J-LEASE CO., LTD. (7187) AI Stock Analysis

• Market Cap: ¥25.61B
• Dividend Yield: 3.35%
• Average Volume (3M): 47.91K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.87
• Revenue Growth: 29.97%
• EPS Growth: 19.33%
• Country: JP
• Employees: 404
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 28.43
• Shares Outstanding: 18,032,000
• 10 Day Avg. Volume: 48,700
• 30 Day Avg. Volume: 47,906
• PEG Ratio: 0.75
• Price to Book (P/B): 4.31
• Price to Sales (P/S): 1.48
• P/FCF Ratio: 14.46
• 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: 72 Outperform
• Price Target: ¥1,693.00 ▲(19.23% Upside)

J-LEASE CO., LTD. has a strong financial performance with impressive revenue and profit growth, which is the most significant factor in its overall score. The valuation is attractive, with a low P/E ratio and a solid dividend yield. However, technical analysis indicates weak short-term momentum, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates a strong market position and effective business model, supporting long-term expansion.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, enabling strategic investments and debt management, crucial for sustained growth.

Profitability

High profitability margins reflect efficient operations and pricing power, ensuring competitive advantage and financial health.

Negative Factors

Leverage Concerns

Despite improvements, high leverage can pose risks to financial stability, potentially impacting future investment capabilities.

Debt Levels

Substantial debt levels may limit financial flexibility and increase vulnerability to economic downturns, affecting long-term resilience.

Equity Ratio

While stable, reliance on debt rather than equity could constrain growth opportunities and increase financial risk exposure.

J-LEASE CO., LTD. Business Overview & Revenue Model

Company Description

J-LEASE CO., LTD. (7187) is a Japanese company specializing in the leasing and management of real estate properties, primarily focusing on commercial and residential sectors. The company offers a comprehensive range of leasing solutions, property management services, and consultancy, catering to both individual and corporate clients. J-LEASE aims to enhance asset utilization and maximize returns on real estate investments while maintaining a commitment to customer satisfaction and operational excellence.

How the Company Makes Money

J-LEASE CO., LTD. generates revenue primarily through its leasing operations, which involve renting out commercial and residential properties to tenants. The company earns rental income as its core revenue stream. Additionally, J-LEASE offers property management services, which provide another source of income by charging fees for managing properties on behalf of owners. The company may also engage in consultancy services, advising clients on real estate investments and management strategies. Strategic partnerships with real estate developers and financial institutions can further contribute to its earnings, enabling J-LEASE to expand its portfolio and enhance its service offerings.

J-LEASE CO., LTD. Financial Statement Overview

Summary

J-LEASE CO., LTD. presents a strong financial profile with impressive revenue and profit growth, bolstered by efficient operations and solid cash flow generation. While leverage remains a concern, the company has shown improvement in its debt management. Overall, J-LEASE CO., LTD. is well-positioned within the real estate services industry, with a commendable financial standing.

Income Statement

J-LEASE CO., LTD. has demonstrated impressive revenue growth, with a consistent increase in total revenue over recent years. The gross profit margin and net profit margin are robust, indicating strong profitability. EBIT and EBITDA margins are healthy, suggesting efficient operations. Overall, the income statement reveals a company with a solid growth trajectory and strong profitability metrics.

Balance Sheet

The balance sheet of J-LEASE CO., LTD. shows a solid equity base with a positive trend in stockholders' equity. The debt-to-equity ratio has improved, indicating better leverage management over time. However, there is still a significant amount of total debt that could pose risks if not managed carefully. The equity ratio is satisfactory, reflecting a stable capital structure.

Cash Flow

The cash flow statement highlights a strong free cash flow generation, with consistent growth in free cash flow over the years. The operating cash flow to net income ratio is robust, indicating efficient cash generation relative to earnings. While free cash flow to net income ratio is positive, the company should continue to focus on maintaining this trend to ensure long-term financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.16B	17.27B	13.22B	10.96B	9.16B	7.60B
Gross Profit	12.30B	11.82B	9.72B	8.31B	7.07B	5.91B
EBITDA	3.62B	3.35B	2.77B	2.64B	2.15B	1.11B
Net Income	2.28B	2.09B	1.79B	1.67B	1.34B	552.59M
Balance Sheet
Total Assets	18.02B	15.64B	11.59B	9.76B	8.83B	8.15B
Cash, Cash Equivalents and Short-Term Investments	2.12B	2.35B	1.44B	1.20B	1.02B	1.10B
Total Debt	4.15B	2.35B	1.27B	1.41B	2.06B	3.01B
Total Liabilities	11.84B	9.73B	6.96B	6.30B	6.46B	6.95B
Stockholders Equity	6.18B	5.92B	4.63B	3.46B	2.37B	1.21B
Cash Flow
Free Cash Flow	345.58M	1.76B	1.15B	1.43B	1.09B	769.30M
Operating Cash Flow	488.28M	2.06B	1.36B	1.56B	1.34B	847.38M
Investing Cash Flow	-574.70M	-1.28B	-346.57M	-153.98M	-288.79M	-123.38M
Financing Cash Flow	180.24M	135.19M	-777.68M	-1.23B	-1.13B	-599.74M

J-LEASE CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1420.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7187, the sentiment is Neutral. The current price of 1420 is below the 20-day moving average (MA) of 1423.30, below the 50-day MA of 1476.66, and below the 200-day MA of 1425.95, indicating a bearish trend. The MACD of -18.72 indicates Negative momentum. The RSI at 46.03 is Neutral, neither overbought nor oversold. The STOCH value of 78.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7187.

J-LEASE CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8869	76 Outperform	¥24.53B	4.30	―	3.59%	36.88%	83.47%
8898	75 Outperform	¥11.56B	14.84	―	4.96%	3.29%	-1.74%
8860	74 Outperform	¥28.72B	5.49	―	4.26%	6.26%	-4.41%
3276	73 Outperform	¥21.08B	11.03	―	4.39%	1.52%	16.04%
7187	72 Outperform	¥25.61B	10.85	―	3.35%	29.97%	19.33%
3489	70 Outperform	¥24.03B	7.55	―	4.08%	11.79%	128.54%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

J-LEASE CO., LTD. Corporate Events

J-LEASE CO., LTD. Reports Record-High Q2 Financial Results

J-LEASE CO., LTD. reported record-high sales and profits for the second quarter of the fiscal year ending March 31, 2026, surpassing company expectations. This success is attributed to strong performances in their core rent guarantee services and strategic expansion efforts. The company plans to continue increasing market share in the Tokyo area and expand its branch network across Japan, while leveraging synergies with newly acquired K-net Co., Ltd. and other group businesses to enhance corporate value and shareholder returns.

J-LEASE CO., LTD. Reports Strong Financial Growth and Strategic Expansion

J-LEASE CO., LTD. reported a significant increase in its consolidated financial results for the six months ended September 30, 2025, with net sales rising by 26.3% and profit attributable to owners of the parent increasing by 28.2%. The company has also made strategic changes by incorporating new subsidiaries, including a football club, which may influence its future market positioning and stakeholder interests.