Nippon Building (8951) AI Stock Analysis

• Market Cap: $1.13T
• Dividend Yield: 3.64%
• Average Volume (3M): 16.30K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.17
• Revenue Growth: 21.60%
• EPS Growth: 18.44%
• Country: JP
• Employees: 3,356
• Sector: Real Estate
• Sector Strength: 63
• Industry: REIT - Office
• EPS (TTM): 2665.00
• Shares Outstanding: 8,504,955
• 10 Day Avg. Volume: 16,471
• 30 Day Avg. Volume: 16,296
• PEG Ratio: 0.63
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -89.81
• 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: $133,300.32
• Price Target Upside: 0.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ―

Nippon Building's strong financial performance, characterized by robust profitability and efficient operations, is the primary driver of its stock score. The positive technical trend supports the strength of this score, despite the lack of detailed market momentum indicators. Valuation metrics suggest the stock is fairly priced, with a good dividend yield enhancing its attractiveness. Overall, the company is well-positioned for steady growth, with financial health and technical trends providing a solid foundation.

Nippon Building Business Overview & Revenue Model

Company Description

Nippon Building Fund Inc. (NBF) is a Japanese real estate investment trust (REIT) that focuses on investing primarily in office buildings located in Tokyo and other major cities across Japan. Established in 2001, NBF aims to provide stable returns to its investors by acquiring and managing a diversified portfolio of high-quality, income-producing real estate assets. The company is one of the largest REITs in Japan by market capitalization and is managed by Nippon Building Fund Management Ltd., a subsidiary of Mitsui Fudosan Co., Ltd.

How the Company Makes Money

Nippon Building Fund Inc. generates revenue mainly through leasing its office properties to a diverse range of tenants, including corporations and government entities. Rental income from these properties forms the core of its revenue model, providing a steady stream of cash flow. The REIT strategically acquires properties in prime locations to ensure high occupancy rates and stable rental income. Additionally, NBF may engage in property sales and acquisitions to optimize its portfolio and generate capital gains. The company benefits from its relationship with Mitsui Fudosan, which provides access to potential property acquisitions and market insights, enhancing its competitive positioning in the real estate market.

Nippon Building Financial Statement Overview

Summary

Nippon Building presents a solid financial performance across all verticals. The income statement highlights strong profitability and operational efficiency, while the balance sheet shows a stable financial position with effective leverage and equity use. Cash flow statements indicate robust cash generation, though financing activities require monitoring. Overall, the company is in a healthy financial state with potential for continued growth.

Income Statement

The company shows a strong gross profit margin and consistent net profit margin over the years. Revenue growth is positive, highlighting robust business operations. EBIT and EBITDA margins are solid, indicating efficient core operations and good cash generation capability.

Balance Sheet

The balance sheet is stable with a manageable debt-to-equity ratio, which suggests prudent financial leverage. The return on equity is consistently strong, indicating effective use of equity financing. The equity ratio is stable, reflecting a balanced asset structure.

Cash Flow

The company demonstrates a healthy operating cash flow to net income ratio, indicating good cash conversion. Free cash flow has grown significantly, showcasing efficient capital expenditure management. However, there are fluctuations in financing activities that could impact future cash flow stability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
101.06B	123.28B	99.58B	96.55B	80.34B
	Gross Profit
53.10B	42.69B	52.71B	50.13B	38.95B
	EBIT
48.71B	41.41B	48.40B	45.78B	35.47B
	EBITDA
64.40B	57.26B	64.05B	60.61B	49.83B
	Net Income Common Stockholders
46.01B	38.85B	45.73B	43.15B	32.79B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
21.35B	18.88B	11.48B	21.75B	133.73B
	Total Assets
1.38T	1.39T	1.37T	1.31T	1.20T
	Total Debt
586.30B	592.50B	577.50B	550.50B	459.50B
	Net Debt
564.95B	573.62B	566.02B	528.75B	325.77B
	Total Liabilities
672.51B	679.37B	662.22B	634.56B	530.81B
	Stockholders Equity
710.44B	706.25B	706.52B	672.29B	666.62B
Cash Flow		Free Cash Flow
55.47B	26.33B	-25.29B	-176.28B	-306.63M
	Operating Cash Flow
109.18B	83.84B	82.85B	151.46B	53.61B
	Investing Cash Flow
-54.43B	-56.89B	-108.23B	-312.69B	-52.84B
	Financing Cash Flow
-48.01B	-24.12B	15.45B	53.49B	117.56B

Nippon Building Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 132900.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8951, the sentiment is Positive. The current price of 132900 is above the 20-day moving average (MA) of 132050.00, above the 50-day MA of 131474.00, and above the 200-day MA of 126718.64, indicating a bullish trend. The MACD of 102.47 indicates Negative momentum. The RSI at 53.71 is Neutral, neither overbought nor oversold. The STOCH value of 80.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8951.

