Heiwa Real Estate Co., Ltd. (8803) AI Stock Analysis

• Market Cap: ¥175.29B
• Dividend Yield: 3.39%
• Average Volume (3M): 193.23K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.39
• Revenue Growth: 28.94%
• EPS Growth: 109.35%
• Country: JP
• Employees: 255
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): N/A
• Shares Outstanding: 71,019,990
• 10 Day Avg. Volume: 215,300
• 30 Day Avg. Volume: 193,226
• PEG Ratio: 0.42
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 1.89
• P/FCF Ratio: -11.27
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥2,708.00 ▲(21.22% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

The overall stock score is primarily influenced by stable financial performance, despite challenges in revenue and cash flow. The valuation is attractive with a reasonable P/E ratio and a good dividend yield. Technical analysis presents mixed signals, with short-term bearish momentum but longer-term stability.

Positive Factors

Stable rental income model

Heiwa’s core business of developing, owning and operating diversified commercial properties creates recurring rental income and potential capital appreciation. That predictable cashflow profile supports margin stability, steady operating results and long-term dividend capacity across economic cycles.

Solid balance sheet

A moderate debt-to-equity ratio, stable return on equity and a solid equity ratio point to conservative financing and capital strength. This balance-sheet resilience reduces refinancing and solvency risk, preserving capacity for renovations or selective investments over the medium term.

Core cash generation

Strong operating cash flow indicates the leasing and property-management business reliably converts revenue into cash. That core cash generation underpins day-to-day funding, maintenance capex and distributions, supporting operational resilience even if investment funding must be supplemented.

Negative Factors

Negative free cash flow

Sustained negative free cash flow constrains the company’s ability to fund capex, redevelopment or acquisitions from operations. Over months this forces reliance on debt or asset disposals, limits reinvestment flexibility and can pressure liquidity and dividend sustainability if not reversed.

Declining revenue trend

A multi-year revenue decline reduces scale and may reflect softer tenant demand or portfolio mix issues. Persisting top-line weakness erodes operating leverage, narrows the margin of safety for fixed costs, and makes sustaining profitability and investment plans more difficult over the medium term.

Rising leverage risk

The reported slight increase in total debt, combined with negative FCF, elevates leverage and refinancing risk. Over months, additional interest burden and reduced financial flexibility could limit the firm’s ability to pursue value‑creating development or respond to market stress without further balance-sheet moves.

Heiwa Real Estate Co., Ltd. Business Overview & Revenue Model

Company Description

Heiwa Real Estate Co., Ltd. operates as a real estate company in Japan. It operates in two segments, Building Business and Asset Management Business. The company develops, leases, manages, and sell stock exchange buildings, office buildings, commercial facilities, and residential buildings. It also provides property management and real estate agency services. The company was incorporated in 1947 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Heiwa Real Estate Co., Ltd. generates revenue through multiple key streams, primarily from leasing its commercial and residential properties. Rental income forms a significant portion of its earnings, as the company owns a diverse portfolio of real estate assets. Additionally, revenue is derived from property sales, where the company develops properties and sells them for profit. The firm also engages in real estate development projects, which can yield substantial returns upon completion and sale. Partnerships with financial institutions for funding development projects and collaborations with local governments for urban development initiatives also contribute to its revenue. Furthermore, consulting services provided to external clients in real estate planning and management add another dimension to its income sources.

Heiwa Real Estate Co., Ltd. Financial Statement Overview

Summary

Heiwa Real Estate Co., Ltd. demonstrates stable profitability and a solid balance sheet, although recent declines in revenue and negative free cash flow present challenges. The company should focus on reversing revenue declines and improving cash flow to maintain financial health.

Income Statement

The gross profit margin has remained strong, indicating effective cost management. However, the revenue trajectory shows a decline from 2022 to 2025, which might be concerning. Net profit margins remain healthy, suggesting good profitability, though revenue growth has been negative recently.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, reflecting a balanced leverage profile. Return on equity has shown stability, and equity ratio is solid, denoting financial stability. However, the slight increase in total debt could be monitored for potential risk.

