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Tokyo Tatemono Co Ltd (JP:8804)
:8804

Tokyo Tatemono Co (8804) AI Stock Analysis

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Tokyo Tatemono Co

(OTC:8804)

69Neutral
Tokyo Tatemono Co's strong financial performance, characterized by revenue growth and improved margins, is a significant positive factor. Despite cash flow challenges due to high capital expenditures, the company's solid balance sheet supports its growth potential. Technical analysis indicates caution, as the stock trades below key moving averages. The attractive valuation, with a low P/E ratio and high dividend yield, bolsters the stock's overall appeal.

Tokyo Tatemono Co (8804) vs. S&P 500 (SPY)

Tokyo Tatemono Co Business Overview & Revenue Model

Company DescriptionTokyo Tatemono Co., Ltd. (8804) is one of Japan's leading real estate companies, engaged in the development, leasing, and management of residential, commercial, and office properties. Established in 1896, the company is headquartered in Tokyo and operates across various sectors including real estate development, property management, and asset management. Its core products and services include the development and sale of condominiums, leasing of office buildings, and management of residential properties, along with providing real estate investment advisory services.
How the Company Makes MoneyTokyo Tatemono Co., Ltd. generates revenue primarily through its diversified real estate operations. The company's major revenue streams include the development and sale of residential properties, particularly condominiums, which cater to urban dwellers. It also earns significant income from leasing office spaces and commercial properties, capitalizing on prime locations in Tokyo and other major Japanese cities. Additionally, Tokyo Tatemono provides property management services, ensuring steady cash flow from maintenance and operational services. Real estate investment advisory and asset management services further supplement its income, as the company manages portfolios for institutional and individual investors. Strategic partnerships with construction companies, financial institutions, and government entities enhance its development projects, contributing to robust earnings.

Tokyo Tatemono Co Financial Statement Overview

Summary
Tokyo Tatemono Co demonstrates strong revenue and profit growth, backed by efficient operations and effective cost management. The balance sheet is solid, with manageable leverage and a stable equity position. However, the cash flow statement reveals short-term challenges due to high capital expenditures impacting free cash flow. Overall, the company is on a positive growth trajectory but must prioritize cash flow management to ensure sustained financial health.
Income Statement
80
Positive
Tokyo Tatemono Co has displayed a robust revenue growth of 23.34% in 2024, driven by the real estate market's recovery. The gross profit margin improved to 27.3% from 2023's 29.0%, indicating efficient cost management. The net profit margin also increased to 14.2% from 12.0% in 2023, showing enhanced profitability. The EBIT and EBITDA margins improved, reflecting strong operational performance. Overall, the income statement indicates a healthy growth trajectory with improved profitability and margin expansion.
Balance Sheet
75
Positive
The balance sheet shows a stable financial position with a debt-to-equity ratio of 2.26, a slight increase from 2023's 2.19, indicating manageable leverage. The equity ratio stands at 25.8%, suggesting a balanced capital structure. Return on equity improved to 12.3%, showcasing enhanced efficiency in using shareholders' equity. Despite the high leverage, the company's equity position remains solid, supporting its growth ambitions.
Cash Flow
65
Positive
The cash flow statement highlights challenges with a negative free cash flow of -106.26 billion yen in 2024, primarily due to substantial capital expenditures. However, the operating cash flow remains positive, albeit decreased from 2023, resulting in an operating cash flow to net income ratio of 0.29. The free cash flow to net income ratio is negative, reflecting cash flow constraints. While the company invests heavily in growth, managing cash flow from operations is critical for future stability.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
463.72B375.95B349.94B340.48B334.98B
Gross Profit
126.64B109.12B101.49B92.54B83.03B
EBIT
79.67B70.51B64.48B58.78B49.63B
EBITDA
102.30B91.19B83.59B77.65B69.25B
Net Income Common Stockholders
65.88B45.08B43.06B34.97B31.80B
Balance SheetCash, Cash Equivalents and Short-Term Investments
111.14B127.31B82.44B87.01B54.65B
Total Assets
2.08T1.91T1.72T1.65T1.62T
Total Debt
1.21T1.09T987.57B954.40B974.26B
Net Debt
1.10T963.10B905.13B867.39B919.61B
Total Liabilities
1.53T1.40T1.26T1.22T1.23T
Stockholders Equity
536.06B496.90B445.99B417.05B389.36B
Cash FlowFree Cash Flow
-106.26B-24.21B-25.83B46.50B-14.66B
Operating Cash Flow
18.89B20.59B-3.33B65.89B43.52B
Investing Cash Flow
-142.09B-54.07B-21.20B-1.64B-66.72B
Financing Cash Flow
105.64B77.91B18.42B-32.19B38.31B

Tokyo Tatemono Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2619.50
Price Trends
50DMA
2499.49
Positive
100DMA
2478.00
Positive
200DMA
2454.95
Positive
Market Momentum
MACD
34.11
Negative
RSI
61.13
Neutral
STOCH
85.43
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8804, the sentiment is Positive. The current price of 2619.5 is above the 20-day moving average (MA) of 2534.53, above the 50-day MA of 2499.49, and above the 200-day MA of 2454.95, indicating a bullish trend. The MACD of 34.11 indicates Negative momentum. The RSI at 61.13 is Neutral, neither overbought nor oversold. The STOCH value of 85.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8804.

