Mugen Estate Co., Ltd. (3299) AI Stock Analysis

• Market Cap: ¥44.10B
• Dividend Yield: 6.14%
• Average Volume (3M): 98.55K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 1.10
• Revenue Growth: 1.33%
• EPS Growth: 9.59%
• Country: JP
• Employees: 466
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 37.47
• Shares Outstanding: 24,361,000
• 10 Day Avg. Volume: 88,690
• 30 Day Avg. Volume: 98,553
• PEG Ratio: 0.11
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 17.92
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥2,285.00 ▲(24.25% Upside)

Mugen Estate Co., Ltd. scores well due to its strong financial performance and attractive valuation, with a low P/E ratio and high dividend yield. However, technical analysis indicates a lack of strong upward momentum, which tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth reflects Mugen Estate's ability to capture market opportunities and expand its customer base, enhancing long-term business sustainability.

Profitability Margins

Improved profitability margins indicate effective cost management and operational efficiency, contributing to stronger financial health and competitive positioning.

Equity Utilization

High return on equity demonstrates effective use of shareholder funds, supporting sustainable growth and shareholder value creation over the long term.

Negative Factors

Cash Flow Generation

The low operating cash flow to net income ratio suggests challenges in converting earnings into cash, which could impact liquidity and investment capacity.

Debt Levels

Moderate leverage indicates reliance on debt financing, which could increase financial risk and limit flexibility in adverse market conditions.

Free Cash Flow

Negative free cash flow growth suggests potential issues in maintaining liquidity, which could constrain future investments and operational expansion.

Mugen Estate Co., Ltd. Business Overview & Revenue Model

Company Description

MUGEN ESTATE Co.,Ltd. purchases and resells used real estate properties in Japan. It operates through Real Estate Trading Business, and Real Estate Leasing and Other Business segments. The company's property portfolio includes residential-type and investment-type properties, including condominiums, office blocks, buildings, and apartments; and detached houses. It is also involved in property leasing; interior and exterior refurbishment; property brokerage; and property management businesses. The company was founded in 1990 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mugen Estate Co., Ltd. generates revenue through several key streams. Primarily, the company earns income from the sale and leasing of residential properties, where it develops and sells condominiums and single-family homes. Additionally, it engages in commercial property development, leasing office spaces and retail outlets to businesses. The company also generates revenue through property management services, which include maintenance and operational management for both residential and commercial properties. Significant partnerships with local governments and private developers enhance its project pipeline and provide access to lucrative development opportunities, contributing positively to its earnings. Furthermore, Mugen Estate may benefit from strategic collaborations in sustainable building practices, positioning it favorably in a market increasingly focused on eco-friendly developments.

Mugen Estate Co., Ltd. Financial Statement Overview

Summary

Mugen Estate Co., Ltd. exhibits robust financial health with strong revenue growth and improved profitability margins, indicating effective operational strategies. The balance sheet reflects moderate leverage and effective equity utilization, although there is scope for optimizing the capital structure. Cash flow management shows stability, although operational cash generation could be enhanced.

Income Statement

Mugen Estate Co., Ltd. demonstrates strong revenue growth, with a significant increase from the previous year. The gross profit margin improved to 26.64%, and the net profit margin increased to 9.79%, indicating enhanced profitability. Both EBIT and EBITDA margins have also shown positive trends, reflecting efficient cost management and operational strength.

Balance Sheet

The company's debt-to-equity ratio stands at 1.52, showing moderate leverage. Return on equity is robust at 18.98%, highlighting effective utilization of equity. However, the equity ratio is 36.65%, suggesting cautious asset financing primarily through equity, which is a stability indicator but also shows room for optimizing capital structure.

Cash Flow

The free cash flow growth rate is negative, primarily due to a decrease in operating cash flow. The operating cash flow to net income ratio is 0.43, suggesting that cash generation from operations can be improved. The free cash flow remains positive, indicating overall liquidity is maintained despite fluctuations in cash flow components.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	63.63B	62.19B	51.64B	31.24B	33.96B	34.86B
Gross Profit	17.32B	16.57B	11.41B	7.15B	5.79B	5.86B
EBITDA	10.98B	10.45B	6.68B	3.66B	2.98B	3.36B
Net Income	6.34B	6.09B	3.65B	1.56B	1.28B	599.00M
Balance Sheet
Total Assets	91.96B	87.50B	80.36B	77.45B	62.78B	62.49B
Cash, Cash Equivalents and Short-Term Investments	22.08B	22.02B	20.42B	17.75B	17.57B	16.07B
Total Debt	52.37B	48.82B	47.65B	49.31B	36.86B	37.12B
Total Liabilities	58.72B	55.43B	52.52B	52.84B	39.23B	39.88B
Stockholders Equity	33.24B	32.08B	27.84B	24.60B	23.55B	22.60B
Cash Flow
Free Cash Flow	0.00	2.42B	4.86B	-11.65B	2.13B	9.19B
Operating Cash Flow	0.00	2.60B	5.37B	-11.49B	3.31B	10.98B
Investing Cash Flow	0.00	-312.00M	-498.00M	-157.00M	-1.22B	-1.94B
Financing Cash Flow	0.00	-825.00M	-2.15B	11.85B	-621.00M	-6.66B

Mugen Estate Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1839.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3299, the sentiment is Negative. The current price of 1839 is below the 20-day moving average (MA) of 1854.75, below the 50-day MA of 1970.96, and below the 200-day MA of 2030.38, indicating a bearish trend. The MACD of -40.33 indicates Negative momentum. The RSI at 39.12 is Neutral, neither overbought nor oversold. The STOCH value of 59.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3299.

Mugen Estate Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2981	84 Outperform	¥15.37B	7.37	―	2.21%	33.87%	142.66%
3299	74 Outperform	¥44.10B	7.56	―	6.14%	1.33%	9.59%
8871	69 Neutral	¥113.25B	18.05	4.48%	3.31%	-2.12%	0.89%
8897	68 Neutral	¥51.45B	9.83	6.98%	7.37%	-21.50%	-56.82%
3480	67 Neutral	¥75.90B	14.30	―	3.00%	9.37%	-31.19%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2984	65 Neutral	¥6.29B	44.96	―	4.14%	-32.57%	-91.67%

Mugen Estate Co., Ltd. Corporate Events

Mugen Estate Revises Earnings Forecast but Maintains Dividend

Mugen Estate Co., Ltd. has revised its consolidated earnings forecast for the fiscal year ending December 2025, indicating a decrease in expected net sales and profits compared to previous forecasts. Despite the downward revision, the company maintains its year-end dividend forecast, emphasizing its commitment to returning profits to shareholders and sustaining a stable dividend policy.

Mugen Estate Reports Q3 2025 Financial Results with Revised Full-Year Forecast

Mugen Estate Co., Ltd. reported a decrease in its financial performance for the third quarter of 2025, with declines in net sales, operating income, and profit attributable to owners compared to the previous year. Despite the downturn, the company has revised its full-year forecast upwards, indicating an optimistic outlook for the remainder of the fiscal year. The introduction of a new subsidiary, Mugen Asset Management Co., Ltd., suggests strategic expansion efforts to enhance its market position.