Cash Flow

Operating cash flow is strong, but free cash flow is negative, which could impact the company’s ability to invest in growth opportunities. The free cash flow to net income ratio is concerning, suggesting potential liquidity challenges if this trend continues.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	44.62B	42.08B	44.43B	44.52B	57.82B	35.05B
Gross Profit	19.61B	19.05B	18.57B	16.28B	17.69B	15.36B
EBITDA	21.17B	18.83B	18.81B	16.45B	18.03B	16.31B
Net Income	9.73B	9.56B	8.45B	9.14B	8.71B	7.12B
Balance Sheet
Total Assets	426.83B	419.54B	405.98B	398.33B	376.21B	381.35B
Cash, Cash Equivalents and Short-Term Investments	21.63B	25.34B	28.42B	27.91B	28.23B	29.70B
Total Debt	256.46B	245.68B	222.67B	222.04B	202.24B	211.73B
Total Liabilities	308.40B	301.54B	280.33B	279.01B	256.93B	262.71B
Stockholders Equity	118.43B	118.00B	125.65B	119.32B	119.28B	118.64B
Cash Flow
Free Cash Flow	0.00	-7.05B	1.32B	-16.66B	13.81B	-22.83B
Operating Cash Flow	0.00	16.05B	19.58B	23.95B	34.19B	8.29B
Investing Cash Flow	0.00	-24.84B	-19.36B	-40.25B	-20.70B	-30.20B
Financing Cash Flow	0.00	7.72B	280.00M	13.99B	-15.49B	24.33B

Heiwa Real Estate Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2234.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8803, the sentiment is Positive. The current price of 2234 is below the 20-day moving average (MA) of 2478.40, below the 50-day MA of 2339.14, and below the 200-day MA of 2274.66, indicating a bullish trend. The MACD of 59.59 indicates Positive momentum. The RSI at 78.99 is Negative, neither overbought nor oversold. The STOCH value of 88.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8803.

Heiwa Real Estate Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8931	78 Outperform	¥19.39B	5.68	―	4.71%	10.42%	48.21%
8850	75 Outperform	¥262.19B	10.78	―	2.67%	2.29%	-4.12%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3010	65 Neutral	¥45.15B	13.79	―	1.60%	116.30%	-0.08%
8923	64 Neutral	¥157.80B	10.84	14.95%	2.95%	17.74%	19.41%
8803	63 Neutral	¥175.29B	15.68	8.95%	3.39%	28.94%	109.35%
8918	57 Neutral	¥15.38B	719.42	―	1.11%	―	―

Heiwa Real Estate Co., Ltd. Corporate Events

Heiwa Real Estate Utilizes Half of Authorized Share Buyback in February

Heiwa Real Estate Co., Ltd. reported that it repurchased 221,600 of its own common shares on the Tokyo Stock Exchange between February 2 and February 28, 2026, for a total of ¥544,483,487. The buyback is being conducted under a previously approved board authorization that allows repurchases of up to 500,000 shares, or 0.75% of shares outstanding excluding treasury stock, with a budget of up to ¥1 billion through March 31, 2026.

This transaction indicates that the company has utilized roughly half of its authorized buyback capacity in the first month of the program, signaling active capital management and potentially supporting its share price and shareholder returns. The ongoing repurchase framework gives Heiwa Real Estate additional flexibility to adjust its capital structure ahead of the March 31 deadline, which may be viewed positively by investors focused on capital efficiency and equity value.

The most recent analyst rating on (JP:8803) stock is a Hold with a Yen2726.00 price target. To see the full list of analyst forecasts on Heiwa Real Estate Co., Ltd. stock, see the JP:8803 Stock Forecast page.

Heiwa Real Estate Revamps Governance Structure and Promotes Senior Managing Officer

Heiwa Real Estate has nominated nine directors to be elected at its June 2026 shareholders’ meeting, maintaining a board structure that includes three internal directors and six non-executive directors. Five of the nine nominees are external, all designated as independent directors under Tokyo Stock Exchange rules, reinforcing the company’s emphasis on governance and oversight.

The company also set the composition of its Nomination, Audit, and Compensation committees, appointing external directors as chairs in each, which strengthens independence in key governance functions. In a management move effective April 1, 2026, Ichiro Wagatsuma will be promoted to senior managing officer while retaining responsibility for the Development Promotion Department I and the Community Co-Creation Department, signaling continuity in its development and community strategy.

The most recent analyst rating on (JP:8803) stock is a Hold with a Yen2698.00 price target. To see the full list of analyst forecasts on Heiwa Real Estate Co., Ltd. stock, see the JP:8803 Stock Forecast page.

Heiwa Real Estate Lifts Nine-Month Profit and Hikes Dividend, Upgrades Full-Year Forecast

For the nine months ended 31 December 2025, Heiwa Real Estate reported strong consolidated results, with net sales rising 21.6% year on year to ¥32.8 billion and profit attributable to owners of parent climbing 24.8% to ¥6.2 billion, while comprehensive income surged nearly fourfold. Total assets grew to ¥441.4 billion and equity to ¥124.5 billion, keeping the equity ratio broadly stable at 28.2%, and earnings per share, adjusted for a July 2025 2-for-1 stock split, improved to ¥92.41. The company has revised its dividend plan, projecting total annual dividends of ¥93 per share for the year ending March 2026 (equivalent to ¥186 without the stock split), including both ordinary and special components, and has also upgraded its full-year earnings forecast, now expecting ¥50.5 billion in net sales and ¥10.3 billion in profit attributable to owners of parent, signaling confidence in continued profit growth and enhanced shareholder returns.

