HOUSEI Inc. (5035) AI Stock Analysis

• Market Cap: ¥3.26B
• Dividend Yield: 0.69%
• Average Volume (3M): 9.45K
• Price to Earnings (P/E): 26.5
• Beta (1Y): 0.48
• Revenue Growth: 3.52%
• EPS Growth: 65.21%
• Country: JP
• Employees: 455
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -4.52
• Shares Outstanding: 7,094,200
• 10 Day Avg. Volume: 11,090
• 30 Day Avg. Volume: 9,453
• PEG Ratio: -1.60
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 10.09
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥458.00 ▲(5.05% Upside)

HOUSEI Inc.'s overall stock score is driven by its strong financial performance, highlighted by robust revenue growth and a solid balance sheet. However, the technical analysis indicates bearish momentum, and the valuation suggests the stock is relatively expensive. These factors combined result in a moderate overall score.

HOUSEI Inc. Business Overview & Revenue Model

Company Description

HOUSEI Inc. (5035) is a dynamic technology company specializing in the development and provision of innovative solutions in the real estate and construction sectors. The company focuses on enhancing operational efficiencies through smart building technologies, software solutions for property management, and advanced construction methodologies. HOUSEI Inc. aims to revolutionize the way real estate is managed and developed, offering a suite of products designed to meet the needs of both residential and commercial markets.

How the Company Makes Money

HOUSEI Inc. generates revenue through multiple streams, primarily from the sale of its software solutions and smart building technology products. Key revenue streams include direct sales to real estate developers and property management firms, subscription fees for its software as a service (SaaS) offerings, and consulting services that help clients implement and optimize their technology solutions. The company has established significant partnerships with construction firms and technology providers, enhancing its market presence and driving sales. Additionally, HOUSEI Inc. benefits from recurring revenue through maintenance and support contracts, which provide ongoing income from existing clients.

HOUSEI Inc. Financial Statement Overview

Summary

HOUSEI Inc. demonstrates solid revenue growth and a strong balance sheet, with a debt-to-equity ratio of 0.24 and an equity ratio of 63.98%. The company shows strong cash generation capabilities, but there is room for improvement in profitability metrics and cost efficiency.

Income Statement

HOUSEI Inc. demonstrated a solid revenue growth from 2023 to 2024 with a growth rate of 6.01%, indicating strong market presence. The gross profit margin of 31.07% and net profit margin of 2.54% reflect decent operational efficiency, although the net margin suggests room for improvement in cost management. The EBIT and EBITDA margins stand at 1.59% and 6.91% respectively, reflecting moderate profitability. Continued focus on reducing operational costs could enhance margins further.

Balance Sheet

The company maintains a robust balance sheet with a debt-to-equity ratio of 0.24, indicating prudent financial leverage. The equity ratio of 63.98% underscores financial stability and a strong capital structure. Return on equity (ROE) at 3.80% suggests moderate returns to shareholders, with potential for improvement through enhanced profitability strategies.

Cash Flow

The cash flow statement highlights positive free cash flow growth, transitioning from a negative to a positive position, showcasing improved liquidity management. The operating cash flow to net income ratio of 2.89 indicates strong cash generation capabilities relative to earnings. However, the free cash flow to net income ratio of 2.66 suggests that further optimization of capital expenditures could enhance cash flow sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.96B	4.92B	4.64B	4.25B	4.10B	3.40B
Gross Profit	1.53B	1.53B	1.23B	1.15B	1.10B	1.06B
EBITDA	353.53M	399.33M	387.12M	362.70M	417.29M	385.50M
Net Income	117.57M	126.00M	147.00M	134.71M	271.44M	219.66M
Balance Sheet
Total Assets	4.82B	5.13B	4.72B	4.23B	3.92B	3.39B
Cash, Cash Equivalents and Short-Term Investments	1.75B	840.29M	830.00M	1.58B	1.09B	691.09M
Total Debt	636.79M	774.76M	729.00M	511.30M	788.49M	837.94M
Total Liabilities	1.68B	1.83B	1.53B	1.27B	1.57B	1.45B
Stockholders Equity	3.13B	3.29B	3.17B	2.95B	2.35B	1.94B
Cash Flow
Free Cash Flow	0.00	279.96M	-470.00M	336.17M	379.54M	-150.38M
Operating Cash Flow	0.00	361.14M	-417.00M	395.54M	413.16M	41.83M
Investing Cash Flow	0.00	-88.87M	-639.00M	-258.78M	-28.57M	43.61M
Financing Cash Flow	0.00	-83.85M	269.00M	131.09M	-49.45M	-38.82M

HOUSEI Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 436.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5035, the sentiment is Negative. The current price of 436 is below the 20-day moving average (MA) of 464.35, below the 50-day MA of 481.48, and below the 200-day MA of 493.29, indicating a bearish trend. The MACD of -8.57 indicates Positive momentum. The RSI at 23.77 is Positive, neither overbought nor oversold. The STOCH value of 7.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5035.

HOUSEI Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4447	62 Neutral	¥3.35B	17.30	―	3.81%	42.88%	-5.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4484	61 Neutral	¥4.71B	30.16	―	―	1.83%	-20.00%
5035	60 Neutral	¥3.26B	26.53	―	0.69%	3.52%	65.21%
4174	55 Neutral	¥2.82B	96.25	―	3.30%	16.83%	-86.95%
4387	50 Neutral	¥2.81B	-24.70	―	―	-4.34%	-1012.18%