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Mitsui Fudosan Co Ltd (JP:8801)
:8801

Mitsui Fudosan Co (8801) AI Stock Analysis

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Mitsui Fudosan Co

(OTC:8801)

Rating:74Outperform
Price Target:
¥1,526.00
▲(10.10%Upside)
Mitsui Fudosan Co's stock demonstrates strong financial performance, bolstered by robust revenue and profitability metrics. While technical analysis indicates short-term caution, valuation is reasonable, offering moderate income potential through dividends. The company's stable financial health and growth potential in the diversified real estate sector contribute positively to the stock score.

Mitsui Fudosan Co (8801) vs. iShares MSCI Japan ETF (EWJ)

Mitsui Fudosan Co Business Overview & Revenue Model

Company DescriptionMitsui Fudosan Co., Ltd. operates as a real estate company in Japan. It operates through four segments: Leasing, Property Sales, Management, and Other. The Leasing segment leases office buildings and commercial facilities, and other properties. The Property Sales segment is involved in the sale of condominiums and detached housing to individuals; and rental housing and office buildings and other to investors. The Management segment engages in the property management and brokerage and asset management businesses. The Other segment engages in the housing construction and renovation business; and housing related material sales business. The company also offers car park leasing services; and operates hotels, golf courses, and resort facilities. In addition, it engages in the renewal work for offices and retail facilities; and electricity transmission and distribution and heat supply businesses, as well as operates as a retailer of flowers and ornamental plants, seeds, and other gardening products. The company was founded in 1941 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyMitsui Fudosan Co., Ltd. generates revenue primarily through the development and leasing of commercial real estate properties such as office buildings, shopping centers, and logistics facilities. The company also earns income from residential real estate sales, property management services, and real estate investment trusts (REITs). Additionally, Mitsui Fudosan is involved in urban redevelopment projects and international real estate ventures, which further contribute to its earnings. Strategic partnerships and joint ventures with other real estate and investment firms also play a significant role in expanding its portfolio and revenue streams.

Mitsui Fudosan Co Earnings Call Summary

Earnings Call Date:May 09, 2025
(Q3-2024)
|
% Change Since: -6.35%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Positive
The earnings call detailed significant achievements including record highs in various financial metrics, an upward revision of forecasts, and strong performance in segments such as leasing and overseas operations. However, the call also highlighted challenges such as increased interest burden and a decline in property sales to investors. Despite these issues, the positive highlights overshadow the lowlights, indicating overall strong financial health and performance.
Q3-2024 Updates
Positive Updates
Record Highs in Key Financial Metrics
Achieved new record highs for 9-month third quarter in sales, operating income, ordinary income, and profit attributable to owners. Second consecutive record for operating income and third for net profit.
Upward Revision of Full Year Forecast
Revised full year forecast for ordinary income from JPY 255 billion to JPY 265 billion and profit attributable to owners from JPY 215 billion to JPY 220 billion, setting new record highs.
Dividend Increase
Increased full year dividend per share guidance to JPY 72 from JPY 70, with fiscal year-end dividend per share raised to JPY 37 from JPY 35.
Leasing Segment Performance
Leasing segment recorded 9-month operating revenues of JPY 606.1 billion and operating income of JPY 130.7 billion, with a notable reduction in office vacancy rates to the low 2% range.
Strong Overseas Profits
Overseas profits increased by JPY 20.4 billion year-on-year, with leasing and property sales segments showing significant revenue and profit growth.
Facility Operations Growth
Facility Operations segment saw operating revenues improve by JPY 37.6 billion year-on-year and operating income rise by JPY 24.4 billion, driven by improved ADRs and increased spectators at Tokyo Dome.
Negative Updates
Interest Burden Increase
Interest burden under net interest income and expense increased by JPY 17.6 billion year-on-year due to rising U.S. interest rates.
Decline in Property Sales to Investors
Property sales to investors and overseas individuals saw a decline with operating revenue down JPY 35.8 billion and operating income down JPY 12.1 billion year-on-year.
Nonoperating Income and Expense Losses
Nonoperating income and expenses faced a negative JPY 45.5 billion, widening losses by JPY 18.4 billion.
Company Guidance
During the third quarter earnings call for Mitsui Fudosan, Executive Manager Atsuro Uchida highlighted several key metrics reflecting the company's strong financial performance and revised forecasts. The company achieved record highs in sales, operating income, ordinary income, and profit attributable to owners of the parent for the nine-month period, with operating revenue reaching JPY 1.699 trillion, a 4.5% increase year-on-year. Operating income rose by 15% to JPY 245.2 billion, while ordinary income increased by 7.3% to JPY 199.7 billion. Profit attributable to owners of the parent grew by 13.1% to JPY 166.4 billion. The company also revised its full-year forecasts, raising ordinary income from JPY 255 billion to JPY 265 billion and profit attributable to owners of the parent from JPY 215 billion to JPY 220 billion. Additionally, the full-year dividend per share guidance was increased to JPY 72 from JPY 70, signaling confidence in continued strong performance. The call also detailed segment results, with notable improvements in the Leasing and Facility Operations segments, and discussed the impact of foreign exchange rates on the balance sheet. Overall, Mitsui Fudosan demonstrated robust progress toward its financial targets, underpinned by strategic investments and favorable market conditions.

