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

• Market Cap: ¥167.22B
• Dividend Yield: 1007.92%
• Average Volume (3M): 227.62K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.38
• Revenue Growth: -5.31%
• EPS Growth: 20.12%
• Country: JP
• Employees: 255
• Sector: Real Estate
• Sector Strength: 55
• Industry: Real Estate - Diversified
• EPS (TTM): 68.75
• Shares Outstanding: 77,719,990
• 10 Day Avg. Volume: 322,190
• 30 Day Avg. Volume: 227,616
• PEG Ratio: 2.01
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.16
• 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: ¥3,782.00
• Price Target Upside: 71.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 64 Neutral
• Price Target: ¥4,703.00 ▲(112.71%Upside)

The most significant factors contributing to the score are the company's stable financial performance and balanced valuation. However, technical analysis indicates bearish momentum, which may pose short-term risks. Improvements in revenue and cash flow could enhance the company's financial outlook.

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

Company Description

Heiwa Real Estate Co., Ltd. (8803) is a Japan-based company primarily engaged in the real estate business. The company operates through several segments, including real estate sales, leasing, and management. Heiwa Real Estate is known for developing and managing a diverse portfolio of properties, including commercial buildings, residential apartments, and office spaces. The company is committed to providing high-quality real estate solutions that cater to a wide range of customer needs.

How the Company Makes Money

Heiwa Real Estate Co., Ltd. generates revenue primarily through its real estate sales and leasing operations. The company earns income from selling developed properties, which include residential, commercial, and mixed-use buildings. Additionally, Heiwa Real Estate derives a significant portion of its income from leasing activities, where it rents out commercial and residential spaces to tenants. The management and operation of these properties also contribute to its revenue, as the company offers property management services to ensure optimal occupancy and maintenance. Strategic partnerships with other developers and investors further enhance its ability to undertake large-scale projects, thus supporting revenue growth. The company's diverse portfolio and strategic location of properties are crucial factors in its earning potential.

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	35.66B	42.08B	44.43B	44.52B	57.82B	35.05B
Gross Profit	13.84B	19.05B	18.57B	16.28B	17.69B	15.36B
EBITDA	15.40B	18.83B	18.81B	16.45B	18.03B	16.31B
Net Income	5.78B	9.56B	8.45B	9.14B	8.71B	7.12B
Balance Sheet
Total Assets	402.35B	419.54B	405.98B	398.33B	376.21B	381.35B
Cash, Cash Equivalents and Short-Term Investments	19.42B	26.51B	28.42B	27.91B	28.23B	29.70B
Total Debt	233.43B	245.68B	222.67B	222.04B	202.24B	211.73B
Total Liabilities	288.25B	301.54B	280.33B	279.01B	256.93B	262.71B
Stockholders Equity	114.11B	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	16.67B	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: 2211.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 2211 is below the 20-day moving average (MA) of 2225.92, below the 50-day MA of 2271.37, and above the 200-day MA of 2177.16, indicating a neutral trend. The MACD of -10.06 indicates Negative momentum. The RSI at 44.72 is Neutral, neither overbought nor oversold. The STOCH value of 26.51 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
8923	81 Outperform	¥124.25B	9.06	14.87%	2.84%	12.16%	8.79%
8850	78 Outperform	¥222.71B	9.11		2.90%	-0.18%	10.63%
8931	70 Outperform	¥16.31B	5.16		5.99%	3.36%	19.70%
Sector *	70 Neutral	¥234.96B	14.48	10.62%	29.30%	17.27%	17.55%
3010	66 Neutral	¥49.09B	12.42		1.43%	23.67%	-42.22%
8803	64 Neutral	¥167.22B	15.62	7.84%	1007.92%	-5.31%	20.12%

Heiwa Real Estate Co., Ltd. Corporate Events

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.

Heiwa Real Estate Increases Year-End Dividend for Eighth Consecutive Year

Heiwa Real Estate Co., Ltd. announced a revision to its planned fiscal year-end dividend for the fiscal year ending March 31, 2025. The company increased the dividend from ¥107 to ¥109 per share, reflecting strong financial performance. This marks the eighth consecutive year of dividend increases, highlighting the company’s commitment to returning value to shareholders.

Heiwa Real Estate Reports Mixed Financial Results with Positive Outlook

Heiwa Real Estate Co., Ltd. reported a decrease in net sales for the fiscal year ending March 31, 2025, but saw an increase in profit attributable to owners of the parent. Despite a decline in comprehensive income, the company managed to improve its earnings per share and return on equity. The company also announced a revised dividend plan, with an increase in ordinary dividends per share. The financial outlook for the next fiscal year shows an expected increase in net sales and profits, indicating a positive future trajectory.