Kasumigaseki Capital Co., Ltd. (3498) AI Stock Analysis

• Market Cap: ¥164.06B
• Dividend Yield: 0.99%
• Average Volume (3M): 636.93K
• Price to Earnings (P/E): 26.2
• Beta (1Y): 1.53
• Revenue Growth: 57.67%
• EPS Growth: 41.43%
• Country: JP
• Employees: 436
• Sector: Industrials
• Sector Strength: 89
• Industry: Conglomerates
• EPS (TTM): 162.42
• Shares Outstanding: 9,884,580
• 10 Day Avg. Volume: 1,273,970
• 30 Day Avg. Volume: 636,926
• PEG Ratio: 0.23
• Price to Book (P/B): 3.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.04
• 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: ¥13,893.00
• Price Target Upside: -19.04% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥18,158.00 ▲(5.82%Upside)

Kasumigaseki Capital Co., Ltd. demonstrates strong financial performance and bullish market momentum. While the high growth and profitability are promising, the significant leverage and potential overvaluation are concerns. The lack of earnings call data limits insights into management's guidance and market sentiment.

Kasumigaseki Capital Co., Ltd. Business Overview & Revenue Model

Company Description

Kasumigaseki Capital Co., Ltd. (3498) is a Japanese company that operates primarily in the real estate and renewable energy sectors. The company engages in real estate development, property management, and leasing services, as well as the development and management of solar power plants. This diversified approach allows Kasumigaseki Capital to address various market needs within the real estate and energy industries.

How the Company Makes Money

Kasumigaseki Capital Co., Ltd. generates revenue through a combination of real estate and renewable energy operations. In the real estate sector, the company earns money by developing properties and subsequently selling or leasing them. The leasing operations provide a steady stream of rental income. Additionally, the company manages properties, which can generate fees and additional income. In the renewable energy sector, Kasumigaseki Capital develops solar power plants, which produce electricity that can be sold to utility companies or other consumers. This sector benefits from government incentives for renewable energy, which can enhance profitability. The company may also engage in strategic partnerships with other firms to enhance its market reach and operational efficiency, although specific partnership details are not disclosed.

Kasumigaseki Capital Co., Ltd. Financial Statement Overview

Summary

Kasumigaseki Capital Co., Ltd. exhibits strong revenue growth and profitability, with a robust ROE and healthy profit margins. However, high leverage and negative cash flows pose potential risks to financial stability.

Income Statement

Kasumigaseki Capital Co., Ltd. has demonstrated significant revenue growth over the years, with a notable increase of 76.19% from 2023 to 2024. The gross profit margin and net profit margin are strong, at 28.26% and 7.64% respectively for 2024. EBIT and EBITDA margins are also healthy, indicating efficient cost management. However, the rapid growth could pose sustainability challenges in maintaining margins.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.55 for 2024, suggesting significant leverage. While the equity ratio is reasonable at 34.85%, the company's reliance on debt could pose risks if revenue growth slows. Return on Equity (ROE) is robust at 18.57%, showcasing effective utilization of equity to generate profits.

Cash Flow

Cash flow analysis shows challenges, with negative operating cash flow in recent years, indicating potential liquidity issues. Despite free cash flow growth, the negative free cash flow suggests that the company is spending more on capital investments than it generates from operations. This could affect long-term financial stability if it persists.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	65.69B	37.28B	20.78B	14.30B	8.01B
Gross Profit	18.56B	10.10B	6.18B	4.41B	2.32B
EBITDA	9.30B	4.64B	2.15B	1.41B	429.54M
Net Income	5.02B	2.05B	1.02B	793.53M	134.52M
Balance Sheet
Total Assets	77.55B	43.78B	30.44B	15.04B	8.44B
Cash, Cash Equivalents and Short-Term Investments	11.06B	5.90B	5.39B	3.61B	2.34B
Total Debt	41.89B	28.28B	18.41B	7.51B	3.97B
Total Liabilities	49.81B	32.10B	21.08B	10.13B	4.57B
Stockholders Equity	27.03B	11.18B	9.28B	4.88B	3.87B
Cash Flow
Free Cash Flow	-10.35B	-8.39B	-11.90B	-700.06M	165.73M
Operating Cash Flow	-8.45B	-7.91B	-11.69B	972.44M	285.42M
Investing Cash Flow	-4.81B	-1.15B	-436.58M	-1.64B	-446.48M
Financing Cash Flow	18.41B	9.49B	13.90B	2.20B	1.67B

