Tosei (8923) AI Stock Analysis

• Market Cap: ¥156.16B
• Dividend Yield: 2.26%
• Average Volume (3M): 112.58K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.97
• Revenue Growth: 17.74%
• EPS Growth: 19.41%
• Country: JP
• Employees: 809
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 37.51
• Shares Outstanding: 48,683,800
• 10 Day Avg. Volume: 110,370
• 30 Day Avg. Volume: 112,580
• PEG Ratio: 0.78
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 1.44
• P/FCF Ratio: -8.90
• 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): 286.03
• Revenue Forecast (FY): ¥98.75B

• Rating: 73 Outperform
• Price Target: ¥3,735.00 ▲(13.53% Upside)

Tosei's overall stock score is driven by strong valuation metrics and positive technical indicators. However, financial performance is hindered by declining revenue growth and cash flow challenges, which slightly dampen the overall outlook.

Tosei Business Overview & Revenue Model

Company Description

Tosei (8923) is a Japanese real estate company primarily engaged in the acquisition, development, and management of commercial and residential properties. The company operates within the real estate sector, focusing on urban development projects, property leasing, and asset management services. Tosei aims to enhance property value and optimize investment returns for its stakeholders through strategic planning and execution in Japan's dynamic real estate market.

How the Company Makes Money

Tosei generates revenue primarily through rental income from its portfolio of commercial and residential properties. The company also earns money through property sales, development projects, and asset management fees. A significant portion of its earnings comes from long-term leases with tenants, providing stable cash flow. Additionally, Tosei engages in strategic partnerships with other real estate firms and investors, which can enhance its project pipeline and increase profitability through joint ventures and collaborative developments.

Tosei Financial Statement Overview

Summary

Tosei shows strong profitability with healthy margins, but faces challenges with declining revenue growth and high leverage. Cash flow issues are evident, with negative free cash flow growth, impacting financial flexibility.

Income Statement

Tosei's income statement shows a solid performance with a Gross Profit Margin of 42.22% and a Net Profit Margin of 15.62% for the TTM, indicating strong profitability. However, the Revenue Growth Rate has declined by 2.95% in the TTM, which is a concern. The EBIT Margin and EBITDA Margin are healthy at 24.12% and 25.91% respectively, suggesting efficient operations despite the revenue dip.

Balance Sheet

The balance sheet reflects a high Debt-to-Equity Ratio of 1.66, indicating significant leverage, which could pose a risk if not managed carefully. However, the Return on Equity is strong at 15.08%, showing effective use of equity to generate profits. The Equity Ratio stands at 35.00%, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis reveals challenges, with negative Operating Cash Flow and Free Cash Flow in the TTM. The Free Cash Flow Growth Rate is notably negative at -56.53%, indicating cash flow issues. However, the Free Cash Flow to Net Income Ratio is positive at 1.03, suggesting that free cash flow exceeds net income, which is a positive aspect.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	90.63B	82.19B	79.45B	70.95B	61.73B	63.94B
Gross Profit	38.26B	35.20B	30.29B	25.27B	20.70B	14.80B
EBITDA	23.48B	20.71B	17.83B	14.85B	12.42B	7.61B
Net Income	14.15B	11.99B	10.51B	8.61B	6.72B	3.60B
Balance Sheet
Total Assets	283.62B	276.82B	245.33B	210.96B	195.01B	161.68B
Cash, Cash Equivalents and Short-Term Investments	40.76B	34.87B	39.20B	31.77B	33.56B	37.04B
Total Debt	164.78B	165.90B	146.59B	124.85B	114.95B	90.99B
Total Liabilities	184.07B	185.95B	163.01B	138.67B	129.05B	102.71B
Stockholders Equity	99.26B	90.50B	82.05B	72.29B	65.96B	58.97B
Cash Flow
Free Cash Flow	-6.02B	-13.27B	5.27B	-365.40M	-39.39M	12.19B
Operating Cash Flow	-5.86B	-13.05B	5.72B	-197.08M	974.60M	12.51B
Investing Cash Flow	-4.40B	-5.61B	-16.10B	-9.08B	-15.45B	-4.05B
Financing Cash Flow	11.28B	14.33B	19.13B	7.48B	10.99B	-3.41B

