Sun Frontier Fudousan Co (8934) AI Stock Analysis

• Market Cap: ¥118.81B
• Dividend Yield: 2.93%
• Average Volume (3M): 99.95K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.85
• Revenue Growth: 84.20%
• EPS Growth: 137.87%
• Country: JP
• Employees: 763
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): N/A
• Shares Outstanding: 48,755,500
• 10 Day Avg. Volume: 89,190
• 30 Day Avg. Volume: 99,950
• PEG Ratio: 0.36
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.92
• P/FCF Ratio: -11.53
• 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: ¥2,819.00 ▲(13.44% Upside)

Sun Frontier Fudousan Co's stock score is driven primarily by its strong financial performance and attractive valuation. The company's robust revenue and profit margins, along with a low P/E ratio, highlight its potential value. However, concerns about increasing leverage and negative cash flows, along with neutral technical indicators, temper the overall score.

Positive Factors

Revenue Growth Trend

A very strong reported revenue increase indicates the company is expanding its project execution and leasing scale in the Tokyo metro. Durable top-line growth supports reinvestment in developments, enhances recurring leasing income, and improves bargaining power with tenants and partners.

Margin Sustainability

Consistently healthy gross, net, EBIT and EBITDA margins point to disciplined cost control and profitable project selection. Margin durability supports cash generation potential from core operations and helps the firm absorb cyclical pressure in real estate development over the medium term.

Healthy Equity Base

A solid equity base and healthy equity ratio provide financial resilience for capital-intensive real estate activities. This foundation supports borrowing for new developments, cushions downturns, and reduces refinancing risk, strengthening long-term operational flexibility.

Negative Factors

Rising Leverage

An increasing debt-to-equity trend raises interest and refinancing exposure for a development-heavy business. Higher leverage can constrain capital allocation, amplify cyclical earnings swings, and reduce flexibility to pursue new projects or weather downturns in property demand.

Negative Operating Cash Flow

Persistent negative operating and free cash flows indicate earnings are not reliably converting to cash, common when development timing lags cash receipts. This forces reliance on external financing for working capital and capex, increasing funding risk and potentially raising financing costs long term.

Revenue Volatility from Development Reliance

Uneven revenue reflects reliance on project completions and property sales, which are inherently cyclical and timing-dependent. This structural dependence increases earnings volatility, execution and market risk, and makes forecasting cash flows and dividend sustainability harder across cycles.

Sun Frontier Fudousan Co Business Overview & Revenue Model

Company Description

Sun Frontier Fudousan Co., Ltd. provides real estate revitalization services to building owners, asset holders, and wealthy individuals in Tokyo. It operates through Real Estate Revitalization Business, Real Estate Service Business, Hotel and Tourism Business, and Other Business segments. The company offers replanning, property management, building maintenance, brokerage, leasing brokerage, conference room rental, and rent guarantee services. It also engages in development, sale, management, and brokerage of residential properties; and renewal planning, repair, and reform of commercial buildings, interior finishing works, and telecommunications works. In addition, the company engages in the hotel development and operation business. The company was incorporated in 1999 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sun Frontier Fudousan Co generates revenue through various channels, including leasing income from its portfolio of commercial and residential properties, which provides a steady cash flow. Additionally, the company profits from property sales and development projects, which can yield significant returns upon completion. The firm also engages in asset management services for third-party investors, earning fees based on the value of the managed assets. Strategic partnerships with other real estate firms and investors enhance its project capabilities and market reach, contributing to overall profitability.

Sun Frontier Fudousan Co Financial Statement Overview

Summary

Sun Frontier Fudousan Co demonstrates strong revenue and profit margins, with a solid balance sheet. However, increasing leverage and negative cash flows are concerns that need addressing to maintain financial health.

Income Statement

Sun Frontier Fudousan Co exhibits a strong income statement with consistent revenue growth over the years, including a significant increase in the most recent year. The gross profit and net profit margins have been stable, reflecting good cost management. EBIT and EBITDA margins are also strong, indicating efficient operational performance. However, revenue growth has been uneven, with some fluctuations in earlier years.

Balance Sheet

The company's balance sheet shows a solid equity base with a consistent growth in stockholders' equity. The debt-to-equity ratio has increased but remains manageable, suggesting a moderate leverage level. The equity ratio is healthy, which indicates a stable financial position. However, the rising debt levels could pose a risk if not managed carefully.