Mitsui Fudosan Co Financial Statement Overview

Summary
Mitsui Fudosan Co shows strong financial health with robust revenue and profit growth, efficient operations, and a stable financial structure. Despite leverage risks, the company is well-managed and has growth potential in the diversified real estate sector.
Income Statement
85
Very Positive
Mitsui Fudosan demonstrates strong financial performance with a consistent increase in total revenue over the years, reflecting robust revenue growth rates. The company's gross profit margin and net profit margin have improved, indicating enhanced profitability. Margins, such as EBIT and EBITDA, have also shown positive trends, signifying operational efficiency. Overall, the income statement shows a healthy growth trajectory and profitability, with minimal weaknesses observed.
Balance Sheet
78
Positive
The balance sheet indicates a stable financial position with a manageable debt-to-equity ratio. The company has shown a steady increase in stockholders' equity, improving its equity ratio over time. The return on equity is competitive, highlighting effective use of equity financing. However, the high level of total debt suggests potential leverage risks, which should be monitored closely.
Cash Flow
82
Very Positive
Mitsui Fudosan's cash flow statement reveals a strong operating cash flow to net income ratio, demonstrating efficient cash generation from operations. There is significant free cash flow growth, indicating improved financial flexibility. The free cash flow to net income ratio is favorable, reflecting good cash management. Despite these strengths, the company should ensure consistent free cash flow growth to sustain long-term cash flow stability.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue2.36T2.63T2.38T2.27T2.10T2.01T
Gross Profit575.09B635.13B593.13B526.68B450.44B397.92B
EBITDA450.79B513.25B473.42B430.70B356.48B301.97B
Net Income202.21B248.80B224.65B197.00B176.99B129.58B
Balance Sheet
Total Assets9.82T9.86T9.49T8.84T8.21T7.74T
Cash, Cash Equivalents and Short-Term Investments239.69B169.68B189.81B144.26B156.23B199.64B
Total Debt4.94T4.42T4.43T4.05T3.67T3.62T
Total Liabilities6.69T6.59T6.25T5.81T5.29T5.09T
Stockholders Equity3.01T3.15T3.11T2.90T2.80T2.56T
Cash Flow
Free Cash Flow0.00327.77B20.86B-65.04B29.90B-88.47B
Operating Cash Flow0.00599.25B241.70B297.71B271.47B187.86B
Investing Cash Flow0.00-320.06B-286.99B-422.03B-210.06B-131.03B
Financing Cash Flow0.00-271.28B59.99B111.45B-139.60B-66.56B

Mitsui Fudosan Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1386.00
Price Trends
50DMA
1394.58
Negative
100DMA
1359.72
Positive
200DMA
1332.45
Positive
Market Momentum
MACD
0.43
Negative
RSI
52.99
Neutral
STOCH
62.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8801, the sentiment is Positive. The current price of 1386 is above the 20-day moving average (MA) of 1370.02, below the 50-day MA of 1394.58, and above the 200-day MA of 1332.45, indicating a neutral trend. The MACD of 0.43 indicates Negative momentum. The RSI at 52.99 is Neutral, neither overbought nor oversold. The STOCH value of 62.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8801.