Nippon Building Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8954	78 Outperform	¥497.35B	22.08		4.33%	-17.31%	15.83%
3295	77 Outperform	¥218.88B	19.57		5.04%	-29.52%	9.41%
8951	76 Outperform	$1.13T	24.49	6.37%	3.64%	21.60%	18.44%
8952	70 Outperform	$842.34B	22.34	6.87%	3.91%	6.93%	5.52%
8976	70 Neutral	¥288.66B	21.68		4.51%	-16.54%	47.97%
8987	66 Neutral	¥173.66B	21.93		4.29%	-16.98%	1.05%
Sector *	61 Neutral	$2.82B	10.84	0.42%	8439.00%	5.74%	-20.95%

Nippon Building Corporate Events

Nippon Building Fund Acquires Strategic Musashikosugi Properties

Nippon Building Fund Management Ltd. announced the acquisition of the Frontier Musashikosugi N and S Buildings for 29,000 million yen, with the transaction set to be completed by July 2, 2025. This acquisition is expected to enhance the company’s portfolio profitability, leveraging the strategic location and high demand for office spaces in the Musashikosugi area, which is well-connected to major cities and serves as a hub for IT and education-related tenants.

The most recent analyst rating on (JP:8951) stock is a Hold with a Yen125000.00 price target. To see the full list of analyst forecasts on Nippon Building stock, see the JP:8951 Stock Forecast page.

Nippon Building Fund Inc. Announces Debt Refinancing Strategy

Nippon Building Fund Inc. announced its decision to refinance a short-term borrowing of ¥5 billion from Mizuho Bank, Ltd. at an interest rate of 0.643%, with the repayment due on June 30, 2025. This refinancing is part of the company’s strategic financial management to maintain its current borrowing levels while slightly adjusting its long-term borrowing structure, with no significant change in its total debt profile. The move is expected to have no impact on the investment risks previously reported, ensuring stability for stakeholders.

The most recent analyst rating on (JP:8951) stock is a Hold with a Yen125000.00 price target. To see the full list of analyst forecasts on Nippon Building stock, see the JP:8951 Stock Forecast page.

Nippon Building Fund Secures ¥1 Billion Loan for Refinancing

Nippon Building Fund Inc. announced a long-term borrowing of ¥1 billion from SBI Shinsei Bank, Limited, with an interest rate of 0.87%, to refinance a maturing loan. This move maintains the company’s overall borrowing level, reflecting a strategic approach to managing its financial obligations without altering its investment risk profile.

The most recent analyst rating on (JP:8951) stock is a Hold with a Yen125000.00 price target. To see the full list of analyst forecasts on Nippon Building stock, see the JP:8951 Stock Forecast page.

Nippon Building Fund Updates Earthquake Risk Assessment for Yokohama Mitsui Building

Nippon Building Fund, Inc. announced a correction to its previous notice regarding the acquisition and disposition of domestic real estate trust beneficiary interests. The correction pertains to the earthquake resistance details of the Yokohama Mitsui Building, with the Earthquake PML adjusted from 1.8% to 2.4%, impacting the building’s risk assessment.

The most recent analyst rating on (JP:8951) stock is a Hold with a Yen125000.00 price target. To see the full list of analyst forecasts on Nippon Building stock, see the JP:8951 Stock Forecast page.

Nippon Building Fund Inc. Announces ¥5 Billion Debt Refinancing

Nippon Building Fund Inc. announced a debt refinancing decision involving a ¥5 billion short-term borrowing from Mizuho Bank, Ltd., with an interest rate of 0.660%. This refinancing is aimed at maintaining their current financial structure without altering the total amount of borrowings, ensuring stability in their financial operations and minimizing risks for stakeholders.

Nippon Building Fund Inc. Announces ¥5 Billion Debt Refinancing

Nippon Building Fund Inc. announced a refinancing decision for a short-term borrowing of ¥5 billion from Mizuho Bank, Ltd., with an interest rate of 0.686%, to be implemented on March 31, 2025. This refinancing will not alter the company’s overall debt structure, maintaining its total borrowings at ¥603 billion, and does not affect the investment risks previously reported.

Nippon Building Fund Secures ¥21 Billion in Green Loans for Asset Acquisition

Nippon Building Fund Inc. announced a decision to secure long-term borrowings totaling ¥21 billion from various financial institutions. This financing, structured as a green loan in line with their Green Finance Framework, will be used to fund the acquisition of assets, including the Yokohama Mitsui Building, as part of their strategic asset management plan. The move is expected to strengthen NBF’s portfolio and enhance its position in the real estate market.

Nippon Building Fund Management Announces Auditor Changes

Nippon Building Fund Management Ltd. has announced a change in its auditors, with Kenji Mizoguchi and Tomohiro Tange set to join as part-time auditors on April 1, 2025. This change is part of a strategic move to ensure compliance with relevant laws and regulations, potentially impacting the company’s governance and operational oversight.