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

• Market Cap: ¥47.91B
• Dividend Yield: 4.5%
• Average Volume (3M): 98.65K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 1.24
• Revenue Growth: 28.12%
• EPS Growth: 110.57%
• Country: JP
• Employees: 466
• Sector: Real Estate
• Sector Strength: 55
• Industry: Real Estate - Development
• EPS (TTM): 77.39
• Shares Outstanding: 24,361,000
• 10 Day Avg. Volume: 115,410
• 30 Day Avg. Volume: 98,649
• PEG Ratio: 0.50
• Price to Book (P/B): 1.60
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥2,238.00 ▲(12.01%Upside)

Mugen Estate Co., Ltd. scores well due to its strong financial performance and attractive valuation metrics, with a low P/E ratio and high dividend yield highlighting its potential undervaluation. However, technical analysis suggests caution due to mild bearish indicators and low momentum. The absence of recent earnings call data or significant corporate events means these factors do not influence the score.

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 multiple streams primarily centered around its core real estate operations. The company makes money by purchasing used properties, renovating them, and then selling these properties at a higher price, capturing the value added through the improvements. Additionally, Mugen Estate earns income from its leasing and property management services, which include managing rental properties on behalf of owners and collecting rental income. Brokerage services also contribute to its revenue, where the company acts as an intermediary in real estate transactions, earning fees and commissions from successful deals. Strategic partnerships with financial institutions and construction companies further enhance its business operations, allowing for coordinated projects and financial backing, thereby supporting its revenue generation activities.

Mugen Estate Co., Ltd. Financial Statement Overview

Summary

Mugen Estate Co., Ltd. exhibits robust financial health with strong revenue growth and improved profitability margins, indicative of 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 to further strengthen financial resilience.

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: Positive
• Last Price: 1998.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3299, the sentiment is Positive. The current price of 1998 is above the 20-day moving average (MA) of 1996.00, below the 50-day MA of 2055.23, and above the 200-day MA of 1854.53, indicating a neutral trend. The MACD of -19.33 indicates Negative momentum. The RSI at 48.05 is Neutral, neither overbought nor oversold. The STOCH value of 6.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	81 Outperform	¥9.67B	6.88		4.57%	18.93%	77.53%
3480	77 Outperform	¥81.78B	13.67		1.91%	9.00%	-21.69%
3299	74 Outperform	¥47.91B	6.46		4.50%	28.12%	110.57%
Sector *	70 Neutral	¥234.96B	14.48	10.62%	29.30%	17.27%	17.55%
8897	63 Neutral	€51.32B	6.05	11.09%	12.14%	6.12%	-17.70%
8871	63 Neutral	$113.08B	22.01	3.73%	3.61%	17.91%	33.58%
2984	59 Neutral	¥5.71B	8.30		4.48%	4.11%	-54.29%

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.