Leopalace21 (8848) AI Stock Analysis

• Market Cap: €203.32B
• Dividend Yield: 1.55%
• Average Volume (3M): 1.78M
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.86
• Revenue Growth: 2.50%
• EPS Growth: -71.61%
• Country: JP
• Employees: 3,853
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 12.09
• Shares Outstanding: 334,415,680
• 10 Day Avg. Volume: 2,311,830
• 30 Day Avg. Volume: 1,784,760
• PEG Ratio: -0.18
• Price to Book (P/B): 2.27
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 7.26
• 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): 38.6
• Revenue Forecast (FY): €443.33B

• Rating: 58 Neutral
• Price Target: ¥696.00 ▲(7.74% Upside)

Leopalace21's overall stock score reflects a solid financial recovery, but is tempered by bearish technical indicators and a moderate valuation. The company's improved financial performance is a positive sign, but technical analysis suggests caution due to potential downward momentum. The valuation is reasonable, but not compelling enough to offset technical concerns.

Positive Factors

Improved Profitability

The company's improved profitability and cash flow indicate effective management and operational efficiency, contributing to long-term financial stability.

Balance Sheet Health

A healthier balance sheet with improved equity and manageable leverage enhances financial stability and supports future growth initiatives.

Revenue Growth

Consistent revenue growth reflects strong market demand and effective business strategies, positioning the company for sustained expansion.

Negative Factors

High Liabilities

High liabilities could strain financial resources and limit strategic flexibility, potentially impacting long-term financial health if not managed carefully.

Earnings Volatility

Earnings volatility can undermine investor confidence and complicate financial planning, posing a risk to sustained profitability and growth.

Fluctuating Cash Flows

Inconsistent cash flows may reflect underlying operational challenges, affecting the company's ability to maintain steady financial performance.

Leopalace21 Business Overview & Revenue Model

Company Description

Leopalace21 Corporation (TSE: 8848) is a Japan-based company primarily engaged in the real estate and housing industry. It provides a range of services including the leasing and management of residential properties, construction of prefabricated homes, and real estate brokerage. The company operates in sectors such as rental apartments, property management, and home construction, catering to both domestic and international clients. Leopalace21 also offers services related to property renovation and real estate investment.

How the Company Makes Money

Leopalace21 generates revenue primarily through its rental business, which includes leasing out apartments and residential properties. The company earns income from monthly rents paid by tenants, as well as from property management fees. Additionally, Leopalace21 has a construction division that builds prefabricated homes, contributing to its revenue through sales and construction contracts. The company also engages in real estate brokerage activities, earning commissions on property transactions. Strategic partnerships with various stakeholders in the real estate market, including financial institutions and local governments, further support its revenue generation. The company's ability to adapt to market trends and consumer demands is crucial for maintaining and increasing its earnings.

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

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	434.63B	431.83B	422.67B	406.45B	398.37B	408.96B
Gross Profit	80.95B	77.29B	68.83B	53.29B	46.08B	21.09B
EBITDA	34.93B	32.73B	27.97B	16.46B	11.13B	-18.76B
Net Income	8.62B	17.86B	42.06B	19.81B	11.85B	-23.68B
Balance Sheet
Total Assets	229.05B	216.63B	205.00B	166.55B	145.43B	161.71B
Cash, Cash Equivalents and Short-Term Investments	105.56B	88.51B	68.63B	53.56B	45.72B	54.96B
Total Debt	31.53B	31.63B	30.88B	31.85B	33.04B	35.41B
Total Liabilities	124.90B	128.35B	133.32B	133.63B	134.40B	158.43B
Stockholders Equity	98.19B	81.66B	64.15B	24.40B	1.43B	-8.11B
Cash Flow
Free Cash Flow	24.51B	25.56B	21.10B	9.94B	-5.95B	-43.65B
Operating Cash Flow	24.85B	25.90B	21.42B	10.54B	-4.46B	-40.82B
Investing Cash Flow	-604.00M	-604.00M	851.00M	906.00M	886.00M	11.83B
Financing Cash Flow	-6.40B	-6.40B	-7.12B	-2.82B	-5.89B	23.57B

Leopalace21 Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 646.00
• 50DMA: Negative
• 100DMA: Negative
• 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:8848, the sentiment is Neutral. The current price of 646 is below the 20-day moving average (MA) of 647.40, below the 50-day MA of 654.30, and above the 200-day MA of 638.17, indicating a neutral trend. The MACD of -3.37 indicates Negative momentum. The RSI at 48.12 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8848.

