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Tosei Corporation (JP:8923)
:8923
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Tosei (8923) AI Stock Analysis

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JP:8923

Tosei

(OTC:8923)

Rating:76Outperform
Price Target:
¥3,441.00
▲(3.18% Upside)
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 (8923) vs. iShares MSCI Japan ETF (EWJ)

Tosei Business Overview & Revenue Model

Company DescriptionTosei Corporation, listed on the Tokyo Stock Exchange under the ticker 8923, is a diversified real estate company based in Japan. The company operates across several sectors including real estate development, real estate investment, and property management. Tosei's core services encompass real estate revitalization and development, asset management, fund management, and providing real estate solutions to a broad client base.
How the Company Makes MoneyTosei 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
75
Positive
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
70
Positive
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue90.63B82.19B79.45B70.95B61.73B63.94B
Gross Profit38.26B35.20B30.29B25.27B20.70B14.80B
EBITDA23.48B20.71B17.83B14.85B12.42B7.61B
Net Income14.15B11.99B10.51B8.61B6.72B3.60B
Balance Sheet
Total Assets283.62B276.82B245.33B210.96B195.01B161.68B
Cash, Cash Equivalents and Short-Term Investments40.76B34.87B39.20B31.77B33.56B37.04B
Total Debt164.78B165.90B146.59B124.85B114.95B90.99B
Total Liabilities184.07B185.95B163.01B138.67B129.05B102.71B
Stockholders Equity99.26B90.50B82.05B72.29B65.96B58.97B
Cash Flow
Free Cash Flow-6.02B-13.27B5.27B-365.40M-39.39M12.19B
Operating Cash Flow-5.86B-13.05B5.72B-197.08M974.60M12.51B
Investing Cash Flow-4.40B-5.61B-16.10B-9.08B-15.45B-4.05B
Financing Cash Flow11.28B14.33B19.13B7.48B10.99B-3.41B

Tosei Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3335.00
Price Trends
50DMA
2919.96
Positive
100DMA
2704.14
Positive
200DMA
2557.82
Positive
Market Momentum
MACD
78.80
Positive
RSI
73.48
Negative
STOCH
79.18
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 3335 is above the 20-day moving average (MA) of 3161.00, above the 50-day MA of 2919.96, and above the 200-day MA of 2557.82, indicating a bullish trend. The MACD of 78.80 indicates Positive momentum. The RSI at 73.48 is Negative, neither overbought nor oversold. The STOCH value of 79.18 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

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$157.13B11.1114.91%2.19%7.63%13.95%
53
Neutral
$1.22B2.98-6.08%5.74%-8.21%-81.31%
€1.02B15.358.80%
85
Outperform
¥45.52B10.99
2.67%196.25%562.84%
78
Outperform
¥18.00B5.01
4.32%17.62%60.92%
78
Outperform
¥245.05B11.24
2.43%1.02%-13.26%
74
Outperform
¥49.12B13.38
1.43%40.03%-45.93%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8923
Tosei
3,335.00
1,146.93
52.42%
DE:HZJ
Heiwa Real Estate Co., Ltd.
13.90
1.97
16.51%
JP:3010
Polaris Holdings Co., Ltd
210.00
32.80
18.51%
JP:3475
Good Com Asset Co.,Ltd.
1,557.00
761.61
95.75%
JP:8850
Starts Corporation Inc.
4,935.00
1,732.61
54.10%
JP:8931
WADAKOHSAN CORPORATION
1,627.00
377.79
30.24%

Tosei Corporate Events

Tosei Corporation Announces Share Split and Shareholder Program Changes
Jul 7, 2025

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
Jul 7, 2025

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
Jul 7, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 07, 2025