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

• Market Cap: ¥5.08B
• Dividend Yield: 2.51%
• Average Volume (3M): 142.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• 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: 60 Neutral
• Price Target: ¥269.00 ▲(11.16% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is held back mainly by weak profitability and high leverage despite strong revenue growth and improving operating cash flow. Technicals are constructive with the stock trading above major moving averages and positive MACD momentum. Valuation is mixed: a modest dividend helps, but the negative P/E signals underlying earnings losses.

Positive Factors

Sustained Revenue Growth

Consistent double-digit revenue growth (16.4%) indicates durable demand for the company’s real-estate services and supports scale economies. Over 2–6 months this trend underpins recurring fee opportunities, stronger negotiating leverage with suppliers, and greater room to improve operating leverage.

High Gross Margin

A 47.31% gross margin suggests structural cost advantages or pricing power in core activities. This margin buffer helps absorb SG&A or cyclical top-line volatility, supporting longer-term margin sustainability and the ability to invest in product/service enhancements without immediate margin erosion.

Improving Operating Cash Flow

Meaningful positive operating cash flow (¥3.04B) and improvement from the prior year signal real cash generation independent of accounting profits. That durability supports debt servicing, working capital funding and selective reinvestment, increasing financial flexibility over the medium term.

Negative Factors

High Leverage

A debt-to-equity ratio above 2.0 and modest equity ratio raise structural refinancing and interest-cost risk, especially in real estate cycles. Elevated leverage constrains strategic optionality, increases sensitivity to rate moves, and limits capacity to fund growth or absorb downturns without raising capital.

Weak Profitability Metrics

Negative net margin and ROE alongside a thin EBIT margin show the company struggles to convert revenue into shareholder returns. Persistently weak profitability limits retained earnings, makes dividend sustainability and capital investment harder, and hampers long-term value creation.

Low Free Cash Flow Conversion

FCF conversion of 0.18 indicates limited cash realized from accounting profits, constraining debt reduction and reinvestment capacity. Over months this weak conversion impairs ability to deleverage, fund organic initiatives, or respond to market opportunities without external financing.

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

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Land Business Co., Ltd. Financial Statement Overview

Summary

Strong revenue growth (16.4%) and healthy gross margin (47.31%) are positives, but profitability is weak (net margin -1.93%, EBIT margin 3.41%), leverage is high (debt-to-equity 2.08) with negative ROE (-2.23%), and free-cash-flow conversion is low (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: Neutral
• Last Price: 242.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8944, the sentiment is Neutral. The current price of 242 is below the 20-day moving average (MA) of 284.10, below the 50-day MA of 258.92, and above the 200-day MA of 228.73, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 43.96 is Neutral, neither overbought nor oversold. The STOCH value of 11.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
8898	82 Outperform	¥11.95B	11.85	―	4.98%	3.29%	-1.74%
2991	67 Neutral	¥14.04B	6.93	―	1.47%	20.82%	9.86%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2980	64 Neutral	¥43.28B	9.84	―	0.45%	-8.33%	-36.89%
3252	62 Neutral	¥71.40B	8.53	―	2.89%	-3.09%	-35.66%
5532	61 Neutral	¥17.03B	5.83	―	―	23.19%	44.46%
8944	60 Neutral	¥5.08B	-4.30	―	2.51%	86.49%	83.40%