Leopalace21 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8919	75 Outperform	$242.64B	22.36	23.24%	2.11%	7.20%	21.32%
1766	74 Outperform	¥189.71B	11.51	―	2.33%	6.06%	40.37%
8934	73 Outperform	$110.21B	6.78	17.98%	2.94%	84.20%	137.87%
8818	71 Outperform	¥82.56B	17.43	―	2.20%	4.72%	47.55%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8848	58 Neutral	€203.32B	17.55	22.14%	1.55%	2.50%	-71.61%
2337	56 Neutral	$175.50B	9.29	16.39%	2.46%	7.21%	112.45%

Leopalace21 Corporate Events

Leopalace21 Reports Mixed Financial Results for First Half of 2025

Leopalace21 Corporation reported its consolidated financial results for the six months ending September 30, 2025, showing a slight increase in net sales by 2.7% compared to the previous year. However, the net income attributable to shareholders of the parent saw a significant decline of 55.9%. The company’s total assets and net assets also decreased, impacting its equity ratio. Despite these challenges, the company maintains its dividend forecast and anticipates a modest increase in net sales and operating profit for the fiscal year ending March 31, 2026.

Leopalace21 Announces Stable Interim Dividend for FY2025

Leopalace21 Corporation announced an interim dividend of JPY 5.00 per share for the fiscal year 2025, maintaining the same dividend rate as the previous year. This decision underscores the company’s commitment to returning profits to shareholders while focusing on enhancing long-term corporate value through stable dividend payments.

Leopalace21 Revises Earnings Forecasts Upward Following Strong H1 Performance

Leopalace21 Corporation has announced a revision in its earnings forecasts for the fiscal year ending March 31, 2026, following better-than-expected results in the first half of the year. The company reported increases in net sales and profits, attributed to rising average unit rents and strong corporate demand, which led to an upward adjustment of its full-year financial projections.

Leopalace21 Wins Defamation Case Against SHINCHOSHA

Leopalace21 Corporation announced a favorable judgment from the Tokyo District Court regarding a lawsuit against SHINCHOSHA Publishing Co., Ltd. The court ruled that SHINCHOSHA’s articles, which accused Leopalace21 of inflating occupancy rates and manipulating financial data, harmed the company’s reputation and were not based on truth. SHINCHOSHA was ordered to pay JPY 3,300,000, although other requests by Leopalace21 were dismissed. The judgment is not expected to impact the company’s financial performance.

Leopalace21 Announces Change in Largest Shareholder

Leopalace21 Corporation announced a change in its largest and principal shareholder as Chidori sold 34,000,000 shares, reducing its stake from 26.60% to 15.90%. Consequently, UH Partners 2, Inc. has become the largest shareholder with a 15.92% stake. This transition is not expected to impact the company’s business results.

Leopalace21 Faces Potential Shift in Major Shareholder

Leopalace21 Corporation announced a potential change in its largest and principal shareholder, as Chidori Godo Kaisha plans to sell a portion of its shares. This sale could result in UH Partners 2, Inc. becoming the largest shareholder, potentially impacting the company’s shareholder structure and market positioning.

Leopalace21 to Cancel 28.3% of Treasury Stock

Leopalace21 Corporation has announced its decision to cancel a significant portion of its treasury stock, amounting to 132,046,640 shares, which represents 28.3% of its total issued shares. This move aims to reduce the company’s treasury stock to a target maximum holding ratio of 5.0%, facilitating future employee stock compensation and potentially impacting shareholder value positively.