REALGATE INC. (5532) AI Stock Analysis

• Market Cap: ¥16.21B
• Dividend Yield: N/A
• Average Volume (3M): 103.08K
• Price to Earnings (P/E): 32.2
• Beta (1Y): 0.88
• Revenue Growth: 17.12%
• EPS Growth: 11.40%
• Country: JP
• Employees: 88
• Sector: Real Estate
• Sector Strength: 49
• Industry: Real Estate - Services
• EPS (TTM): 17.61
• Shares Outstanding: 5,743,500
• 10 Day Avg. Volume: 113,050
• 30 Day Avg. Volume: 103,080
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,597.00
• Price Target Upside: -11.21% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥2,597.00 ▼(-11.21% Downside)

REALGATE INC. demonstrates strong financial performance with robust operational management and positive technical momentum. However, valuation concerns due to a high P/E ratio and lack of dividends, combined with financial risks from high leverage and cash flow challenges, moderate the overall score.

REALGATE INC. Business Overview & Revenue Model

Company Description

REALGATE INC. (5532) is a leading player in the real estate technology sector, specializing in providing innovative solutions for property management, real estate analytics, and digital marketing services. The company leverages advanced technology to streamline operations for real estate professionals, enhance property visibility, and optimize investment strategies. With a robust portfolio of software products and services, REALGATE INC. facilitates better decision-making and operational efficiency in the real estate market.

How the Company Makes Money

REALGATE INC. generates revenue primarily through a subscription-based model for its software solutions, which includes property management systems and analytics tools. Key revenue streams include monthly or annual subscriptions from real estate agencies, property managers, and investors who utilize their technology for operational efficiency and market insights. Additionally, the company earns revenue from consulting services, training programs, and partnerships with real estate firms, which enhance their product offerings and expand their market reach. Significant collaborations with industry leaders further bolster their earnings by integrating their technology into larger platforms, driving user adoption and increasing customer loyalty.

REALGATE INC. Financial Statement Overview

Summary

REALGATE INC. shows strong revenue growth and profitability, with healthy EBIT and EBITDA margins. However, the high Debt-to-Equity Ratio and negative Free Cash Flow present significant risks that need addressing. The company should focus on reducing debt and improving cash flow to sustain its financial health.

Income Statement

REALGATE INC. demonstrates robust revenue growth and improving profitability. The Gross Profit Margin stands at 16.0% in TTM, showing efficient cost management. Net Profit Margin of 4.1% indicates consistent profitability. Revenue has grown significantly over the past years, with a noteworthy growth rate of 17.2% from 2023 to 2024. EBIT and EBITDA margins are healthy at 9.1% and 12.3% respectively, showcasing operational strength.

Balance Sheet

The balance sheet shows a high Debt-to-Equity Ratio of 4.07 in TTM, which is concerning, as it indicates high leverage. However, the Return on Equity (ROE) has improved to 11.8%, reflecting better returns for shareholders. The Equity Ratio of 15.8% suggests moderate financial stability amidst high debt levels. The company should focus on reducing debt to improve financial health.

Cash Flow

Cash flow analysis reveals challenges with negative Free Cash Flow in recent periods. The Operating Cash Flow to Net Income Ratio is not available, limiting detailed cash flow analysis. The company experienced a significant decrease in Free Cash Flow, indicating potential liquidity issues. It is crucial to enhance cash management strategies to support ongoing growth.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	7.95B	6.97B	5.84B	3.81B
Gross Profit	1.29B	983.24M	788.68M	570.75M
EBITDA	1.12B	899.30M	802.08M	366.84M
Net Income	380.37M	278.59M	36.10M	53.93M
Balance Sheet
Total Assets	15.89B	11.41B	7.76B	4.91B
Cash, Cash Equivalents and Short-Term Investments	1.13B	1.96B	642.94M	394.21M
Total Debt	9.71B	5.77B	4.16B	1.78B
Total Liabilities	13.18B	9.13B	7.02B	4.21B
Stockholders Equity	2.71B	2.28B	736.91M	695.46M
Cash Flow
Free Cash Flow	-4.53B	-1.42B	-1.90B	40.13M
Operating Cash Flow	-1.33B	1.51B	410.60M	865.05M
Investing Cash Flow	-3.38B	-3.05B	-2.53B	-1.04B
Financing Cash Flow	3.88B	2.86B	2.38B	121.50M

REALGATE INC. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2925.00
• 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 2925 is above the 20-day moving average (MA) of 2657.45, above the 50-day MA of 2333.12, and above the 200-day MA of 1575.78, indicating a bullish trend. The MACD of 231.47 indicates Negative momentum. The RSI at 64.70 is Neutral, neither overbought nor oversold. The STOCH value of 56.67 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
3277	76 Outperform	¥10.90B	5.69		3.17%	11.78%	131.36%
3467	76 Outperform	¥12.17B	6.95		4.28%	7.89%	60.35%
2993	74 Outperform	¥8.91B	4.47		4.29%	7.57%	66.62%
5532	73 Outperform	¥16.21B	32.23		―	17.12%	11.40%
3294	72 Outperform	¥10.61B	9.32		4.92%	23.20%	3.21%
8945	67 Neutral	¥9.84B	40.59		4.04%	3.88%	-87.10%
Sector *	65 Neutral	$2.07B	17.10	4.00%	5.01%	1.74%	-1.63%