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

• Market Cap: ¥45.51B
• Dividend Yield: 5.95%
• Average Volume (3M): 118.20K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 1.25
• Revenue Growth: 28.12%
• EPS Growth: 110.57%
• Country: JP
• Employees: 466
• Sector: Real Estate
• Sector Strength: 64
• Industry: Real Estate - Development
• EPS (TTM): 77.39
• Shares Outstanding: 24,361,000
• 10 Day Avg. Volume: 109,520
• 30 Day Avg. Volume: 118,196
• PEG Ratio: 0.32
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,240.00
• Price Target Upside: 20.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ¥2,047.00 ▲(9.99%Upside)

Mugen Estate Co., Ltd. demonstrates strong financial performance with robust revenue growth and attractive valuation metrics, including a low P/E ratio and a high dividend yield. However, technical indicators suggest bearish momentum, which could be a potential risk in the short term. The absence of notable corporate events or earnings call data means these factors do not influence the overall score.

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

Company Description

Mugen Estate Co., Ltd. is a Japan-based real estate company primarily engaged in the purchase, resale, and brokerage of used residential and investment properties. The company operates in two primary segments: the Real Estate Trading segment, which deals with the acquisition, renovation, and resale of pre-owned condominiums, detached houses, and income-producing properties, and the Real Estate Leasing and Brokerage segment, which focuses on property management and leasing services.

How the Company Makes Money

Mugen Estate Co., Ltd. generates revenue through several key streams. The primary source of income is the Real Estate Trading segment, where the company purchases pre-owned residential and investment properties, renovates them to enhance value, and subsequently resells them at a profit. This segment benefits from the company's expertise in identifying undervalued properties and adding value through strategic improvements. Additionally, the Real Estate Leasing and Brokerage segment contributes to revenue by providing property management services, which include tenant acquisition, rent collection, and maintenance for property owners. By leveraging its extensive network and market knowledge, Mugen Estate effectively manages and leases properties, ensuring a stable income from these activities. The company's strategic approach to property selection and enhancement, coupled with its comprehensive property management services, are significant factors in its financial performance.

Mugen Estate Co., Ltd. Financial Statement Overview

Summary

Mugen Estate Co., Ltd. shows robust financial health with strong revenue growth and improved profitability margins. The balance sheet reflects moderate leverage and effective equity utilization, though there is room for optimizing the capital structure. Cash flow management is stable, but operational cash generation could be improved.

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

Mugen Estate Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1861.00
• 50DMA: Negative
• 100DMA: Negative
• 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:3299, the sentiment is Negative. The current price of 1861 is below the 20-day moving average (MA) of 1923.95, below the 50-day MA of 1984.22, and below the 200-day MA of 1897.09, indicating a neutral trend. The MACD of -24.52 indicates Negative momentum. The RSI at 42.28 is Neutral, neither overbought nor oversold. The STOCH value of 49.96 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	78 Outperform	¥10.26B	7.30		4.31%	18.93%	77.53%
3480	77 Outperform	¥84.18B	14.07		1.86%	9.00%	-21.69%
Sector *	70 Outperform	¥232.21B	14.54	10.69%	3.80%	18.27%	21.04%
3299	70 Outperform	¥45.51B	6.14		5.95%	28.12%	110.57%
8871	66 Neutral	¥113.42B	22.07	3.73%	3.00%	17.91%	33.58%
2984	63 Neutral	¥5.76B	8.37		4.45%	4.11%	-54.29%
8897	63 Neutral	¥51.05B	6.01	11.09%	7.96%	6.12%	-17.70%

Mugen Estate Co., Ltd. Corporate Events

MUGEN ESTATE Issues First Series of Unsecured Corporate Bonds

MUGEN ESTATE Co., Ltd. announced the issuance of its first series of unsecured corporate bonds, amounting to 36 billion yen, with an interest rate of 2.5% per annum. The proceeds from these bonds will be used to replenish working capital and fund real estate acquisitions, reflecting the company’s ongoing strategic efforts to strengthen its financial position and expand its real estate portfolio.

MUGEN ESTATE Introduces Restricted Stock Incentive Plan for Employees

MUGEN ESTATE Co., Ltd. has announced the introduction of a restricted stock incentive plan for its employee shareholding association, commemorating its 35th anniversary. This initiative aims to enhance employee benefits by allowing employees to acquire company stock, thereby aligning their interests with shareholders and promoting long-term corporate value growth.

Mugen Estate Reports Strong Q1 2025 Results and Strategic Expansion

Mugen Estate Co., Ltd. reported a significant increase in its financial performance for the first quarter of 2025, with net sales rising by 39.4% and profit attributable to owners of the parent increasing by 176.5% compared to the previous year. The company also announced the establishment of a new subsidiary, Mugen Asset Management Co., Ltd., indicating a strategic expansion in its operations. This growth positions Mugen Estate favorably within the industry, potentially enhancing its market share and providing positive implications for stakeholders.