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

• Market Cap: ¥48.56B
• Dividend Yield: 5.55%
• Average Volume (3M): 98.55K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 1.15
• Revenue Growth: 11.83%
• EPS Growth: 33.96%
• Country: JP
• Employees: 466
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 65.05
• 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

• Rating: 74 Outperform
• Price Target: ¥2,285.00 ▲(12.29% 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.

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

Company Description

Mugen Estate Co., Ltd. (3299) is a prominent real estate company based in Japan, specializing in property development, investment, and management. The company operates primarily in the residential and commercial sectors, focusing on creating high-quality living and working environments. Mugen Estate is known for its innovative approaches to property development, integrating modern design with sustainability, and catering to the evolving needs of the market.

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. demonstrates strong revenue growth and improved profitability margins, indicative of effective operational strategies. Moderate leverage and effective equity utilization are highlighted, although there is room for optimizing the capital structure.

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: Neutral
• Last Price: 2035.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 2035 is below the 20-day moving average (MA) of 2066.60, below the 50-day MA of 2083.48, and above the 200-day MA of 2016.02, indicating a neutral trend. The MACD of -12.20 indicates Positive momentum. The RSI at 44.33 is Neutral, neither overbought nor oversold. The STOCH value of 15.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	―	¥13.83B	6.95	―	4.13%	36.82%	236.52%
3299	―	¥48.56B	7.44	―	5.55%	11.83%	33.96%
8871	―	¥110.36B	17.59	4.48%	3.33%	-2.12%	0.89%
8897	―	¥51.59B	7.34	9.70%	7.37%	-6.09%	-36.16%
3480	―	¥78.70B	13.70	―	2.88%	8.87%	-25.97%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2984	―	¥6.30B	12.39	―	4.10%	-4.49%	-67.82%

Mugen Estate Co., Ltd. Corporate Events

Mugen Estate Announces Interim Dividend for FY2025

Mugen Estate Co., Ltd. has announced an interim dividend of 45 yen per share for the fiscal year ending December 2025, aligning with its forecast. This decision reflects the company’s commitment to returning profits to shareholders and maintaining a stable dividend policy, with a target payout ratio of 40% or more over the medium to long term.

Mugen Estate Reports Q2 Growth and Announces New Subsidiary

Mugen Estate Co., Ltd. reported a 4.6% increase in net sales and an 8.4% rise in profit attributable to owners for the second quarter of 2025, compared to the same period in 2024. The company also announced a new subsidiary, Mugen Asset Management Co., Ltd., which may enhance its market presence and operational capabilities.