Mitsubishi Estate Company Limited (JP:8802)
:8802
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Mitsubishi Estate Company
(8802)
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Rating:71Outperform
Price Target:
¥4,749.00
▲(10.49% Upside)
Action:ReiteratedDate:02/10/26
The score is driven primarily by solid financial performance (strong profitability and a stable balance sheet), partially offset by negative free cash flow from heavy investment. Technicals are supportive due to a strong uptrend, but overbought indicators add near-term risk. Valuation is a headwind given the higher P/E and low dividend yield.
Positive Factors
Recurring leasing income
A large, office-anchored leasing portfolio provides stable, contract-backed rental cash flows that smooth earnings versus cyclical development profits. This recurring income underpins debt service, funds steady operations and supports long-term asset reinvestment and property management scale.
Negative Factors
Negative free cash flow from heavy capex
Sustained negative free cash flow driven by large ongoing capex limits internal liquidity and raises reliance on external funding. Over months this constrains flexibility for opportunistic investments, dividend increases or debt reduction and increases exposure to financing cost shifts.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring leasing income
A large, office-anchored leasing portfolio provides stable, contract-backed rental cash flows that smooth earnings versus cyclical development profits. This recurring income underpins debt service, funds steady operations and supports long-term asset reinvestment and property management scale.
Read all positive factors
Mitsubishi Estate Company (8802) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$5.35T
Dividend Yield1.18%
Average Volume (3M)2.87M
Price to Earnings (P/E)11.8
Beta (1Y)0.94
Revenue Growth7.97%
EPS Growth13.59%
CountryJP
Employees11,045
SectorReal Estate
Sector Strength53
IndustryReal Estate - Diversified
Share Statistics
EPS (TTM)N/A
Shares Outstanding1,217,233,800
10 Day Avg. Volume3,090,040
30 Day Avg. Volume2,868,390
Financial Highlights & Ratios
PEG Ratio1.11
Price to Book (P/B)1.19
Price to Sales (P/S)1.93
P/FCF Ratio-25.74
Enterprise Value/Market Cap1.67
Enterprise Value/Revenue5.57
Enterprise Value/Gross Profit20.82
Enterprise Value/Ebitda21.19
Forecast
1Y Price Target
$5,180.93Price Target Upside20.54% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Mitsubishi Estate Company Business Overview & Revenue Model
Company Description
Mitsubishi Estate Co., Ltd. engages in the real estate activities in Japan and internationally. The company is involved in the development, leasing, property management, and sale of office buildings; planning, development, and tenant leasing of re...
How the Company Makes Money
Mitsubishi Estate primarily makes money through a combination of recurring rental/management income and profits from development and sales, supplemented by fee-based businesses.
1) Leasing (recurring rental income): A major earnings engine is lea...
Mitsubishi Estate Company Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.61T | 1.58T | 1.50T | 1.38T | 1.35T | 1.21T |
| Gross Profit | 430.22B | 417.97B | 392.27B | 397.04B | 374.76B | 317.76B |
| EBITDA | 422.78B | 414.27B | 412.54B | 393.33B | 373.10B | 316.52B |
| Net Income | 195.40B | 189.36B | 168.43B | 165.34B | 155.17B | 135.66B |
Balance Sheet | ||||||
| Total Assets | 7.98T | 8.00T | 7.58T | 6.87T | 6.49T | 6.07T |
| Cash, Cash Equivalents and Short-Term Investments | 190.27B | 259.75B | 278.70B | 228.59B | 237.40B | 174.67B |
| Total Debt | 3.47T | 3.34T | 3.14T | 2.87T | 2.74T | 2.52T |
| Total Liabilities | 5.30T | 5.26T | 4.96T | 4.49T | 4.26T | 4.01T |
| Stockholders Equity | 2.51T | 2.56T | 2.40T | 2.16T | 2.00T | 1.85T |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -118.44B | 39.90B | -10.99B | -18.23B | -87.32B |
| Operating Cash Flow | 0.00 | 325.16B | 491.30B | 275.31B | 310.36B | 228.46B |
| Investing Cash Flow | 0.00 | -358.60B | -350.79B | -308.92B | -306.72B | -294.27B |
| Financing Cash Flow | 0.00 | 9.97B | 89.20B | 27.34B | 83.92B | 47.39B |
Mitsubishi Estate Company Technical Analysis
Neutral
4298.00
Price Trends
4562.16
Negative
4102.58
Positive
3565.13
Positive
Market Momentum
-25.37
Positive
35.17
Neutral
6.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8802, the sentiment is Neutral. The current price of 4298 is below the 20-day moving average (MA) of 4905.85, below the 50-day MA of 4562.16, and above the 200-day MA of 3565.13, indicating a neutral trend. The MACD of -25.37 indicates Positive momentum. The RSI at 35.17 is Neutral, neither overbought nor oversold. The STOCH value of 6.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8802.
