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

• Market Cap: ¥96.26B
• Dividend Yield: 2.19%
• Average Volume (3M): 95.06K
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.79
• Revenue Growth: 4.72%
• EPS Growth: 47.55%
• Country: JP
• Employees: 60
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 33.03
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 92.9
• Revenue Forecast (FY): ¥20.03B

• Rating: 71 Outperform
• Price Target: ¥2,274.00 ▲(18.07% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

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

Improving Cash Generation

A 166.92% jump in free cash flow and an operating cash flow to net income ratio of 1.66 indicate the business is generating durable internal liquidity. That improves the company’s ability to fund maintenance, selective development, debt service and dividends without relying on external capital over the coming months.

High Profitability Margins

Sustained gross margin around 35% and a 22% net margin reflect strong pricing power and cost control in leasing and property operations. These margins create a buffer against market cycles, support reinvestment and distributions, and underpin consistent cash generation over a multi-month horizon.

Moderate Leverage and Capital Structure

A debt-to-equity of 1.11 and 43% equity ratio point to a balanced, industry-typical capital structure that preserves borrowing capacity. This moderate leverage reduces immediate refinancing strain and provides flexibility to manage portfolio investments or gradual deleveraging over the medium term.

Negative Factors

Modest Return on Equity

An ROE near 5.8% is modest for a property owner/operator and suggests assets are generating limited returns for equity holders. Persistently low ROE can constrain the company's ability to attract new equity, limit growth financed from returns, and pressure management to improve asset yields or optimize the portfolio.

Eroding Operational Efficiency

A declining EBIT margin signals rising operating costs or compressing core operating profitability. If the trend continues, it can materially reduce cash available for reinvestment and debt service, forcing cost-cutting or asset rationalization measures that may take months to implement and reverse.

Lower FCF Conversion vs Net Income

A free cash flow to net income ratio of 0.76 indicates a sizeable portion of reported earnings is being absorbed by capex or working capital. That reduces distributable cash and limits the speed of debt paydown or acquisition financing without tapping external sources, constraining strategic flexibility over months.

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

Company Description

Keihanshin Building Co., Ltd. leases buildings in Japan. The company leases office buildings, datacenter buildings, commercial buildings, logistics warehouses, and off-course betting parlors. It is also involved in the provision of building maintenance services. The company was formerly known as Keihanshin Real Estate Co., Ltd. and changed its name to Keihanshin Building Co., Ltd. in October 2011. Keihanshin Building Co., Ltd. was incorporated in 1948 and is headquartered in Osaka, Japan.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 1926.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 1926 is below the 20-day moving average (MA) of 2040.75, below the 50-day MA of 1980.62, and above the 200-day MA of 1722.37, indicating a bullish trend. The MACD of 35.92 indicates Negative momentum. The RSI at 53.91 is Neutral, neither overbought nor oversold. The STOCH value of 72.58 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	¥115.11B	12.23	―	3.08%	-6.27%	-11.07%
3465	74 Outperform	¥124.23B	9.13	―	2.93%	20.83%	57.13%
8818	71 Outperform	¥96.26B	22.93	―	2.19%	4.72%	47.55%
8864	70 Outperform	¥49.95B	18.50	―	2.93%	26.99%	-26.97%
3479	67 Neutral	¥86.55B	22.46	―	―	127.32%	-22.79%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8841	64 Neutral	¥84.51B	44.84	1.46%	1.18%	6.40%	230.12%

Keihanshin Building Co., Ltd. Corporate Events

Keihanshin Building Launches Stock-Grant Program for Managerial Staff

Keihanshin Building Co., Ltd. has approved the introduction of a new stock-granting program for managerial employees via its Employee Stock Ownership Plan, aligned with organizational changes scheduled for April 2026. The initiative is designed to deepen managers’ involvement in corporate management, reinforce their role as future executive candidates and link their personal interests more closely with the company’s long-term growth.

Under the program, eligible managers who are members of the stock ownership plan will receive an annual special incentive of roughly ¥300,000 to ¥400,000, which will be contributed to the plan and used to acquire newly issued or disposed company shares. By structurally increasing managerial share ownership, the company aims to boost motivation, improve medium- to long-term business performance and raise the overall participation rate in its employee stock ownership framework, potentially strengthening governance and alignment with shareholders.

The most recent analyst rating on (JP:8818) stock is a Hold with a Yen2285.00 price target. To see the full list of analyst forecasts on Keihanshin Building Co., Ltd. stock, see the JP:8818 Stock Forecast page.

