Japan Prime Realty Investment (8955) AI Stock Analysis

• Market Cap: ¥414.83B
• Dividend Yield: 3.82%
• Average Volume (3M): 6.17K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.15
• Revenue Growth: 78.62%
• EPS Growth: 28.76%
• Country: JP
• Employees: 50
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 2602.00
• Shares Outstanding: 3,943,256
• 10 Day Avg. Volume: 7,552
• 30 Day Avg. Volume: 6,171
• PEG Ratio: 0.86
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 2.11
• P/FCF Ratio: 8.86
• 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): 4,524.95
• Revenue Forecast (FY): ¥31.33B

• Rating: 72 Outperform
• Price Target: ¥116,485 ▲(12.44% Upside)

Japan Prime Realty Investment shows strong financial performance, which is the most significant factor in its overall score. The technical analysis indicates a positive trend, although the stock may be overbought. The valuation suggests a potential overvaluation, but the dividend yield remains attractive. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Strong Financial Health

The company's strong financial health, with a well-structured balance sheet and robust cash flow, positions it well for sustainable growth and resilience against market fluctuations.

Efficient Leverage Management

Moderate leverage with a debt-to-equity ratio of 0.84 indicates efficient use of debt, reducing financial risk and supporting long-term stability.

Strong Cash Flow Generation

The strong growth in free cash flow enhances financial flexibility, enabling strategic investments and providing a buffer against economic downturns.

Negative Factors

High Valuation Concerns

A high P/E ratio suggests potential overvaluation, which could limit upside potential and make the stock less attractive to value-focused investors.

Overbought Stock Indicators

The overbought condition indicated by technical metrics may suggest a correction is likely, affecting investor sentiment and short-term stock performance.

Limited Earnings Call Data

The absence of earnings call data limits transparency and insight into management's strategic direction, potentially impacting investor confidence.

Japan Prime Realty Investment Business Overview & Revenue Model

Company Description

Japan Prime Realty Investment Corporation (JPR) was established on September 14, 2001 under the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951, as amended), and was listed on the Tokyo Stock Exchange Real Estate Investment Trust Section on June 14, 2002 with 289,600 outstanding investment units. With the subsequently implemented public offerings and other capital raising measures by JPR, the number of investment units issued and outstanding totals 958250 units as of the end of the 37th fiscal period (June 30, 2020). JPR has assigned the asset management of its portfolio to Tokyo Realty Investment Management, Inc. (TRIM), through which JPR aims to maximize unitholder value by efficiently managing the portfolio primarily comprising office properties and retail properties.

How the Company Makes Money

Japan Prime Realty Investment generates revenue primarily through rental income derived from its portfolio of commercial properties. The company leases space to various tenants, including corporations and businesses, which provides a consistent cash flow. Additionally, the company may realize capital appreciation on its properties over time, contributing to overall earnings. Key revenue streams include long-term leases and short-term rental agreements, along with ancillary income from services related to property management. Strategic partnerships with local property management firms and real estate agencies further enhance its ability to identify and acquire lucrative investment opportunities, thereby bolstering its revenue potential.

Japan Prime Realty Investment Financial Statement Overview

Summary

Japan Prime Realty Investment displays solid financial health with strong profitability, a well-structured balance sheet, and robust cash flow generation. The company is well-positioned within the REIT industry, showing consistent growth and effective leverage management, which mitigates potential financial risks.

Income Statement

The company shows strong profitability with a consistent increase in revenue and solid net income growth. Gross profit margin stands at 49.95%, and net profit margin is at 43.84% for the latest annual period. The revenue growth rate from 2023 to 2024 is 4.61%. EBIT and EBITDA margins are robust at 48.54% and 60.23%, respectively, indicating efficient cost management.

Balance Sheet

The balance sheet reflects a balanced financial structure with a debt-to-equity ratio of 0.84, suggesting moderate leverage. The return on equity is strong at 59.38%, indicating efficient use of equity capital. The equity ratio is 51.05%, showcasing a stable asset base funded by equity.

Cash Flow

Cash flow analysis reveals healthy cash generation with a free cash flow growth rate of 34.97% from 2023 to 2024. The operating cash flow to net income ratio is 2.45, indicating strong cash conversion from earnings. The free cash flow to net income ratio is 0.54, reflecting good cash availability after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.65B	37.23B	35.59B	37.10B	35.56B	33.49B
Gross Profit	10.02B	18.60B	17.49B	20.74B	19.47B	18.45B
EBITDA	25.33B	22.42B	21.12B	22.62B	21.64B	20.66B
Net Income	19.12B	16.32B	15.46B	17.08B	16.01B	15.12B
Balance Sheet
Total Assets	544.02B	538.27B	510.80B	507.66B	495.62B	484.57B
Cash, Cash Equivalents and Short-Term Investments	33.79B	37.31B	27.78B	33.13B	22.80B	28.60B
Total Debt	237.40B	230.40B	205.40B	202.90B	206.90B	196.52B
Total Liabilities	270.69B	263.35B	237.05B	234.05B	237.97B	228.17B
Stockholders Equity	273.33B	274.92B	273.75B	273.60B	257.65B	256.40B
Cash Flow
Free Cash Flow	9.40B	8.88B	6.58B	15.13B	-1.10B	-12.23B
Operating Cash Flow	45.12B	39.99B	22.35B	29.47B	30.64B	20.37B
Investing Cash Flow	-35.46B	-39.67B	-15.23B	-14.35B	-32.04B	-30.18B
Financing Cash Flow	-12.49B	9.84B	-12.80B	-5.17B	-4.45B	13.43B

Japan Prime Realty Investment Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 103600.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8955, the sentiment is Neutral. The current price of 103600 is below the 20-day moving average (MA) of 105545.00, below the 50-day MA of 104604.00, and above the 200-day MA of 94961.78, indicating a neutral trend. The MACD of 179.83 indicates Positive momentum. The RSI at 49.83 is Neutral, neither overbought nor oversold. The STOCH value of 28.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8955.

Japan Prime Realty Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8955	72 Outperform	¥414.83B	21.72	7.12%	3.82%	78.62%	28.76%
3249	71 Outperform	€367.50B	20.30	7.56%	4.76%	-6.57%	2.83%
3309	69 Neutral	$344.32B	15.94	7.47%	5.67%	18.76%	77.88%
3279	68 Neutral	€346.23B	24.56	5.23%	4.20%	-5.01%	―
3226	67 Neutral	¥330.28B	28.36	―	3.54%	2.91%	2.68%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%