Nippon Building (8951) AI Stock Analysis

• Market Cap: ¥1.23T
• Dividend Yield: 3.42%
• Average Volume (3M): 15.71K
• Price to Earnings (P/E): 26.2
• Beta (1Y): 0.14
• Revenue Growth: -7.30%
• EPS Growth: 7.83%
• Country: JP
• Employees: 3,356
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 2768.00
• Shares Outstanding: 8,650,000
• 10 Day Avg. Volume: 17,818
• 30 Day Avg. Volume: 15,710
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥125,999.38
• Price Target Upside: -9.94% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥153,828 ▲(9.96% Upside)

Nippon Building's strong financial performance is the most significant factor, showcasing robust profitability and a stable financial position. Technical analysis indicates weak short-term momentum, which could pose risks. The valuation is mixed, with a high P/E ratio but an attractive dividend yield.

Nippon Building Business Overview & Revenue Model

Company Description

NBF (Nippon Building Fund Inc.) is Japan's largest real estate investment trust (J-REIT) which invests in office buildings primarily in Tokyo as well as nationwide. its objective is to source the solid growth of the stable revenues from its assets through exploitation of Mitsui Fudossan's know-how.

How the Company Makes Money

Nippon Building generates revenue primarily through rental income from its diverse portfolio of commercial properties. The company leases office spaces, retail units, and mixed-use developments to various tenants, ensuring a steady cash flow. Additionally, Nippon Building may engage in property management services, providing value-added services to its tenants and generating supplementary income. The company's revenue model is supported by long-term lease agreements, which provide stability in earnings. Strategic partnerships with local businesses and real estate developers further enhance its revenue potential, allowing Nippon Building to capitalize on market opportunities and optimize its asset management.

Nippon Building Financial Statement Overview

Summary

Nippon Building demonstrates strong financial performance with a solid income statement showing robust profitability and operational efficiency. The balance sheet reflects a stable financial position with effective leverage and equity use. Cash flow statements indicate strong cash generation, though future stability requires monitoring due to fluctuations in financing activities.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	130.14B	101.06B	94.38B	99.58B	96.55B	80.34B
Gross Profit	32.26B	53.10B	45.60B	52.71B	50.13B	38.95B
EBITDA	64.77B	64.40B	57.26B	64.05B	60.61B	49.83B
Net Income	46.21B	46.01B	38.85B	45.73B	43.15B	32.79B
Balance Sheet
Total Assets	1.39T	1.38T	1.39T	1.37T	1.31T	1.20T
Cash, Cash Equivalents and Short-Term Investments	12.93B	21.35B	14.18B	11.48B	21.75B	129.21B
Total Debt	594.00B	586.30B	592.50B	577.50B	550.50B	459.50B
Total Liabilities	679.71B	672.51B	679.37B	662.22B	634.56B	530.81B
Stockholders Equity	713.05B	710.44B	706.25B	706.52B	672.29B	666.62B
Cash Flow
Free Cash Flow	31.33B	55.47B	26.33B	-25.29B	-176.28B	-306.63M
Operating Cash Flow	93.21B	109.18B	83.84B	82.85B	151.46B	53.61B
Investing Cash Flow	-62.09B	-54.43B	-56.89B	-108.23B	-312.69B	-52.84B
Financing Cash Flow	-36.09B	-48.01B	-24.12B	15.45B	53.49B	117.56B

Nippon Building Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 139900.00
• 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:8951, the sentiment is Positive. The current price of 139900 is below the 20-day moving average (MA) of 140160.00, below the 50-day MA of 141500.00, and above the 200-day MA of 131654.36, indicating a bullish trend. The MACD of 406.31 indicates Negative momentum. The RSI at 57.14 is Neutral, neither overbought nor oversold. The STOCH value of 74.18 is Neutral, 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
3295	―	¥246.96B	20.68	―	4.66%	-5.47%	14.66%
8954	―	¥561.94B	24.95	―	4.09%	-35.39%	2.02%
8952	―	¥904.23B	23.98	6.87%	3.90%	6.93%	5.52%
8951	―	¥1.23T	26.17	6.61%	3.42%	-7.30%	7.83%
8987	―	¥194.41B	23.59	―	3.92%	64.38%	0.79%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8976	―	¥345.45B	24.47	―	3.65%	19.18%	-23.37%

Nippon Building Corporate Events

Nippon Building Fund Inc. Announces Strategic Asset Transactions

Nippon Building Fund Inc. announced the acquisition of CONNECT SAPPORO for 13,800 million yen and the disposition of NBF Sapporo Minami Nijo Bldg. for 1,900 million yen. The transaction is expected to enhance the company’s asset portfolio and generate a profit of 217 million yen from the disposition, reflecting strategic asset management and potential positive impacts on stakeholders.

The most recent analyst rating on (JP:8951) stock is a Sell with a Yen126000.00 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. Reports Stable Growth in First-Half 2025 Results

Nippon Building Fund Inc. reported its financial results for the first half of 2025, showing a slight increase in total operating revenues and net income compared to the previous period. The company maintained a strong financial position with a stable payout ratio, reflecting its effective management strategies and commitment to delivering consistent returns to its 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 Long-term Financing for Debt Refinancing

Nippon Building Fund Inc. announced a decision to secure a long-term borrowing of ¥5 billion from Mizuho Bank, Ltd. at an interest rate of 0.843%, with repayment due by July 31, 2037. This financing is intended to refinance a short-term borrowing maturing in July 2025, maintaining the company’s overall borrowing levels while transitioning from short-term to long-term debt, which could stabilize its financial structure and reassure investors.

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.