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

• Market Cap: ¥176.29B
• Dividend Yield: 3.05%
• Average Volume (3M): 196.69K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.40
• Revenue Growth: 11.59%
• EPS Growth: 86.58%
• Country: JP
• Employees: 255
• Sector: Real Estate
• Sector Strength: 47
• Industry: Real Estate - Diversified
• EPS (TTM): 33.83
• Shares Outstanding: 77,719,990
• 10 Day Avg. Volume: 232,130
• 30 Day Avg. Volume: 196,686
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,511.20
• Price Target Upside: 6.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 70 Outperform
• Price Target: ¥2,471.00 ▲(5.24% Upside)

The stock of Heiwa Real Estate Co., Ltd. receives a score of 70, driven primarily by stable financial performance and positive technical indicators. The company's valuation is attractive with a healthy dividend yield, though revenue declines and negative free cash flow pose challenges. Overall, the stock appears reasonably positioned with room for improvement in financial performance.

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

Company Description

Heiwa Real Estate Co., Ltd. (8803) is a Japanese company primarily engaged in the real estate sector. The company is involved in the development, sale, leasing, and management of various types of properties, including office buildings, commercial facilities, and residential complexes. Heiwa Real Estate also offers real estate brokerage services and manages real estate investment trusts (REITs), providing comprehensive solutions in the property market.

How the Company Makes Money

Heiwa Real Estate Co., Ltd. generates revenue through multiple streams within the real estate industry. The company earns income from the sale and leasing of properties, which includes residential, commercial, and office spaces. Leasing activities provide a steady stream of rental income, while property sales contribute to significant one-time earnings. Additionally, Heiwa Real Estate offers property management services, generating fees for managing and maintaining properties on behalf of owners and investors. The company also operates in the real estate brokerage sector, earning commissions from facilitating property transactions. Furthermore, Heiwa Real Estate manages real estate investment trusts (REITs), collecting management fees from investors who participate in these trusts. Strategic partnerships with other real estate firms and financial institutions may also enhance its revenue-generating capabilities, though specific partnerships are not detailed.

Heiwa Real Estate Co., Ltd. Financial Statement Overview

Summary

Heiwa Real Estate Co., Ltd. demonstrates stable profitability with a solid balance sheet. However, 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	42.08B	44.43B	44.52B	57.82B	35.05B
Gross Profit	19.05B	18.57B	16.28B	17.69B	15.36B
EBITDA	18.83B	18.81B	16.45B	18.03B	16.31B
Net Income	9.56B	8.45B	9.14B	8.71B	7.12B
Balance Sheet
Total Assets	419.54B	405.98B	398.33B	376.21B	381.35B
Cash, Cash Equivalents and Short-Term Investments	26.51B	28.42B	27.91B	28.23B	29.70B
Total Debt	245.68B	222.67B	222.04B	202.24B	211.73B
Total Liabilities	301.54B	280.33B	279.01B	256.93B	262.71B
Stockholders Equity	118.00B	125.65B	119.32B	119.28B	118.64B
Cash Flow
Free Cash Flow	-7.05B	1.32B	-16.66B	13.81B	-22.83B
Operating Cash Flow	16.67B	19.58B	23.95B	34.19B	8.29B
Investing Cash Flow	-24.84B	-19.36B	-40.25B	-20.70B	-30.20B
Financing Cash Flow	7.72B	280.00M	13.99B	-15.49B	24.33B

Heiwa Real Estate Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2348.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 2348 is above the 20-day moving average (MA) of 2259.35, above the 50-day MA of 2235.78, and above the 200-day MA of 2216.56, indicating a bullish trend. The MACD of 30.67 indicates Negative momentum. The RSI at 68.35 is Neutral, neither overbought nor oversold. The STOCH value of 88.73 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
8850	82 Outperform	¥242.08B	11.10		2.46%	1.02%	-13.26%
8931	78 Outperform	¥18.11B	5.04		4.29%	17.62%	60.92%
8923	76 Outperform	¥150.11B	10.62	14.91%	2.33%	7.63%	13.95%
3010	74 Outperform	¥54.70B	14.90		1.28%	40.03%	-45.93%
8803	70 Outperform	¥176.29B	16.00	8.80%	3.05%	11.59%	86.58%
Sector *	63 Neutral	$6.83B	13.33	-1.02%	7.20%	3.67%	-27.11%

Heiwa Real Estate Co., Ltd. Corporate Events

Heiwa Real Estate Reports Strong Q1 2025 Financial Performance and Stock Split

Heiwa Real Estate Co., Ltd. reported a significant increase in its financial performance for the three months ended June 30, 2025, with net sales rising by 24% year-on-year. The company also implemented a 2-for-1 stock split on July 1, 2025, which affected earnings per share calculations. The financial results indicate a strong recovery from the previous year’s downturn, positioning the company favorably in the market. The company’s forecast for the fiscal year ending March 31, 2026, anticipates continued growth in net sales and profits, reflecting a positive outlook for stakeholders.

The most recent analyst rating on (JP:8803) stock is a Hold with a Yen5015.00 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 Affirms Independence Amid Taisei Corporation’s Stake

Heiwa Real Estate Co., Ltd. announced its relationship with Taisei Corporation, which holds 20.24% of its voting rights, classifying it as an ‘other affiliated company.’ Despite this affiliation, Heiwa maintains operational independence and commissions construction work to Taisei under standard terms. The company also facilitates personnel exchange with Taisei to promote redevelopment projects.

The most recent analyst rating on (JP:8803) stock is a Hold with a Yen4775.00 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 Announces Dividend Distribution and Shareholder Return Strategy

Heiwa Real Estate Co., Ltd. announced a decision to distribute dividends from surplus, with a record date of March 31, 2025. The company aims to maintain a consolidated dividend payout ratio of 50% and plans to enhance shareholder returns through special dividends and flexible share buybacks, supported by a stable operational outlook and a gain on sale of investment securities.

The most recent analyst rating on (JP:8803) stock is a Hold with a Yen4775.00 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 Announces Stock Split and Dividend Revision

Heiwa Real Estate Co., Ltd. announced a 2-for-1 stock split to make its shares more accessible to investors, aiming to expand its investor base. The company will also amend its Articles of Incorporation to increase the total number of authorized shares and revise its planned dividend per share, maintaining the total annual dividend payout despite the increased number of shares.

The most recent analyst rating on (JP:8803) stock is a Hold with a Yen4775.00 price target. To see the full list of analyst forecasts on Heiwa Real Estate Co., Ltd. stock, see the JP:8803 Stock Forecast page.