KI-Star Real Estate Co., Ltd. (3465) AI Stock Analysis

• Market Cap: ¥127.55B
• Dividend Yield: 2.93%
• Average Volume (3M): 59.22K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.57
• Revenue Growth: 20.83%
• EPS Growth: 57.13%
• Country: JP
• Employees: 2,516
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 280.10
• Shares Outstanding: 15,866,400
• 10 Day Avg. Volume: 47,950
• 30 Day Avg. Volume: 59,216
• PEG Ratio: 0.25
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.21
• P/FCF Ratio: -67.54
• 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
• EPS Forecast (FY): 942.7
• Revenue Forecast (FY): ¥390.75B

• Rating: 74 Outperform
• Price Target: ¥8,404.00 ▲(27.72% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven primarily by solid financial performance with strong growth but meaningful balance-sheet and cash-flow risks (high leverage and negative operating cash flow). Technicals are strong with price above all major moving averages and positive MACD, though momentum appears overbought. Valuation is supportive, with a low P/E and a moderate dividend yield.

Positive Factors

Revenue Growth

Sustained ~20.8% revenue growth indicates expanding demand and successful scaling of core real estate services. Over a 2-6 month horizon this supports recurring cash inflows, better negotiation leverage with tenants/partners, and provides runway for reinvestment in assets and operations.

Operational Margins

Stable gross margins and healthy EBIT/EBITDA margins reflect durable operational efficiency and cost control in property operations. This margin resilience supports profitability through cycles, funds maintenance/upgrades, and underpins sustainable operating cash generation potential over months.

Strengthening Equity Base

An improving equity ratio signals a strengthening capital base which reduces solvency risk and enhances borrowing flexibility. Over the medium term this supports access to financing on better terms and cushions the balance sheet against interest or market shocks in the property sector.

Negative Factors

High Leverage

Elevated debt-to-equity amplifies vulnerability to interest rate rises and cyclical real estate shocks, increasing refinancing and covenant risk. This structural leverage constraint can limit strategic flexibility, force costly deleveraging, or pressure margins if revenues soften.

Negative Operating Cash Flow

Persistent negative operating cash flow indicates core operations currently do not convert accounting profits into cash, raising liquidity risk. Reliance on financing to cover operations can increase interest burden and reduce ability to fund capex or pay down debt over the medium term.

Net Margin Volatility & Cash Conversion

Volatile net margins combined with poor operating cash conversion point to inconsistent bottom-line resilience. This undermines predictability of distributable cash and complicates planning for dividends, reinvestment, or debt servicing across varying market conditions.

KI-Star Real Estate Co., Ltd. Business Overview & Revenue Model

Company Description

KI-Star Real Estate Co.,Ltd operates as a real estate company. The company is involved in the construction and sale of condominiums; sale of detached housing, custom-built housing, and land; and real estate transactions, asset management, and residential land development businesses. It also engages in civil engineering; and pre-owned housing, real estate leasing, and real estate brokerage businesses. The company was incorporated in 1990 and is headquartered in Honjo, Japan.

How the Company Makes Money

KI-Star Real Estate Co., Ltd. generates revenue through multiple streams, including the sale of residential and commercial properties, leasing and property management services, and real estate investment activities. The company profits from the appreciation of property values and rental income from its managed assets. Additionally, strategic partnerships with local governments and other stakeholders facilitate development projects, enhancing their revenue potential. The company also benefits from real estate market trends, leveraging demand fluctuations to optimize pricing and sales strategies.

KI-Star Real Estate Co., Ltd. Financial Statement Overview

Summary

Strong revenue growth and healthy EBIT/EBITDA margins support operating performance, but high leverage (elevated debt-to-equity) and negative operating cash flow reduce financial quality and increase risk.

Income Statement

KI-Star Real Estate shows a robust revenue growth trend, with a significant increase over the past years. Gross profit margin has been stable, indicating consistent cost management. However, the net profit margin has experienced some volatility, reflecting fluctuating profitability. The EBIT and EBITDA margins demonstrate a healthy operational efficiency, though there is room for improvement in net earnings.