Kasumigaseki Capital Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17160.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3498, the sentiment is Positive. The current price of 17160 is above the 20-day moving average (MA) of 14787.50, above the 50-day MA of 13620.40, and above the 200-day MA of 13765.10, indicating a bullish trend. The MACD of 887.54 indicates Negative momentum. The RSI at 76.22 is Negative, neither overbought nor oversold. The STOCH value of 84.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3498.

Kasumigaseki Capital Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3498	75 Outperform	¥164.06B	26.18		0.99%	57.67%	41.43%
9003	73 Outperform	¥224.66B	10.02		2.61%	8.20%	39.32%
3232	69 Neutral	¥49.54B	8.18		3.22%	5.73%	27.30%
3167	68 Neutral	¥130.99B	14.32		3.40%	5.17%	8.65%
9010	67 Neutral	¥109.44B	21.39		1.41%	3.02%	11.73%
9048	65 Neutral	¥323.88B	8.54		2.28%	14.91%	54.74%
Sector *	64 Neutral	kr59.90B	13.37	1.88%	7.71%	0.78%	-4.41%

Kasumigaseki Capital Co., Ltd. Corporate Events

Kasumigaseki Capital’s Hotel REIT Gains TSE Listing Approval

Kasumigaseki Capital Co., Ltd. announced the approval of listing investment units of its subsidiary, Kasumigaseki Hotel REIT Investment Corporation, on the Tokyo Stock Exchange Real Estate Investment Trust Securities Market. This marks the first developer-related listed REIT in Japan specializing in hotels, aiming to leverage KC’s development and operational capabilities to address the domestic hotel market’s supply gap. The move is expected to secure stable revenue and foster continuous growth, aligning with KC’s corporate philosophy of turning challenges into value.

Kasumigaseki Capital Updates Shareholder Benefits Amid Share Split

Kasumigaseki Capital Co., Ltd. has announced changes to its shareholder special benefit program in conjunction with a planned share split. The revised program aims to express appreciation to shareholders and deepen their understanding of the company’s business activities by adjusting the benefit point system. Additionally, the company has partially disclosed its new shareholder benefit product lineup, including an exclusive accommodation plan at its luxury hotel, which highlights its commitment to enhancing investment attractiveness and long-term shareholder engagement.

Kasumigaseki Capital Announces Share Split to Boost Investor Access

Kasumigaseki Capital Co., Ltd. has announced a share split and amendments to its Articles of Incorporation to improve share liquidity and expand its investor base. This strategic move is expected to make investments in the company more attractive to retail investors, potentially enhancing the company’s market position and supporting its sustainable growth objectives.

Kasumigaseki Capital Reports Strong Financial Growth for Nine Months Ending May 2025

Kasumigaseki Capital Co., Ltd. reported a substantial increase in its financial performance for the nine months ended May 31, 2025, with net sales rising by 50.5% and operating profit surging by 157.2% compared to the previous year. This robust performance underscores the company’s strong market positioning and operational efficiency, potentially benefiting stakeholders through increased dividends and shareholder value.

Kasumigaseki Capital Announces New Share Issuance for Employee Incentives

Kasumigaseki Capital Co., Ltd. has announced the issuance of new shares as restricted stock compensation to its employees, a move aimed at aligning employee interests with long-term company performance. This initiative is designed to incentivize employees by granting them shares, thereby fostering a sense of ownership and commitment to the company’s growth and success.

Kasumigaseki Capital Adjusts New Share Issuance Due to Partial Forfeiture

Kasumigaseki Capital Co., Ltd. has completed the payment procedures for the issuance of new shares as restricted stock compensation, initially resolved in February 2025. Due to partial forfeiture by two individuals, the number of shares issued was reduced from 13,888 to 13,655, with a corresponding decrease in the total issue amount. This adjustment does not impact the company’s current fiscal year performance.