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

• Market Cap: ¥167.07B
• Dividend Yield: 3.42%
• Average Volume (3M): 193.23K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.37
• Revenue Growth: 28.94%
• EPS Growth: 109.35%
• Country: JP
• Employees: 255
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 31.26
• Shares Outstanding: 77,719,990
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥2,463.00 ▲(11.50% Upside)

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

Strong Gross Profit Margin

A strong gross profit margin suggests efficient cost management, which can lead to sustained profitability and competitive pricing power.

Stable Balance Sheet

A stable balance sheet with moderate leverage enhances financial resilience, allowing for strategic investments and weathering economic fluctuations.

Diverse Revenue Streams

Diverse revenue streams provide stability and growth opportunities, reducing reliance on any single market segment and enhancing adaptability.

Negative Factors

Negative Free Cash Flow

Negative free cash flow may limit the company's ability to fund new projects or respond to market changes, potentially hindering long-term growth.

Declining Revenue

A declining revenue trend can signal weakening market position or demand, challenging the company to innovate or adjust strategies to regain growth.

Potential Liquidity Challenges

Potential liquidity issues could affect operational flexibility and the ability to capitalize on market opportunities, impacting long-term strategic goals.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Negative
• Last Price: 2209.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8803, the sentiment is Negative. The current price of 2209 is below the 20-day moving average (MA) of 2224.80, below the 50-day MA of 2270.16, and below the 200-day MA of 2264.23, indicating a bearish trend. The MACD of -18.00 indicates Negative momentum. The RSI at 44.90 is Neutral, neither overbought nor oversold. The STOCH value of 60.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥18.47B	5.17	―	4.75%	10.42%	48.21%
8923	73 Outperform	¥167.02B	11.27	14.95%	2.91%	17.74%	19.41%
8850	68 Neutral	¥243.32B	10.32	―	2.65%	2.29%	-4.12%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3010	65 Neutral	¥43.04B	14.11	―	1.63%	116.30%	-0.08%
8803	63 Neutral	¥167.07B	14.08	8.95%	3.42%	28.94%	109.35%

Heiwa Real Estate Co., Ltd. Corporate Events

Heiwa Real Estate Updates Stock Compensation Plan with Additional Share Acquisitions

Heiwa Real Estate Co., Ltd. has announced revisions to its stock compensation plan, initially adopted in 2019, to include additional shares acquisition and updated eligibility criteria. The plan aims to motivate executives by aligning their interests with shareholders through stock price performance, with a maximum of ¥872 million allocated for acquiring up to 363,000 shares from the stock market, without issuing new shares.

Heiwa Real Estate Reports Strong Financial Performance and Growth Forecast

Heiwa Real Estate Co., Ltd. reported a positive financial performance for the six months ending September 30, 2025, with a notable increase in net sales and profit attributable to owners. The company also conducted a 2-for-1 stock split, impacting earnings per share calculations. The financial results reflect a recovery from the previous year’s downturn, with a comprehensive income increase of 306.7%. The company forecasts continued growth in net sales and profits for the fiscal year ending March 31, 2026, suggesting a strong market position and potential positive implications for stakeholders.