Balance Sheet

The company's balance sheet reflects a high debt-to-equity ratio, which could pose financial risks in a downturn. However, equity has grown, and the equity ratio is improving, indicating a strengthening capital base. Return on equity shows positive returns, albeit with a slight decline, which could be a concern if the trend continues.

Cash Flow

KI-Star Real Estate's cash flow from operations has been negative, indicating challenges in generating cash from core activities. However, free cash flow has shown improvement compared to previous periods. The operating cash flow to net income ratio suggests that the company is not effectively converting income into cash, which might affect liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	359.56B	342.55B	283.08B	241.88B	184.39B	155.75B
Gross Profit	44.88B	41.99B	32.58B	37.66B	40.04B	27.75B
EBITDA	18.03B	18.41B	12.52B	20.12B	24.22B	13.06B
Net Income	9.97B	8.86B	6.74B	11.85B	14.75B	7.62B
Balance Sheet
Total Assets	300.41B	294.55B	246.05B	199.46B	163.24B	110.13B
Cash, Cash Equivalents and Short-Term Investments	56.40B	71.91B	56.05B	47.86B	43.04B	30.30B
Total Debt	191.26B	184.00B	154.36B	113.67B	86.10B	60.71B
Total Liabilities	230.86B	225.75B	184.91B	142.93B	114.20B	80.91B
Stockholders Equity	61.22B	60.14B	54.51B	50.99B	44.04B	24.53B
Cash Flow
Free Cash Flow	0.00	-1.04B	-16.09B	-17.01B	-21.51B	11.52B
Operating Cash Flow	0.00	-626.00M	-15.28B	-16.39B	-20.71B	12.01B
Investing Cash Flow	0.00	-7.54B	-4.89B	-2.48B	-3.11B	-348.92M
Financing Cash Flow	0.00	22.21B	27.07B	22.39B	36.56B	4.48B

KI-Star Real Estate Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6580.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3465, the sentiment is Positive. The current price of 6580 is below the 20-day moving average (MA) of 7291.00, below the 50-day MA of 6834.20, and above the 200-day MA of 5610.19, indicating a bullish trend. The MACD of 419.16 indicates Negative momentum. The RSI at 70.93 is Negative, neither overbought nor oversold. The STOCH value of 58.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3465.

KI-Star Real Estate Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8877	79 Outperform	¥116.34B	12.23	―	3.08%	-6.27%	-11.07%
3465	74 Outperform	¥127.55B	9.13	―	2.93%	20.83%	57.13%
8934	73 Outperform	¥137.65B	8.22	17.98%	2.93%	84.20%	137.87%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2980	64 Neutral	¥47.45B	19.15	―	0.45%	-8.33%	-36.89%
3252	62 Neutral	¥73.66B	9.56	―	2.89%	-3.09%	-35.66%
8848	58 Neutral	¥236.37B	19.49	22.14%	1.49%	2.50%	-71.61%

KI-Star Real Estate Co., Ltd. Corporate Events

KI-STAR REAL ESTATE Overhauls Shareholder Benefits to Reward Long-Term Investors

KI-STAR REAL ESTATE will expand and revise its shareholder benefits program to enhance returns for investors and encourage long-term shareholding. The company is shifting from Quo card gifts to higher-value electronic money and digital benefits, adding a March record date, and introducing tiered rewards tied to both shareholdings and a continuous holding period of more than one year.

Under the new scheme, effective from the March 31, 2026 record date, shareholders will receive electronic money benefits ranging from ¥2,000 to ¥10,000 depending on the number of shares held before and after an upcoming stock split. From September 2026 onward, benefits will also require shareholders to have maintained qualifying holdings across multiple consecutive record dates, signaling a strategic move to stabilize the shareholder base and potentially reduce short-term trading volatility.

An online application system will allow eligible shareholders to select from several electronic money options, modernizing the benefit process and potentially broadening its appeal. The revision underscores KI-STAR REAL ESTATE’s intent to strengthen shareholder engagement and align incentives with longer-term ownership, which may support valuation and liquidity in the Prime Market over time.

The most recent analyst rating on (JP:3465) stock is a Buy with a Yen7570.00 price target. To see the full list of analyst forecasts on KI-Star Real Estate Co., Ltd. stock, see the JP:3465 Stock Forecast page.

