Japan Retail Investment (8953) AI Stock Analysis

• Market Cap: $794.81B
• Dividend Yield: 4.6%
• Average Volume (3M): 16.66K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.07
• Revenue Growth: -8.21%
• EPS Growth: 9.33%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 57
• Industry: REIT - Retail
• EPS (TTM): 2768.00
• Shares Outstanding: 7,192,809
• 10 Day Avg. Volume: 15,767
• 30 Day Avg. Volume: 16,656
• PEG Ratio: -11.06
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 46.99
• 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: $110,000.00
• Price Target Upside: -0.45% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥116,106 ▲(5.07%Upside)

The overall stock score of 72 reflects a strong technical setup and attractive valuation, supported by a fundamentally solid financial performance. The primary strengths lie in strong market momentum and a healthy dividend yield. However, caution is advised due to potential overbought conditions and high debt levels that could impact financial stability if market conditions change.

Japan Retail Investment Business Overview & Revenue Model

Company Description

Japan Retail Fund Investment Corporation (JRF) has been listed on the Real Estate Investment Trust ("REIT") Section on the Tokyo Stock Exchange (Securities code: 8953) since March 2002. It was the first investment corporation in Japan to specifically target retail property assets. As the largest J-REIT that specializes in retail properties, JRF will strive to secure stable distributions for its unitholders and steady increases in the value of its property portfolio through selective acquisitions of prime retail properties.

How the Company Makes Money

Japan Retail Fund Investment Corporation generates revenue primarily through rental income derived from its portfolio of retail properties. The company leases space to various tenants, including retail stores, restaurants, and service providers, creating a steady stream of rental income. Additionally, the company may engage in property sales and acquisitions to optimize its portfolio and enhance value. Key partnerships with property managers and developers, as well as its ability to maintain high occupancy rates and favorable lease terms, significantly contribute to its earnings. The company also benefits from capital gains from the appreciation of its real estate assets over time.

Japan Retail Investment Financial Statement Overview

Summary

Japan Retail Investment presents a fundamentally solid financial profile. The income statement reflects strong profitability and efficient operations, though revenue growth could be more consistent. The balance sheet shows stability with a balanced capital structure, but high debt levels warrant caution. Cash flow management is generally effective, though free cash flow volatility highlights a need for careful liquidity management. Overall, the company is well-positioned but should focus on enhancing revenue growth and managing debt levels.

Income Statement

The company demonstrates strong profitability with a consistent gross profit margin above 55% and net profit margin around 39% over the years. Revenue growth has been modest with fluctuations, showing a slight decline in the most recent year. EBIT and EBITDA margins remain healthy, indicating efficient operations and stable earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of around 0.88. The equity ratio at approximately 50% indicates a balanced capital structure. Return on equity is robust, reflecting strong earnings relative to shareholder equity. However, the high debt level poses a potential risk if market conditions deteriorate.

Cash Flow

The company shows positive operating cash flow consistently, but free cash flow has been volatile, with significant fluctuations due to varying capital expenditures. The operating cash flow to net income ratio is strong, suggesting efficient cash generation relative to net income. However, the free cash flow to net income ratio indicates occasional pressure on liquidity.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	92.09B	81.72B	82.74B	81.71B	70.88B	62.86B
Gross Profit	41.46B	45.47B	45.48B	46.05B	38.03B	34.85B
EBITDA	52.19B	48.17B	48.57B	48.70B	41.52B	38.46B
Net Income	35.50B	31.71B	32.02B	32.65B	25.45B	24.92B
Balance Sheet
Total Assets	1.32T	1.25T	1.25T	1.25T	1.24T	903.46B
Cash, Cash Equivalents and Short-Term Investments	47.47B	18.39B	37.37B	41.23B	64.82B	47.71B
Total Debt	600.64B	553.64B	550.64B	549.64B	538.67B	411.73B
Total Liabilities	675.72B	627.23B	624.85B	624.19B	612.05B	469.74B
Stockholders Equity	647.92B	624.30B	625.08B	624.78B	623.67B	433.73B
Cash Flow
Free Cash Flow	-56.52B	7.88B	14.55B	-29.48B	554.94M	6.00B
Operating Cash Flow	41.94B	42.27B	40.40B	41.65B	34.58B	30.40B
Investing Cash Flow	-87.94B	-27.00B	-14.72B	-41.40B	-537.05M	-12.32B
Financing Cash Flow	37.14B	-29.70B	-31.03B	-21.03B	-28.93B	-18.39B