The most recent analyst rating on (JP:8803) stock is a Hold with a Yen2371.00 price target. To see the full list of analyst forecasts on Heiwa Real Estate Co., Ltd. stock, see the JP:8803 Stock Forecast page.

Heiwa Real Estate Enhances Shareholder Benefit Program to Reward Long-Term Investors

Heiwa Real Estate Co., Ltd. has resolved to enhance its shareholder benefit program, which provides annual benefits based on the number of shares held and the duration of ownership as of March 31. The company is introducing a new long-term shareholder category for those holding 200 to 499 shares and raising the value of online catalog gifts from Daimaru Matsuzakaya Department Stores across all tiers, with long-term holders of 200–499 shares now eligible for ¥5,000 gifts and those with 500 shares or more eligible for up to ¥8,000. By strengthening incentives for medium- to long-term ownership and increasing the attractiveness of its shareholder perks, Heiwa Real Estate aims to deepen shareholder loyalty and potentially stabilize its shareholder base ahead of the revised program taking effect for shareholders of record on March 31, 2026.

The most recent analyst rating on (JP:8803) stock is a Hold with a Yen2371.00 price target. To see the full list of analyst forecasts on Heiwa Real Estate Co., Ltd. stock, see the JP:8803 Stock Forecast page.

Heiwa Real Estate to Buy Back Up to ¥1 Billion in Shares and Cancel 6.7 Million Treasury Shares

Heiwa Real Estate Co., Ltd. has approved a new share repurchase program to buy back up to 500,000 common shares, equivalent to 0.75% of its outstanding stock (excluding treasury shares), for a total of up to ¥1 billion through market purchases on the Tokyo Stock Exchange between February 2 and March 31, 2026. In tandem, the company will cancel 6.7 million treasury shares, equal to 8.62% of shares issued before cancellation, on February 27, 2026, as part of its policy of capping treasury holdings at around 5% of shares outstanding; this move tightens the share float, signals a continued focus on capital efficiency and shareholder returns, and could be supportive for per-share metrics and investor sentiment.

The most recent analyst rating on (JP:8803) stock is a Hold with a Yen2371.00 price target. To see the full list of analyst forecasts on Heiwa Real Estate Co., Ltd. stock, see the JP:8803 Stock Forecast page.

Heiwa Real Estate Lifts FY2026 Earnings Forecast and Hikes Dividend for Ninth Straight Year

Heiwa Real Estate has raised its full-year forecast for the fiscal year ending March 31, 2026, projecting net sales of ¥50.5 billion and profit attributable to owners of parent of ¥10.3 billion, with operating, ordinary and net profits all expected to hit record highs on the back of stronger-than-anticipated office, hotel and asset management revenues. Reflecting this earnings momentum and enabling it to achieve medium-term targets a year early, the company also increased its planned year-end dividend by ¥5 to ¥57 per share, lifting the total annual dividend to ¥93 per share and marking a ninth consecutive year of dividend increases, underscoring a continued commitment to shareholder returns.

The most recent analyst rating on (JP:8803) stock is a Hold with a Yen2371.00 price target. To see the full list of analyst forecasts on Heiwa Real Estate Co., Ltd. stock, see the JP:8803 Stock Forecast page.

Heiwa Real Estate Lifts FY2026 Profit and Dividend Targets Under Medium-Term Plan

Heiwa Real Estate has revised upward the quantitative targets for the final year (FY2026) of its medium-term management plan “WAY 2040 Stage 1,” reflecting stronger-than-expected earnings momentum in both its Building Business and Asset Management Business. The company now targets earnings per share of at least ¥160, consolidated operating profit of at least ¥15 billion—driven mainly by higher office, hotel, and asset management revenue—and an increased annual dividend of at least ¥95 per share, with a higher ordinary dividend component. These revisions, which follow accelerated reduction of cross-shareholdings and earlier upgrades to targets, underscore management’s confidence in sustaining robust earnings and improving capital efficiency, with implications for higher shareholder returns and a stronger competitive position in the Japanese real estate market.

The most recent analyst rating on (JP:8803) stock is a Hold with a Yen2371.00 price target. To see the full list of analyst forecasts on Heiwa Real Estate Co., Ltd. stock, see the JP:8803 Stock Forecast page.