Keihanshin Building Co., Ltd. (8818) AI Stock Analysis

• Market Cap: ¥88.45B
• Dividend Yield: 2.19%
• Average Volume (3M): 95.06K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.78
• Revenue Growth: 4.72%
• EPS Growth: 47.55%
• Country: JP
• Employees: 60
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 28.22
• Shares Outstanding: 48,811,497
• 10 Day Avg. Volume: 148,950
• 30 Day Avg. Volume: 95,060
• PEG Ratio: 0.94
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 3.39
• P/FCF Ratio: 19.78
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥1,934.00 ▲(1.74% Upside)

Keihanshin Building Co., Ltd. scores well due to its solid financial performance and positive technical indicators. The company's financial health is supported by consistent revenue growth and strong profitability margins. Technical analysis shows bullish momentum, with the stock trading above key moving averages. Valuation is fair, with a reasonable P/E ratio and a moderate dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a stable demand for the company's properties and services, supporting long-term business sustainability.

Profitability Margins

Improved profitability margins reflect effective cost management and pricing strategies, enhancing the company's competitive position.

Cash Flow Generation

Robust cash flow growth provides financial flexibility for future investments and debt obligations, supporting long-term growth initiatives.

Negative Factors

Leverage

Moderate leverage, while typical for the industry, could limit financial flexibility and increase risk during economic downturns.

Operational Efficiency

A decrease in EBIT margin indicates potential inefficiencies in operations, which could affect profitability if not addressed.

Reinvestment Needs

Lower free cash flow to net income ratio suggests that the company may need to reinvest significantly, impacting short-term liquidity.

Keihanshin Building Co., Ltd. Business Overview & Revenue Model

Company Description

Keihanshin Building Co., Ltd. (8818) is a prominent real estate development and management company based in Japan, primarily engaged in the construction, leasing, and management of commercial and residential properties. The company operates across various sectors, including office buildings, retail spaces, and residential developments, focusing on creating sustainable and innovative living and working environments. With a commitment to quality and customer satisfaction, Keihanshin Building Co., Ltd. has established itself as a key player in the Japanese real estate market.

How the Company Makes Money

Keihanshin Building Co., Ltd. generates revenue primarily through leasing and managing its real estate properties. The company's core revenue streams include rental income from commercial and residential buildings, which provides a steady cash flow. Additionally, the company engages in property development projects, where it earns profits from the sale of newly constructed properties. Significant partnerships with local governments and private sectors facilitate its access to prime locations and enhance its development capabilities. The company may also benefit from real estate management fees and service charges associated with its properties, contributing further to its earnings.

Keihanshin Building Co., Ltd. Financial Statement Overview

Summary

Keihanshin Building Co., Ltd. demonstrates solid financial health with consistent revenue growth and strong profitability margins. The balance sheet reflects moderate leverage typical of its industry, with opportunities to optimize its capital structure. Cash flow statements reveal robust cash generation, supporting future investments and debt obligations.

Income Statement

The company exhibits steady revenue growth with a 1.42% increase from 2024 to 2025. Gross profit margin is healthy at approximately 35.30%, indicating efficient cost management. Net profit margin improved to 22.41%, showcasing strong profitability. However, EBIT margin slightly decreased, highlighting potential operational efficiency challenges.

Balance Sheet

The debt-to-equity ratio is 1.11, suggesting moderate leverage, typical for the real estate industry. Return on Equity stands at 5.75%, showing a stable return on shareholder investment. Equity ratio is 43.11%, indicating a balanced capital structure, though there is room for improvement in reducing liabilities.

Cash Flow

The free cash flow grew significantly by 166.92% from 2024 to 2025, enhancing financial flexibility. The operating cash flow to net income ratio is strong at 1.66, indicating efficient cash generation. However, the free cash flow to net income ratio is lower at 0.76, suggesting potential reinvestment needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.83B	19.58B	19.31B	18.88B	17.82B	15.33B
Gross Profit	7.01B	6.91B	6.88B	7.08B	6.66B	6.84B
EBITDA	8.93B	8.87B	9.06B	9.06B	8.86B	7.57B
Net Income	4.40B	4.39B	3.79B	4.19B	5.17B	8.25B
Balance Sheet
Total Assets	171.39B	177.10B	166.62B	152.32B	149.99B	154.04B
Cash, Cash Equivalents and Short-Term Investments	6.37B	14.06B	8.67B	5.31B	9.88B	21.55B
Total Debt	78.64B	84.35B	75.53B	67.16B	64.86B	66.65B
Total Liabilities	94.47B	100.78B	91.74B	81.45B	79.48B	83.50B
Stockholders Equity	76.92B	76.32B	74.87B	70.87B	70.51B	70.54B
Cash Flow
Free Cash Flow	1.34B	3.36B	1.26B	-3.98B	-9.77B	-5.67B
Operating Cash Flow	1.69B	7.29B	8.22B	8.92B	2.74B	7.69B
Investing Cash Flow	-349.78M	-8.22B	-11.27B	-12.10B	-8.65B	-5.57B
Financing Cash Flow	-1.23B	6.26B	6.41B	-1.38B	-5.76B	6.22B

Keihanshin Building Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1901.00
• 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:8818, the sentiment is Positive. The current price of 1901 is above the 20-day moving average (MA) of 1857.50, above the 50-day MA of 1791.52, and above the 200-day MA of 1573.31, indicating a bullish trend. The MACD of 25.91 indicates Positive momentum. The RSI at 58.16 is Neutral, neither overbought nor oversold. The STOCH value of 55.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8818.

Keihanshin Building Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8877	79 Outperform	¥98.60B	10.81	―	3.22%	-6.27%	-11.07%
3465	77 Outperform	¥99.22B	8.40	―	2.93%	20.83%	57.13%
8818	71 Outperform	¥88.45B	18.67	―	2.19%	4.72%	47.55%
8864	70 Outperform	¥49.79B	27.14	―	3.02%	26.99%	-26.97%
3479	65 Neutral	¥73.80B	23.66	―	―	127.32%	-22.79%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8841	64 Neutral	¥80.67B	51.93	1.46%	1.19%	6.40%	230.12%

Keihanshin Building Co., Ltd. Corporate Events

Keihanshin Building Co., Ltd. Completes Strategic Share Repurchase

Keihanshin Building Co., Ltd. has completed the repurchase of 994,600 of its own shares, valued at approximately 1.72 billion yen, as part of a strategic initiative to improve capital efficiency and adapt to changing business conditions. This move, executed through the Tokyo Stock Exchange’s off-auction trading system, concludes the company’s share repurchase program as resolved by its Board of Directors, potentially impacting its market positioning and shareholder value.

Keihanshin Building Co., Ltd. Announces Share Buyback to Enhance Capital Efficiency

Keihanshin Building Co., Ltd. has announced a resolution by its Board of Directors to acquire up to 1,000,000 of its own shares through the Tokyo Stock Exchange’s off-auction trading system. This move aims to enhance capital efficiency and provide flexibility in capital policy, reflecting the company’s response to evolving market conditions.

Keihanshin Building Co., Ltd. Reports Strong Financial Growth in First Half of 2025

Keihanshin Building Co., Ltd. reported a significant increase in its consolidated financial results for the six months ending September 30, 2025, with net sales rising by 4.8% and profit attributable to owners of the parent increasing by 28.6% year-on-year. This robust performance reflects the company’s strong operational efficiency and market positioning, which may positively impact stakeholders and enhance its competitive advantage in the real estate sector.