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

• Market Cap: ¥11.64B
• Dividend Yield: 4.98%
• Average Volume (3M): 2.83K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.13
• Revenue Growth: 3.29%
• EPS Growth: -1.74%
• Country: JP
• Employees: 87
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 21.48
• 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

Century21 Real Estate of Japan Ltd. demonstrates strong profitability with a consistent gross profit margin and net profit margin over the years. The company has a solid equity position with zero debt, indicating financial stability. However, there are data gaps in the cash flow statement that need addressing for improved transparency.

Income Statement

Century21 Real Estate of Japan Ltd. demonstrates strong profitability with a consistent gross profit margin and net profit margin over the years. The company has shown a positive revenue growth rate with revenues increasing from previous periods. EBIT and EBITDA margins are healthy, indicating efficient operating performance.

Balance Sheet

The balance sheet reflects a very strong equity position with zero debt, resulting in a favorable debt-to-equity ratio. The company maintains a high equity ratio, signifying a low reliance on external financing. ROE indicates good returns on shareholders' equity. However, there is room for improvement in asset utilization.

Cash Flow

The cash flow statement shows some variance with operating cash flow and free cash flow. Free cash flow growth rate is not calculable due to missing data in the most recent period. Operating cash flow to net income ratio suggests efficient cash generation relative to net income, although recent figures are missing.

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: Negative
• 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 above the 20-day moving average (MA) of 1115.90, above the 50-day MA of 1109.86, and above the 200-day MA of 1093.66, indicating a bullish trend. The MACD of 3.75 indicates Negative momentum. The RSI at 51.85 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 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	¥11.64B	14.95	―	4.98%	3.29%	-1.74%
3277	72 Outperform	¥11.64B	7.08	―	3.18%	-4.65%	77.74%
3294	72 Outperform	¥12.94B	9.50	―	4.56%	25.09%	30.66%
3467	71 Outperform	¥14.63B	7.99	―	3.86%	2.78%	22.28%
8945	66 Neutral	¥10.67B	33.99	―	3.69%	1.88%	-82.78%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
5532	52 Neutral	¥14.08B	24.87	―	―	23.19%	44.46%