REALGATE INC. (5532) AI Stock Analysis

• Market Cap: ¥14.90B
• Dividend Yield: N/A
• Average Volume (3M): 62.25K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.79
• Revenue Growth: 23.19%
• EPS Growth: 44.04%
• Country: JP
• Employees: 88
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -3.71
• Shares Outstanding: 5,746,900
• 10 Day Avg. Volume: 47,130
• 30 Day Avg. Volume: 62,250
• PEG Ratio: -0.15
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.32
• P/FCF Ratio: -0.57
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥3,024.00 ▲(16.58% Upside)

REALGATE INC.'s strong revenue growth and improved profitability are offset by high leverage and negative cash flow metrics, posing financial risks. The technical indicators suggest potential bearish momentum, and the stock's high P/E ratio indicates overvaluation. These factors collectively result in a moderate overall stock score.

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

REALGATE INC. exhibits strong revenue growth and improved profitability with healthy margins. However, the high debt-to-equity ratio and negative cash flow metrics present potential risks. Improving cash flow management and reducing leverage are crucial for long-term stability.

Income Statement

REALGATE INC. has demonstrated strong revenue growth with a 13.98% increase from 2023 to 2024. The gross profit margin is healthy at 16.26%, and the net profit margin improved to 4.79%. EBIT and EBITDA margins are also robust at 9.65% and 14.08%, respectively, indicating efficient operational management. However, the net profit margin, while improved, remains relatively low, suggesting room for further profitability enhancement.

Balance Sheet

The company's debt-to-equity ratio is high at 3.58, indicating significant leverage, which could pose financial risks. However, the return on equity has improved to 14.03%, reflecting better utilization of equity. The equity ratio is relatively low at 17.07%, suggesting a heavy reliance on debt financing. While the company is growing, the high leverage could be a concern if not managed carefully.

Cash Flow

REALGATE INC. faces challenges with negative free cash flow growth, as free cash flow has significantly decreased. The operating cash flow to net income ratio is negative, indicating issues in converting earnings into cash. The free cash flow to net income ratio is also negative, highlighting cash flow management concerns. Despite strong revenue growth, cash flow management needs improvement to support sustainable growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.64B	7.95B	6.97B	5.84B	3.81B
Gross Profit	1.61B	1.29B	983.24M	788.68M	570.75M
EBITDA	1.38B	1.12B	916.00M	802.08M	366.84M
Net Income	514.48M	380.37M	278.59M	36.10M	53.93M
Balance Sheet
Total Assets	18.96B	15.89B	11.41B	7.76B	4.91B
Cash, Cash Equivalents and Short-Term Investments	2.05B	1.13B	1.96B	642.94M	394.21M
Total Debt	11.76B	9.71B	5.77B	4.16B	1.78B
Total Liabilities	15.59B	13.18B	9.13B	7.02B	4.21B
Stockholders Equity	3.36B	2.71B	2.28B	736.91M	695.46M
Cash Flow
Free Cash Flow	0.00	-4.53B	-1.42B	-1.90B	40.13M
Operating Cash Flow	0.00	-1.33B	1.51B	410.60M	865.05M
Investing Cash Flow	0.00	-3.38B	-3.05B	-2.53B	-1.04B
Financing Cash Flow	0.00	3.88B	2.86B	2.38B	121.50M

REALGATE INC. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2594.00
• 50DMA: Negative
• 100DMA: Negative
• 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:5532, the sentiment is Negative. The current price of 2594 is below the 20-day moving average (MA) of 2788.40, below the 50-day MA of 2944.42, and above the 200-day MA of 2120.95, indicating a neutral trend. The MACD of -71.07 indicates Positive momentum. The RSI at 43.41 is Neutral, neither overbought nor oversold. The STOCH value of 28.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5532.

REALGATE INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2993	74 Outperform	¥9.54B	4.78	―	4.06%	7.75%	56.88%
3277	72 Outperform	¥11.12B	5.80	―	3.09%	-4.65%	77.74%
3294	72 Outperform	¥12.64B	9.28	―	4.38%	25.09%	30.66%
3467	71 Outperform	¥13.01B	7.43	―	4.05%	2.78%	22.28%
8945	66 Neutral	¥10.37B	33.03	―	3.73%	1.88%	-82.78%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
5532	63 Neutral	¥14.90B	26.38	―	―	23.19%	44.04%