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Leopalace21 Corporation (JP:8848)
:8848
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Leopalace21 (8848) AI Stock Analysis

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JP:8848

Leopalace21

(Frankfurt:8848)

Rating:73Outperform
Price Target:
¥753.00
▲(0.00% Upside)
Leopalace21's strong technical indicators and solid valuation metrics drive its overall score. The company's financial recovery, though promising, is tempered by high liabilities and past earnings volatility. Despite the lack of recent earnings call data, the technical and valuation factors provide a positive outlook for potential investors.

Leopalace21 (8848) vs. iShares MSCI Japan ETF (EWJ)

Leopalace21 Business Overview & Revenue Model

Company DescriptionLeopalace21 Corporation is a Japan-based company primarily engaged in the provision of real estate services. The company operates in sectors including leasing, construction, and elder care. Its core services comprise leasing apartments and condominiums, developing and managing properties, and offering related services such as insurance and real estate brokerage. Leopalace21 also explores businesses in the construction of apartments and other buildings and provides elder care services.
How the Company Makes MoneyLeopalace21 generates revenue primarily through its leasing business by renting apartments and condominiums to individuals and corporate clients. The company develops and manages residential properties, which form a significant part of its revenue stream. Additionally, revenue is derived from the construction segment by building apartments and offering construction-related services. The elder care segment contributes to earnings by providing services and facilities for senior citizens. Leopalace21 also earns through ancillary services like insurance and real estate brokerage, enhancing its revenue diversification.

Leopalace21 Financial Statement Overview

Summary
Leopalace21 demonstrates a solid financial recovery with improved profitability and cash flow. The company has effectively managed its leverage, reflected in a healthier balance sheet. Continued growth in revenue and profitability will be crucial to sustain this positive trajectory, as high liabilities and past earnings volatility remain areas to monitor.
Income Statement
72
Positive
Leopalace21 shows a strong recovery in its income statement, with a notable increase in revenue from 398.4 billion JPY in 2022 to 431.8 billion JPY in 2025. The gross profit margin has improved significantly, reflecting enhanced cost management. Net profit margin also shows strong recovery, moving from losses in past years to a positive margin of 4.1% in 2025. However, the sharp decline in net income from 2024 to 2025 indicates potential volatility.
Balance Sheet
65
Positive
The balance sheet reflects a stable recovery in stockholders' equity, increasing from negative figures in 2021 to 81.7 billion JPY in 2025. The debt-to-equity ratio has improved, indicating manageable leverage, although total liabilities remain high. The equity ratio shows a strong improvement, suggesting enhanced financial stability. However, the relatively high level of liabilities could pose risks if revenue growth falters.
Cash Flow
68
Positive
The cash flow statement indicates strong free cash flow generation, with positive growth in free cash flow from 2022 to 2025. Operating cash flow has improved significantly, showing better operational efficiency. The free cash flow to net income ratio is healthy, indicating efficient cash conversion. However, fluctuations in financing and investing cash flows suggest ongoing adjustments in capital structure.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue431.83B422.67B406.45B398.37B408.96B
Gross Profit76.73B68.83B53.29B46.08B21.09B
EBITDA32.73B27.97B16.46B11.13B-18.76B
Net Income17.86B42.06B19.81B11.85B-23.68B
Balance Sheet
Total Assets216.63B205.00B166.55B145.43B161.71B
Cash, Cash Equivalents and Short-Term Investments88.51B68.63B53.56B45.72B54.96B
Total Debt31.63B30.88B31.85B33.04B35.41B
Total Liabilities128.35B133.32B133.63B134.40B158.43B
Stockholders Equity81.66B64.15B24.40B1.43B-8.11B
Cash Flow
Free Cash Flow24.51B21.10B9.94B-5.95B-43.65B
Operating Cash Flow24.85B21.42B10.54B-4.46B-40.82B
Investing Cash Flow-604.00M851.00M906.00M886.00M11.83B
Financing Cash Flow-6.40B-7.12B-2.82B-5.89B23.57B

Leopalace21 Technical Analysis

Technical Analysis Sentiment
Positive
Last Price753.00
Price Trends
50DMA
656.60
Positive
100DMA
617.01
Positive
200DMA
585.18
Positive
Market Momentum
MACD
24.44
Negative
RSI
78.90
Negative
STOCH
92.16
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8848, the sentiment is Positive. The current price of 753 is above the 20-day moving average (MA) of 702.45, above the 50-day MA of 656.60, and above the 200-day MA of 585.18, indicating a bullish trend. The MACD of 24.44 indicates Negative momentum. The RSI at 78.90 is Negative, neither overbought nor oversold. The STOCH value of 92.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8848.

