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

• Market Cap: ¥81.11B
• Dividend Yield: 2.39%
• Average Volume (3M): 95.06K
• Price to Earnings (P/E): 19.2
• Beta (1Y): 0.80
• 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

• Rating: 71 Outperform
• Price Target: ¥1,934.00 ▲(11.60% 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.

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 shows moderate leverage and a stable return on equity, while cash flow highlights strong cash generation. Opportunities exist for optimizing the capital structure and improving operational efficiency.

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: 1733.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1733 is above the 20-day moving average (MA) of 1724.80, above the 50-day MA of 1654.16, and above the 200-day MA of 1519.62, indicating a bullish trend. The MACD of 27.31 indicates Positive momentum. The RSI at 54.28 is Neutral, neither overbought nor oversold. The STOCH value of 16.62 is Positive, 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	―	¥86.72B	11.68	―	3.40%	-6.27%	-11.07%
8818	―	¥81.11B	19.22	―	2.39%	4.72%	47.55%
3465	―	¥87.99B	8.45	―	3.52%	24.18%	67.31%
8864	―	¥52.54B	16.11	―	2.00%	26.99%	-27.00%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8841	―	€76.65B	41.52	1.87%	1.23%	2.97%	-62.10%
3479	―	¥75.75B	24.29	―	―	127.32%	-22.79%

Keihanshin Building Co., Ltd. Corporate Events

Keihanshin Building Co., Ltd. Reports Modest Growth in Q1 2025

Keihanshin Building Co., Ltd. reported a slight increase in its financial performance for the three months ending June 30, 2025, with net sales rising by 5.2% and operating profit by 3.8% compared to the previous year. Despite a decrease in comprehensive income, the company maintains a stable equity-to-asset ratio and forecasts continued growth in net sales and operating profit for the fiscal year ending March 31, 2026. The company’s focus on business profit before depreciation and amortization as a key management indicator suggests a strategic emphasis on long-term asset value and operational efficiency.