KI-STAR REAL ESTATE Announces Two-for-One Stock Split and Boosts Authorized Shares

KI-STAR REAL ESTATE will implement a two-for-one stock split of its common shares, effective April 1, 2026, to lower the trading unit price, improve liquidity and broaden its investor base. The split will double the number of issued shares to 31,732,800, while leaving total share capital unchanged and keeping the year-end dividend for the fiscal year ending March 31, 2026, based on pre-split shares.

In conjunction with the split, the company will adjust the exercise price of existing share acquisition rights and amend its Articles of Incorporation to increase the total number of authorized shares to 96,000,000. These measures are designed to align the capital structure with the expanded share count and support future equity-related activities, potentially enhancing market flexibility and accessibility for stakeholders.

The most recent analyst rating on (JP:3465) stock is a Buy with a Yen7570.00 price target. To see the full list of analyst forecasts on KI-Star Real Estate Co., Ltd. stock, see the JP:3465 Stock Forecast page.

KI-STAR REAL ESTATE Hikes FY2026 Forecasts and Boosts Dividend Ahead of Stock Split

KI-STAR REAL ESTATE revised its consolidated earnings forecast for the fiscal year ending March 31, 2026, raising projected net sales from ¥370 billion to ¥383 billion and operating profit from ¥23 billion to ¥26 billion. Profit attributable to owners of parent is now expected at ¥14.3 billion, up about 19% from the previous forecast, reflecting stronger-than-anticipated demand in its operating areas despite cost pressures and higher mortgage rates.

On a non-consolidated basis, the company lifted its net sales forecast to ¥220 billion and ordinary profit to ¥16 billion, marking increases of 4.8% and 36.8% respectively versus earlier guidance. In line with the improved earnings outlook, KI-STAR also raised its year-end dividend forecast from ¥100 to ¥130 per share, bringing the full-year dividend to ¥230, and clarified that these per-share figures are calculated before the planned 2-for-1 stock split effective April 1, 2026.

The most recent analyst rating on (JP:3465) stock is a Buy with a Yen7570.00 price target. To see the full list of analyst forecasts on KI-Star Real Estate Co., Ltd. stock, see the JP:3465 Stock Forecast page.

KI-Star Real Estate Highlights FY3/26 Q3 Results and Homeownership Mission

KI-Star Real Estate Co., Ltd. has presented materials related to its financial results for the third quarter of the fiscal year ending March 2026, underscoring its strategic focus on accessible home ownership. The company reiterates its purpose of delivering enriching, enjoyable and pleasant lifestyles, signaling a continued emphasis on residential real estate solutions that support broad-based homeownership and strengthen its position in the Japanese housing market.

The most recent analyst rating on (JP:3465) stock is a Buy with a Yen7570.00 price target. To see the full list of analyst forecasts on KI-Star Real Estate Co., Ltd. stock, see the JP:3465 Stock Forecast page.

KI-Star Real Estate Lifts Full-Year Outlook on Surging Nine-Month Profits and Higher Dividend

KI-Star Real Estate reported strong results for the nine months to December 31, 2025, with net sales rising 18.9% year on year to ¥276.9 billion and profit attributable to owners of parent surging 82.4% to ¥10.7 billion, driving a sharp increase in earnings per share. Total assets expanded to ¥336.9 billion and shareholders’ equity improved, while the equity ratio remained around 20%, underscoring growth financed alongside a still-leveraged balance sheet.

Reflecting this momentum, the company revised its full-year forecast upward, now projecting net sales of ¥383.0 billion and profit attributable to owners of parent of ¥14.3 billion, gains of 11.8% and 61.4% respectively. KI-Star also raised its dividend outlook, lifting the expected full-year payout to ¥230 per share from ¥151 in the prior year, signaling management’s confidence and offering a tangible benefit to shareholders amid accelerating earnings growth.

The most recent analyst rating on (JP:3465) stock is a Buy with a Yen7570.00 price target. To see the full list of analyst forecasts on KI-Star Real Estate Co., Ltd. stock, see the JP:3465 Stock Forecast page.