Tosei (8923) AI Stock Analysis

• Market Cap: ¥173.53B
• Dividend Yield: 2.95%
• Average Volume (3M): 136.85K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.94
• Revenue Growth: 17.74%
• EPS Growth: 19.41%
• Country: JP
• Employees: 809
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 7.30
• Shares Outstanding: 97,367,600
• 10 Day Avg. Volume: 213,080
• 30 Day Avg. Volume: 136,853
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥3,735.00 ▲(109.01% 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.

Positive Factors

Profitability

Strong profit margins indicate efficient operations and the ability to maintain profitability, which is crucial for long-term financial health.

Cash Flow Management

Positive cash flow relative to net income highlights effective cash management, supporting sustainable operations and potential reinvestment.

Return on Equity

High ROE indicates efficient use of shareholder equity, enhancing investor confidence and supporting long-term growth potential.

Negative Factors

Revenue Growth Decline

Declining revenue growth can limit future expansion and profitability, posing a challenge to maintaining competitive market position.

High Leverage

High leverage increases financial risk and can strain cash flow, potentially impacting the company's ability to invest in growth opportunities.

Cash Flow Challenges

Negative cash flow trends indicate potential liquidity issues, which could hinder operational flexibility and strategic investments.

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 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	96.73B	82.19B	79.45B	70.95B	61.73B	63.94B
Gross Profit	39.92B	35.20B	30.29B	25.27B	20.70B	14.80B
EBITDA	24.57B	20.71B	18.25B	14.85B	12.42B	7.61B
Net Income	14.80B	11.99B	10.51B	8.61B	6.72B	3.60B
Balance Sheet
Total Assets	294.89B	276.82B	245.33B	210.96B	195.01B	161.68B
Cash, Cash Equivalents and Short-Term Investments	40.10B	34.87B	39.20B	31.77B	33.56B	37.04B
Total Debt	179.27B	165.90B	146.59B	124.85B	114.95B	90.99B
Total Liabilities	192.67B	185.95B	163.01B	138.67B	129.05B	102.71B
Stockholders Equity	101.96B	90.50B	82.05B	72.29B	65.96B	58.97B
Cash Flow
Free Cash Flow	-5.20B	-13.27B	5.27B	-365.40M	-39.39M	12.19B
Operating Cash Flow	-5.03B	-13.05B	5.72B	-197.08M	974.60M	12.51B
Investing Cash Flow	-7.23B	-5.61B	-16.10B	-9.08B	-15.45B	-4.05B
Financing Cash Flow	15.49B	14.33B	19.13B	7.48B	10.99B	-3.41B

Tosei Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1787.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 1787 is above the 20-day moving average (MA) of 1728.45, above the 50-day MA of 1664.36, and above the 200-day MA of 1443.12, indicating a bullish trend. The MACD of 38.64 indicates Negative momentum. The RSI at 70.59 is Negative, neither overbought nor oversold. The STOCH value of 73.91 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	¥18.94B	5.47	―	4.71%	10.42%	48.21%
8923	73 Outperform	¥173.53B	11.71	14.95%	2.95%	17.74%	19.41%
8850	68 Neutral	¥238.35B	10.11	―	2.67%	2.29%	-4.12%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3010	65 Neutral	¥46.55B	15.26	―	1.60%	116.30%	-0.08%
8803	63 Neutral	¥170.92B	14.40	8.95%	3.39%	28.94%	109.35%
3475	54 Neutral	¥39.25B	24.84	―	3.75%	-8.66%	-53.57%