Sun Frontier Fudousan Co (8934) AI Stock Analysis

• Market Cap: ¥116.19B
• Dividend Yield: 2.94%
• Average Volume (3M): 99.95K
• Price to Earnings (P/E): 6.2
• 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): 81.97
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥2,563.00 ▲(5.56% 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

The company's consistent revenue growth and stable profit margins indicate efficient operations and a strong market position, supporting long-term business sustainability.

Business Model

Diversified revenue streams from development, brokerage, and management services provide resilience against market fluctuations, enhancing long-term stability.

Market Position

Specializing in property revitalization allows the company to capitalize on niche opportunities, strengthening its competitive edge in the real estate market.

Negative Factors

Rising Debt Levels

Increasing leverage could strain financial flexibility and pose risks if not managed carefully, potentially impacting long-term financial health.

Negative Cash Flows

Persistent negative cash flows indicate inefficiencies in cash generation, which could affect liquidity and the ability to fund operations sustainably.

Cash Conversion Inefficiency

Inefficiency in converting income to cash flow suggests operational challenges, potentially impacting the company's ability to invest in growth and manage obligations.

Sun Frontier Fudousan Co Business Overview & Revenue Model

Company Description

Sun Frontier Fudousan Co (8934) is a prominent Japanese real estate company specializing in the development, management, and leasing of commercial and residential properties. The company operates primarily in the urban real estate sector, focusing on the Tokyo metropolitan area. Its core services include property development, asset management, and real estate investment, catering to both individual and institutional clients.

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: Positive
• Last Price: 2428.00
• 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:8934, the sentiment is Positive. The current price of 2428 is above the 20-day moving average (MA) of 2358.30, above the 50-day MA of 2326.30, and above the 200-day MA of 2122.34, indicating a bullish trend. The MACD of 13.95 indicates Negative momentum. The RSI at 60.34 is Neutral, neither overbought nor oversold. The STOCH value of 66.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥98.60B	10.81	―	3.22%	-6.27%	-11.07%
3465	77 Outperform	¥99.22B	8.40	―	2.93%	20.83%	57.13%
8934	73 Outperform	¥116.19B	6.20	17.98%	2.94%	84.20%	137.87%
8818	71 Outperform	¥88.45B	18.67	―	2.19%	4.72%	47.55%
3479	65 Neutral	¥73.80B	23.66	―	―	127.32%	-22.79%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8841	64 Neutral	¥80.67B	51.93	1.46%	1.19%	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.

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.

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.

Sun Frontier Fudousan Announces Merger with Navd Inc.

Sun Frontier Fudousan Co., Ltd. has announced a merger with its wholly owned subsidiary, Navd Inc., to be effective November 1, 2025. This strategic move aims to integrate management resources and improve operational efficiency, as Navd Inc. specializes in architecture and spatial design consulting. The merger, being an absorption-type, will see Sun Frontier Fudousan as the surviving entity, with no new shares issued or cash considerations involved. The merger is expected to streamline operations and potentially strengthen Sun Frontier’s market position in the real estate sector.