Azuma House Co., Ltd. (3293) AI Stock Analysis

• Market Cap: ¥6.19B
• Dividend Yield: 4.55%
• Average Volume (3M): 2.84K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.26
• Revenue Growth: 0.61%
• EPS Growth: -16.11%
• Country: JP
• Employees: 239
• Sector: Real Estate
• Sector Strength: 55
• Industry: Real Estate - Development
• EPS (TTM): 16.71
• Shares Outstanding: 8,063,400
• 10 Day Avg. Volume: 3,100
• 30 Day Avg. Volume: 2,836
• 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: ¥796.20
• Price Target Upside: 3.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ¥796.00 ▲(3.51% Upside)

Azuma House Co., Ltd. shows strong valuation metrics with a low P/E ratio and high dividend yield, making it attractive to value investors. However, financial performance is mixed due to high leverage and limited profitability. Technical indicators suggest a neutral market position.

Azuma House Co., Ltd. Business Overview & Revenue Model

Company Description

Azuma House Co., Ltd. (3293) is a Japanese real estate company primarily engaged in the development, sale, and management of residential and commercial properties. The company operates within the real estate sector, focusing on the construction and sale of condominium units and other residential buildings. Additionally, Azuma House Co., Ltd. offers property management services and engages in the leasing of office spaces and other commercial properties.

How the Company Makes Money

Azuma House Co., Ltd. generates revenue through several key streams. The primary source of income is from the sale of newly developed residential properties, particularly condominiums. This involves planning, constructing, and selling units to individual buyers. Additionally, the company earns income through property management services, which include maintenance and administration of residential and commercial buildings for property owners. Leasing is another significant revenue stream, where the company rents out office spaces and commercial properties to businesses, generating consistent rental income. Partnerships with construction firms and real estate agents also play a role in driving sales and expanding their market reach, contributing to the company's overall financial performance.

Azuma House Co., Ltd. Financial Statement Overview

Summary

Azuma House Co., Ltd. presents strong operational efficiency and stable revenue generation. However, profitability is limited by high expenses and significant leverage. The recent improvement in cash flow is positive, but maintaining consistent free cash flow remains a challenge.

Income Statement

Azuma House Co., Ltd. shows a stable gross profit margin averaging around 32% over the years, indicating efficient cost management. The net profit margin is relatively low, hovering around 6%, suggesting limited profitability after expenses. Revenue growth has been inconsistent, with a slight decline in recent years. The EBIT and EBITDA margins are healthy, reflecting good operational efficiency. Overall, the company demonstrates solid revenue generation but faces challenges in translating this into net income.

Balance Sheet

The company's debt-to-equity ratio is high, averaging around 0.8, indicating significant leverage which is common in the real estate industry. Return on Equity (ROE) is moderate, showing the company generates reasonable returns on shareholders' equity. The equity ratio is also moderate, suggesting a balanced approach between debt and equity financing. The balance sheet reflects a stable financial structure but highlights potential risks related to high leverage.

Cash Flow

Operating cash flow has shown variability, with significant growth in the latest period, indicating improved cash generation from core operations. Free cash flow has been inconsistent, but the recent positive trend is a good sign. The operating cash flow to net income ratio reflects efficient conversion of income to cash. While improvements are notable, the cash flow statement highlights challenges in sustaining positive free cash flow consistently.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.28B	13.28B	13.09B	14.16B	13.91B	14.29B
Gross Profit	4.52B	4.44B	4.42B	4.64B	4.51B	4.45B
EBITDA	2.05B	1.81B	1.83B	1.75B	1.79B	1.74B
Net Income	765.01M	765.33M	797.07M	723.94M	755.92M	760.11M
Balance Sheet
Total Assets	31.74B	31.74B	32.44B	30.88B	31.33B	31.28B
Cash, Cash Equivalents and Short-Term Investments	4.55B	4.55B	4.64B	4.43B	5.03B	5.06B
Total Debt	12.55B	12.55B	13.61B	12.62B	13.39B	13.51B
Total Liabilities	14.67B	14.67B	15.85B	14.74B	15.53B	15.51B
Stockholders Equity	17.07B	17.07B	16.59B	16.14B	15.80B	15.30B
Cash Flow
Free Cash Flow	0.00	1.19B	-1.02B	645.18M	844.58M	1.27B
Operating Cash Flow	0.00	2.71B	793.95M	1.29B	1.60B	2.36B
Investing Cash Flow	0.00	-1.44B	-1.13B	-903.58M	-446.41M	-877.62M
Financing Cash Flow	0.00	-1.30B	653.01M	-1.17B	-869.55M	-338.14M

Azuma House Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 769.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3293, the sentiment is Positive. The current price of 769 is above the 20-day moving average (MA) of 758.30, above the 50-day MA of 749.10, and above the 200-day MA of 734.21, indicating a bullish trend. The MACD of 4.86 indicates Negative momentum. The RSI at 64.00 is Neutral, neither overbought nor oversold. The STOCH value of 82.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3293.

Azuma House Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2981	84 Outperform	¥13.20B	6.63		3.31%	36.82%	236.52%
2983	73 Outperform	¥11.50B	6.59		2.86%	24.65%	361.83%
3293	67 Neutral	¥6.19B	8.74	4.41%	4.55%	0.61%	-16.11%
8887	63 Neutral	¥18.69B	27.94		0.77%	13.72%	-372.20%
Sector *	63 Neutral	$7.06B	14.07	-0.50%	6.96%	4.08%	-25.24%
2984	63 Neutral	¥6.17B	12.12		4.20%	-4.49%	-67.82%
8886	47 Neutral		―		―	-33.09%	-1.82%