Tosei Reit Investment Corporation (3451) AI Stock Analysis

• Market Cap: ¥54.28B
• Dividend Yield: 5.27%
• Average Volume (3M): 606.00
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.22
• Revenue Growth: 3.63%
• EPS Growth: 1.58%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 48
• Industry: REIT - Diversified
• EPS (TTM): 7501.48
• Shares Outstanding: 376,455
• 10 Day Avg. Volume: 739
• 30 Day Avg. Volume: 606
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥161,966.00
• Price Target Upside: 12.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥161,966 ▲(12.79% Upside)

The stock's strong technical momentum and solid financial performance drive its high score. While its valuation offers a decent yield, the elevated P/E ratio and high leverage warrant cautious optimism.

Tosei Reit Investment Corporation Business Overview & Revenue Model

Company Description

Tosei Reit Investment Corporation (3451) is a Japanese real estate investment trust (REIT) that primarily focuses on the acquisition, management, and leasing of office buildings, residential properties, commercial facilities, and hotels. The company aims to generate stable income and achieve long-term growth through strategic investments in real estate properties, primarily located in the greater Tokyo area and other major cities in Japan.

How the Company Makes Money

Tosei Reit Investment Corporation generates revenue primarily through the leasing of its real estate portfolio, which includes office buildings, residential properties, commercial facilities, and hotels. The company collects rent from tenants and aims to maintain high occupancy rates to ensure steady cash flows. Additionally, Tosei Reit may engage in property sales when market conditions are favorable, contributing to capital gains. The company relies on strategic partnerships with property management firms to optimize operations and enhance the value of its assets. Key factors contributing to its earnings include effective property management, strategic property acquisitions, and maintaining a diversified portfolio to mitigate risks.

Tosei Reit Investment Corporation Financial Statement Overview

Summary

The company shows strong revenue growth and profitability margins, but the moderately high debt-to-equity ratio and negative free cash flow due to high capital expenditures present some risks.

Income Statement

The income statement reflects a strong financial performance with consistent revenue growth, reaching 7.24 billion JPY in the latest period. This represents a 3.38% increase from the previous year. The gross profit margin is robust at 56.12%, while the net profit margin is also strong at 38.70%. EBIT and EBITDA margins are impressive at 47.41% and 57.55% respectively, indicating efficient cost management and high profitability.

Balance Sheet

The balance sheet shows a solid equity base with stockholders' equity at 42.99 billion JPY, representing an equity ratio of 47.79%. However, the debt-to-equity ratio stands at 1.00, which is moderately high, reflecting significant leverage that could pose risks in volatile markets. Return on equity is commendable at 6.52%, indicating effective use of shareholder funds.

Cash Flow

The cash flow statement indicates challenges in free cash flow, which is negative at -557.20 million JPY due to high capital expenditures. However, operating cash flow remains strong at 3.94 billion JPY, with a solid operating cash flow to net income ratio of 1.41, demonstrating the company's ability to generate cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2019
Income Statement
Total Revenue	7.24B	7.24B	7.00B	6.74B	6.47B	5.26B
Gross Profit	4.06B	4.06B	3.48B	3.80B	3.76B	3.18B
EBITDA	4.50B	4.17B	4.15B	4.03B	3.95B	2.89B
Net Income	2.88B	2.80B	2.68B	2.60B	2.58B	2.24B
Balance Sheet
Total Assets	90.11B	89.97B	86.61B	85.69B	79.99B	62.40B
Cash, Cash Equivalents and Short-Term Investments	8.67B	2.06B	2.39B	2.24B	2.65B	1.26B
Total Debt	42.90B	42.90B	41.30B	40.90B	38.50B	29.20B
Total Liabilities	47.10B	46.98B	45.34B	44.86B	42.11B	32.29B
Stockholders Equity	43.01B	42.99B	41.27B	40.83B	37.88B	30.11B
Cash Flow
Free Cash Flow	-566.08M	-557.20M	2.28B	-2.78B	925.66M	-8.33B
Operating Cash Flow	3.58B	3.94B	3.68B	3.73B	4.42B	3.76B
Investing Cash Flow	-8.19B	-4.45B	-1.36B	-6.31B	-3.50B	-11.81B
Financing Cash Flow	3.59B	368.99M	-1.97B	2.57B	283.74M	8.14B

Tosei Reit Investment Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 143600.00
• 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:3451, the sentiment is Positive. The current price of 143600 is above the 20-day moving average (MA) of 141410.00, above the 50-day MA of 136906.00, and above the 200-day MA of 126981.62, indicating a bullish trend. The MACD of 2215.74 indicates Negative momentum. The RSI at 67.70 is Neutral, neither overbought nor oversold. The STOCH value of 72.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3451.

Tosei Reit Investment Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3451	78 Outperform	¥54.28B	19.04		5.27%	3.63%	1.58%
3476	74 Outperform	¥88.60B	17.83		5.62%	79.23%	8.31%
3488	73 Outperform	¥29.68B	16.85		5.93%	27.97%	9.12%
Sector *	63 Neutral	$6.82B	13.32	-1.02%	7.20%	3.67%	-27.43%