Takara Leben Co., Ltd. (8897) AI Stock Analysis

• Market Cap: ¥53.76B
• Dividend Yield: 7.56%
• Average Volume (3M): 850.07K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.66
• Revenue Growth: -6.09%
• EPS Growth: -36.16%
• Country: JP
• Employees: 1,377
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): N/A
• Shares Outstanding: 140,300,000
• 10 Day Avg. Volume: 691,590
• 30 Day Avg. Volume: 850,066
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥432.52
• Price Target Upside: 8.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥435.00 ▲(9.57% Upside)

Takara Leben Co., Ltd. has a solid valuation with a low P/E ratio and high dividend yield, making it attractive for value and income investors. However, financial performance is hindered by high leverage and negative cash flow trends, posing risks. Technical analysis shows mixed signals, with slight short-term weakness but potential bullish momentum.

Takara Leben Co., Ltd. Business Overview & Revenue Model

Company Description

Takara Leben Co., Ltd. (8897) is a multifaceted real estate company based in Japan, primarily engaged in the development, sales, and management of residential properties. The company operates across several sectors, including condominium sales, housing development, and real estate investment. It also offers property management services and engages in the renewable energy business, leveraging its expertise to diversify its operations and revenue streams.

How the Company Makes Money

Takara Leben Co., Ltd. generates revenue through a diverse range of business activities primarily centered around real estate and renewable energy. The company's main revenue streams include the sale of developed condominiums and residential properties, which form a significant portion of its income. Additionally, it earns through its real estate investment operations, where it develops and sells real estate projects. The company also benefits from recurring income through property management services, which provide steady cash flow over time. Furthermore, Takara Leben has expanded into the renewable energy sector, where it develops and operates solar power plants, contributing to its income diversification and long-term sustainability. Strategic partnerships and collaborations with other firms in real estate and energy sectors also play a crucial role in enhancing its business operations and profitability.

Takara Leben Co., Ltd. Financial Statement Overview

Summary

Takara Leben Co., Ltd. shows stable revenue growth and profitability margins, but faces challenges with high leverage and negative cash flow trends. The balance sheet's high debt-to-equity ratio and recent cash flow volatility pose risks to financial stability.

Income Statement

Takara Leben Co., Ltd. has shown a moderate revenue growth trajectory over the past years, with a recent annual increase from 185.2 billion to 196.5 billion JPY, marking a 6.1% growth. The gross profit and net profit margins are stable, with gross profit margin remaining around 21.5% and net profit margin slightly increasing to 4.2%. However, the EBIT margin decreased slightly, indicating operational cost challenges. Overall, profitability metrics depict a stable but slightly pressured operational efficiency.

Balance Sheet

The company's balance sheet reflects a high debt-to-equity ratio, currently at 2.73, which poses a significant financial risk. However, the return on equity (ROE) is reasonable at 9.85%, indicating effective use of equity in generating profits. The equity ratio is relatively low at 22.4%, suggesting limited asset financing through equity. Overall, while the company maintains profitability, the high leverage could impact financial stability in volatile market conditions.

Cash Flow

Takara Leben's cash flow analysis shows a volatile free cash flow, with a significant decline in the most recent year to -13.1 billion JPY from 9.3 billion JPY previously. The operating cash flow to net income ratio is 0.96, indicating near parity between operational cash generation and net income, but the negative free cash flow growth rate is concerning. This suggests potential liquidity issues if negative trends persist.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	196.52B	196.52B	185.19B	153.47B	162.74B	148.40B
Gross Profit	42.31B	42.31B	40.59B	31.71B	33.12B	29.93B
EBITDA	20.62B	20.73B	21.34B	10.44B	15.04B	12.83B
Net Income	8.20B	8.21B	8.18B	4.58B	6.21B	4.69B
Balance Sheet
Total Assets	372.51B	372.51B	337.45B	341.67B	223.47B	204.31B
Cash, Cash Equivalents and Short-Term Investments	48.04B	48.04B	42.74B	47.87B	33.43B	39.17B
Total Debt	227.00B	227.00B	210.46B	227.38B	127.97B	118.57B
Total Liabilities	283.40B	283.40B	265.78B	276.53B	163.87B	149.69B
Stockholders Equity	83.28B	83.28B	65.99B	61.60B	59.31B	54.39B
Cash Flow
Free Cash Flow	0.00	-13.13B	9.29B	-20.26B	-2.50B	465.00M
Operating Cash Flow	0.00	7.88B	36.78B	-722.00M	23.19B	26.33B
Investing Cash Flow	0.00	-24.81B	-26.33B	-46.35B	-27.87B	-25.09B
Financing Cash Flow	0.00	22.04B	-15.46B	61.53B	-1.13B	2.65B

Takara Leben Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 397.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8897, the sentiment is Negative. The current price of 397 is below the 20-day moving average (MA) of 398.75, above the 50-day MA of 390.84, and below the 200-day MA of 443.98, indicating a neutral trend. The MACD of 2.12 indicates Positive momentum. The RSI at 50.01 is Neutral, neither overbought nor oversold. The STOCH value of 25.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8897.

Takara Leben Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3299	76 Outperform	50.26B	7.70	18.97%	5.39%	11.83%	33.96%
8897	69 Neutral	¥53.76B	7.65	9.70%	7.56%	-6.09%	-36.16%
8871	69 Neutral	116.15B	17.86	3.75%	2.93%	14.66%	19.51%
3480	69 Neutral	84.64B	14.74	19.67%	1.85%	8.87%	-25.97%
8887	56 Neutral	17.65B	-7.75	-5.95%	0.83%	13.72%	-372.20%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Takara Leben Co., Ltd. Corporate Events

MIRARTH HOLDINGS Issues Stock-Based Compensation Options

MIRARTH HOLDINGS, Inc. announced the issuance of stock-based compensation stock options to its directors and executive officers, aiming to align executive compensation with the company’s performance and stock value. This initiative is intended to motivate executives to enhance medium- to long-term corporate performance and value, potentially impacting the company’s operational efficiency and stakeholder interests.