Dear Life Co., Ltd. (3245) AI Stock Analysis

• Market Cap: ¥49.73B
• Dividend Yield: 3.87%
• Average Volume (3M): 121.58K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.81
• Revenue Growth: 57.21%
• EPS Growth: 16.38%
• Country: JP
• Employees: 643
• Sector: Real Estate
• Sector Strength: 72
• Industry: Real Estate - Services
• EPS (TTM): 16.53
• Shares Outstanding: 44,896,800
• 10 Day Avg. Volume: 131,560
• 30 Day Avg. Volume: 121,580
• PEG Ratio: 0.11
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.57
• 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: 75 Outperform
• Price Target: ¥1,312.00 ▲(10.25%Upside)

Dear Life Co., Ltd. scores well due to its strong technical indicators and attractive valuation, which are the main contributors to the overall score. While financial performance shows strong profitability, concerns about cash flow management and leverage slightly temper the overall positive outlook.

Dear Life Co., Ltd. Business Overview & Revenue Model

Company Description

Dear Life Co., Ltd. (3245) is a Japanese company that operates primarily in the real estate sector. The company is involved in the development, sale, and rental of residential and commercial properties. It also provides property management services and engages in related activities to support its core operations. The company's focus is on delivering high-quality real estate solutions that meet the diverse needs of its clients.

How the Company Makes Money

Dear Life Co., Ltd. generates revenue through several key streams within the real estate sector. The primary source of income is the sale of developed residential and commercial properties. Additionally, the company earns money by leasing properties and collecting rental income. Property management services, which include maintenance and tenant management for owned and third-party properties, provide a steady income stream. The company may also engage in real estate brokerage activities, earning commissions from property transactions. Strategic partnerships with other real estate firms and financial institutions may further enhance its revenue capabilities. Overall, the company's earnings are driven by its ability to effectively develop and manage a diverse portfolio of real estate assets.

Dear Life Co., Ltd. Financial Statement Overview

Summary

The company exhibits strong revenue growth and profitability with a robust net profit margin. However, it faces significant challenges in cash flow management with negative free cash flow and increased leverage, which could pose future risks.

Income Statement

The income statement shows strong profitability with a consistent gross profit margin around 14.6% for TTM. Net profit margin stands at 6.8% TTM, indicating efficient cost management. Revenue growth from the previous year is about 23.8%, showcasing robust growth. However, the decline in gross profit from the previous year suggests pressure on margins.

Balance Sheet

The balance sheet reflects a balanced financial structure with a debt-to-equity ratio of 0.91, indicating moderate leverage. Return on Equity (ROE) is healthy at 15.7% TTM, showing effective use of equity. The equity ratio is stable at 49.7%, providing a solid equity base. The increase in debt levels compared to equity could pose future risks if revenue growth declines.

Cash Flow

Cash flow analysis shows challenges with negative free cash flow of -¥5.99 billion in the latest annual data, indicating potential cash management issues. The operating cash flow to net income ratio is unavailable for TTM, but the previous year showed negative operating cash flow, necessitating better cash flow management.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
53.84B	46.88B	43.50B	51.91B	26.37B	27.65B
	Gross Profit
7.84B	7.09B	8.56B	8.72B	5.36B	3.97B
	EBIT
5.33B	4.62B	6.09B	5.74B	4.02B	2.60B
	EBITDA
5.65B	5.06B	6.41B	6.00B	4.07B	2.65B
	Net Income Common Stockholders
3.68B	3.17B	4.30B	4.20B	2.69B	1.85B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.57B	18.69B	21.89B	19.85B	14.59B	13.47B
	Total Assets
46.96B	47.06B	41.71B	36.46B	27.74B	25.09B
	Total Debt
21.27B	18.85B	13.86B	11.85B	9.81B	8.83B
	Net Debt
4.83B	197.00M	-8.02B	-7.86B	-4.73B	-4.14B
	Total Liabilities
23.22B	21.99B	17.55B	15.20B	12.13B	11.31B
	Stockholders Equity
23.34B	24.69B	23.78B	20.87B	15.21B	13.78B
Cash Flow		Free Cash Flow
0.00	-5.99B	1.30B	4.91B	1.72B	6.35B
	Operating Cash Flow
0.00	-5.93B	1.36B	5.04B	1.75B	6.35B
	Investing Cash Flow
0.00	141.00M	346.00M	-1.10B	278.00M	-415.00M
	Financing Cash Flow
0.00	2.58B	529.00M	1.02B	-369.00M	-3.02B

