Tokyo Tatemono Co (8804) AI Stock Analysis

• Market Cap: ¥535.18B
• Dividend Yield: 3.75%
• Average Volume (3M): 918.24K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.93
• Revenue Growth: 26.88%
• EPS Growth: 75.98%
• Country: JP
• Employees: 4,925
• Sector: Real Estate
• Sector Strength: 56
• Industry: Real Estate - Services
• EPS (TTM): 68.77
• Shares Outstanding: 209,167,680
• 10 Day Avg. Volume: 1,055,280
• 30 Day Avg. Volume: 918,236
• PEG Ratio: 0.33
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.93
• 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: ¥2,899.04
• Price Target Upside: 13.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥2,900.00 ▲(13.19%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 Business Overview & Revenue Model

Company Description

Tokyo 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 Money

Tokyo 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

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

Tokyo Tatemono Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2562.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 2562 is above the 20-day moving average (MA) of 2560.65, above the 50-day MA of 2535.48, and above the 200-day MA of 2446.20, indicating a bullish trend. The MACD of 3.80 indicates Positive momentum. The RSI at 53.17 is Neutral, neither overbought nor oversold. The STOCH value of 66.76 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3231	78 Outperform	¥792.15B	9.98	10.23%	4.04%	3.12%	10.48%
8804	76 Outperform	¥535.18B	7.80	12.90%	3.75%	26.88%	75.98%
3003	75 Outperform	¥1.12T	10.81	12.74%	3.87%	45.14%	17.11%
2337	73 Outperform	$179.87B	11.79	13.76%	2.43%	1.60%	29.82%
8848	73 Outperform	¥217.62B	12.18	24.21%	1.46%	2.17%	-57.25%
8830	70 Neutral	¥2.61T	13.58	8.93%	1.27%	4.81%	8.36%
Sector *	54 Neutral	$1.19B	3.64	0.13%	6.71%	-2.13%	-128.06%

Tokyo Tatemono Co Corporate Events

Tokyo Tatemono Reports Strong Q1 2025 Financial Performance

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

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

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.