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

• Market Cap: ¥6.44B
• Dividend Yield: 4.53%
• Average Volume (3M): 4.79K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.25
• Revenue Growth: -15.55%
• EPS Growth: -41.48%
• Country: JP
• Employees: 239
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 16.63
• Shares Outstanding: 8,063,400
• 10 Day Avg. Volume: 6,880
• 30 Day Avg. Volume: 4,786
• PEG Ratio: -1.96
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 5.07
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥888.00 ▲(13.27% Upside)
• Action: Upgraded Date: 11/15/25
• Date: Action: Upgraded 11/15/25

Azuma House Co., Ltd. scores well due to its attractive valuation and strong technical indicators, suggesting potential for price appreciation. However, financial performance is mixed, with profitability and leverage concerns that need addressing. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Healthy gross and operating margins

Sustained gross margins (~32%) and healthy EBIT/EBITDA margins indicate durable operational efficiency in homebuilding. This margin structure provides a buffer against cost inflation, supports reinvestment in new projects, and helps preserve cash generation even if top-line growth is uneven over the next several quarters.

Improving operating cash flow

Recent material improvement in operating cash flow signals better conversion of project revenue to cash—critical for a development firm. Strong OCF reduces reliance on external financing for land acquisition and starts, improving funding flexibility and resilience over the next 2–6 months.

Focused residential development model

A clear, asset-backed business model centered on developed-for-sale housing provides direct exposure to residential demand and the ability to capture development spreads. The firm's integrated development and transaction services offer predictable project pipelines and structural market relevance in Japan's housing sector.

Negative Factors

High leverage

A debt-to-equity ratio near 0.8 highlights meaningful leverage common in real estate but elevates refinancing, interest, and liquidity risk. In a sector with lumpy cash flows, sustained leverage constrains financial flexibility and raises vulnerability to rate moves or slower sales over the medium term.

Weak top-line momentum

A nearly 20% decline in reported revenue signals weakening demand or project timing shifts. Sustained top-line contraction reduces scale benefits, pressures fixed-cost absorption, and makes it harder to sustain margins and OCF, stressing project pipelines and the ability to fund new developments over coming quarters.

Low net margin and EPS decline

A modest net margin (~6%) combined with steep EPS decline indicates limited profitability after expenses and earnings volatility. This reduces retained earnings for balance sheet strengthening and heightens sensitivity to cost or revenue shocks, constraining capital for growth and increasing reliance on external funding.

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

Company Description

AZUMA HOUSE Co., Ltd. engages in the real estate and construction businesses in Japan. The company constructs and sells land, homes, built-for-sale homes, condominiums, and real estate; and offers custom construction, real estate brokerage, reform, facility/store construction, public, insurance services, etc. It is also involved in real estate leasing and rental management, and rental brokerage businesses; asset management proposal type rental housing construction, built-for-sale rental housing sale, used profitable property sale activities, etc.; and hotel and restaurant businesses. AZUMA HOUSE Co., Ltd. was incorporated in 1977 and is based in Wakayama, Japan.

How the Company Makes Money

Azuma House generates revenue through multiple streams, primarily from the sale and leasing of residential and commercial properties. The company earns money by constructing and selling custom homes, which are tailored to meet the specific needs of clients. Additionally, Azuma House generates income from leasing residential units and commercial spaces within its developed properties. The company may also engage in property management services, which provide ongoing revenue through service fees. Strategic partnerships with suppliers and contractors can enhance cost efficiencies and project delivery, further contributing to profitability.

Azuma House Co., Ltd. Financial Statement Overview

Summary

Azuma House Co., Ltd. demonstrates strong operational efficiency and stable revenue generation. However, profitability is constrained by high expenses, and the company faces potential risks due to significant leverage. Recent improvements in cash flow are 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.13B	13.28B	13.09B	14.16B	13.91B	14.29B
Gross Profit	4.46B	4.52B	4.42B	4.64B	4.51B	4.45B
EBITDA	2.01B	1.81B	1.83B	1.75B	1.79B	1.74B
Net Income	708.56M	765.33M	797.07M	723.94M	755.92M	760.11M
Balance Sheet
Total Assets	31.62B	31.74B	32.44B	30.88B	31.33B	31.28B
Cash, Cash Equivalents and Short-Term Investments	4.57B	4.55B	4.64B	4.43B	5.03B	5.06B
Total Debt	12.57B	12.55B	13.70B	12.62B	13.39B	13.51B
Total Liabilities	14.55B	14.67B	15.85B	14.74B	15.53B	15.51B
Stockholders Equity	17.06B	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: 784.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 784 is below the 20-day moving average (MA) of 790.95, below the 50-day MA of 788.14, and above the 200-day MA of 761.91, indicating a bullish trend. The MACD of 1.29 indicates Negative momentum. The RSI at 60.52 is Neutral, neither overbought nor oversold. The STOCH value of 64.44 is Neutral, 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
1847	79 Outperform	¥43.56B	4.48	―	3.01%	-1.93%	47.35%
1814	74 Outperform	¥42.26B	6.89	―	3.86%	14.97%	72.48%
3293	73 Outperform	¥6.44B	11.79	2.90%	4.53%	-15.55%	-41.48%
1925	73 Outperform	¥3.42T	9.18	11.39%	2.93%	1.93%	5.42%
3299	69 Neutral	¥57.93B	4.43	―	6.02%	1.33%	9.59%
8897	68 Neutral	¥56.06B	6.36	6.98%	7.35%	-21.50%	-56.82%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%