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Meiwa Estate Co. Ltd. (JP:8869)
:8869
Japanese Market
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Meiwa Estate Co. Ltd. (8869) AI Stock Analysis

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JP:8869

Meiwa Estate Co. Ltd.

(8869)

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Neutral 67 (OpenAI - 4o)
Rating:67Neutral
Price Target:
¥1,142.00
▲(8.45% Upside)
Meiwa Estate Co. Ltd. benefits from a strong valuation with a low P/E ratio and attractive dividend yield, making it appealing for value and income investors. However, financial performance is hindered by high leverage and negative cash flows, which could impact financial stability. Technical indicators suggest weak momentum, which may affect short-term price movements.

Meiwa Estate Co. Ltd. (8869) vs. iShares MSCI Japan ETF (EWJ)

Meiwa Estate Co. Ltd. Business Overview & Revenue Model

Company DescriptionMeiwa Estate Company Limited develops, sells, and manages condominiums in Japan. It also engages in real estate leasing and brokerage activities. The company was incorporated in 1942 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyMeiwa Estate Co. Ltd. generates revenue through various streams in the real estate market. The primary source of income is the sale and leasing of residential and commercial properties. The company develops properties and sells them to individual buyers or businesses looking for office space. Additionally, Meiwa Estate Co. Ltd. earns revenue from property management services, which include maintenance and administration of real estate assets on behalf of property owners. Brokerage services also contribute to the company's earnings as it facilitates real estate transactions between buyers and sellers. Furthermore, Meiwa Estate Co. Ltd. may engage in strategic partnerships or joint ventures with other real estate developers or financial institutions to enhance its service offerings and expand its market reach.

Meiwa Estate Co. Ltd. Financial Statement Overview

Summary
Meiwa Estate Co. Ltd. shows robust revenue growth and solid gross margins, indicating competent cost management and market position. However, high leverage and negative cash flows pose risks to financial flexibility. Improving cash flow management and reducing debt reliance could enhance financial health.
Income Statement
75
Positive
Meiwa Estate Co. Ltd. has demonstrated consistent revenue growth over the past years, with a notable increase of 12.14% from 2024 to 2025. The Gross Profit Margin for 2025 is solid at 20.73%, indicating efficient cost management. However, the Net Profit Margin is relatively lower at 3.63%, suggesting potential areas for improvement in controlling non-operating expenses or tax management. The EBIT Margin is stable at 6.56%, reflecting consistent operating efficiency, and the EBITDA Margin is slightly higher at 6.87%, indicating healthy operational cash flows.
Balance Sheet
68
Positive
The company's Debt-to-Equity Ratio stands at 2.56, which reflects a high level of leverage, typical for the real estate services industry but indicating potential risk if not managed carefully. The Return on Equity (ROE) is moderate at 8.52%, suggesting decent but not exceptional returns for shareholders. The Equity Ratio is 22.33%, indicating a lower proportion of equity financing, which might raise concerns about financial stability in volatile markets.
Cash Flow
60
Neutral
Meiwa Estate Co. Ltd. faces challenges in cash flow management, with a negative Free Cash Flow of -¥33.93 billion in 2025, reflecting high capital expenditures and operating cash outflows. The Operating Cash Flow to Net Income Ratio is -11.52, highlighting significant discrepancies between reported earnings and cash flow. The Free Cash Flow to Net Income Ratio is also negative at -11.72, indicating potential difficulties in converting profits into free cash.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue96.69B79.90B71.25B62.32B57.21B50.11B
Gross Profit20.37B16.57B15.53B15.66B12.93B11.31B
EBITDA9.19B5.49B5.22B6.16B3.98B3.58B
Net Income4.98B2.90B2.78B4.42B2.60B2.72B
Balance Sheet
Total Assets149.50B152.10B124.15B116.54B95.71B76.05B
Cash, Cash Equivalents and Short-Term Investments36.20B22.47B34.90B34.15B27.70B22.65B
Total Debt82.42B86.81B59.02B57.86B48.65B32.59B
Total Liabilities112.82B118.12B92.18B86.54B69.14B50.23B
Stockholders Equity36.69B33.98B31.97B30.00B26.57B25.82B
Cash Flow
Free Cash Flow0.00-33.93B-2.44B215.00M-7.01B-5.65B
Operating Cash Flow0.00-33.37B-1.83B419.00M-6.89B-5.55B
Investing Cash Flow0.00-5.84B2.44B-2.41B-45.00M1.38B
Financing Cash Flow0.0026.79B140.00M8.35B12.08B3.19B

Meiwa Estate Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1053.00
Price Trends
50DMA
1084.48
Negative
100DMA
1019.20
Positive
200DMA
991.08
Positive
Market Momentum
MACD
-15.04
Positive
RSI
41.14
Neutral
STOCH
44.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8869, the sentiment is Neutral. The current price of 1053 is below the 20-day moving average (MA) of 1080.60, below the 50-day MA of 1084.48, and above the 200-day MA of 991.08, indicating a neutral trend. The MACD of -15.04 indicates Positive momentum. The RSI at 41.14 is Neutral, neither overbought nor oversold. The STOCH value of 44.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8869.

Meiwa Estate Co. Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥24.81B8.123.92%35.00%249.93%
74
Outperform
¥21.03B11.254.40%1.82%16.62%
70
Outperform
¥22.96B6.142.70%-2.62%-23.15%
68
Neutral
¥27.70B11.793.08%29.93%18.79%
67
Neutral
¥23.17B4.913.80%23.26%32.18%
66
Neutral
€28.60B10.694.24%3.72%-3.22%18.61%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8869
Meiwa Estate Co. Ltd.
1,053.00
120.06
12.87%
JP:8881
Nisshin Group Holdings Co., Ltd.
617.00
141.74
29.82%
JP:3276
Japan Property Management Center Co.Ltd.
1,299.00
209.88
19.27%
JP:3489
FaithNetwork Co.,Ltd
837.00
345.62
70.34%
JP:7187
J-LEASE CO., LTD.
1,566.00
161.18
11.47%
JP:8928
Anabki Kosan Inc.
2,151.00
236.02
12.32%

Meiwa Estate Co. Ltd. Corporate Events

Meiwa Estate Reports Financial Results and Future Outlook
May 13, 2025

Meiwa Estate Co., Ltd. reported its consolidated financial results for the year ended March 31, 2025, showing a 12.1% increase in net sales to 79,902 million yen. Despite this growth, the company’s ordinary profit decreased by 5.5% to 3,769 million yen. The company anticipates a 5.1% increase in net sales for the next fiscal year, with a significant 20.2% rise in operating profit, indicating a strategic focus on improving profitability. The dividend payout remains consistent, reflecting stability in shareholder returns.

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: Oct 21, 2025