Mitsubishi Estate Company (8802) AI Stock Analysis

• Market Cap: ¥3.30T
• Dividend Yield: 2.34%
• Average Volume (3M): 3.56M
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.91
• Revenue Growth: 4.99%
• EPS Growth: 14.35%
• Country: JP
• Employees: 11,045
• Sector: Real Estate
• Sector Strength: 57
• Industry: Real Estate - Diversified
• EPS (TTM): 66.81
• Shares Outstanding: 1,250,838,700
• 10 Day Avg. Volume: 3,151,310
• 30 Day Avg. Volume: 3,556,703
• PEG Ratio: -6.41
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 40.22
• 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: ¥3,289.77
• Price Target Upside: 22.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 71 Outperform
• Price Target: ¥2,882.00 ▲(7.16%Upside)

The overall stock score reflects strong financial performance and technical indicators suggesting bullish momentum. The company's valuation is fair, with a moderate dividend yield. However, challenges in converting earnings to positive free cash flow due to high capital expenditures slightly dampen the outlook.

Positive Factors

Earnings Outlook

FY2025 earnings outlook upgraded with larger share buyback and higher dividends.

Financial Performance

Record profit driven by strong capital gains and investment management recovery.

Strategic Targets

Mitsubishi Estate announced new FY2030 targets of increasing dividend, share buyback, and achieving ROE of 10%.

Negative Factors

Economic Downturn

Potential economic downturn and financial crisis could impact office demand and result in a weaker office market, especially in the Tokyo office market.

Macroeconomic Concerns

Macroeconomic concerns could cause weakness in the office market especially in Tokyo.

Property Sales Market

Weakening property sales market could impact residential and commercial property sales.

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 retail facilities/outlets; investment, development, operational management, and asset management of logistics facilities; operation of 16 hotels under the Royal Park Hotels brand in Japan and the Marunouchi Hotel in the Marunouchi area; and operation of Takamatsu Airport, Miyako Shimojishima Airport Terminal, Mt. Fuji Shizuoka Airport, and seven airports in Hokkaido. It also engages in the development and rebuilding, redevelopment, purchasing and sale, brokerage, and management of condominiums; and rental of apartments. In addition, the company provides real estate investment trust, as well as private placement funds management services. Further, it offers architectural design and engineering services, including construction, civil engineering, and urban and regional development planning and consulting. Additionally, the company provides real estate problem-solving solutions, such as real estate brokerage, condominium and office building leasing management support, and real estate appraisal. Mitsubishi Estate Co., Ltd. was founded in 1890 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mitsubishi Estate Company generates revenue through a diversified portfolio of real estate activities. Key revenue streams include rental income from its extensive portfolio of office buildings and commercial properties, sales of residential units, and property management fees. The company also earns from development projects both domestically and internationally, leveraging its expertise in urban development to create high-value properties. Additionally, Mitsubishi Estate benefits from strategic partnerships and joint ventures that enhance its market reach and development capabilities. The company's earnings are also supported by its involvement in the hospitality sector, through the operation and management of hotels, providing a steady stream of income.

Mitsubishi Estate Company Financial Statement Overview

Summary

Mitsubishi Estate Company exhibits strong financial health with consistent revenue and profit growth. The balance sheet remains solid, supported by a stable equity base and manageable leverage. While cash flow generation is robust, the company faces challenges in converting earnings to positive free cash flow due to high capital expenditures.

Income Statement

The company shows strong revenue growth with a CAGR of approximately 4% over the past five years, highlighted by a recent year-over-year increase of 5.0%. Gross profit margins remain robust at around 26.5% for the latest year, indicating efficient cost management. The net profit margin has improved to 12.0%, reflecting enhanced profitability. EBIT and EBITDA margins are healthy at 19.6% and 26.2%, respectively. Overall, the income statement reflects a solid financial performance with consistent revenue growth and improved profitability.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 32.1%, up from previous years, indicating a stable financial position. The debt-to-equity ratio has slightly increased to 1.3, suggesting a balanced approach to leverage. Return on equity has improved to 7.4%, demonstrating effective use of shareholder funds. While the balance sheet shows a healthy equity position, the increasing debt levels warrant monitoring to ensure financial stability.

Cash Flow

Operating cash flow has shown resilience with a 5.8% increase from the previous year, supporting ongoing operational needs. The free cash flow has improved but remains negative, primarily due to significant capital expenditures. The operating cash flow to net income ratio is strong at 1.7, indicating good cash generation. However, the negative free cash flow to net income ratio highlights the impact of capital investments on cash reserves.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.58T	1.50T	1.38T	1.35T	1.21T
Gross Profit	417.97B	392.27B	397.04B	374.76B	317.76B
EBITDA	414.27B	412.54B	393.33B	373.10B	316.52B
Net Income	189.36B	168.43B	165.34B	155.17B	135.66B
Balance Sheet
Total Assets	8.00T	7.58T	6.87T	6.49T	6.07T
Cash, Cash Equivalents and Short-Term Investments	1.32T	1.24T	945.00B	861.92B	670.85B
Total Debt	3.34T	3.14T	2.87T	2.74T	2.52T
Total Liabilities	5.26T	4.96T	4.49T	4.26T	4.01T
Stockholders Equity	2.56T	2.40T	2.16T	2.00T	1.85T
Cash Flow
Free Cash Flow	-118.44B	-144.15B	-16.61B	-49.02B	-112.43B
Operating Cash Flow	325.16B	307.25B	269.91B	280.09B	207.41B
Investing Cash Flow	-358.60B	-362.02B	-312.05B	-313.78B	-297.30B
Financing Cash Flow	9.97B	100.43B	30.46B	90.97B	50.42B