Japan Retail Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 110500.00
• 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:8953, the sentiment is Positive. The current price of 110500 is above the 20-day moving average (MA) of 107140.00, above the 50-day MA of 103066.00, and above the 200-day MA of 94142.67, indicating a bullish trend. The MACD of 1887.75 indicates Negative momentum. The RSI at 79.59 is Negative, neither overbought nor oversold. The STOCH value of 90.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8953.

Japan Retail Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8953	72 Outperform	$794.81B	22.03	5.50%	4.60%	-8.21%	9.33%
Sector *	63 Neutral	$6.73B	14.24	-1.44%	7.30%	4.75%	-35.88%
NMMRF	―	$5.04B	22.94	5.46%	4.75%	―	―
8954	72 Outperform	¥547.31B	24.30		3.84%	-17.31%	15.83%
3292	70 Outperform	¥271.23B	20.32		5.23%	0.69%	-3.93%
8964	―	¥233.44B	18.05		5.08%	―	―
8984	66 Neutral	¥583.91B	25.26		5.04%	22.58%	8.16%

Japan Retail Investment Corporate Events

JMF Enhances Unitholder Value Through Strategic Property Dispositions

Japan Metropolitan Fund Investment Corporation has announced the disposition of two properties, JMF-Bldg. Jingumae 01 and JMF-Bldg. Toyocho 02, at prices above their book values, resulting in gains on sale. This strategic move aims to enhance the Net Asset Value (NAV) and maximize unitholder value by eliminating unrealized losses and returning gains to unitholders. The favorable yields from the booming office trading market have facilitated this decision, and JMF plans to reinvest the proceeds into new assets or its own investment units, continuing its strategy of returning gains to unitholders.

The most recent analyst rating on (JP:8953) stock is a Buy with a Yen100000.00 price target. To see the full list of analyst forecasts on Japan Retail Investment stock, see the JP:8953 Stock Forecast page.

JMF Announces Changes in Asset Management Structure

Japan Metropolitan Fund Investment Corporation (JMF) has announced changes in its asset management company, KJR Management, due to a restructuring aimed at simplifying the shareholding structure. As a result, KKR Group Assets Holdings III L.P. has become the wholly-owning parent company of KJRM Holdings, impacting the parent and affiliated companies of the Asset Management Company.

The most recent analyst rating on (JP:8953) stock is a Buy with a Yen100000.00 price target. To see the full list of analyst forecasts on Japan Retail Investment stock, see the JP:8953 Stock Forecast page.

Japan Metropolitan Fund Extends Commitment Line Contracts

Japan Metropolitan Fund Investment Corporation has extended the contract period of its commitment line, which involves significant financial agreements with major banks. This extension, which includes unsecured and unguaranteed loans totaling 75 billion yen, reflects the company’s strategic financial management, potentially enhancing its liquidity and operational flexibility.

The most recent analyst rating on (JP:8953) stock is a Buy with a Yen100000.00 price target. To see the full list of analyst forecasts on Japan Retail Investment stock, see the JP:8953 Stock Forecast page.

JMF Secures Interest Rate Stability with New Swap Agreements

JMF has entered into interest rate swap agreements totaling 9.3 billion yen to hedge against future interest rate fluctuations. This strategic move aims to stabilize the company’s financial operations and mitigate risks associated with variable interest rates, potentially strengthening its market position and providing assurance to stakeholders.

The most recent analyst rating on (JP:8953) stock is a Buy with a Yen100000.00 price target. To see the full list of analyst forecasts on Japan Retail Investment stock, see the JP:8953 Stock Forecast page.

JMF Announces 5.3 Billion Yen Debt Refinancing

JMF announced a refinancing of 5.3 billion yen to manage its existing loans maturing in May 2025. This move is part of their strategic financial management, aiming to stabilize interest rates through potential interest rate swap agreements, which could impact their financial stability and stakeholder confidence.