Mitsubishi Estate Company (8802) AI Stock Analysis

• Market Cap: ¥4.57T
• Dividend Yield: 1.18%
• Average Volume (3M): 2.87M
• Price to Earnings (P/E): 24.1
• Beta (1Y): 0.89
• Revenue Growth: 7.97%
• EPS Growth: 13.59%
• Country: JP
• Employees: 11,045
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 66.81
• Shares Outstanding: 1,217,233,800
• 10 Day Avg. Volume: 3,090,040
• 30 Day Avg. Volume: 2,868,390
• PEG Ratio: 1.11
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 1.93
• P/FCF Ratio: -25.74
• 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: ¥4,399.38
• Price Target Upside: 15.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥3,670.00 ▼(-3.90% Downside)

Mitsubishi Estate Company shows strong financial performance with consistent growth and a solid balance sheet, though high capital expenditures impact free cash flow. Technical indicators suggest a positive trend, while valuation metrics indicate the stock is fairly valued. The absence of earnings call data and corporate events does not affect the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term financial stability.

Profitability

Improved profitability margins demonstrate efficient cost management and the ability to convert revenue into profit, strengthening financial health.

Cash Flow Resilience

Resilient operating cash flow supports ongoing operations and indicates strong cash generation capabilities, crucial for sustaining business activities.

Negative Factors

High Capital Expenditures

High capital expenditures, while potentially beneficial long-term, currently strain free cash flow, limiting financial flexibility and immediate liquidity.

Increasing Debt Levels

Increasing debt levels, although manageable, require careful monitoring to prevent potential financial strain and ensure long-term stability.

Negative Free Cash Flow

Negative free cash flow indicates that capital investments are currently outpacing cash generation, which could impact liquidity and investment capacity.

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 generates revenue primarily through leasing and management fees from its extensive portfolio of commercial and residential properties. The company earns significant income from rental income derived from office buildings and retail spaces located in key urban areas. Additionally, it profits from property sales, development projects, and real estate investment trusts (REITs). Key revenue streams include long-term leases with corporate tenants, the sale of residential units, and management fees from properties under its management. Strategic partnerships with other developers and investors enhance its capacity for large-scale projects, while its focus on sustainable developments aligns with increasing demand for environmentally friendly properties, thereby contributing to its earnings.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
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	1.32T	1.24T	945.00B	861.92B	670.85B
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

• Technical Analysis Sentiment: Positive
• Last Price: 3819.00
• 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 Positive. The current price of 3819 is above the 20-day moving average (MA) of 3742.60, above the 50-day MA of 3494.44, and above the 200-day MA of 2940.86, indicating a bullish trend. The MACD of 100.14 indicates Positive momentum. The RSI at 61.85 is Neutral, neither overbought nor oversold. The STOCH value of 40.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8802.

Mitsubishi Estate Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3289	78 Outperform	¥1.04T	9.85	12.53%	2.88%	11.00%	88.70%
8801	78 Outperform	¥4.91T	15.70	9.59%	1.86%	18.31%	71.89%
1878	73 Outperform	¥1.02T	10.65	19.43%	5.16%	5.16%	6.00%
3288	72 Outperform	¥1.07T	10.50	19.60%	1.94%	3.13%	11.87%
8802	71 Outperform	¥4.57T	24.10	7.67%	1.18%	7.97%	13.59%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Mitsubishi Estate Company Corporate Events

Mitsubishi Estate Completes Share Repurchase Program

Mitsubishi Estate Co., Ltd. has completed the repurchase of its own shares, as authorized by its board of directors. The company repurchased 1,124,100 common shares for approximately 3.75 billion yen between November 1 and November 7, 2025, through open market purchases on the Tokyo Stock Exchange. This move is part of a larger repurchase plan initiated in May 2025, aiming to buy back up to 60 million shares. The repurchased shares will be canceled, reducing the total number of issued shares, which could potentially enhance shareholder value and improve the company’s financial metrics.

Mitsubishi Estate Reports Strong Q2 FY2025 Financial Results

Mitsubishi Estate Co., Ltd. reported a significant increase in its consolidated financial results for the second quarter of FY2025, with operating revenue rising by 15.9% and profit attributable to owners of the parent increasing by 16.1% compared to the previous year. The company has maintained its dividend forecast and plans to pay dividends on December 5, 2025, reflecting stable financial health and commitment to shareholder returns.

Mitsubishi Estate Reports Strong Q2 FY2025 Results with Focus on Shareholder Returns

Mitsubishi Estate Co., Ltd. reported a year-on-year increase in operating profit and profit attributable to owners for the second quarter of FY2025, with strong performance in leasing, retail, and hotel businesses. Despite a decline in overall profit due to lower capital gains and initial costs for new projects, the company maintains its full-year earnings forecast, supported by steady capital gains and ongoing sale negotiations. The company also announced a progressive dividend policy and completed a significant share buyback, indicating a focus on shareholder returns.

Mitsubishi Estate Co., Ltd. Reports Strong FY2025 Q2 Financial Results

Mitsubishi Estate Co., Ltd. reported its financial results for the second quarter of FY2025, showing an increase in operating revenue and profit attributable to owners of the parent compared to the same period in FY2024. The company experienced gains in its commercial and residential property businesses, while facing some extraordinary losses related to the retirement of non-current assets. The results indicate a strong performance in its core areas, enhancing its market position and potentially benefiting stakeholders.

Mitsubishi Estate Reports Progress on Share Repurchase Program

Mitsubishi Estate Co., Ltd. announced the status of its share repurchase program, revealing that it has repurchased 6,177,100 common shares for a total of 20.6 billion yen between October 1 and October 31, 2025. This move is part of a broader strategy 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.

Mitsubishi Estate Reports Progress on Share Repurchase Program

Mitsubishi Estate Co., Ltd. announced the status of its share repurchase program, revealing that it has repurchased 4,214,900 common shares for approximately 13.9 billion yen from September 1 to September 30, 2025. This move is part of a broader strategy approved by the board to repurchase up to 60 million shares, aiming to enhance shareholder value and optimize capital structure.