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: 59 Neutral
• Price Target: ¥326.00 ▲(34.71% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is primarily held back by weak profitability and elevated leverage in the financials, with only partial offset from improving operating cash flow. Technically, the stock shows a strong uptrend versus major moving averages, but extremely overextended momentum (high RSI/Stoch) raises near-term risk. Valuation is constrained by a negative P/E, and the dividend yield offers limited support.

Positive Factors

Revenue Growth

Sustained top-line expansion of 16.4% indicates the company is expanding its market presence and demand for its real-estate services. Over a multi-month horizon this supports scale economics, greater bargaining power with suppliers, and provides a foundation to convert growth into improved operating leverage if margins are managed.

Gross Margin

A near-50% gross margin signals durable underlying product/service economics and effective direct cost control. This provides a structural buffer against pricing pressure or input cost volatility in real estate services and creates runway to invest in SG&A or strategic initiatives without immediately eroding gross profitability.

Operating Cash Flow

Material positive operating cash flow and year-over-year improvement show stronger cash generation from core operations. Over 2-6 months this enhances liquidity, supports working capital needs, and provides capacity to service debt or fund selective investments even if net income remains volatile.

Negative Factors

Profitability

A negative net margin highlights the company is not translating revenue and gross profit into bottom-line earnings, undermining sustainable return generation. Persisting unprofitability limits retained earnings, constrains reinvestment, and raises risk that operational improvements may be insufficient to restore consistent profitability.

Leverage

Elevated leverage magnifies earnings volatility and increases interest and refinancing risk, particularly in cyclical real estate markets. Over several months a high D/E ratio reduces financial flexibility, constrains strategic options, and increases sensitivity to cash-flow disruptions or rising rates.

Cash Conversion

Low FCF conversion means reported earnings are not being converted into cash, limiting the firm's ability to delever or invest from internal resources. Structurally weak cash conversion raises dependence on external financing and prolongs recovery time even if operating metrics improve.

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

Strong revenue growth (16.4%) and a healthy gross margin (47.31%) are positives, but overall quality is weighed down by negative net margin (-1.93%), low EBIT margin (3.41%), high leverage (debt-to-equity 2.08), negative ROE (-2.23%), and only modest free-cash-flow conversion (FCF to net income 0.18) despite improved operating cash flow.

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 250.45, below the 50-day MA of 245.22, and above the 200-day MA of 221.86, indicating a bullish trend. The MACD of 10.89 indicates Negative momentum. The RSI at 89.21 is Negative, neither overbought nor oversold. The STOCH value of 94.72 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	59 Neutral	¥6.19B	-25.83	―	2.51%	86.49%	83.40%
8836	55 Neutral	¥3.07B	102.43	―	―	10.68%	―