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

• Market Cap: ¥4.60B
• Dividend Yield: 2.46%
• Average Volume (3M): 142.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: 86.49%
• EPS Growth: 82.93%
• Country: JP
• Employees: 537
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 2.39
• Shares Outstanding: 23,346,115
• 10 Day Avg. Volume: 18,840
• 30 Day Avg. Volume: 142,636
• PEG Ratio: <0.01
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.40
• P/FCF Ratio: -0.83
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ¥256.00 ▲(4.92% Upside)

The overall stock score is primarily influenced by the company's financial instability, with declining revenues and profitability, high leverage, and negative cash flows. Technical analysis shows strong upward momentum, but the overbought RSI suggests caution. Valuation concerns persist due to negative earnings, despite a moderate dividend yield.

Positive Factors

Steady Revenue Base

A steady revenue base from leasing activities ensures consistent cash flow, supporting long-term financial stability and operational planning.

Market Position

Strong partnerships enhance competitive positioning and facilitate project financing, supporting sustainable growth and market expansion.

Innovative Real Estate Solutions

Innovation in real estate solutions aligns with evolving market demands, potentially leading to increased client satisfaction and market share.

Negative Factors

Financial Instability

Financial instability due to declining revenues and high leverage poses risks to long-term viability and limits growth opportunities.

High Debt Levels

High leverage increases financial risk, potentially impacting the company's ability to invest in growth and weather economic downturns.

Negative Cash Flows

Negative cash flows indicate inefficiencies in operations and can constrain the company's ability to fund new projects or service debt.

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

Company Description

Land Business Co., Ltd. (8944) is a prominent player in the real estate and land development sector. The company specializes in the acquisition, development, and management of residential and commercial properties, focusing on enhancing land value through strategic development initiatives. With a commitment to sustainable practices, Land Business Co., Ltd. also engages in urban redevelopment and land leasing, positioning itself as a key contributor to regional economic growth and community development.

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

The company is experiencing financial difficulties with declining revenues, negative profitability, high leverage, and negative cash flows. These factors indicate significant financial instability and operational challenges.

Income Statement

The company has experienced a significant decline in revenue and profitability. The revenue growth rate is negative, indicating a contraction in sales. The gross profit margin is relatively stable but the net profit margin has turned negative, reflecting substantial losses. EBIT and EBITDA margins are also negative, highlighting operational challenges.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, suggesting significant leverage which could pose financial risks. The equity ratio is moderate, indicating a balanced asset structure. Return on equity has turned negative due to the net losses, impacting shareholder returns.

Cash Flow

The company is facing cash flow challenges with negative operating and free cash flows. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, indicating inefficiencies in converting income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.98B	9.98B	4.49B	4.65B	4.59B	4.54B
Gross Profit	7.49B	4.40B	1.64B	1.59B	1.81B	1.80B
EBITDA	329.30M	-224.40M	1.74B	1.26B	1.81B	1.69B
Net Income	-2.17B	-2.10B	349.49M	266.90M	315.69M	416.95M
Balance Sheet
Total Assets	54.86B	52.03B	53.88B	54.21B	53.59B	54.93B
Cash, Cash Equivalents and Short-Term Investments	4.62B	6.07B	10.71B	10.87B	9.56B	10.50B
Total Debt	32.09B	29.67B	29.80B	31.62B	31.81B	33.50B
Total Liabilities	38.86B	35.53B	35.16B	35.75B	35.35B	36.92B
Stockholders Equity	16.01B	16.50B	18.72B	18.46B	18.25B	18.01B
Cash Flow
Free Cash Flow	0.00	-4.81B	-1.67B	-216.88M	-44.89M	163.63M
Operating Cash Flow	0.00	-2.64B	-7.79M	814.86M	971.94M	935.98M
Investing Cash Flow	0.00	-1.50B	1.92B	676.00M	-128.83M	-772.35M
Financing Cash Flow	0.00	-575.83M	-2.07B	-376.30M	-1.87B	-357.46M

Land Business Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 244.00
• 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:8944, the sentiment is Positive. The current price of 244 is above the 20-day moving average (MA) of 237.45, above the 50-day MA of 235.84, and above the 200-day MA of 202.26, indicating a bullish trend. The MACD of 2.60 indicates Negative momentum. The RSI at 60.71 is Neutral, neither overbought nor oversold. The STOCH value of 71.11 is Neutral, 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
8996	75 Outperform	¥3.84B	7.52	―	0.52%	12.29%	139.06%
3297	73 Outperform	¥3.05B	9.34	―	3.42%	4.57%	49.68%
3490	66 Neutral	¥4.18B	6.14	―	1.03%	5.69%	15.12%
8912	66 Neutral	¥2.38B	22.86	―	1.87%	6.86%	10.06%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8836	55 Neutral	¥3.26B	251.11	―	―	10.68%	―
8944	54 Neutral	¥4.60B	-2.12	―	2.46%	86.49%	82.93%