Tosei (8923) AI Stock Analysis

• Market Cap: $168.51B
• Dividend Yield: 2.08%
• Average Volume (3M): 78.58K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 1.00
• Revenue Growth: 7.63%
• EPS Growth: 13.95%
• Country: JP
• Employees: 809
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 83.52
• Shares Outstanding: 48,683,800
• 10 Day Avg. Volume: 68,040
• 30 Day Avg. Volume: 78,576
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 2.73
• Enterprise Value/Gross Profit: 6.46
• Enterprise Value/Ebitda: 10.53
• 1Y Price Target: $3,441.52
• Price Target Upside: -1.81% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥3,441.00 ▼(-1.83% Downside)

Tosei's stock is supported by strong technical momentum and reasonable valuation, despite financial challenges such as declining revenue growth and cash flow issues. The stock's overbought condition may warrant caution for potential investors.

Tosei Business Overview & Revenue Model

Company Description

Tosei Corporation operates in the revitalization, development, rental, fund and consulting, and property management businesses in Japan. The company acquires properties whose asset value has declined and improves value-up activities; develops office buildings, commercial facilities, condominiums, detached houses, and hotels; and leases buildings, apartments, commercial facilities, car parks, and other properties. It is also involved in the provision of asset management services for real estate funds, as well as consultancy and intermediary services for corporates; acquisition and disposition of properties; and investment management, investment advisory and agency, and financial instrument businesses. In addition, the company offers property management services, including building management, security, renovation, and tenant leasing services. Further, it is involved in the consultancy services; real estate brokerage activities; hotel planning, operation, and management businesses. The company was formerly known as Tosei Fudosan Co., Ltd. and changed its name to Tosei Corporation in October 2006. Tosei Corporation was incorporated in 1950 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tosei Corporation makes money through multiple revenue streams centered around its real estate operations. A significant portion of its income is derived from real estate revitalization, which involves purchasing underutilized properties, renovating them, and selling them at a higher value. The company also generates revenue through its real estate development projects, which include the construction and sale of residential and commercial properties. Additionally, Tosei earns fees from asset management and property management services, where it manages real estate assets and properties on behalf of clients. The company also runs real estate funds, earning management fees and performance-based fees from institutional investors. Strategic partnerships and alliances with other real estate firms and financial institutions further bolster its revenue through joint ventures and co-investment opportunities.

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: 3505.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 3505 is above the 20-day moving average (MA) of 3318.25, above the 50-day MA of 3114.28, and above the 200-day MA of 2626.89, indicating a bullish trend. The MACD of 92.73 indicates Positive momentum. The RSI at 79.88 is Negative, neither overbought nor oversold. The STOCH value of 62.72 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
3475	85 Outperform	¥46.65B	20.28	23.82%	2.60%	21.25%	28.04%
8931	78 Outperform	¥18.37B	5.11	9.48%	4.23%	17.62%	60.92%
8850	78 Outperform	¥259.70B	11.91	12.19%	2.53%	1.02%	-13.26%
8923	76 Outperform	$168.51B	11.92	14.91%	2.08%	7.63%	13.95%
3010	72 Outperform	¥47.95B	13.06	9.22%	1.46%	40.03%	-45.93%
8803	70 Outperform	¥180.61B	16.39	8.11%	2.97%	11.59%	86.58%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Tosei Corporate Events

Tosei Corporation Announces Share Split and Shareholder Program Changes

Tosei Corporation has announced a share split to increase liquidity and make its shares more accessible to a broader range of investors. The company will also amend its Articles of Incorporation to reflect the increased number of authorized shares and adjust its shareholder benefit program to align with the share split, potentially enhancing shareholder engagement and investment appeal.

Tosei Corporation Revises Earnings and Dividend Forecasts Upward

Tosei Corporation has revised its earnings and dividend forecasts for the fiscal year ending November 30, 2025, due to strong performance in its revitalization, fund and consulting, and hotel businesses. The company anticipates a decrease in revenue but an increase in operating profit, profit before tax, and profit attributable to owners, along with a higher year-end dividend per share, reflecting its commitment to shareholder returns.

Tosei Corporation Reports Strong Financial Performance and Positive Outlook

Tosei Corporation reported a significant increase in its consolidated financial results for the six months ended May 31, 2025, with a 14.6% rise in revenue and a 21.6% increase in profit attributable to owners of the parent. The company also revised its earnings forecasts for the fiscal year ending November 30, 2025, reflecting a positive outlook with expected growth in revenue and profit, which could strengthen its market position and provide potential benefits to stakeholders.