Tokyo Tatemono Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$4.04T16.327.82%2.00%0.83%-6.10%
72
Outperform
$743.42B9.519.70%3.16%6.15%12.10%
69
Neutral
$547.19B7.9812.90%3.42%26.88%75.98%
69
Neutral
$2.61T14.648.41%1.23%5.85%3.72%
68
Neutral
$3.17T16.508.35%1.57%16.32%43.72%
60
Neutral
$2.81B11.050.20%8508.34%6.12%-16.02%
59
Neutral
€167.49B16.097.84%3.15%-5.31%19.66%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8804
Tokyo Tatemono Co
2,619.50
179.39
7.35%
JP:8803
Heiwa Real Estate Co., Ltd.
4,555.00
748.75
19.67%
JP:3289
Tokyu Fudosan Holdings
1,033.50
-76.14
-6.86%
JP:8802
Mitsubishi Estate Company
2,568.50
-195.27
-7.07%
JP:8830
Sumitomo Realty & Development Co
5,509.00
185.58
3.49%
JP:8801
Mitsui Fudosan Co
1,456.50
-4.59
-0.31%

Tokyo Tatemono Co Corporate Events

Tokyo Tatemono Reports Strong Q1 2025 Financial Results
May 9, 2025

Tokyo Tatemono Co., Ltd. reported a significant improvement in its financial performance for the first quarter of 2025, with a 9% increase in operating revenues and a 23.7% rise in operating profit compared to the previous year. Despite a decrease in comprehensive income, the company’s strong earnings per share and stable financial position indicate a positive outlook for stakeholders.

Tokyo Tatemono Announces Share Repurchase Progress
May 1, 2025

Tokyo Tatemono Co., Ltd. has announced the acquisition of 240,600 of its own common shares, valued at ¥588,782,000, through the Tokyo Stock Exchange during April 2025. This move is part of a broader share repurchase plan approved by the Board of Directors, which aims to acquire up to 1,500,000 shares by August 2025, reflecting the company’s strategy to enhance shareholder value and optimize its capital structure.

Tokyo Tatemono Announces Share Repurchase Status
Apr 1, 2025

Tokyo Tatemono Co., Ltd. announced the acquisition of 176,400 of its own shares, valued at ¥432,417,100, from March 1 to March 31, 2025, through the Tokyo Stock Exchange. This move is part of a broader plan approved by the Board of Directors to repurchase up to 1,500,000 shares, representing 0.72% of the total issued shares, with a total acquisition cost of ¥3.0 billion, aiming to enhance shareholder value.

Tokyo Tatemono Announces Strategic Company Split to Optimize Operations
Mar 26, 2025

Tokyo Tatemono Co., Ltd. has announced a strategic company split to consolidate the building leasing business from its wholly owned subsidiary, Tokyo Tatemono Resort Co., Ltd. This move aims to optimize the operational structure within the group and is expected to streamline operations without affecting the company’s capital or shareholder structure. The split, effective May 1, 2025, will not involve any financial compensation or changes in stock acquisition rights, and the company anticipates no issues in fulfilling its obligations post-split.

Tokyo Tatemono Reports Strong Financial Growth and Strategic Expansion
Mar 11, 2025

Tokyo Tatemono Co., Ltd. reported a significant increase in its consolidated financial results for the fiscal year ended December 2024, with a 23.3% rise in operating revenue and a 46.1% increase in profit attributable to owners of the parent. The company has also announced plans to purchase treasury shares, which will impact the profit per share in the upcoming fiscal year. The inclusion of four new companies in its consolidation scope reflects Tokyo Tatemono’s strategic expansion efforts.

Tokyo Tatemono Announces Share Repurchase Status
Mar 3, 2025

Tokyo Tatemono Co., Ltd. announced the repurchase of 144,300 of its own common shares, valued at ¥348,678,500, through the Tokyo Stock Exchange between February 13 and February 28, 2025. This move is part of a broader plan approved by the Board of Directors to acquire up to 1,500,000 shares by August 31, 2025, with a total acquisition cost of ¥3.0 billion, indicating a strategic effort to enhance shareholder value.

Tokyo Tatemono Reports Significant Financial Growth for Fiscal 2024
Feb 12, 2025

Tokyo Tatemono Co., Ltd. reported significant improvements in its non-consolidated financial statements for the fiscal year ended December 31, 2024, compared to the previous year. The company experienced a 41.7% increase in operating revenue, largely driven by higher sales and gross profits from for-sale condominiums, as well as increased extraordinary income from the sale of investment securities.

Tokyo Tatemono Co. Announces Increased Year-End Dividends Following Strong Earnings
Feb 12, 2025

Tokyo Tatemono Co., Ltd. has announced an increase in its year-end dividend payout due to better-than-expected consolidated earnings for the fiscal year. The dividend per share will be 58 yen, up from the previously forecasted 53 yen, reflecting the company’s commitment to maintaining a dividend payout ratio of at least 30% as outlined in its medium-term business plan.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.