Mitsui Fudosan Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$3.84T15.537.82%2.16%10.16%11.46%
63
Neutral
$6.87B19.10-1.13%7.17%4.77%-25.03%
$4.35B44.052.92%0.01%
$7.40B11.5821.32%5.25%
$22.92B18.807.53%1.57%
$5.43B9.0718.00%2.59%
$5.13B9.509.70%3.84%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8801
Mitsui Fudosan Co
1,386.00
-56.98
-3.95%
AMLLF
AEON Mall Co
18.10
6.58
57.12%
DITTF
Daito Construction
108.48
8.94
8.98%
MITEF
Mitsubishi Estate Company
18.62
3.21
20.83%
OPPPF
Open House Co
44.77
14.94
50.08%
TTUUF
Tokyu Fudosan Holdings
6.77
0.29
4.48%

Mitsui Fudosan Co Corporate Events

Mitsui Fudosan Reports No Share Repurchase in May 2025
Jun 2, 2025

Mitsui Fudosan Co., Ltd. announced that it did not repurchase any shares during the period from May 1, 2025, to May 31, 2025, despite having a board-approved plan to repurchase up to 50 million shares by January 31, 2026. This indicates a cautious approach in executing its share buyback strategy, which could impact its stock market performance and shareholder value.

The most recent analyst rating on (JP:8801) stock is a Hold with a Yen1500.00 price target. To see the full list of analyst forecasts on Mitsui Fudosan Co stock, see the JP:8801 Stock Forecast page.

Mitsui Fudosan Updates FY2024 Financial Results
May 13, 2025

Mitsui Fudosan Co., Ltd. announced a correction to its previously disclosed financial results for the fiscal year 2024. The correction involves a slight adjustment in the Return on Assets (ROA) from 4.01% to 4.12%, reflecting a more favorable financial performance than initially reported. This correction may impact stakeholders’ perception of the company’s financial health and operational efficiency.

The most recent analyst rating on (JP:8801) stock is a Hold with a Yen1500.00 price target. To see the full list of analyst forecasts on Mitsui Fudosan Co stock, see the JP:8801 Stock Forecast page.

Mitsui Fudosan Announces Increased Dividend Amid Stock Split
May 9, 2025

Mitsui Fudosan Co., Ltd. announced a resolution to increase its fiscal year-end dividend per share to 31.00 yen, which is 1.00 yen higher than the previous forecast. This decision aligns with the company’s shareholder return policy and reflects its consolidated financial results for the fiscal year ended March 31, 2025. The increase in dividends is subject to approval at the upcoming Annual Meeting of Shareholders. The company also conducted a 3-for-1 stock split, affecting the dividend calculations for the fiscal year.

Mitsui Fudosan Reports Strong Revenue Growth Amidst Decline in Comprehensive Income
May 9, 2025

Mitsui Fudosan Co., Ltd. reported a significant increase in its consolidated financial results for the fiscal year ended March 31, 2025, with a 10.2% rise in revenue from operations and a 9.7% increase in operating income. Despite a decrease in comprehensive income by 51.2%, the company maintained a steady return on equity and improved its basic earnings per share following a three-for-one stock split. The announcement indicates a robust operational performance, although the decline in comprehensive income may prompt stakeholders to scrutinize the underlying factors.

Mitsui Fudosan Reports No Share Repurchases in April 2025
May 1, 2025

Mitsui Fudosan Co., Ltd. announced that no shares were repurchased during April 2025, despite a board resolution allowing for the repurchase of up to 50 million shares. The company had previously repurchased over 1.6 million shares by the end of April 2025, reflecting its strategy to manage capital and enhance shareholder value.

Mitsui Fudosan Announces Share Repurchase Progress
Apr 1, 2025

Mitsui Fudosan Co., Ltd. announced the repurchase of 1,430,400 of its common shares for a total of 1,780,332,350 yen, conducted through open market purchases on the Tokyo Stock Exchange during March 2025. This move is part of a broader share repurchase program approved by the board, allowing for the repurchase of up to 50 million shares, reflecting the company’s strategy to enhance shareholder value and optimize its capital structure.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 18, 2025