Tokyo Tatemono Co (8804) AI Stock Analysis

• Market Cap: $731.32B
• Dividend Yield: 2.99%
• Average Volume (3M): 745.24K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.92
• Revenue Growth: -19.09%
• EPS Growth: 16.31%
• Country: JP
• Employees: 4,925
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 43.19
• Shares Outstanding: 207,978,580
• 10 Day Avg. Volume: 964,040
• 30 Day Avg. Volume: 745,236
• PEG Ratio: 0.18
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 1.17
• P/FCF Ratio: -5.12
• Enterprise Value/Market Cap: 2.58
• Enterprise Value/Revenue: 4.78
• Enterprise Value/Gross Profit: 17.52
• Enterprise Value/Ebitda: 22.10
• 1Y Price Target: $3,935.59
• Price Target Upside: 12.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥3,768.00 ▲(7.50% Upside)

Tokyo Tatemono Co's stock is rated positively due to strong technical momentum and reasonable valuation metrics. The financial performance is solid, with notable revenue and profit growth, although cash flow management remains a concern. The absence of earnings call data and corporate events does not impact the score significantly.

Positive Factors

Revenue Growth

The strong revenue growth indicates a recovery in the real estate market, enhancing the company's market position and potential for future expansion.

Profitability

Improved profitability and margin expansion reflect efficient cost management and operational performance, strengthening long-term financial health.

Balance Sheet Health

A stable balance sheet with manageable leverage supports growth ambitions and provides financial stability, enhancing resilience against market fluctuations.

Negative Factors

Cash Flow Challenges

Significant capital expenditures leading to negative free cash flow may constrain financial flexibility, impacting the ability to fund future projects without additional financing.

Leverage Concerns

While leverage is manageable, the increase in debt-to-equity ratio could limit financial flexibility and increase risk if not carefully managed.

Operating Cash Flow Decline

A decline in operating cash flow, despite being positive, highlights the need for improved cash management to ensure sustainable operations and support growth initiatives.

Tokyo Tatemono Co Business Overview & Revenue Model

Company Description

Tokyo Tatemono Co., Ltd. operates as a real estate company in Japan. It operates through Building Business, Housing Business, Asset Service Business, Overseas Business, and Other Business segments. The company develops, leases, and operates office buildings, commercial facilities, logistics and warehouse facilities, condominiums, detached houses, etc. It also provides real estate sales, brokerage, consulting, asset management, and real estate appraisal services; and develops, manages, and operates child-care facilities and parking lots. In addition, it operates hotels, resort facilities, super public baths, and golf courses. The company was incorporated in 1896 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tokyo Tatemono generates revenue primarily through the leasing and management of its extensive portfolio of real estate properties, which includes office buildings, commercial spaces, and residential units. The company earns rental income from tenants occupying these properties. Additionally, Tokyo Tatemono profits from property sales and development projects, where they develop land into residential or commercial spaces and sell them at a profit. The company also engages in property management services, providing maintenance and administrative support to property owners, which further contributes to its revenue. Strategic partnerships with other real estate firms, investors, and government entities enhance its project capabilities and market reach, positively impacting 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

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	394.90B	463.72B	375.95B	349.94B	340.48B	334.98B
Gross Profit	107.75B	126.64B	109.12B	101.49B	92.54B	83.03B
EBITDA	85.44B	102.30B	91.19B	83.59B	77.65B	69.25B
Net Income	54.74B	65.88B	45.08B	43.06B	34.97B	31.80B
Balance Sheet
Total Assets	2.21T	2.08T	1.91T	1.72T	1.65T	1.62T
Cash, Cash Equivalents and Short-Term Investments	147.76B	111.14B	127.31B	82.44B	87.01B	54.65B
Total Debt	1.35T	1.21T	1.09T	987.57B	954.40B	974.26B
Total Liabilities	1.65T	1.53T	1.40T	1.26T	1.22T	1.23T
Stockholders Equity	544.01B	536.06B	496.90B	445.99B	417.05B	389.36B
Cash Flow
Free Cash Flow	0.00	-106.26B	-24.21B	-25.83B	46.50B	-14.66B
Operating Cash Flow	0.00	18.89B	20.59B	-3.33B	65.89B	43.52B
Investing Cash Flow	0.00	-142.09B	-54.07B	-21.20B	-1.64B	-66.72B
Financing Cash Flow	0.00	105.64B	77.91B	18.42B	-32.19B	38.31B

Tokyo Tatemono Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3505.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 3505 is above the 20-day moving average (MA) of 3375.20, above the 50-day MA of 3110.89, and above the 200-day MA of 2716.60, indicating a bullish trend. The MACD of 108.64 indicates Negative momentum. The RSI at 70.62 is Negative, neither overbought nor oversold. The STOCH value of 84.21 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8804	78 Outperform	$731.32B	12.27	10.73%	2.99%	-19.09%	16.31%
8830	76 Outperform	¥3.66T	18.38	8.82%	0.96%	0.49%	12.19%
3003	74 Outperform	¥1.32T	12.17	12.91%	3.26%	45.15%	19.80%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3231	63 Neutral	$869.05B	12.83	8.38%	3.74%	3.52%	-17.58%
8848	58 Neutral	¥205.23B	17.71	22.14%	1.55%	2.50%	-71.61%
2337	56 Neutral	¥178.13B	9.43	16.39%	2.38%	7.21%	112.45%

Tokyo Tatemono Co Corporate Events

Tokyo Tatemono Reports Decline in 2025 Nine-Month Financials, Raises Dividend Forecast

Tokyo Tatemono Co., Ltd. reported a decline in its financial performance for the nine months ending September 30, 2025, with operating revenues and profits showing significant decreases compared to the previous year. Despite these declines, the company has revised its dividend forecast upwards, indicating a positive outlook for the fiscal year ending December 31, 2025, with expected increases in operating revenues and profits.

Tokyo Tatemono Announces Share Cancellation

Tokyo Tatemono Co., Ltd. announced the cancellation of 1,189,100 of its own shares, which constitutes 0.57% of the total issued shares before the cancellation. This decision, resolved at the board of directors’ meeting, aims to adjust the company’s capital structure and is set to take effect on November 28, 2025, reducing the total number of issued shares to 207,978,574.

Tokyo Tatemono Revises 2025 Financial and Dividend Forecasts

Tokyo Tatemono Co., Ltd. has revised its financial forecast for the fiscal year ending December 31, 2025, anticipating lower operating revenue but higher profits across major categories due to increased leasing revenue and gains on property sales. Additionally, the company has increased its year-end dividend forecast, reflecting its commitment to enhancing shareholder returns and aligning with its medium-term business plan targeting a 40% payout ratio by FY2027.