Cash Flow

Cash flow analysis reveals challenges, particularly with negative operating and free cash flows in recent years, which could impact liquidity. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting income to cash flow. Despite these challenges, the company has managed to secure financing to sustain operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	114.81B	103.17B	79.87B	82.78B	71.25B	59.63B
Gross Profit	36.17B	32.23B	26.41B	22.81B	19.34B	15.08B
EBITDA	27.33B	24.15B	19.80B	16.94B	13.84B	9.37B
Net Income	16.26B	14.16B	11.92B	11.61B	7.42B	4.27B
Balance Sheet
Total Assets	217.87B	218.19B	188.66B	152.52B	136.51B	127.48B
Cash, Cash Equivalents and Short-Term Investments	40.78B	44.92B	47.87B	42.02B	30.05B	21.51B
Total Debt	93.96B	92.46B	79.54B	55.66B	51.07B	47.52B
Total Liabilities	110.20B	112.29B	94.25B	68.56B	62.06B	57.71B
Stockholders Equity	104.02B	102.19B	90.55B	80.73B	71.31B	66.64B
Cash Flow
Free Cash Flow	0.00	-8.26B	-13.73B	8.70B	8.91B	4.39B
Operating Cash Flow	0.00	-4.24B	-11.00B	16.54B	17.44B	4.73B
Investing Cash Flow	0.00	-8.81B	-4.25B	-6.68B	-9.39B	451.00M
Financing Cash Flow	0.00	9.48B	21.04B	2.04B	449.00M	-1.15B

Sun Frontier Fudousan Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2485.00
• 50DMA: Positive
• 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:8934, the sentiment is Neutral. The current price of 2485 is above the 20-day moving average (MA) of 2478.00, above the 50-day MA of 2421.78, and above the 200-day MA of 2213.52, indicating a neutral trend. The MACD of 8.14 indicates Positive momentum. The RSI at 48.62 is Neutral, neither overbought nor oversold. The STOCH value of 29.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8934.

Sun Frontier Fudousan Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8877	79 Outperform	¥104.15B	10.95	―	3.08%	-6.27%	-11.07%
3465	77 Outperform	¥100.01B	8.47	―	2.93%	20.83%	57.13%
8934	73 Outperform	¥118.81B	6.34	17.98%	2.93%	84.20%	137.87%
8818	71 Outperform	¥89.48B	20.19	―	2.19%	4.72%	47.55%
3479	67 Neutral	¥99.47B	25.82	―	―	127.32%	-22.79%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8841	64 Neutral	¥78.24B	50.36	1.46%	1.18%	6.40%	230.12%

Sun Frontier Fudousan Co Corporate Events

HOUON Co., Ltd. Acquires Significant Stake in Sun Frontier Fudousan

Sun Frontier Fudousan Co., Ltd. announced that HOUON Co., Ltd, an asset management company owned by its Chairman Representative Director Tomoaki Horiguchi and his relatives, will acquire a significant portion of its shares. This acquisition, amounting to over 5% of voting rights, is classified as an act equivalent to a tender offer under Japanese financial regulations, potentially impacting the company’s governance and shareholder dynamics.

The most recent analyst rating on (JP:8934) stock is a Buy with a Yen2563.00 price target. To see the full list of analyst forecasts on Sun Frontier Fudousan Co stock, see the JP:8934 Stock Forecast page.

Sun Frontier Fudousan Announces Increased Interim Dividends

Sun Frontier Fudousan Co., Ltd. announced a resolution to distribute interim dividends of 38.00 yen per share, aligning with their previous forecast. This decision reflects the company’s strategy to increase annual dividends, aiming for a total of 76.00 yen per share, which marks a consistent growth in shareholder returns over the years. The company’s approach underscores its commitment to financial stability and shareholder interests, with a focus on maintaining and increasing dividends over time.

The most recent analyst rating on (JP:8934) stock is a Buy with a Yen2563.00 price target. To see the full list of analyst forecasts on Sun Frontier Fudousan Co stock, see the JP:8934 Stock Forecast page.

Sun Frontier Fudousan Reports Strong Q2 Growth and Strategic Acquisitions

Sun Frontier Fudousan Co., Ltd. reported significant growth in its financial performance for the second quarter of the fiscal year ending March 31, 2026, with net sales increasing by 58.3% year-over-year. The company also expanded its scope of consolidation by acquiring new companies, which indicates a strategic move to strengthen its market position and enhance its operational capabilities.

The most recent analyst rating on (JP:8934) stock is a Buy with a Yen2563.00 price target. To see the full list of analyst forecasts on Sun Frontier Fudousan Co stock, see the JP:8934 Stock Forecast page.