Mitsubishi Estate Company Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2689.50
• 50DMA: Positive
• 100DMA: Positive
• 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:8802, the sentiment is Neutral. The current price of 2689.5 is below the 20-day moving average (MA) of 2710.85, above the 50-day MA of 2665.85, and above the 200-day MA of 2359.65, indicating a neutral trend. The MACD of 8.85 indicates Positive momentum. The RSI at 48.97 is Neutral, neither overbought nor oversold. The STOCH value of 33.71 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8802	71 Outperform	¥3.30T	17.81	7.53%	2.34%	4.99%	14.35%
Sector *	63 Neutral	$6.74B	18.42	-1.93%	7.60%	4.67%	-25.44%
AMLLF	―	$4.26B	37.29	2.92%	1.87%	―	―
DITTF	―	$7.07B	10.48	21.32%	5.80%	―	―
MTSFF	―	$24.85B	15.29	7.82%	3.29%	―	―
OPPPF	―	$5.31B	8.88	18.00%	2.56%	―	―
TTUUF	―	$4.86B	9.57	9.70%	4.90%	―	―

Mitsubishi Estate Company Corporate Events

Mitsubishi Estate Reports Progress on Share Repurchase Program

Mitsubishi Estate Co., Ltd. announced the status of its share repurchase program, revealing that it repurchased 5,457,400 common shares for a total of 14,735,864,800 yen between June 1 and June 30, 2025. This move is part of a broader plan approved by the board to repurchase up to 60 million shares, with a maximum budget of 100 billion yen, aimed at enhancing shareholder value and optimizing capital structure.

The most recent analyst rating on (JP:8802) stock is a Buy with a Yen3250.00 price target. To see the full list of analyst forecasts on Mitsubishi Estate Company stock, see the JP:8802 Stock Forecast page.

Mitsubishi Estate Reports Progress on Share Repurchase Program

Mitsubishi Estate Co., Ltd. announced the status of its share repurchase program, revealing the acquisition of over 5 million common shares for approximately 12.89 billion yen between May 13 and May 31, 2025. This move is part of a larger plan approved by the board to repurchase up to 60 million shares, reflecting the company’s strategy to enhance shareholder value and optimize its capital structure.

The most recent analyst rating on (JP:8802) stock is a Buy with a Yen3200.00 price target. To see the full list of analyst forecasts on Mitsubishi Estate Company stock, see the JP:8802 Stock Forecast page.

Mitsubishi Estate Reports Record Profits and Positive Outlook for FY2025

Mitsubishi Estate Company reported record-high operating profits and profit attributable to owners for FY2024, surpassing forecasts. The company anticipates further growth in FY2025, driven by strong domestic and international business performance and strategic sales of holding stocks. The company plans to enhance shareholder returns through increased dividends and a significant share buyback, aiming to improve ROE. Despite a slight expected decline in the commercial property business, overall profitability is projected to rise.

Mitsubishi Estate Reports Strong FY2024 Results and Positive Outlook for FY2025

Mitsubishi Estate Co., Ltd. reported its consolidated financial results for FY2024, showing a notable increase in operating revenue and profit compared to the previous year. The company achieved a 5% rise in operating revenue to ¥1,579,812 million and a 12.4% increase in profit attributable to owners of the parent, reaching ¥189,356 million. The forecast for FY2025 anticipates further growth, with a projected 17.1% increase in operating revenue. The company also plans to repurchase its own shares, which is expected to impact earnings per share positively. These results and strategic moves indicate Mitsubishi Estate’s strong market positioning and commitment to enhancing shareholder value.

Mitsubishi Estate Reports Strong Financial Growth for FY 2025

Mitsubishi Estate Co., Ltd. reported a notable increase in its non-consolidated financial results for the fiscal year ended March 31, 2025, compared to the previous year. The company’s operating revenue, operating profit, ordinary profit, and profit attributable to owners of the parent all saw significant growth, driven primarily by gains on sales of properties in the Commercial Property Business and extraordinary income from the sale of investment securities.

Mitsubishi Estate Announces Share Repurchase Plan

Mitsubishi Estate Co., Ltd. has announced a share repurchase plan as part of its long-term capital policy. The company plans to buy back up to 60 million common shares, representing 4.82% of its outstanding shares, with a maximum repurchase price of 100 billion yen. This move is intended to optimize capital structure and potentially enhance shareholder value.