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

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JP:8803

Heiwa Real Estate Co., Ltd.

(8803)

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Neutral 58 (OpenAI - 5.2)
Rating:58Neutral
Price Target:
¥2,407.00
▲(7.74% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by mixed financial performance: strong profitability and a recent revenue rebound are tempered by elevated/variable leverage and inconsistent free-cash-flow generation. Technicals are slightly weak with the stock trading below key moving averages. Valuation is supportive, with a moderate P/E and an attractive dividend yield.
Positive Factors
Recurring rental revenue model
A business model centered on owning and leasing office and urban properties generates predictable recurring rental cash flows and recurring service income. Over 2–6 months this underpins revenue visibility, supports budgeting for maintenance and distributions, and aligns incentives with long-term occupancy management.
Negative Factors
Elevated and volatile leverage
Historically high D/E and swings in reported debt create structural balance-sheet risk for a rate- and cycle-sensitive RE business. Elevated leverage reduces financial flexibility, increases interest-cost exposure, and limits ability to absorb rent or occupancy shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring rental revenue model
A business model centered on owning and leasing office and urban properties generates predictable recurring rental cash flows and recurring service income. Over 2–6 months this underpins revenue visibility, supports budgeting for maintenance and distributions, and aligns incentives with long-term occupancy management.
Read all positive factors

Heiwa Real Estate Co., Ltd. (8803) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Heiwa Real Estate Co., Ltd. is a Japanese firm primarily involved in the real estate sector, operating through two main divisions: its Building Business and Asset Management Business. The company's property activities encompass the development, le...
How the Company Makes Money
Heiwa Real Estate primarily makes money by owning and operating income-producing real estate and collecting recurring rental revenue from tenants. Its main revenue model is based on (1) leasing income: rent and common-area/maintenance charges earn...

Heiwa Real Estate Co., Ltd. Financial Statement Overview

Summary
Income statement strength (score 74) is offset by balance-sheet leverage risk (score 52; historically high debt-to-equity and volatility) and weak/volatile cash conversion (cash flow score 45; free cash flow often negative despite positive operating cash flow). Overall fundamentals look resilient on earnings but more cyclical and execution-sensitive due to leverage and cash-flow variability.
Income Statement
74
Positive
Balance Sheet
52
Neutral
Cash Flow
45
Neutral
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue50.85B42.08B44.43B44.52B57.82B
Gross Profit21.32B13.37B12.79B10.61B12.27B
EBITDA24.28B20.05B19.91B20.46B19.43B
Net Income11.03B9.56B8.45B9.14B8.71B
Balance Sheet
Total Assets451.84B419.54B405.98B398.33B376.21B
Cash, Cash Equivalents and Short-Term Investments33.41B25.34B28.42B27.91B28.23B
Total Debt264.55B245.68B222.67B222.04B202.24B
Total Liabilities325.07B301.54B280.33B279.01B256.93B
Stockholders Equity126.76B118.00B125.65B119.32B119.28B
Cash Flow
Free Cash Flow-4.80B-7.05B919.00M-14.88B15.91B
Operating Cash Flow15.98B16.67B19.11B23.36B34.13B
Investing Cash Flow-26.47B-24.84B-19.36B-40.25B-20.70B
Financing Cash Flow10.80B7.72B280.00M13.99B-15.49B

Heiwa Real Estate Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2234.00
Price Trends
50DMA
2356.14
Negative
100DMA
2383.72
Negative
200DMA
2319.46
Negative
Market Momentum
MACD
-13.94
Positive
RSI
42.70
Neutral
STOCH
20.80
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 2234 is below the 20-day moving average (MA) of 2349.85, below the 50-day MA of 2356.14, and below the 200-day MA of 2319.46, indicating a bearish trend. The MACD of -13.94 indicates Positive momentum. The RSI at 42.70 is Neutral, neither overbought nor oversold. The STOCH value of 20.80 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
¥1.10T10.8720.50%4.58%5.93%5.17%
66
Neutral
¥992.92B8.2320.25%2.32%5.94%21.18%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
61
Neutral
¥944.10B10.1311.33%3.42%6.21%2.93%
58
Neutral
¥153.32B14.888.95%3.39%9.27%7.27%
56
Neutral
¥4.56T15.758.71%1.15%17.30%50.77%
54
Neutral
¥4.13T17.388.63%2.26%-9.76%-24.08%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8803
Heiwa Real Estate Co., Ltd.
2,325.00
69.68
3.09%
JP:1878
Daito Construction
3,250.00
144.19
4.64%
JP:8802
Mitsubishi Estate Company
3,717.00
692.40
22.89%
JP:8801
Mitsui Fudosan Co
1,464.50
-62.93
-4.12%
JP:3288
Open House Co
8,061.00
987.82
13.97%
JP:3289
Tokyu Fudosan Holdings
1,301.00
176.06
15.65%

Heiwa Real Estate Co., Ltd. Corporate Events

Heiwa Real Estate Q1 Profit Falls but Full-Year Outlook and Dividend Plan Stay Firm
Jul 31, 2026
Heiwa Real Estate reported a sharp year-on-year decline in first-quarter results to June 30, 2026, with net sales down 16.0% to ¥11.0 billion and profit attributable to owners of parent falling 28.3% to ¥1.6 billion, as comprehensive inc...
Heiwa Real Estate Details Taisei Ties While Emphasizing Independence
Jun 24, 2026
Heiwa Real Estate Co., Ltd. has clarified its relationship with Taisei Corporation, which holds 20.31% of its voting rights and is classified as an other affiliated company, making Heiwa an equity-method affiliate of Taisei. Despite this sharehold...
Heiwa Real Estate Sets ¥62 Year-End Dividend, Reaffirms 50% Payout Policy
May 15, 2026
Heiwa Real Estate’s board has approved a year-end dividend of ¥62 per share for the fiscal year ended March 31, 2026, comprising an ordinary dividend of ¥47 and a special dividend of ¥15, with total payouts of ¥4,135 mill...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 04, 2026