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

• Market Cap: €50.51B
• Dividend Yield: 12.33%
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.67
• Revenue Growth: 6.12%
• EPS Growth: -17.70%
• Country: JP
• Employees: 1,377
• Sector: Real Estate
• Sector Strength: 56
• Industry: Real Estate - Development
• EPS (TTM): -15.84
• Shares Outstanding: 140,300,000
• 10 Day Avg. Volume: 1,445,500
• 30 Day Avg. Volume: 1,286,903
• PEG Ratio: -0.46
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.71
• 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: €416.52
• Price Target Upside: 11.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: ¥414.00 ▲(10.40%Upside)

Takara Leben Co., Ltd.'s stock score is impacted by challenging financial performance due to high leverage and negative cash flow trends. Despite a strong valuation with a low P/E ratio and high dividend yield, the technical analysis indicates significant bearish momentum, affecting the overall attractiveness of the stock.

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

Company Description

Takara Leben Co., Ltd. engages in the real estate business in Japan. It plans, designs, develops, and sells condominiums under the LEBEN brand names. The company engages in the electric power generation business; and condominium management services. In addition, it is involved in the real estate sales, agency, distribution, and brokerage; construction activities; renewal resale and loan collection; and investment management, type II financial instruments services, investment advisory and agency, and REIT's asset management businesses. The company was formerly known as Takara Komuten Co., Ltd. and changed its name to Takara Leben Co., Ltd. in 2000. Takara Leben Co., Ltd. was founded in 1972 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Takara Leben Co., Ltd. generates revenue through the sale of residential properties, including condominiums and detached houses, which form the core of its business. The company earns income from property development and sales, as well as property management services. Furthermore, Takara Leben has diversified its revenue streams by investing in renewable energy projects, particularly in solar power generation, which provides an additional source of income. Strategic partnerships in the real estate and energy sectors also contribute to its financial performance.

Takara Leben Co., Ltd. Financial Statement Overview

Summary

Takara Leben Co., Ltd. shows stable revenue growth and profitability, but faces challenges with high leverage and recent negative cash flow trends. The company needs to focus on improving operational efficiencies and reducing debt levels.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	202.25B	196.52B	185.19B	153.47B	162.74B	148.40B
Gross Profit	43.08B	42.31B	40.59B	31.71B	33.12B	29.93B
EBITDA	20.96B	20.73B	21.34B	10.44B	15.04B	12.83B
Net Income	9.71B	8.21B	8.18B	4.58B	6.21B	4.69B
Balance Sheet
Total Assets	366.77B	372.51B	337.45B	341.67B	223.47B	204.31B
Cash, Cash Equivalents and Short-Term Investments	34.33B	48.04B	42.74B	47.87B	33.43B	39.17B
Total Debt	246.99B	227.00B	210.46B	227.38B	127.97B	118.57B
Total Liabilities	286.00B	283.40B	265.78B	276.53B	163.87B	149.69B
Stockholders Equity	75.05B	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: 375.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 375 is below the 20-day moving average (MA) of 380.35, below the 50-day MA of 409.12, and below the 200-day MA of 465.73, indicating a bearish trend. The MACD of -8.83 indicates Negative momentum. The RSI at 33.02 is Neutral, neither overbought nor oversold. The STOCH value of 30.10 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
3480	77 Outperform	¥84.27B	14.09		1.85%	9.00%	-21.69%
3299	68 Neutral	¥45.10B	6.08		4.78%	28.12%	110.57%
Sector *	63 Neutral	$6.92B	18.42	-1.93%	6.88%	4.65%	-25.39%
8887	63 Neutral	¥18.15B	27.94		148.14%	101.05%	<0.01%
8897	63 Neutral	€50.51B	5.95	11.09%	12.33%	6.12%	-17.70%
CDCTF		$772.85M	22.82	3.73%	3.54%	―	―
8886	47 Neutral	¥2.51B	―		―	-33.09%	-1.82%

Takara Leben Co., Ltd. Corporate Events

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