Japan Excellent, Inc. (8987) AI Stock Analysis

• Market Cap: ¥195.33B
• Dividend Yield: 3.84%
• Average Volume (3M): 1.86K
• Price to Earnings (P/E): 23.7
• Beta (1Y): 0.21
• Revenue Growth: 64.38%
• EPS Growth: 0.79%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 3403.00
• Shares Outstanding: 1,321,614
• 10 Day Avg. Volume: 1,742
• 30 Day Avg. Volume: 1,864
• PEG Ratio: 18.35
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 6.34
• P/FCF Ratio: 13.00
• 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): 6,473.03
• Revenue Forecast (FY): ¥22.71B

• Rating: 67 Neutral
• Price Target: ¥160,535 ▲(9.88% Upside)

The overall stock score of 66.5 reflects strong financial performance and positive technical indicators. The company's operational efficiency and attractive dividend yield are significant strengths. However, the high P/E ratio and reliance on debt financing pose potential risks. The technical analysis suggests bullish momentum, but caution is advised due to potential overbought conditions.

Japan Excellent, Inc. Business Overview & Revenue Model

Company Description

Japan Excellent, Inc. (8987) is a leading Japanese company primarily engaged in the real estate and investment sectors. The company focuses on the development, management, and leasing of commercial properties, including office buildings, retail spaces, and residential complexes. Japan Excellent also invests in various real estate ventures, aiming to maximize asset value and provide high returns to its stakeholders. With a commitment to sustainable practices and innovative property solutions, the company plays a significant role in shaping urban landscapes across Japan.

How the Company Makes Money

Japan Excellent, Inc. generates revenue primarily through rental income from its diversified portfolio of commercial and residential properties. The company leases office spaces and retail units, which provide a steady stream of cash flow. In addition to rental income, Japan Excellent profits from property management services and development projects, including new construction and renovation of existing properties. The company also engages in strategic partnerships with real estate developers and investors, which can lead to joint ventures and collaborative projects that enhance its earnings potential. Factors contributing to its revenue include market demand for real estate, effective asset management, and the company's ability to adapt to changing market conditions.

Japan Excellent, Inc. Financial Statement Overview

Summary

Japan Excellent, Inc. demonstrates strong operational efficiency with robust profit margins and cash flow generation. However, the company's reliance on debt financing and potential volatility in revenue and free cash flow growth suggest the need for careful management of cash flows and cost controls.

Income Statement

The company has shown strong gross profit margins, consistently above 40% over the years, indicating efficient cost management. The net profit margin has been stable, with slight fluctuations, reflecting consistent profitability. However, revenue growth has been inconsistent, showing significant variances across different years, which could indicate potential volatility in income generation. The EBIT and EBITDA margins are strong, suggesting robust operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is moderate, with total debt slightly lower than stockholders' equity, suggesting a balanced approach to leveraging. The return on equity has been strong, reflecting efficient use of shareholders' funds to generate profits. However, the equity ratio indicates that the company is moderately reliant on debt financing, which may pose risks if interest rates rise or cash flows decrease.

Cash Flow

The company has shown positive operating cash flows, indicating healthy cash generation from core operations. However, free cash flow growth has been erratic, with significant fluctuations over the years, which could affect the company's ability to invest or return capital to shareholders consistently. The operating cash flow to net income ratio is strong, suggesting that reported earnings are well-supported by cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.19B	24.21B	45.55B	21.77B	21.23B	23.76B
Gross Profit	4.67B	10.61B	9.55B	10.12B	10.32B	12.58B
EBITDA	13.34B	13.04B	12.89B	12.69B	12.51B	14.99B
Net Income	8.19B	7.94B	7.93B	7.60B	7.82B	9.92B
Balance Sheet
Total Assets	295.77B	295.34B	294.82B	294.54B	293.96B	294.00B
Cash, Cash Equivalents and Short-Term Investments	15.63B	12.84B	10.47B	6.39B	7.46B	19.65B
Total Debt	133.40B	129.60B	128.60B	128.60B	125.60B	125.60B
Total Liabilities	149.90B	146.26B	144.16B	144.32B	141.75B	141.59B
Stockholders Equity	145.87B	149.07B	150.66B	150.22B	152.21B	152.42B
Cash Flow
Free Cash Flow	7.98B	11.82B	11.34B	6.99B	-5.64B	16.38B
Operating Cash Flow	27.60B	28.11B	34.09B	16.60B	11.26B	27.73B
Investing Cash Flow	-14.24B	-15.91B	-22.86B	-14.72B	-16.69B	-11.65B
Financing Cash Flow	-16.70B	-8.61B	-7.52B	-6.59B	-8.03B	-3.94B

Japan Excellent, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 146100.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8987, the sentiment is Positive. The current price of 146100 is below the 20-day moving average (MA) of 146755.00, below the 50-day MA of 146202.00, and above the 200-day MA of 133652.65, indicating a bullish trend. The MACD of 880.02 indicates Negative momentum. The RSI at 67.52 is Neutral, neither overbought nor oversold. The STOCH value of 77.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8987.

