tiprankstipranks
Trending News
More News >
Leopalace21 Corporation (JP:8848)
:8848

Leopalace21 (8848) AI Stock Analysis

Compare
0 Followers

Top Page

JP

Leopalace21

(Frankfurt:8848)

Rating:74Outperform
Price Target:
¥730.00
▲(17.93%Upside)
Leopalace21's strong financial recovery and technical indicators showing bullish momentum are the most significant factors contributing to its score. The company's valuation is reasonable, providing a stable investment opportunity. However, potential risks from high liabilities and overbought technical signals warrant caution.

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

Leopalace21 Business Overview & Revenue Model

Company DescriptionLeopalace21 Corporation, together with its subsidiaries, engages in the construction, leasing, and sale of apartments, condominiums, and residential housing in Japan. It operates in three segments: Leasing Business; Elderly Care Business; and Other Businesses. The Leasing Business segment engages in the leasing and management of apartment buildings and other properties; repair work; broadband internet service; rent obligation guarantee; and company residence agency, solar power generation, and small-amount short-term insurance and other businesses. It also engages in real estate brokerage, running serviced apartments and serviced offices, and others. The Elderly Care Business segment operates elderly care facilities under the Azumi En brand. This segment also offers group homes, day services, short-stay, elderly homes with nursing care services/residential style elderly homes, home visits, and home care support services. The Other Businesses segment engages in the operation of resort facilities in Guam; and financing and other businesses. The company was formerly known as MDI Corporation and changed its name to Leopalace21 Corporation in July 2000. Leopalace21 Corporation was incorporated in 1973 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyLeopalace21 generates revenue through a variety of channels, with its primary income derived from apartment leasing and management services. The company constructs and manages apartment units, which are then rented out to individuals and corporate clients. These rental incomes form the bulk of its revenue. Additionally, Leopalace21 offers supplementary services such as furniture leasing, internet services, and insurance products to its tenants, contributing to its earnings. The company may also engage in real estate development and sales, although this is not its main focus. Strategic partnerships with businesses and institutions for corporate housing solutions also play a role in its revenue streams.

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.
Breakdown
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
430.06B431.83B422.67B406.45B398.37B408.96B
Gross Profit
75.45B76.73B68.83B53.29B46.08B21.09B
EBIT
28.76B29.23B23.31B9.88B1.77B-29.18B
EBITDA
29.72B32.73B27.97B16.46B11.13B-18.76B
Net Income Common Stockholders
42.58B17.86B42.06B19.81B11.85B-23.68B
Balance SheetCash, Cash Equivalents and Short-Term Investments
78.15B88.51B68.63B53.56B45.72B54.96B
Total Assets
204.04B216.63B205.00B166.55B145.43B161.71B
Total Debt
30.77B31.63B30.88B31.85B33.04B35.41B
Net Debt
-47.28B-56.78B-37.75B-21.71B-12.48B-19.46B
Total Liabilities
121.16B128.35B133.32B133.63B134.40B158.43B
Stockholders Equity
76.41B81.66B64.15B24.40B1.43B-8.11B
Cash FlowFree Cash Flow
0.0024.51B21.10B9.94B-5.95B-43.65B
Operating Cash Flow
0.0024.85B21.42B10.54B-4.46B-40.82B
Investing Cash Flow
0.00-604.00M851.00M906.00M886.00M11.83B
Financing Cash Flow
0.00-5.36B-7.12B-2.82B-5.89B23.57B

Leopalace21 Technical Analysis

Technical Analysis Sentiment
Positive
Last Price619.00
Price Trends
50DMA
590.40
Positive
100DMA
576.49
Positive
200DMA
566.56
Positive
Market Momentum
MACD
16.75
Positive
RSI
49.93
Neutral
STOCH
37.95
Neutral
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 619 is below the 20-day moving average (MA) of 622.45, above the 50-day MA of 590.40, and above the 200-day MA of 566.56, indicating a neutral trend. The MACD of 16.75 indicates Positive momentum. The RSI at 49.93 is Neutral, neither overbought nor oversold. The STOCH value of 37.95 is Neutral, 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
€204.28B11.4424.21%1.58%2.17%-57.25%
64
Neutral
$12.85B9.817.79%78.20%12.23%-7.93%
$1.16B11.5513.76%2.58%
$1.24B20.3821.92%2.27%
$688.12M7.3614.51%3.11%
81
Outperform
¥185.13B12.71
2.40%8.04%167.85%
67
Neutral
¥71.10B16.91
2.83%1.42%15.98%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8848
Leopalace21
619.00
130.17
26.63%
ICHIF
Ichigo
2.68
0.34
14.53%
KTITF
KATITAS CO
16.46
6.30
62.01%
SFFUF
Sun Frontier Fudousan Co
14.18
4.29
43.38%
JP:1766
Token Corporation
13,720.00
3,623.19
35.88%
JP:8818
Keihanshin Building Co., Ltd.
1,536.00
-46.29
-2.93%

Leopalace21 Corporate Events

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.

Leopalace21 Reports Fiscal Year 2024 Results with Increased Profits and Dividends
May 9, 2025

Leopalace21 Corporation reported its consolidated financial results for the fiscal year 2024, showing a modest increase in net sales by 2.2% to JPY 431,831 million. Despite a significant decline in net income attributable to shareholders by 57.5% to JPY 17,861 million, the company improved its operating and recurring profits by 25.4% and 38.3%, respectively. The company also announced a dividend increase, reflecting a stronger financial position with an equity ratio improvement from 31.2% to 37.5%. These results indicate a strategic focus on enhancing profitability and shareholder returns, despite challenges in net income.

Leopalace21 Unveils ‘New Growth 2028’ Plan for Sustainable Expansion
May 9, 2025

Leopalace21 Corporation has announced a new Medium-term Management Plan, ‘New Growth 2028,’ aimed at strengthening its business foundation and enhancing corporate value. The plan includes strategies such as improving occupancy rates, promoting digital transformation, and contributing to a decarbonized society with Net Zero Energy House properties, with projected growth in net sales and operating profit over the next three years.

Leopalace21 Revamps Officer Remuneration System to Boost Corporate Value
Apr 25, 2025

Leopalace21 Corporation has announced a revision to its officer remuneration system, aiming to align executive incentives with shareholder interests and corporate value enhancement. The new system introduces share-based remuneration and emphasizes transparency, fairness, and long-term value creation, reflecting a strategic shift from previous practices.

Leopalace21 Introduces New Share-Based Remuneration System
Apr 25, 2025

Leopalace21 Corporation has announced a shift in its director remuneration system, moving from stock options to a performance-linked share-based system. This change aims to align director and shareholder interests, enhance corporate value, and improve transparency and rationality in remuneration. The new system, pending shareholder approval, will replace existing stock options with a ‘Share Delivery Trust’ and is designed to provide long-term incentives by delivering company shares to directors upon retirement or after a specified period.

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.