Fukuoka Reit Corporation (8968) AI Stock Analysis

• Market Cap: ¥166.12B
• Dividend Yield: 4.42%
• Average Volume (3M): 1.91K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.30
• Revenue Growth: 17.32%
• EPS Growth: 17.54%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 4661.00
• Shares Outstanding: 872,000
• 10 Day Avg. Volume: 1,592
• 30 Day Avg. Volume: 1,905
• PEG Ratio: 2.65
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 6.22
• P/FCF Ratio: -15.61
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥181,524 ▼(-2.56% Downside)

The stock's overall score reflects strong financial performance and technical indicators. The valuation is attractive due to a reasonable P/E ratio and high dividend yield. However, negative Free Cash Flow poses a potential risk.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for properties and effective management, supporting long-term financial stability.

Profit Margins

Improving profit margins reflect efficient operations and cost management, enhancing the company's profitability over time.

Balance Sheet Health

A balanced leverage position with a healthy equity ratio supports financial stability and the ability to invest in growth opportunities.

Negative Factors

Free Cash Flow

Negative free cash flow indicates potential liquidity issues, which could limit the company's ability to fund new investments or manage debt.

Cash Management Challenges

Challenges in cash management may impact the company's ability to sustain operations and invest in future growth, posing a risk to long-term stability.

Liquidity Concerns

Liquidity concerns due to negative free cash flow could hinder the company's operational flexibility and ability to respond to market changes.

Fukuoka Reit Corporation Business Overview & Revenue Model

Company Description

Fukuoka REIT Corporation (securities code: 8968) is the first region-specific REIT in Japan. With our strength in knowing the local characteristics of real estate, which is a very regional-specific business, Fukuoka REIT manages a portfolio centering on superior design entertainment retail facilities and Class A office buildings in the entire Kyushu region centering on Fukuoka, Yamaguchi and Okinawa prefectures. Fukuoka REIT was registered in August 2004 and listed on the Tokyo Stock Exchange and Fukuoka Stock Exchange on June 21, 2005. Real estate management, acquisition arrangements of new properties, fund raising and other operations are contracted to its asset manager, Fukuoka Realty Co., Ltd.

How the Company Makes Money

Fukuoka Reit Corporation generates revenue primarily through rental income derived from its portfolio of real estate properties. The company leases its commercial, office, residential, and hotel properties to tenants and collects rent, which serves as its main revenue stream. Additionally, the REIT may engage in property sales to realize capital gains, although this is not its primary source of income. Significant partnerships with property management firms and real estate developers contribute to the enhancement of property value and occupancy rates, further supporting revenue growth. By focusing on strategic locations and maintaining a diversified property portfolio, the company aims to maximize returns for its investors.

Fukuoka Reit Corporation Financial Statement Overview

Summary

Fukuoka Reit Corporation shows strong revenue growth and profitability, with a solid balance sheet. However, negative Free Cash Flow indicates potential cash management challenges.

Income Statement

The company has shown consistent revenue growth with a positive trend in gross and net profit margins. Gross Profit Margin improved from 35.45% to 45.03% in the latest annual report, and Net Profit Margin has also increased from 32.84% to 32.94%. The Revenue Growth Rate over the last year was 6.77%, indicating healthy growth. EBIT and EBITDA margins are strong, reflecting efficient operations.

Balance Sheet

The Debt-to-Equity Ratio stands at 0.94, indicating a balanced leverage position typical for a REIT. The Return on Equity (ROE) is stable at approximately 6.12%, showing consistent returns to shareholders. The Equity Ratio is 47.52%, pointing to a solid capital structure with a healthy equity position.

Cash Flow

The Free Cash Flow has turned negative, showing a decline, which is a concern for liquidity and future investments. The Operating Cash Flow to Net Income Ratio is 1.39, suggesting strong cash generation relative to reported earnings. However, the Free Cash Flow to Net Income Ratio is negative, highlighting potential cash management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.98B	18.98B	17.77B	17.49B	17.77B	17.68B
Gross Profit	8.54B	8.54B	6.30B	7.70B	7.61B	7.56B
EBITDA	11.28B	10.11B	9.43B	9.37B	9.34B	9.59B
Net Income	7.19B	6.25B	5.84B	5.62B	5.49B	5.49B
Balance Sheet
Total Assets	226.97B	215.08B	203.87B	201.22B	199.80B	199.00B
Cash, Cash Equivalents and Short-Term Investments	21.73B	3.88B	6.27B	4.20B	6.95B	3.73B
Total Debt	96.35B	96.35B	86.45B	83.90B	82.40B	82.40B
Total Liabilities	113.58B	112.92B	101.94B	99.48B	98.05B	97.48B
Stockholders Equity	113.39B	102.16B	101.93B	101.74B	101.76B	101.53B
Cash Flow
Free Cash Flow	7.36B	-7.57B	3.47B	1.42B	492.28M	-33.49M
Operating Cash Flow	9.21B	8.68B	8.63B	7.86B	10.10B	7.44B
Investing Cash Flow	795.37M	-14.52B	-3.55B	-6.16B	-2.27B	-7.36B
Financing Cash Flow	4.22B	3.88B	-3.10B	-4.13B	-5.26B	-937.47M

Fukuoka Reit Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 186300.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8968, the sentiment is Neutral. The current price of 186300 is below the 20-day moving average (MA) of 191110.00, below the 50-day MA of 190442.00, and above the 200-day MA of 168497.20, indicating a neutral trend. The MACD of -395.97 indicates Positive momentum. The RSI at 38.52 is Neutral, neither overbought nor oversold. The STOCH value of 7.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8968.

Fukuoka Reit Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3296	79 Outperform	¥182.32B	16.76	―	4.73%	50.47%	26.45%
8966	75 Outperform	¥194.86B	20.71	―	5.02%	13.33%	8.96%
8957	74 Outperform	$197.56B	20.61	7.82%	3.97%	21.72%	5.02%
8956	70 Outperform	¥204.52B	22.88	―	4.51%	13.38%	-6.44%
8968	69 Neutral	¥166.12B	20.62	―	4.42%	17.32%	17.54%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%