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

• Market Cap: ¥138.34B
• Dividend Yield: 1.23%
• Average Volume (3M): 310.98K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 1.54
• Revenue Growth: 88.93%
• EPS Growth: 114.22%
• Country: JP
• Employees: 436
• Sector: Industrials
• Sector Strength: 85
• Industry: Conglomerates
• EPS (TTM): 629.30
• Shares Outstanding: 9,880,780
• 10 Day Avg. Volume: 346,410
• 30 Day Avg. Volume: 310,976
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ¥13,893.00 ▲(0.24%Upside)

Kasumigaseki Capital Co., Ltd. shows strong financial performance with impressive revenue growth and profitability. However, high leverage and negative cash flow are concerns. Technical indicators suggest a bearish trend, while valuation metrics are reasonable but not particularly attractive. Overall, the stock presents a balanced profile with potential risks and opportunities.

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
	EBIT
8.54B	4.44B	2.14B	1.33B	326.58M
	EBITDA
9.30B	4.64B	2.15B	1.41B	429.54M
	Net Income Common Stockholders
5.02B	2.05B	1.02B	793.53M	134.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.06B	5.90B	5.39B	3.61B	2.34B
	Total Assets
77.55B	43.78B	30.44B	15.04B	8.44B
	Total Debt
41.89B	28.28B	18.41B	7.51B	3.97B
	Net Debt
30.82B	22.39B	13.01B	3.90B	1.80B
	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: 13860.00
• 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:3498, the sentiment is Positive. The current price of 13860 is above the 20-day moving average (MA) of 13174.50, above the 50-day MA of 12574.00, and above the 200-day MA of 13695.50, indicating a bullish trend. The MACD of 373.71 indicates Negative momentum. The RSI at 62.75 is Neutral, neither overbought nor oversold. The STOCH value of 70.35 is Neutral, 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
9003	73 Outperform	¥217.76B	9.71		2.70%	8.20%	39.43%
3498	70 Outperform	¥138.34B	22.28		1.23%	88.93%	114.22%
3167	68 Neutral	¥131.65B	14.25		3.40%	5.17%	8.65%
9010	68 Neutral	¥103.38B	20.24		1.47%	3.02%	11.73%
3232	68 Neutral	¥47.94B	7.95		3.33%	5.73%	27.30%
Sector *	66 Neutral	$4.50B	12.26	5.40%	3.65%	4.17%	-12.02%
9048	65 Neutral	¥317.58B	8.41		2.32%	14.91%	54.78%

Kasumigaseki Capital Co., Ltd. Corporate Events

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.

Kasumigaseki Capital Reports Strong Financial Growth for H1 2025

Kasumigaseki Capital Co., Ltd. reported substantial growth in its financial results for the six months ended February 28, 2025, with net sales increasing by 62.1% and operating profit rising by 141.3% compared to the previous year. This impressive performance highlights the company’s strong market position and potential positive implications for stakeholders, as it continues to enhance its financial standing and shareholder value.