United Urban Investment (8960) AI Stock Analysis

• Market Cap: $580.37B
• Dividend Yield: 4.16%
• Average Volume (3M): 6.73K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.37
• Revenue Growth: 52.74%
• EPS Growth: 14.88%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 3863.00
• Shares Outstanding: 3,098,591
• 10 Day Avg. Volume: 4,475
• 30 Day Avg. Volume: 6,732
• PEG Ratio: 0.98
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 7.78
• P/FCF Ratio: -33.92
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 11.12
• Enterprise Value/Gross Profit: 51.00
• Enterprise Value/Ebitda: 21.23
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥207,113 ▲(9.82% Upside)

United Urban Investment's strong financial performance and technical indicators contribute positively to its stock score. The company's profitability and revenue growth are robust, and the stock shows bullish technical momentum. However, the high P/E ratio suggests potential overvaluation, partially offset by an attractive dividend yield. The absence of earnings call and corporate event data limits further insights.

United Urban Investment Business Overview & Revenue Model

Company Description

United Urban was listed in the real estate investment trust section of the Tokyo Stock Exchange (the J-REIT section) in December 2003 as a diversified J-REIT, investing in properties varied both in types of use and geographical location. Since its listing, United Urban has been making efforts to maintain or improve its revenues and reduce various risks for the purpose of obtaining stable earnings over the medium to long term.

How the Company Makes Money

United Urban Investment generates revenue primarily through the acquisition, development, and management of real estate properties. The company earns income from rental fees collected from tenants in its residential and commercial properties. Additionally, it profits from the sale of developed properties and land, particularly in high-demand urban areas. Strategic partnerships with local governments and private developers enhance its project financing and execution capabilities, contributing to its earnings. Furthermore, the company may engage in joint ventures and investment funds that allow it to leverage capital from institutional investors, providing additional revenue streams.

United Urban Investment Financial Statement Overview

Summary

United Urban Investment demonstrates strong profitability and revenue growth, supported by effective cost management. The balance sheet is stable with a reasonable level of leverage, although the substantial debt level warrants monitoring. Cash flow needs improvement, particularly in terms of generating positive free cash flow, but operating cash flow remains robust.

Income Statement

United Urban Investment shows strong and improving profitability with a gross profit margin of 57.2% and a net profit margin of 44.0% in 2024. The company has consistently grown its revenue, with a recent revenue growth rate of 7.5% from 2023 to 2024. Additionally, both EBIT and EBITDA margins are robust at 48.0% and 63.1%, respectively. This indicates efficient operational management and effective cost control.

Balance Sheet

The balance sheet reflects a stable equity position with a debt-to-equity ratio of 0.91, indicating manageable leverage. The equity ratio stands at 49.3%, showing a solid foundation supported by substantial stockholders' equity. However, the significant presence of total debt remains a potential risk factor, especially in fluctuating interest rate environments.

Cash Flow

Despite a challenging year with negative free cash flow of -12.4 billion yen in 2024, the operating cash flow to net income ratio remains healthy at 1.21, suggesting strong cash generation relative to profits. However, the free cash flow to net income ratio is negative due to high capital expenditures, which may impact long-term financial flexibility if not managed carefully.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	66.43B	54.19B	50.41B	48.62B	47.01B	47.51B
Gross Profit	14.48B	30.99B	23.01B	25.91B	24.84B	25.86B
EBITDA	34.79B	34.20B	30.41B	29.42B	28.42B	29.54B
Net Income	24.52B	23.85B	20.30B	19.29B	17.17B	19.28B
Balance Sheet
Total Assets	733.65B	730.53B	727.23B	714.90B	707.55B	701.98B
Cash, Cash Equivalents and Short-Term Investments	57.16B	27.06B	36.01B	58.91B	31.25B	41.86B
Total Debt	332.55B	328.75B	323.85B	313.40B	304.43B	296.63B
Total Liabilities	375.49B	370.46B	366.43B	354.56B	344.29B	336.32B
Stockholders Equity	358.16B	360.08B	360.80B	360.34B	363.26B	365.67B
Cash Flow
Free Cash Flow	-11.87B	-12.42B	11.11B	8.04B	-13.88B	-8.30B
Operating Cash Flow	29.94B	28.92B	27.74B	26.58B	22.17B	26.13B
Investing Cash Flow	-11.98B	-17.08B	-14.05B	-10.84B	-19.19B	-15.40B
Financing Cash Flow	-24.69B	-19.91B	-9.33B	-13.40B	-11.90B	4.28B

United Urban Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 188600.00
• 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:8960, the sentiment is Positive. The current price of 188600 is above the 20-day moving average (MA) of 186075.00, above the 50-day MA of 182014.00, and above the 200-day MA of 159867.43, indicating a bullish trend. The MACD of 2440.06 indicates Negative momentum. The RSI at 69.32 is Neutral, neither overbought nor oversold. The STOCH value of 83.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8960.

United Urban Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8960	75 Outperform	$580.37B	23.45	6.80%	4.16%	52.74%	14.88%
8955	72 Outperform	¥414.04B	21.85	7.12%	3.75%	78.62%	28.76%
3249	71 Outperform	€367.50B	20.30	7.56%	4.62%	-6.57%	2.83%
8972	71 Outperform	€703.68B	20.73	5.41%	4.67%	41.48%	-28.91%
3309	69 Neutral	$344.32B	15.94	7.47%	5.59%	18.76%	77.88%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8984	64 Neutral	¥625.68B	22.22	―	4.44%	27.21%	39.13%