Keihanshin Building Reshapes Organization to Bolster Investment and Asset Management

Keihanshin Building Co., Ltd. will overhaul its organizational structure from April 1, 2026 to strengthen investment and development, including a clearer split between international and domestic investment functions. The company is also formalizing its asset management operations by upgrading the AM Business Preparation Group into a full Asset Management Department, signaling a move to expand recurring-fee-based business lines.

Administrative functions will be streamlined by integrating corporate planning with finance and accounting into a new Corporate Management Division, and by consolidating human resources, general affairs, digital transformation and sustainability into a Corporate Services Division. New groups within these divisions, as well as a Business Development Group inside the Business Department, are expected to enhance coordination, efficiency and strategic project development.

Executive officer roles will be realigned in line with the new structure, with responsibilities reassigned to match the separation of investment functions and the creation of the asset management and corporate service frameworks. These changes are intended to support the company’s long-term business plan, improve governance and execution around international expansion, and reinforce its competitiveness in the real estate and asset management sectors.

The most recent analyst rating on (JP:8818) stock is a Hold with a Yen2285.00 price target. To see the full list of analyst forecasts on Keihanshin Building Co., Ltd. stock, see the JP:8818 Stock Forecast page.

Keihanshin Building Posts Solid 3Q Earnings With Higher Margins and Steady Balance Sheet

Keihanshin Building reported consolidated net sales of ¥15.24 billion for the nine months ended March 2026, all derived from its building lease business, with gross profit of ¥6.0 billion and operating profit of ¥4.58 billion, indicating solid profitability and a gross margin near 40%. Ordinary profit reached ¥4.67 billion and net profit ¥4.04 billion, while total assets stayed roughly flat at about ¥177 billion and net assets rose to ¥79.84 billion, lifting the equity ratio to 45.1% despite a still-high interest-bearing debt balance of ¥80.39 billion and a debt dependence ratio of 45.4%. Earnings per share came in at ¥83.3 for the period and book value per share increased to ¥1,673.4, supporting a planned annual dividend of ¥40 per share and a payout ratio in the mid-40% range, underscoring the company’s emphasis on stable shareholder returns even as capital expenditures and depreciation both trended lower. Profitability indicators such as operating and ordinary profit margins improved into the 30% range, suggesting efficient cost control within the leasing business, though the rise in cross-shareholdings to over 20% of net assets highlights a growing allocation to strategic equity holdings on the balance sheet.

The most recent analyst rating on (JP:8818) stock is a Hold with a Yen2093.00 price target. To see the full list of analyst forecasts on Keihanshin Building Co., Ltd. stock, see the JP:8818 Stock Forecast page.

Keihanshin Building Lifts Profits and Strengthens Balance Sheet Over Nine Months

For the nine months ended December 31, 2025, Keihanshin Building reported net sales of ¥15.24 billion, up 3.9% year on year, with operating profit rising 13.9% to ¥4.58 billion and profit attributable to owners of parent increasing 5.3% to ¥4.04 billion. Comprehensive income more than doubled to ¥7.20 billion, business profit before depreciation and amortization grew 14.3% to ¥8.12 billion, and the equity ratio improved to 45.1% as net assets climbed to ¥79.84 billion, indicating strengthened financial soundness. The company maintained its dividend forecast at a total of ¥40 per share for the fiscal year ending March 31, 2026, and left its full-year forecast unchanged, projecting modest sales growth and higher operating profit but a slight decline in full-year profit attributable to owners, suggesting stable operations with continued emphasis on cash generation and shareholder returns.

The most recent analyst rating on (JP:8818) stock is a Hold with a Yen2093.00 price target. To see the full list of analyst forecasts on Keihanshin Building Co., Ltd. stock, see the JP:8818 Stock Forecast page.

Strategic Capital Emerges as Major Shareholder in Keihanshin Building

Keihanshin Building Co., Ltd. announced that Strategic Capital, Inc., a Tokyo-based investment management and advisory firm, has increased its stake in the company and has become a major shareholder. According to a large shareholding report filed with the Kanto Local Finance Bureau, Strategic Capital’s holding rose from 9.31% to 10.32% of Keihanshin Building’s voting rights between December 1 and December 16, 2025, although the company notes it has not independently confirmed the exact number of shares held and does not expect any immediate impact on its business outlook from this change in shareholder structure.

The most recent analyst rating on (JP:8818) stock is a Buy with a Yen1934.00 price target. To see the full list of analyst forecasts on Keihanshin Building Co., Ltd. stock, see the JP:8818 Stock Forecast page.