property technologies, Inc. (5527) AI Stock Analysis

• Market Cap: ¥8.95B
• Dividend Yield: 3.45%
• Average Volume (3M): 123.04K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.75
• Revenue Growth: 28.82%
• EPS Growth: 672.17%
• Country: JP
• Employees: 348
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 24.35
• Shares Outstanding: 12,409,353
• 10 Day Avg. Volume: 205,570
• 30 Day Avg. Volume: 123,040
• PEG Ratio: 0.12
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -9.06
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ¥776.00 ▲(4.58% Upside)

The score is held back primarily by financial quality and risk—multi-year negative operating/free cash flow and high leverage outweigh the revenue/earnings rebound. Valuation is a key offset (low P/E and solid dividend yield), while technical indicators are mostly neutral with a mildly supportive trend (above longer-term averages and positive MACD).

Positive Factors

Recurring revenue model

A subscription + transaction fee model gives durable recurring revenue and predictable customer lifetime value. Tiered plans and agency/investor partnerships can scale adoption and stabilize top-line volatility, supporting long-term investment and product development.

Sustained revenue growth

Meaningful multi-year revenue expansion, including a strong step-up in 2025, indicates growing market penetration and product-market fit. Continued top-line momentum can enable scale benefits, support future margin recovery, and justify further platform investments.

Improving profitability metrics

An improvement in operating profit and ROE suggests the business is beginning to convert revenue into earnings more effectively. If sustained, this indicates operational leverage and stronger earnings power, improving resilience and potential to reinvest or deleverage.

Negative Factors

Persistent negative cash flow

Multi-year negative operating and free cash flow shows the business has not been self-funding despite reported profits. This ongoing cash burn raises financing risk, limits strategic flexibility, and can force reliance on external capital during downturns, a structural concern.

High leverage

A debt-to-equity ratio near 4x materially increases sensitivity to revenue shocks or rising interest costs. Elevated leverage constrains strategic options, raises refinancing risk, and can amplify earnings volatility, reducing the firm's ability to invest through economic cycles.

Margin compression and thin net margin

Declining margins versus earlier peaks point to competitive pressure or higher operating costs, limiting the firm's ability to translate revenue growth into durable profits. Persistent margin compression weakens cash generation and long-term return on invested capital.

property technologies, Inc. Business Overview & Revenue Model

Company Description

property technologies Inc. offers purchase, sale, resale, and renovation services for housing properties. It provides KAITRY, a platform that deals with housing for purchase and selling, including used condominiums in urban areas and new and used detached housing in rural areas. The company also sells pre-owned condominiums; constructs detached houses; and provides services, such as housing and relocation, housing remodeling and renovation, and real estate leasing. The company was incorporated in 2020 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Property Technologies, Inc. generates revenue primarily through subscription-based services and transaction fees. The company offers tiered subscription plans for its software products, allowing users to access various features based on their needs, which provides a steady stream of recurring revenue. Additionally, the company earns revenue from transaction fees associated with property leases and sales facilitated through its platform. Significant partnerships with real estate agencies and investment firms further enhance its revenue potential by expanding its user base and integrating its services into larger real estate ecosystems. The increasing demand for digital transformation in the real estate industry also contributes to the company's growth and profitability.

property technologies, Inc. Financial Statement Overview

Summary

Income statement trends are mixed (revenue growth and improved 2025 operating profit, but thinner margins versus 2021–2022). The balance sheet is constrained by high leverage (~3.7–4.3x debt-to-equity) despite improving equity/ROE recently. Cash flow is the key weakness with negative operating and free cash flow across 2021–2025, raising financial risk.

Income Statement

Revenue has expanded meaningfully from 2020 to 2025 (annual report), with a strong step-up in 2025 and improved operating profit versus 2024. However, profitability has become less efficient over the cycle: gross and operating margins are below 2021–2022 levels, and net margin remains thin despite the 2025 rebound. Overall, solid top-line momentum but margin compression versus peak years keeps the score in the mid-range.

Balance Sheet

The balance sheet is heavily levered, with debt running around ~3.7–4.3x equity across the period, which increases sensitivity to business volatility and funding conditions. On the positive side, equity has grown over time and returns on equity in 2024–2025 improved versus 2023, suggesting better earnings power recently. Still, high leverage is the key constraint and drives a below-average score.

Cash Flow

Cash generation is the weak point: operating cash flow is negative in 2021–2025 (annual report), and free cash flow is also consistently negative over the same span, indicating the business has not been self-funding despite reporting profits. While the 2025 cash outflow is smaller than prior years (an improvement from 2023–2024), the multi-year pattern of cash burn materially raises financial risk and limits flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	49.85B	50.91B	41.61B	36.97B	38.80B	29.54B
Gross Profit	7.91B	7.64B	6.64B	6.39B	6.87B	5.41B
EBITDA	2.79B	2.37B	1.69B	1.70B	2.70B	2.02B
Net Income	1.37B	1.08B	635.57M	661.67M	1.39B	1.03B
Balance Sheet
Total Assets	43.70B	43.57B	40.79B	38.08B	30.93B	25.92B
Cash, Cash Equivalents and Short-Term Investments	4.95B	4.90B	7.26B	5.76B	6.37B	5.35B
Total Debt	31.26B	31.17B	29.93B	27.36B	21.51B	17.04B
Total Liabilities	35.62B	35.18B	33.31B	30.95B	25.66B	21.54B
Stockholders Equity	8.08B	8.39B	7.48B	7.12B	5.27B	4.37B
Cash Flow
Free Cash Flow	0.00	-968.26M	-3.00B	-7.47B	-2.89B	-3.03B
Operating Cash Flow	0.00	-908.61M	-2.95B	-6.96B	-2.55B	-2.77B
Investing Cash Flow	0.00	-197.29M	-56.04M	-523.69M	-563.70M	-371.65M
Financing Cash Flow	0.00	1.05B	2.20B	6.87B	3.93B	2.52B

property technologies, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 742.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5527, the sentiment is Negative. The current price of 742 is below the 20-day moving average (MA) of 746.65, above the 50-day MA of 735.53, and above the 200-day MA of 584.10, indicating a neutral trend. The MACD of -3.99 indicates Positive momentum. The RSI at 45.28 is Neutral, neither overbought nor oversold. The STOCH value of 34.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5527.

property technologies, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4445	71 Outperform	¥4.80B	15.14	―	―	0.63%	178.02%
4487	70 Outperform	¥3.74B	17.44	―	―	27.19%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3238	63 Neutral	¥4.03B	7.34	―	3.41%	31.33%	174.39%
5527	59 Neutral	¥8.95B	8.27	―	3.45%	28.82%	672.17%
3261	55 Neutral	¥2.07B	10.78	―	2.70%	7.47%	148.01%
3237	40 Neutral	¥3.07B	-6.46	―	―	4.15%	-14.18%