Mitsubishi Estate Company Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥977.91B | 25.41 | 11.06% | 2.88% | 11.00% | 88.70% | |
78 Outperform | ¥4.78T | 18.13 | 10.15% | 1.86% | 18.31% | 71.89% | |
74 Outperform | ¥1.19T | 9.43 | 19.43% | 5.16% | 5.16% | 6.00% | |
72 Outperform | ¥1.13T | 9.44 | 19.60% | 1.94% | 3.13% | 11.87% | |
71 Outperform | $5.35T | 11.76 | 7.67% | 1.18% | 7.97% | 13.59% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | ¥157.89B | 20.44 | 8.95% | 3.39% | 28.94% | 109.35% |
* Real Estate Sector Average
JP:8802
Mitsubishi Estate Company
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Mitsubishi Estate Company Corporate Events
Mitsubishi Estate to Make Hashimoto Development TMK a Specified Subsidiary
Mar 4, 2026
Mitsubishi Estate Co., Ltd. will make a preferred equity investment in its subsidiary Hashimoto Development TMK on March 27, 2026, turning it into a specified subsidiary fully owned and controlled by the group. Hashimoto Development TMK, establish...
Mitsubishi Estate Reports Progress on ¥30 Billion Share Buyback Program
Mar 2, 2026
Mitsubishi Estate Co., Ltd. has repurchased 2,518,500 of its common shares on the open market of the Tokyo Stock Exchange between February 10 and February 28, 2026, at a total cost of about 12.63 billion yen. This transaction is part of a previous...
Mitsubishi Estate Spins Off Smart Home Unit HOMETACT in Internal Restructuring
Feb 20, 2026
Mitsubishi Estate Co., Ltd. will transfer its smart home services operation, known as the HOMETACT business, to wholly owned subsidiary HOMETACT Co., Ltd. via a simplified absorption-type company split effective April 1, 2026. The move is designed...
Mitsubishi Estate Restructures Units to Bolster DX, Urban Development and Workplace Strategy
Feb 10, 2026
Mitsubishi Estate announced a broad reorganization aimed at supporting its management plan, including splitting its DX Promotion Department into two units to separate strategic governance and infrastructure from application development and busines...
Mitsubishi Estate to Dissolve Nagoya Minato Development TMK Subsidiary
Feb 10, 2026
Mitsubishi Estate has announced the dissolution of Nagoya Minato Development TMK, a wholly owned consolidated subsidiary created in 2023 to acquire, manage, and dispose of specific real estate assets. The entity, which had total assets of ¥55...
Mitsubishi Estate Launches ¥30 Billion Share Buyback to Refine Capital Structure
Feb 9, 2026
Mitsubishi Estate Co., Ltd. has resolved to implement a share repurchase program as part of its capital policy under its long-term management plan, signaling an ongoing commitment to shareholder returns. The initiative reflects the company’s...
Mitsubishi Estate Lifts 9‑Month Profit 48% and Sticks to Full‑Year Outlook
Feb 9, 2026
Mitsubishi Estate reported strong results for the nine months to December 31, 2025, with operating revenue rising 15.5% year on year to ¥1.21 trillion and operating profit up 16.9% to ¥227.4 billion. Profit attributable to owners of the ...
Mitsubishi Estate Boosts FY2025 Third-Quarter Profit on Asset Sales and Core Business Growth
Feb 9, 2026
Mitsubishi Estate reported strong results for the nine months ended March 31, 2026, with operating revenue rising to ¥1,210.1 billion from ¥1,047.9 billion, driven mainly by gains in its Commercial Property, Residential, and Architectura...
Mitsubishi Estate Lifts Earnings Outlook After Record Q3 and Expands Share Buybacks
Feb 9, 2026
Mitsubishi Estate reported record third-quarter results for the fiscal year ending March 2026, with operating profit rising to ¥227.3 billion and profit attributable to owners of parent reaching ¥156.5 billion. Strong leasing in new offi...
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.