Leopalace21 Peers Comparison

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥195.89B12.41
2.26%7.57%76.43%
76
Outperform
¥107.69B6.6216.86%2.98%48.91%52.49%
75
Outperform
¥202.91B19.8524.25%2.18%5.63%22.43%
73
Outperform
¥342.44B19.5215.36%1.38%2.21%-70.44%
72
Outperform
¥186.00B13.2013.04%2.46%-26.42%1.17%
71
Outperform
¥231.28B14.9210.65%3.51%19.75%24.05%
70
Outperform
¥74.37B17.62
2.52%3.73%23.40%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8848
Leopalace21
753.00
283.84
60.50%
JP:1766
Token Corporation
14,570.00
3,575.69
32.52%
JP:8818
Keihanshin Building Co., Ltd.
1,590.00
88.58
5.90%
JP:2337
Ichigo
425.00
69.03
19.39%
JP:8919
KATITAS CO
2,630.00
975.77
58.99%
JP:8934
Sun Frontier Fudousan Co
2,218.00
531.19
31.49%

Leopalace21 Corporate Events

Leopalace21 Introduces Performance-Linked Share-Based Remuneration System
Aug 8, 2025

Leopalace21 Corporation has announced the implementation of a performance-linked share-based remuneration system for its executive directors and officers, as well as a revised incentive plan for employees, including those of its subsidiaries. This initiative, approved at the recent shareholders’ meeting, involves the acquisition of company shares to be held in trust, aiming to align the interests of directors and employees with the company’s performance, potentially impacting its operational dynamics and shareholder value.

Leopalace21 Introduces Share-Based Remuneration and Incentive Plans
Aug 8, 2025

Leopalace21 Corporation has announced the disposal of treasury shares as part of its new Share-Based Remuneration System and updated Employees Incentive Plan. This initiative aims to align the interests of directors and employees with shareholders by linking remuneration to company performance and stock value, thereby enhancing corporate value over the medium to long term. The disposal involves 2,939,100 common shares, with the impact on the trading market expected to be negligible.

Leopalace21 Reports Q1 2025 Financial Results with Mixed Performance
Aug 8, 2025

Leopalace21 Corporation reported its financial results for the three months ended June 30, 2025, showing a slight increase in net sales by 2.6% compared to the previous year. Despite this, the net income attributable to shareholders saw a significant decline of 91.4%, indicating potential challenges in profitability. The company maintained its dividend forecast and completed a treasury stock repurchase, reflecting ongoing efforts to manage shareholder value.

Leopalace21 Secures JPY 10 Billion Commitment Line with Mizuho Bank
Jul 29, 2025

Leopalace21 Corporation has announced the conclusion of a Commitment Line Agreement with Mizuho Bank, Ltd., allowing the company access to flexible financing options up to JPY 10 billion. This agreement is intended to support the company’s sustainable growth and strengthen its financial base, although it is not expected to materially impact the current fiscal year’s financial results.

Leopalace21 Cancels Treasury Stock Acquisition Rights
Jun 30, 2025

Leopalace21 Corporation has announced the cancellation of its 5th series treasury stock acquisition rights, following a repurchase from Chidori Godo Kaisha, an affiliate of Fortress Investment Group LLC. This move will result in an extraordinary loss of 9,970 million yen for the first quarter of the fiscal year ending March 31, 2026, but the company’s earnings forecasts remain unchanged.

Leopalace21 Affirms Independence Amidst Strategic Affiliation with Chidori Godo Kaisha
Jun 26, 2025

Leopalace21 Corporation has announced details regarding its affiliated company, Chidori Godo Kaisha, which holds a 26.09% ownership voting right in Leopalace21. Despite this significant stake, Leopalace21 emphasizes its commitment to autonomy and independence in decision-making. The affiliation with Fortress Investment Group, represented by directors Akio Yamashita and Jin Ryu, is seen as a strategic advantage due to their extensive experience in real estate and corporate management, which is expected to contribute positively to Leopalace21’s growth strategy.

Leopalace21’s Parent Company Withholds Financial Disclosure
Jun 26, 2025

Leopalace21 Corporation has announced that its parent company, Chidori Godo Kaisha, will not disclose its financial statement information despite regulatory requirements. This decision is due to Chidori Godo Kaisha’s status as an investment company, which typically does not disclose such information. Leopalace21 will continue to request the disclosure of financial information, highlighting the ongoing challenges in transparency and compliance with securities regulations.

