Flow-3.52B4.44B1.20B121.11M3.30B

Urbanet Corporation Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price513.00
Price Trends
50DMA
469.72
Positive
100DMA
456.34
Positive
200DMA
427.37
Positive
Market Momentum
MACD
8.23
Negative
RSI
86.87
Negative
STOCH
66.62
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

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥7.53B4.21
3.33%-0.58%1546.93%
70
Outperform
¥11.68B11.75
3.02%5.06%-39.19%
70
Outperform
¥16.95B4.72
4.55%17.62%60.92%
69
Neutral
¥17.50B46.43
4.27%-14.37%-83.84%
69
Neutral
¥16.71B26.87
0.88%10.88%185.34%
54
Neutral
$1.23B3.780.67%6.14%-2.39%-129.28%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3242
Urbanet Corporation Co., Ltd.
513.00
134.83
35.65%
JP:1431
Lib Work Co.,Ltd.
730.00
46.28
6.77%
JP:8927
Meiho Enterprise Co., Ltd.
398.00
42.17
11.85%
JP:8931
WADAKOHSAN CORPORATION
1,540.00
143.97
10.31%
JP:8940
Intellex Co., Ltd.
870.00
204.48
30.72%

Urbanet Corporation Co., Ltd. Corporate Events

Urbanet Corporation Reports Decline in Financial Performance
May 19, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 12, 2025