Tosei Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3290.00
• 50DMA: Negative
• 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:8923, the sentiment is Positive. The current price of 3290 is above the 20-day moving average (MA) of 3255.75, below the 50-day MA of 3293.70, and above the 200-day MA of 2741.30, indicating a neutral trend. The MACD of -12.18 indicates Positive momentum. The RSI at 51.45 is Neutral, neither overbought nor oversold. The STOCH value of 50.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8923.

Tosei Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8931	78 Outperform	¥18.21B	5.10	―	4.91%	10.42%	48.21%
8923	73 Outperform	¥156.16B	10.56	14.95%	2.26%	17.74%	19.41%
8850	73 Outperform	¥236.86B	10.86	―	2.68%	1.02%	-13.26%
3010	69 Neutral	¥46.31B	12.61	―	1.52%	40.03%	-45.93%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8803	63 Neutral	€173.50B	14.62	8.95%	3.35%	28.94%	109.35%
3475	63 Neutral	¥38.47B	16.72	―	3.44%	21.25%	28.04%

Tosei Corporate Events

Tosei Reports on Treasury Share Purchases

Tosei Corporation has filed a report concerning the purchase of its treasury share certificates for the period from September 1 to September 30, 2025. This filing, submitted to the Director-General of the Kanto Local Finance Bureau, is in accordance with the Financial Instruments and Exchange Act. The report indicates Tosei’s ongoing efforts to manage its equity structure, which could impact its market positioning and shareholder value.

Tosei Corporation Reports No Share Repurchase in September

Tosei Corporation announced that it has not repurchased any of its shares during the period from September 1 to September 30, 2025, despite a prior resolution by the Board of Directors to repurchase up to 700,000 shares. This decision indicates a potential reassessment of capital allocation strategies or market conditions, impacting shareholder expectations and the company’s financial strategies.

Tosei Corporation Reports No Share Repurchase in August 2025

Tosei Corporation announced that it did not repurchase any of its shares during the period from August 1 to August 31, 2025, despite a Board of Directors’ resolution allowing for the repurchase of up to 700,000 shares. This decision may impact the company’s financial strategy and shareholder value, as the planned share buyback was not executed.

Tosei Corporation Reports Treasury Share Purchases

Tosei Corporation has filed a report on the purchase of treasury share certificates for the period from August 1, 2025, to August 31, 2025, with the Kanto Local Finance Bureau. This filing is part of regulatory compliance under the Financial Instruments and Exchange Act, reflecting Tosei’s ongoing financial management and strategic efforts to manage its equity structure.

Tosei Corporation Joins JPX-Nikkei Index 400, Strengthening Market Position

Tosei Corporation has been newly selected as a constituent of the JPX-Nikkei Index 400 and continues to be part of the JPX-Nikkei Mid and Small Cap Index for the ninth consecutive year. This inclusion highlights Tosei’s investor appeal and adherence to global investment standards, reflecting its commitment to efficient capital use and investor-focused management, which is expected to enhance its market positioning and stakeholder confidence.

Tosei Corporation Reports No Share Repurchase in July 2025

Tosei Corporation announced that despite a resolution by its Board of Directors to repurchase up to 700,000 shares, no shares were repurchased during the specified period from July 1 to July 31, 2025. This lack of repurchase may impact the company’s stock market strategy and investor perceptions, as the repurchase was intended to manage share value and investor returns.

Tosei Corporation Reports on Treasury Share Purchases

Tosei Corporation has filed a report on the state of its treasury share purchases for the period from July 1 to July 31, 2025, in compliance with the Financial Instruments and Exchange Act. This filing, submitted to the Director-General of the Kanto Local Finance Bureau, indicates Tosei’s ongoing financial activities and regulatory compliance, potentially impacting its market operations and stakeholder relations.