Dear Life Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1190.00
• 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:3245, the sentiment is Positive. The current price of 1190 is above the 20-day moving average (MA) of 1143.05, above the 50-day MA of 1115.24, and above the 200-day MA of 1011.12, indicating a bullish trend. The MACD of 16.57 indicates Negative momentum. The RSI at 73.74 is Negative, neither overbought nor oversold. The STOCH value of 73.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3245.

Dear Life Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3482	80 Outperform	¥45.09B	5.12		2.55%	14.08%	46.84%
3245	75 Outperform	¥49.73B	11.85		3.87%	57.21%	16.38%
2980	71 Outperform	¥61.20B	35.75		0.40%	10.21%	22.88%
2986	70 Outperform	¥47.39B	8.08		4.55%	29.46%	32.52%
3496	67 Neutral	¥51.00B	34.39		0.29%	28.02%	37.68%
Sector *	61 Neutral	$2.83B	10.91	0.42%	11.76%	5.94%	-21.26%

Dear Life Co., Ltd. Corporate Events

Dear Life Co., Ltd. Acquires Income-Producing Property in Tokyo

Dear Life Co., Ltd. has announced the acquisition of an income-producing property in Setagaya-ku, Tokyo. The newly acquired property, a five-story apartment house, is expected to have a minimal impact on the company’s financial results for the fiscal year ending September 30, 2025, due to its current leasing status. The acquisition is funded through a mix of internal capital and borrowings, and the company has maintained confidentiality regarding the seller and purchase price.

Dear Life Co., Ltd. Acquires New Income-Producing Property in Tokyo

Dear Life Co., Ltd. has announced the acquisition of an income-producing property named DeLCCS Akebonobashi II, located in Shinjuku-ku, Tokyo. The property, which includes retail and apartment spaces, is expected to have a minimal impact on the company’s financial results for the current fiscal year. The acquisition is funded through internal capital and borrowings, and the company maintains confidentiality regarding the seller and purchase price.

Dear Life Co., Ltd. Acquires Income-Producing Property in Tokyo

Dear Life Co., Ltd. has acquired a new income-producing property located in Sumida-ku, Tokyo. The acquisition is expected to have a minimal impact on the company’s financial results for the fiscal year ending September 30, 2025, as the property is already leased. The transaction details, including the seller and purchase price, remain confidential.

Dear Life Co., Ltd. Acquires New Income-Producing Property in Tokyo

Dear Life Co., Ltd. has acquired a rental apartment property in Sumida-ku, Tokyo, funded through internal capital and financial institution borrowings. This acquisition is expected to have minimal impact on the company’s financial results for the fiscal year ending September 30, 2025, as the property is already leased.

Dear Life Co., Ltd. Reports Significant Financial Growth Amid Real Estate Market Uncertainties

Dear Life Co., Ltd. reported a substantial increase in its consolidated financial results for the six months ending March 31, 2025, with net sales rising by 191.7% and profit attributable to owners of the parent increasing by 623.3% compared to the same period in the previous year. Despite the positive financial performance, the company noted that its full-year forecasts are subject to fluctuations due to uncertainties in real estate market trends, emphasizing that its performance targets are management goals rather than guaranteed forecasts.

Dear Life Co., Ltd. Acquires Prime Tokyo Property

Dear Life Co., Ltd. announced the acquisition of an income-producing condominium property in Tokyo’s Minato-ku district. The property, named DeLCCS Moto-Azabu, is strategically located near several metro stations. The acquisition is expected to have minimal impact on the company’s financial results for the fiscal year ending September 30, 2025, but it enhances the company’s portfolio in a prime location.

Dear Life Co., Ltd. Acquires Land for New Condominium Project in Tokyo

Dear Life Co., Ltd. has announced the acquisition of land in Toshima Ward, Tokyo, for a new condominium development project named the Kanamecho Project. The project will feature a five-story building with 43 residential units, and the revenue from this acquisition is expected to be recorded in the fiscal year ending September 2027, with minimal impact on the current fiscal year’s consolidated results.