Century21 Real Estate of Japan Ltd. (8898) AI Stock Analysis

• Market Cap: ¥11.84B
• Dividend Yield: 4.98%
• Average Volume (3M): 2.83K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.12
• Revenue Growth: 3.29%
• EPS Growth: -1.74%
• Country: JP
• Employees: 87
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 23.67
• Shares Outstanding: 11,325,000
• 10 Day Avg. Volume: 3,000
• 30 Day Avg. Volume: 2,830
• PEG Ratio: 0.70
• Price to Book (P/B): 1.75
• Price to Sales (P/S): 2.86
• P/FCF Ratio: 11.43
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 82 Outperform
• Price Target: ¥1,298.00 ▲(16.00% Upside)

The score is driven primarily by strong financial performance (high margins, sharp recent growth rebound, and a very low-risk balance sheet). Valuation also supports the profile with an attractive dividend yield and reasonable P/E. Technicals are positive but not strong enough to push the score into the top range.

Positive Factors

Strong Profitability

High profitability margins indicate efficient operations and pricing power, supporting long-term financial health and competitive positioning.

Conservative Balance Sheet

A debt-free balance sheet reduces financial risk and enhances resilience against interest rate fluctuations, supporting sustainable growth.

Revenue Growth Rebound

Significant revenue growth rebound reflects strong market demand and effective franchise network expansion, enhancing long-term prospects.

Negative Factors

Revenue Cyclicality

Cyclicality in revenue can lead to unpredictable earnings, posing challenges for consistent long-term financial planning and stability.

Uneven Cash Flow Conversion

Inconsistent cash flow conversion may indicate operational inefficiencies or investment volatility, affecting liquidity and financial flexibility.

Dependence on Operating Execution

Reliance on operational execution for growth may limit flexibility and increase pressure on management to maintain performance levels.

Century21 Real Estate of Japan Ltd. Business Overview & Revenue Model

Company Description

Century21 Real Estate of Japan Ltd. operates as a franchise real estate company in Japan. It provides services to buyers and sellers of real estate. The company also offers education and training services for managers and sales people. In addition, it implements information systems; and joint advertisements, such as television commercials, as well as provides financial services to franchise offices and their customers. The company was founded in 1971 and is headquartered in Minato, Japan.

How the Company Makes Money

Century21 Real Estate of Japan Ltd. primarily generates revenue through franchise fees and commissions. Franchisees pay an initial franchise fee to join the Century 21 network, as well as ongoing royalties based on their sales performance. Additionally, the company earns commissions on real estate transactions facilitated by its franchisees, such as property sales and leases. By leveraging the global Century 21 brand and its established reputation, the company attracts both franchisees and clients, which in turn drives its revenue growth. The company's strategic partnerships with financial institutions, developers, and other real estate service providers further enhance its revenue opportunities by expanding its service offerings and customer base.

Century21 Real Estate of Japan Ltd. Financial Statement Overview

Summary

Strong and improving profitability (high gross margin ~76% and net margin ~20%) with a meaningful recent growth rebound (revenue ~+44%). Balance sheet is very conservative with effectively zero debt and healthy low-teens ROE. Main offsets are some historical revenue cyclicality and uneven operating cash flow conversion despite positive free cash flow.

Income Statement

Profitability is strong and improving: the latest year shows high gross profitability (~76%) and solid net profitability (~20%), with operating profitability also trending higher versus prior years. Growth accelerated meaningfully in the most recent year (revenue up ~44% after low-single-digit growth in the prior two years), and earnings rose alongside it. Key watch-out: results have shown some revenue cyclicality over the longer period (declines in 2021–2022), so the latest jump may not be fully linear year-to-year.

Balance Sheet

The balance sheet is very conservative: debt is effectively zero in the latest two years, which materially lowers financial risk and interest-rate sensitivity. Equity has grown steadily and returns on equity are healthy (low-teens in the latest year), indicating solid profitability without leverage. Primary limitation is that with minimal leverage, future return expansion will depend more on operating execution than capital structure optimization.

Cash Flow

Cash generation is generally healthy: free cash flow is positive and nearly matches net income in the latest year, suggesting earnings quality is solid. However, cash conversion has been uneven—operating cash flow covered net income below 1x in the latest year (and also in 2024 and 2022), and free cash flow swung sharply negative in 2022 before rebounding strongly. Overall, cash flows look good but with periodic working-capital or investment-driven volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.07B	4.05B	3.85B	3.80B	3.73B	3.87B
Gross Profit	3.08B	3.09B	2.90B	2.85B	2.78B	2.61B
EBITDA	1.33B	1.44B	1.23B	1.21B	1.18B	1.18B
Net Income	777.89M	802.25M	674.49M	652.37M	741.39M	705.05M
Balance Sheet
Total Assets	7.61B	7.92B	7.64B	7.73B	7.19B	7.10B
Cash, Cash Equivalents and Short-Term Investments	5.56B	5.86B	5.34B	5.10B	4.25B	4.65B
Total Debt	0.00	0.00	0.00	880.00K	3.17M	4.43M
Total Liabilities	1.09B	1.31B	1.28B	1.41B	1.04B	860.03M
Stockholders Equity	6.52B	6.61B	6.36B	6.31B	6.15B	6.24B
Cash Flow
Free Cash Flow	0.00	1.01B	779.54M	1.19B	-78.58M	879.36M
Operating Cash Flow	0.00	1.04B	867.08M	1.29B	634.27M	1.01B
Investing Cash Flow	0.00	-1.95B	30.91M	-526.06M	-523.96M	961.63M
Financing Cash Flow	0.00	-462.59M	-660.32M	-418.19M	-506.10M	-634.48M

Century21 Real Estate of Japan Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1119.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8898, the sentiment is Positive. The current price of 1119 is below the 20-day moving average (MA) of 1127.15, above the 50-day MA of 1117.64, and above the 200-day MA of 1097.86, indicating a bullish trend. The MACD of 3.66 indicates Positive momentum. The RSI at 58.46 is Neutral, neither overbought nor oversold. The STOCH value of 46.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8898.

Century21 Real Estate of Japan Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8898	82 Outperform	¥11.84B	15.01	―	4.98%	3.29%	-1.74%
3277	72 Outperform	¥11.35B	6.90	―	3.18%	-4.65%	77.74%
3294	72 Outperform	¥13.50B	7.89	―	4.56%	25.09%	30.66%
3467	71 Outperform	¥14.71B	8.04	―	3.86%	2.78%	22.28%
8945	66 Neutral	¥10.90B	34.64	―	3.69%	1.88%	-82.78%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
5532	61 Neutral	¥14.80B	14.49	―	―	23.19%	44.46%