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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)

Rating:76Outperform
Price Target:
¥2,900.00
▲(12.16%Upside)
Tokyo Tatemono Co's strong valuation and financial performance are significant positives, indicating undervaluation and robust growth. Technical analysis supports a stable market position. However, cash flow management is a critical area for improvement due to high capital expenditures.

Tokyo Tatemono Co (8804) vs. iShares MSCI Japan ETF (EWJ)

Tokyo Tatemono Co Business Overview & Revenue Model

Company DescriptionTokyo 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 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. Despite a solid balance sheet, high capital expenditures have led to negative free cash flow, posing short-term challenges. 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 Price2585.50
Price Trends
50DMA
2534.50
Positive
100DMA
2492.04
Positive
200DMA
2466.69
Positive
Market Momentum
MACD
11.87
Negative
RSI
55.62
Neutral
STOCH
72.13
Neutral
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 2585.5 is above the 20-day moving average (MA) of 2555.53, above the 50-day MA of 2534.50, and above the 200-day MA of 2466.69, indicating a bullish trend. The MACD of 11.87 indicates Negative momentum. The RSI at 55.62 is Neutral, neither overbought nor oversold. The STOCH value of 72.13 is Neutral, 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$540.09B7.8712.90%4.10%26.88%75.98%
61
Neutral
$2.83B10.720.40%6.10%5.80%-21.26%
$7.65B11.3812.74%0.02%
$1.19B11.9513.76%0.02%
DEMQI
€1.17B10.7724.21%1.67%
$5.31B10.2410.23%0.03%
$19.11B15.258.93%1.15%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8804
Tokyo Tatemono Co
2,585.50
268.44
11.59%
HULCF
Hulic Co
10.13
0.74
7.88%
ICHIF
Ichigo
2.73
0.40
17.17%
DE:MQI
Leopalace21
3.70
0.77
26.28%
NMEHF
Nomura Real Estate Holdings
5.83
1.03
21.46%
SURDF
Sumitomo Realty & Development Co
40.52
11.32
38.77%

Tokyo Tatemono Co Corporate Events

Tokyo Tatemono Reports Strong Q1 2025 Financial Performance
May 23, 2025

Tokyo Tatemono Co., Ltd. reported a strong financial performance for the first quarter of 2025, with a 9% increase in operating revenues and a significant 23.7% rise in operating profit compared to the previous year. Despite a decrease in comprehensive income, the company’s robust growth in profits and revenues indicates a positive trajectory, potentially strengthening its market position and offering promising returns for stakeholders.

The most recent analyst rating on (JP:8804) stock is a Buy with a Yen2840.00 price target. To see the full list of analyst forecasts on Tokyo Tatemono Co stock, see the JP:8804 Stock Forecast page.

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.

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.