Meiwa Estate Co. Ltd. (8869) AI Stock Analysis

• Market Cap: ¥23.54B
• Dividend Yield: 3.72%
• Average Volume (3M): 64.44K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 0.64
• Revenue Growth: 36.88%
• EPS Growth: 83.47%
• Country: JP
• Employees: 619
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 49.94
• Shares Outstanding: 23,447,683
• 10 Day Avg. Volume: 60,490
• 30 Day Avg. Volume: 64,436
• PEG Ratio: 1.84
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.28
• P/FCF Ratio: -0.66
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥1,311.00 ▲(17.58% Upside)

Meiwa Estate Co. Ltd. scores well due to strong technical indicators and attractive valuation metrics, suggesting potential for price appreciation and income generation. However, financial performance is hindered by high leverage and negative cash flows, which could impact long-term stability. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term business sustainability and expansion.

Gross Profit Margin

A solid gross profit margin reflects effective cost control and pricing power, enhancing the company's ability to maintain profitability over time.

Market Position

A diverse service offering strengthens market position by catering to various client needs, reducing dependency on a single revenue stream, and enhancing resilience.

Negative Factors

High Leverage

High leverage can increase financial risk, especially in volatile markets, potentially impacting the company's ability to invest in growth opportunities and manage economic downturns.

Negative Cash Flows

Negative cash flows indicate potential liquidity issues, limiting the company's ability to reinvest in the business, pay down debt, or return capital to shareholders.

Low Equity Ratio

A low equity ratio suggests reliance on debt financing, which can be risky if interest rates rise or if the company faces financial challenges, affecting long-term stability.

Meiwa Estate Co. Ltd. Business Overview & Revenue Model

Company Description

Meiwa Estate Co. Ltd. (8869) is a prominent real estate company based in Japan, specializing in property development, management, and investment. The company operates in various sectors of the real estate market, including residential, commercial, and industrial properties. Meiwa Estate is engaged in the acquisition, development, and leasing of properties, as well as providing real estate consultancy services to clients. With a focus on creating high-quality living and working environments, the company aims to enhance the value of its real estate assets.

How the Company Makes Money

Meiwa Estate Co. Ltd. generates revenue primarily through the development and sale of residential and commercial properties. Key revenue streams include income from property sales, rental income from leased properties, and fees from real estate management services. The company also engages in joint ventures and partnerships with other real estate firms, which can lead to shared profits and reduced risk in large development projects. Additionally, Meiwa Estate benefits from favorable market conditions and government policies supporting real estate development, contributing to its overall earnings.

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 further.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	96.69B	79.90B	71.25B	62.32B	57.21B	50.11B
Gross Profit	20.37B	16.57B	15.53B	15.66B	12.93B	11.31B
EBITDA	9.19B	5.49B	5.22B	6.16B	3.98B	3.58B
Net Income	4.98B	2.90B	2.78B	4.42B	2.60B	2.72B
Balance Sheet
Total Assets	149.50B	152.10B	124.15B	116.54B	95.71B	76.05B
Cash, Cash Equivalents and Short-Term Investments	36.20B	22.47B	34.90B	34.15B	27.70B	22.65B
Total Debt	82.42B	86.81B	59.02B	57.86B	48.65B	32.59B
Total Liabilities	112.82B	118.12B	92.18B	86.54B	69.14B	50.23B
Stockholders Equity	36.69B	33.98B	31.97B	30.00B	26.57B	25.82B
Cash Flow
Free Cash Flow	0.00	-33.93B	-2.44B	215.00M	-7.01B	-5.65B
Operating Cash Flow	0.00	-33.37B	-1.83B	419.00M	-6.89B	-5.55B
Investing Cash Flow	0.00	-5.84B	2.44B	-2.41B	-45.00M	1.38B
Financing Cash Flow	0.00	26.79B	140.00M	8.35B	12.08B	3.19B

Meiwa Estate Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1115.00
• 50DMA: Positive
• 100DMA: Positive
• 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:8869, the sentiment is Positive. The current price of 1115 is above the 20-day moving average (MA) of 1111.65, above the 50-day MA of 1091.00, and above the 200-day MA of 1010.82, indicating a bullish trend. The MACD of 13.33 indicates Negative momentum. The RSI at 53.42 is Neutral, neither overbought nor oversold. The STOCH value of 46.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8869.

Meiwa Estate Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8869	76 Outperform	¥23.54B	5.04	―	3.72%	36.88%	83.47%
3276	73 Outperform	¥21.15B	11.07	―	4.36%	1.52%	16.04%
7187	72 Outperform	¥26.94B	11.70	―	3.13%	29.97%	19.33%
3489	70 Outperform	¥24.18B	7.92	―	3.87%	11.79%	128.54%
8928	70 Outperform	¥22.98B	6.17	―	2.62%	1.06%	-7.12%
8881	67 Neutral	€28.13B	10.52	5.90%	3.77%	3.04%	44.65%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Meiwa Estate Co. Ltd. Corporate Events

Meiwa Estate Reports Strong Financial Growth in Q2 2025

Meiwa Estate Co., Ltd. reported significant growth in its financial results for the three months ended June 30, 2025, with net sales increasing by 79% year-on-year. The company’s operating profit surged by 173.9%, reflecting strong performance and improved profitability. These results indicate a robust operational period, positioning Meiwa Estate favorably within the industry and potentially benefiting its stakeholders.