Leopalace21 Completes Treasury Stock Repurchase
Jun 25, 2025

Leopalace21 Corporation completed a tender offer for the repurchase of its treasury stock, as resolved by its Board of Directors. This move, finalized on June 24, 2025, is part of the company’s strategy to manage its capital structure effectively, potentially impacting shareholder value and market perception.

Leopalace21 Enhances Internal Control System with Compliance-First Approach
Jun 20, 2025

Leopalace21 Corporation has announced a partial revision of its basic policy for establishing an internal control system, emphasizing a compliance-first approach in its business operations. The revisions include strengthening the compliance framework by enhancing the roles of the Compliance Committee and Compliance Working Group, implementing a whistle-blowing hotline, and promoting compliance awareness through training programs. These changes aim to improve transparency, fairness, and stakeholder engagement, positioning the company as a leader in corporate governance within the real estate industry.

Leopalace21 Updates Treasury Stock Repurchase Plan
Jun 9, 2025

Leopalace21 Corporation announced a correction to its previous notice regarding the repurchase of treasury stock and stock acquisition rights. The company clarified that if the number of tendered shares exceeds the 137,072,803 shares intended for repurchase, it will not purchase all excess shares, opting instead for a pro rata allocation method. This move is part of a broader strategy to manage its capital structure and enhance shareholder value.

Leopalace21 to Repurchase Treasury Stock and Enhance Shareholder Returns
Jun 5, 2025

Leopalace21 Corporation announced a resolution to repurchase treasury stock and stock acquisition rights, aiming to enhance shareholder returns and maintain a flexible capital policy. This move is part of the company’s ongoing efforts to stabilize its financial position and resume dividend payments, reflecting its commitment to improving shareholder value after overcoming past financial challenges.

Leopalace21 Proposes Reduction in Common Stock and Capital Reserve
May 30, 2025

Leopalace21 Corporation has announced a proposal to reduce its common stock and capital reserve, which was approved by the Board of Directors and will be presented at the upcoming General Shareholders’ Meeting. This strategic move is intended to enhance the company’s capital policy flexibility without impacting its net assets or business results, pending shareholder approval.

Leopalace21 Announces Stable Year-End Dividend for FY 2024
May 30, 2025

Leopalace21 Corporation announced a year-end dividend of JPY5.00 per share for FY 2024, maintaining the same dividend as the previous fiscal year. This decision reflects the company’s commitment to providing stable and continuous returns to shareholders, considering its business performance and financial condition, while aiming for sustainable corporate value and long-term growth.

Leopalace21 Revises Earnings Forecasts Amid Extraordinary Losses
May 27, 2025

Leopalace21 Corporation has announced a revision to its earnings forecasts for the fiscal year ending March 31, 2026, due to the recording of extraordinary losses. The company plans to repurchase treasury stock and cancel stock acquisition rights, resulting in a significant decrease in net income projections. This move is expected to impact the company’s financial performance, with a notable reduction in net income per share, reflecting a strategic decision to manage its capital structure and shareholder value.

Leopalace21 Announces Major Treasury Stock Repurchase
May 27, 2025

Leopalace21 Corporation has announced a significant financial maneuver involving the repurchase of its treasury stock and stock acquisition rights. This move, approved by the Board of Directors, is aimed at consolidating the company’s share structure and potentially enhancing shareholder value. The transaction involves a tender offer for up to 137 million shares, representing a substantial portion of the company’s issued shares, and is expected to impact the company’s market positioning and stakeholder interests.

Leopalace21 Prevails in Tokyo High Court Ruling
May 27, 2025

Leopalace21 Corporation announced that the Tokyo High Court has rendered a judgment in a lawsuit filed by Amakusa Unso Co., Ltd. The court partially modified the original judgment, dismissing all of Amakusa’s claims regarding the non-existence of debt, while confirming that both the loan and accounts receivable claims had expired due to the statute of limitations. This decision is not expected to impact the company’s consolidated financial results.

Leopalace21 Announces Fiscal Year 2025 Financial Results and Strategic Plans
May 22, 2025

Leopalace21 Corporation held a financial results briefing for the fiscal year ending March 31, 2025, led by key executives including the President and CEO, Bunya Miyao. The briefing included an explanation of the company’s financial performance and was followed by a discussion of the Medium-term Management Plan. The event provided insights into the company’s strategic direction and operational focus, potentially impacting its market positioning and stakeholder interests.

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.Date of analysis: Jul 10, 2025