REALGATE INC. (5532) AI Stock Analysis

• Market Cap: ¥18.69B
• Dividend Yield: N/A
• Average Volume (3M): 62.25K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.90
• Revenue Growth: 23.19%
• EPS Growth: 44.46%
• Country: JP
• Employees: 88
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 100.36
• Shares Outstanding: 5,777,150
• 10 Day Avg. Volume: 47,130
• 30 Day Avg. Volume: 62,250
• PEG Ratio: 0.70
• Price to Book (P/B): 5.23
• Price to Sales (P/S): 1.79
• P/FCF Ratio: -4.19
• 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: 61 Neutral
• Price Target: ¥3,413.00 ▲(45.85% Upside)
• Action: Downgraded Date: 01/29/26
• Date: Action: Downgraded 01/29/26

The score is driven primarily by mixed fundamentals: solid revenue growth and improving profitability are tempered by high leverage and negative free cash flow. Technicals are broadly neutral with price holding key averages but lacking strong trend confirmation, while valuation appears reasonable on P/E with no dividend data to add support.

Positive Factors

Strong revenue growth

REALGATE's reported ~33.6% revenue growth reflects durable top-line momentum and expanding market traction. Sustained high revenue growth increases scale, supports ongoing reinvestment in services, and creates a structural base for further margin expansion and stronger cash generation over multiple quarters.

Improving profit margins

Improvements in gross and net margins indicate better cost management and pricing execution, boosting underlying earnings quality. Durable margin expansion enhances operating leverage, increases retained earnings capacity, and helps the company better absorb fixed costs and interest expense over the medium term.

Operating cash flow and ROE improving

Improved operating cash flow and rising ROE signal enhanced cash generation and capital efficiency, which are structural strengths. Better cash conversion increases flexibility to fund growth or pay down debt, while improved ROE reflects more effective use of shareholder capital over ensuing reporting periods.

Negative Factors

High leverage

A persistently high debt-to-equity ratio raises structural financial risk, increasing interest burden and limiting strategic flexibility. High leverage constrains capacity for acquisitions or capex, amplifies refinancing risk during market stress, and makes earnings more sensitive to cyclical revenue swings.

Negative free cash flow

Negative free cash flow is a durable operational constraint that limits the company's ability to deleverage, reinvest, or return capital without external financing. Persistent FCF deficits can force reliance on debt or equity issuance, increasing cost of capital and diluting financial resilience over multiple quarters.

Margins still modest vs peers

Although margins are improving, they remain materially below industry leaders, indicating a structural efficiency gap. Modest margins reduce buffer against cost shocks, limit free cash generation potential, and constrain long-term competitiveness unless operational improvements continue at pace.

REALGATE INC. Business Overview & Revenue Model

Company Description

Realgate Inc. provides real estate services in Japan. The company offers real estate consulting, buying, selling, brokerage, rental, operation, and management services; construction and design supervision services; architectural and interior construction contract services. It also engages in non-life insurance agency business. The company was incorporated in 2009 and is headquartered in Tokyo, Japan. Realgate Inc. operates as a subsidiary of CyberAgent, Inc.

How the Company Makes Money

REALGATE INC. generates revenue through multiple streams, including subscription fees from its software platforms, transaction fees from property sales facilitated through its services, and consulting fees for real estate advisory services. The company has established strategic partnerships with real estate agencies and investment firms, allowing it to leverage a broader market reach and enhance its service offerings. Additionally, the company may derive income from proprietary data analytics services, providing clients with valuable market insights that inform their investment strategies.

REALGATE INC. Financial Statement Overview

Summary

Income statement strength (revenue growth and improving margins) is offset by balance sheet risk from high leverage and weak cash flow quality, including negative free cash flow.

Income Statement

REALGATE INC. has shown consistent revenue growth over the years, with a notable increase in total revenue from the previous year. The gross profit margin and net profit margin have improved, indicating better cost management and profitability. However, the margins are still relatively modest compared to industry leaders, suggesting room for improvement in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has been high, indicating significant leverage, which poses a risk if not managed properly. However, the return on equity has shown improvement, reflecting better utilization of shareholder funds. The equity ratio is relatively low, suggesting a higher reliance on debt financing.

Cash Flow

REALGATE INC. has faced challenges with free cash flow, which has been negative, indicating potential liquidity issues. The operating cash flow has improved, but the free cash flow to net income ratio remains concerning. The company needs to focus on improving cash flow generation to support its growth and reduce financial risk.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	9.79B	7.95B	6.97B	5.84B	3.81B
Gross Profit	1.68B	1.29B	983.24M	788.68M	570.75M
EBITDA	1.36B	1.12B	916.00M	802.08M	366.84M
Net Income	559.22M	380.37M	278.59M	36.10M	53.93M
Balance Sheet
Total Assets	21.26B	15.89B	11.41B	7.76B	4.91B
Cash, Cash Equivalents and Short-Term Investments	947.15M	1.13B	1.96B	642.94M	394.21M
Total Debt	13.94B	9.71B	5.77B	4.16B	1.78B
Total Liabilities	17.91B	13.18B	9.13B	7.02B	4.21B
Stockholders Equity	3.35B	2.71B	2.28B	736.91M	695.46M
Cash Flow
Free Cash Flow	-4.18B	-4.53B	-1.42B	-1.90B	40.13M
Operating Cash Flow	3.56B	-1.33B	1.51B	410.60M	865.05M
Investing Cash Flow	-7.93B	-3.38B	-3.05B	-2.53B	-1.04B
Financing Cash Flow	4.18B	3.88B	2.86B	2.38B	121.50M

REALGATE INC. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2340.00
• 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:5532, the sentiment is Positive. The current price of 2340 is below the 20-day moving average (MA) of 3026.15, below the 50-day MA of 2690.66, and below the 200-day MA of 2565.36, indicating a bullish trend. The MACD of 159.54 indicates Negative momentum. The RSI at 63.91 is Neutral, neither overbought nor oversold. The STOCH value of 79.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5532.

REALGATE INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3276	73 Outperform	¥22.34B	12.82	―	4.36%	1.52%	16.04%
2991	67 Neutral	¥15.83B	6.50	―	1.47%	20.82%	9.86%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2980	64 Neutral	¥46.80B	19.15	―	0.45%	-8.33%	-36.89%
2986	64 Neutral	¥74.28B	11.40	―	5.71%	8.07%	12.06%
3252	62 Neutral	¥72.15B	9.56	―	2.89%	-3.09%	-35.66%
5532	61 Neutral	¥18.69B	18.30	―	―	23.19%	44.46%