Land Business Co., Ltd. (8944) AI Stock Analysis

• Market Cap: ¥6.19B
• Dividend Yield: 2.51%
• Average Volume (3M): 142.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: 86.49%
• EPS Growth: 83.40%
• Country: JP
• Employees: 537
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -14.07
• Shares Outstanding: 23,346,115
• 10 Day Avg. Volume: 18,840
• 30 Day Avg. Volume: 142,636
• PEG Ratio: 0.16
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 8.62
• 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: 57 Neutral
• Price Target: ¥278.00 ▲(14.88% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is primarily driven by mixed financial performance: strong top-line growth and solid gross margin are offset by negative net profitability, high leverage, and limited free-cash-flow conversion. Technically, the stock shows a clear uptrend with positive MACD, but the elevated RSI suggests momentum may be stretched. Valuation is constrained by the negative P/E, partially balanced by a moderate dividend yield.

Positive Factors

Revenue Growth

Sustained revenue growth of 16.4% indicates expanding demand for the company’s real-estate services and scale benefits. Over a 2–6 month horizon this underpins recurring fee streams, supports margin improvement opportunities, and increases strategic flexibility to invest in operations or new offerings.

Gross Margin

A near-47% gross margin suggests the business retains significant value at the gross level, consistent with asset-light or high-margin service lines. Structurally this provides buffer to absorb SG&A and interest costs, and gives management room to pursue profitable growth or improve operating margins over time.

Operating Cash Generation

Positive operating cash flow of ¥3.04 billion demonstrates the core business converts sales into cash, supporting debt servicing and reinvestment. While FCF conversion is limited, stable OCF is a durable indicator of operational health and reduces reliance on external financing for near-term working capital.

Negative Factors

Profitability

Negative net margin and modest EBIT margin show the company struggles to translate revenue into bottom-line profit. Persisting low profitability erodes retained earnings, depresses ROE, and limits ability to self-fund expansion or withstand cyclical downturns in real estate demand over the medium term.

High Leverage

A debt-to-equity ratio above 2 and sub-30% equity ratio indicate material leverage. In a capital-intensive, cyclical sector like real estate, this raises refinancing, interest-rate and liquidity risk, constrains strategic optionality, and increases sensitivity to market or macro shocks over the coming quarters.

Weak Free Cash Flow Conversion

Low free-cash-flow conversion (0.18) means much of reported earnings do not turn into discretionary cash. This limits capacity to reduce debt, fund acquisitions, raise dividends, or invest in growth without external financing, weakening financial flexibility over a multi-month horizon.

Land Business Co., Ltd. Business Overview & Revenue Model

Company Description

Land Business Co.,Ltd., engages in the real estate investment business in Japan. It also involved in the construction and consulting businesses; provision of design and construction supervision services; and rental business of real estate, as well as cafe/restaurant and clothing business. The company was incorporated in 1985 and is based in Tokyo, Japan.

How the Company Makes Money

Land Business Co., Ltd. generates revenue primarily through the sale and leasing of developed properties, including residential units and commercial spaces. The company’s revenue model is built on several key streams: profit from property sales, rental income from leased properties, and fees from property management services. Additionally, the company may engage in joint ventures or partnerships with other real estate developers and investors, allowing it to expand its project portfolio and share resources. The strategic acquisition of undervalued land and effective development practices further enhances its earnings potential, making it a competitive entity within the real estate market.

Land Business Co., Ltd. Financial Statement Overview

Summary

Revenue growth is strong (16.4%) with a healthy gross margin (47.31%), but overall profitability is weak (net margin -1.93%, EBIT margin 3.41%). Leverage is elevated (debt-to-equity 2.08) and ROE is negative (-2.23%), while operating cash flow is positive but cash conversion is limited (FCF to net income ratio 0.18).

Income Statement

Land Business Co., Ltd. has shown a strong revenue growth rate of 16.4% in the latest year, indicating a positive trajectory. However, the company is facing profitability challenges, as evidenced by a negative net profit margin of -1.93% and a low EBIT margin of 3.41%. The gross profit margin is relatively healthy at 47.31%, suggesting efficient cost management at the gross level.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 2.08, indicating significant leverage, which could pose risks in a volatile market. The return on equity is negative at -2.23%, reflecting the company's struggle to generate profit from shareholders' equity. However, the equity ratio stands at 28.49%, providing some stability in terms of asset financing.

Cash Flow

Cash flow analysis reveals a positive operating cash flow of 3.04 billion, but the free cash flow to net income ratio is low at 0.18, indicating limited cash generation relative to net income. The company has improved its operating cash flow significantly from the previous year, but free cash flow growth remains a concern.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	18.60B	9.98B	4.49B	4.65B	4.59B
Gross Profit	8.80B	4.40B	1.64B	1.59B	1.81B
EBITDA	1.63B	-224.40M	1.74B	1.26B	1.81B
Net Income	-358.39M	-2.10B	349.49M	266.90M	315.69M
Balance Sheet
Total Assets	56.41B	52.03B	53.88B	54.21B	53.59B
Cash, Cash Equivalents and Short-Term Investments	7.55B	6.07B	10.71B	10.87B	9.56B
Total Debt	33.44B	29.67B	29.80B	31.62B	31.81B
Total Liabilities	40.34B	35.53B	35.16B	35.75B	35.35B
Stockholders Equity	16.07B	16.50B	18.72B	18.46B	18.25B
Cash Flow
Free Cash Flow	550.29M	-4.81B	-1.67B	-216.88M	-44.89M
Operating Cash Flow	3.04B	-2.64B	-7.79M	814.86M	971.94M
Investing Cash Flow	-4.98B	-1.50B	1.92B	676.00M	-128.83M
Financing Cash Flow	3.51B	-575.83M	-2.07B	-376.30M	-1.87B

Land Business Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 242.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8944, the sentiment is Positive. The current price of 242 is below the 20-day moving average (MA) of 247.00, below the 50-day MA of 243.80, and above the 200-day MA of 221.22, indicating a bullish trend. The MACD of 6.93 indicates Negative momentum. The RSI at 84.90 is Negative, neither overbought nor oversold. The STOCH value of 97.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8944.

Land Business Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3297	73 Outperform	¥3.47B	9.96	―	3.33%	4.57%	49.68%
8996	67 Neutral	¥4.28B	6.18	―	0.50%	12.29%	139.06%
3490	66 Neutral	¥4.36B	12.91	―	1.03%	5.69%	15.12%
8912	66 Neutral	¥2.55B	15.00	―	2.00%	6.86%	10.06%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8944	57 Neutral	¥6.19B	-25.83	―	2.51%	86.49%	83.40%
8836	55 Neutral	¥3.07B	102.43	―	―	10.68%	―