Tosei (8923) AI Stock Analysis

• Market Cap: $131.22B
• Dividend Yield: 5.1%
• Average Volume (3M): 114.78K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 1.02
• Revenue Growth: 12.16%
• EPS Growth: 8.79%
• Country: JP
• Employees: 809
• Sector: Financial
• Sector Strength: 81
• Industry: Real Estate - Diversified
• EPS (TTM): 168.72
• Shares Outstanding: 48,683,800
• 10 Day Avg. Volume: 182,480
• 30 Day Avg. Volume: 114,780
• PEG Ratio: 0.59
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.40
• 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

• Rating: 81 Outperform
• Price Target: ¥3,123.00 ▲(17.19%Upside)

The stock's overall score is strong, driven by robust financial performance and attractive valuation metrics. Despite cash flow challenges, the company's growth and profitability are commendable. Technical indicators show bullish momentum, but caution is advised due to potential overbought conditions.

Tosei Business Overview & Revenue Model

Company Description

Tosei Corporation, listed under the ticker 8923 on the Tokyo Stock Exchange, is a real estate company based in Japan. The company operates across various sectors including real estate development, real estate investment, real estate management, and real estate brokerage. Tosei specializes in the acquisition, development, and sale of both residential and commercial properties, as well as providing asset management services and solutions to a diverse clientele.

How the Company Makes Money

Tosei Corporation generates revenue through several key streams. Firstly, it earns income from the development and sale of residential and commercial properties. By acquiring undervalued or underutilized properties, enhancing them, and selling at a premium, Tosei capitalizes on value-added real estate transactions. Secondly, the company provides property management services, overseeing both residential and commercial properties, which generates a steady stream of management fees. Additionally, Tosei offers real estate brokerage services, facilitating the buying, selling, and leasing of properties which contribute to their earnings through commission fees. The company's asset management division also plays a crucial role in its revenue model, managing real estate investment funds and generating fees based on the assets under management. Strategic partnerships with financial institutions and other real estate entities further bolster Tosei's capabilities and revenue opportunities.

Tosei Financial Statement Overview

Summary

Tosei shows strong revenue and profit growth, with efficient cost management and operational performance. The balance sheet is solid, although debt levels require careful monitoring. Cash flow challenges, especially negative operating cash flow, highlight a need for improved cash management strategies. Overall, the company is performing well in terms of growth and profitability, but must address cash flow issues to ensure long-term stability.

Income Statement

The company has shown consistent revenue growth over the years, with a notable TTM revenue increase of 13.6% compared to the previous year. The gross profit margin is strong at approximately 40.7% TTM, indicating efficient cost management. The net profit margin is also healthy at 14.7% TTM. EBIT and EBITDA margins are robust, reflecting strong operational efficiency. Overall, the income statement demonstrates positive growth and profitability trends.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 1.67, suggesting a balanced approach to leveraging. The return on equity is impressive at 14.4% TTM, indicating effective utilization of equity capital. The equity ratio stands at 34.9%, showcasing a stable capital structure. While the balance sheet is relatively strong, monitoring debt levels remains crucial to mitigate risks associated with leverage.

Cash Flow

The cash flow statement reveals challenges with negative operating cash flow in the TTM period, which is a concern for liquidity. The free cash flow to net income ratio is negative, indicating potential issues with cash generation from operations. The company needs to address these cash flow challenges to ensure sustainable financial health. However, financing activities have provided significant cash inflow, supporting liquidity.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
93.39B	82.19B	79.45B	70.95B	61.73B	63.94B
	Gross Profit
38.01B	35.20B	30.29B	25.27B	20.70B	14.80B
	EBIT
21.23B	18.49B	16.25B	13.51B	10.97B	6.43B
	EBITDA
23.22B	20.71B	17.83B	14.85B	12.42B	7.61B
	Net Income Common Stockholders
13.73B	11.99B	10.51B	8.61B	6.72B	3.60B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
38.57B	34.87B	39.20B	31.77B	33.56B	37.04B
	Total Assets
272.62B	276.82B	245.33B	210.96B	195.01B	161.68B
	Total Debt
159.12B	165.90B	146.59B	124.85B	114.95B	90.99B
	Net Debt
120.55B	131.03B	107.39B	93.08B	81.39B	53.95B
	Total Liabilities
177.05B	185.95B	163.01B	138.67B	129.05B	102.71B
	Stockholders Equity
95.19B	90.50B	82.05B	72.29B	65.96B	58.97B
Cash Flow		Free Cash Flow
-13.85B	-13.27B	5.27B	-365.40M	-39.39M	12.19B
	Operating Cash Flow
-13.66B	-13.05B	5.72B	-197.08M	974.60M	12.51B
	Investing Cash Flow
2.72B	-5.61B	-16.10B	-9.08B	-15.45B	-4.05B
	Financing Cash Flow
10.18B	14.33B	19.13B	7.48B	10.99B	-3.41B

Tosei Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2665.00
• 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:8923, the sentiment is Positive. The current price of 2665 is above the 20-day moving average (MA) of 2491.85, above the 50-day MA of 2422.26, and above the 200-day MA of 2376.14, indicating a bullish trend. The MACD of 48.06 indicates Negative momentum. The RSI at 67.45 is Neutral, neither overbought nor oversold. The STOCH value of 45.40 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
8923	81 Outperform	$131.22B	9.57	14.87%	5.10%	12.16%	8.79%
8850	78 Outperform	¥212.03B	8.68		2.81%	-0.18%	10.63%
3010	78 Outperform	¥53.30B	13.49		1.31%	23.67%	-36.65%
3475	70 Outperform	¥32.07B	9.62		3.79%	165.16%	217.53%
8931	70 Outperform	¥15.96B	5.05		4.87%	3.36%	19.70%
Sector *	64 Neutral	$12.86B	9.79	7.78%	16985.65%	12.28%	-7.82%
8803	62 Neutral	€166.39B	15.98	7.84%	3.22%	-5.31%	19.66%

Tosei Corporate Events

Tosei Corporation Announces Major Real Estate Sale

Tosei Corporation has announced the sale of trust beneficiary rights for a property located in Tokyo, which includes office and parking spaces. The transaction, which is significant as it exceeds 10% of the company’s consolidated revenue for the previous fiscal year, is expected to impact the company’s business performance in the fiscal year ending November 2026.

Tosei Completes Treasury Shares Disposal for Restricted Stock Remuneration

Tosei Corporation has completed the payment process for the disposal of treasury shares as restricted stock remuneration, following a resolution made by its Board of Directors. This disposal involved 23,798 shares of common stock at a price of 2,409 yen per share, totaling 57,329,382 yen, and was allocated among directors and an executive officer.