Frontier Real Estate Investment Corporation (8964) AI Stock Analysis

• Market Cap: ¥239.12B
• Dividend Yield: 4.93%
• Average Volume (3M): 4.71K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.24
• Revenue Growth: 4.11%
• EPS Growth: 2.05%
• Country: JP
• Employees: 21
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 2174.00
• Shares Outstanding: 2,705,000
• 10 Day Avg. Volume: 4,465
• 30 Day Avg. Volume: 4,712
• PEG Ratio: -0.21
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 8.60
• P/FCF Ratio: 14.77
• 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: ¥100,471.00
• Price Target Upside: 12.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: ¥99,942.00 ▲(12.29% Upside)

The stock's overall score is driven by strong financial performance, particularly in profitability and cash flow generation, despite a recent decline in revenue growth. Technical analysis supports a positive trend, and the valuation is reasonable with an attractive dividend yield. The absence of earnings call and corporate events data did not impact the score.

Frontier Real Estate Investment Corporation Business Overview & Revenue Model

Company Description

Frontier Real Estate Investment Corporation (8964) is a prominent entity in the real estate investment sector, primarily focused on acquiring, developing, and managing a diversified portfolio of income-generating properties. The company operates across various segments, including residential, commercial, and industrial real estate, aiming to deliver value to its shareholders through strategic investments and asset management. Frontier Real Estate leverages its expertise in market analysis and property management to optimize returns and enhance the long-term value of its holdings.

How the Company Makes Money

Frontier Real Estate Investment Corporation generates revenue primarily through rental income from its portfolio of properties. The company leases space to residential tenants and commercial businesses, thereby creating a steady stream of cash flow. Additionally, Frontier may engage in property sales or development projects that yield profits upon completion or sale. The company might also explore strategic partnerships or joint ventures with other real estate firms to enhance its investment capabilities and market reach. Key revenue streams include long-term leases, short-term rentals, property sales, and possibly management fees from any third-party properties it manages.

Frontier Real Estate Investment Corporation Financial Statement Overview

Summary

Frontier Real Estate Investment Corporation demonstrates solid profitability and cash flow generation, with strong margins and a stable balance sheet. However, the recent decline in revenue growth is a potential risk that needs monitoring. Overall, the company is financially healthy with efficient operations and a balanced capital structure.

Income Statement

The company exhibits strong profitability with a high net profit margin of 52.89% and a gross profit margin of 62.26% for the latest year. However, there is a notable revenue decline of 15.91% from the previous year, which could be a concern if it continues. The EBIT and EBITDA margins are robust, indicating efficient operations.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.73, indicating a balanced approach to leverage. The return on equity is reasonable at 7.36%, reflecting decent profitability relative to shareholder equity. The equity ratio stands at 52.71%, suggesting a stable financial structure.

Cash Flow

The cash flow statement is strong, with a significant free cash flow growth of 165.04% and a healthy operating cash flow to net income ratio of 1.31. The free cash flow to net income ratio of 67.31% indicates good cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	24.02B	24.45B	29.08B	22.16B	21.45B	21.05B
Gross Profit	13.50B	15.22B	12.74B	13.41B	12.79B	12.03B
EBITDA	8.28B	17.54B	16.26B	16.09B	15.39B	14.54B
Net Income	12.38B	12.93B	11.85B	11.43B	10.84B	10.13B
Balance Sheet
Total Assets	342.89B	333.31B	336.33B	330.06B	309.41B	308.82B
Cash, Cash Equivalents and Short-Term Investments	12.13B	12.86B	17.62B	8.10B	6.52B	14.11B
Total Debt	137.70B	127.70B	130.10B	123.40B	116.90B	112.90B
Total Liabilities	167.31B	157.66B	161.94B	155.61B	150.46B	147.24B
Stockholders Equity	175.58B	175.65B	174.39B	174.45B	158.95B	161.58B
Cash Flow
Free Cash Flow	5.38B	14.23B	5.37B	-8.01B	7.14B	-15.11B
Operating Cash Flow	17.12B	21.14B	21.15B	15.02B	15.41B	19.19B
Investing Cash Flow	-15.55B	-7.78B	-16.36B	-23.78B	-9.37B	-34.81B
Financing Cash Flow	-1.92B	-14.07B	-5.13B	10.51B	-9.48B	19.00B

Frontier Real Estate Investment Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 89000.00
• 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:8964, the sentiment is Neutral. The current price of 89000 is below the 20-day moving average (MA) of 89665.00, above the 50-day MA of 88404.00, and above the 200-day MA of 80998.98, indicating a neutral trend. The MACD of 205.05 indicates Positive momentum. The RSI at 50.31 is Neutral, neither overbought nor oversold. The STOCH value of 39.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8964.

Frontier Real Estate Investment Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8966	77 Outperform	¥189.48B	20.14	―	4.81%	13.33%	8.96%
3296	74 Outperform	¥170.12B	15.63	―	4.96%	50.47%	26.45%
8964	72 Outperform	¥239.12B	19.31	―	4.93%	4.11%	2.05%
3234	67 Neutral	¥274.23B	22.29	―	4.32%	-0.15%	-2.63%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8956	64 Neutral	¥202.45B	22.65	―	4.33%	13.38%	-6.44%