Japan Excellent, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3295	74 Outperform	¥246.24B	20.62	―	4.61%	-5.47%	14.66%
8987	67 Neutral	¥195.33B	23.70	―	3.84%	64.38%	0.79%
8958	66 Neutral	¥144.20B	22.00	―	5.53%	67.12%	0.19%
8975	65 Neutral	¥147.95B	16.13	―	6.10%	44.45%	40.59%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8976	64 Neutral	¥359.65B	25.47	―	3.56%	19.18%	-23.37%

Japan Excellent, Inc. Corporate Events

Japan Excellent, Inc. Announces Interest Rates for New Debt Financing

Japan Excellent, Inc. has announced the interest rates for its upcoming debt financing, with loans to be drawn down on November 4, 2025. The loans, provided by The Norinchukin Bank and Mizuho Trust & Banking Co., Ltd., have interest rates of 1.87875% and 1.82508% respectively, with terms of 6.0 and 4.2 years. This financing move is expected to support the company’s ongoing operations and strategic positioning in the real estate market.

The most recent analyst rating on (JP:8987) stock is a Buy with a Yen148795.00 price target. To see the full list of analyst forecasts on Japan Excellent, Inc. stock, see the JP:8987 Stock Forecast page.

Japan Excellent, Inc. Acquires Urawa SH Building to Boost Portfolio

Japan Excellent, Inc. announced the acquisition of the Urawa SH Building’s real estate trust beneficiary rights for ¥1,760 million. This strategic acquisition aims to strengthen the company’s portfolio, leveraging the property’s prime location near Urawa Station and its capacity to meet diverse tenant needs, despite its older infrastructure.

The most recent analyst rating on (JP:8987) stock is a Buy with a Yen148795.00 price target. To see the full list of analyst forecasts on Japan Excellent, Inc. stock, see the JP:8987 Stock Forecast page.

Japan Excellent, Inc. Announces ¥7,510 Million Debt Financing for Loan Repayment

Japan Excellent, Inc. announced a new debt financing plan totaling ¥7,510 million to repay long-term borrowings due in November 2025. The financing involves multiple lenders and includes green loans under the company’s Green Finance Framework, indicating a commitment to sustainable financial practices.

The most recent analyst rating on (JP:8987) stock is a Buy with a Yen148795.00 price target. To see the full list of analyst forecasts on Japan Excellent, Inc. stock, see the JP:8987 Stock Forecast page.

Japan Excellent, Inc. Expands Real Estate Portfolio with Strategic Acquisition

Japan Excellent, Inc. has announced the acquisition of additional co-ownership interest in BIZCORE JIMBOCHO, a high-grade office building in Tokyo. This acquisition aims to enhance the company’s portfolio and asset management efficiency, with the property’s advanced facilities and strategic location expected to increase asset value and improve cash flow.

The most recent analyst rating on (JP:8987) stock is a Buy with a Yen148795.00 price target. To see the full list of analyst forecasts on Japan Excellent, Inc. stock, see the JP:8987 Stock Forecast page.

Japan Excellent, Inc. Secures ¥5.0 Billion Debt Financing for Bond Redemption

Japan Excellent, Inc. has announced a new debt financing arrangement of ¥5.0 billion with Mizuho Bank, Ltd., which is intended to redeem its 8th Series Unsecured Investment Corporation Bonds maturing on September 9, 2025. This strategic financial move will not alter the company’s total interest-bearing debt, maintaining its financial stability while ensuring the redemption of maturing bonds, reflecting a proactive approach to managing its financial obligations.

The most recent analyst rating on (JP:8987) stock is a Buy with a Yen148795.00 price target. To see the full list of analyst forecasts on Japan Excellent, Inc. stock, see the JP:8987 Stock Forecast page.

Japan Excellent, Inc. Announces Strategic Amendments and Leadership Changes

Japan Excellent, Inc. has announced plans to amend its Articles of Incorporation and appoint new directors, pending approval at the upcoming General Unitholders’ Meeting. The proposed amendments aim to optimize the number of directors for efficient operation, diversify lending sources, and introduce a merger fee for asset management. The appointment of new executive and supervisory directors is also on the agenda, reflecting a strategic shift in leadership to align with the company’s evolving operational goals.

The most recent analyst rating on (JP:8987) stock is a Hold with a Yen130000.00 price target. To see the full list of analyst forecasts on Japan Excellent, Inc. stock, see the JP:8987 Stock Forecast page.

Japan Excellent, Inc. Revises Distribution Forecast Upward

Japan Excellent, Inc. has revised its distribution forecast for the fiscal period ending December 31, 2025, increasing the distribution per unit from the previous forecast by 7.1% to 3,000 yen. This revision is attributed to increased revenue from tenant changes and restoration work, as well as the cancellation of own investment units, indicating a positive adjustment in the company’s financial performance expectations.

The most recent analyst rating on (JP:8987) stock is a Hold with a Yen130000.00 price target. To see the full list of analyst forecasts on Japan Excellent, Inc. stock, see the JP:8987 Stock Forecast page.

Japan Excellent, Inc. Reports Financial Results for 38th Period

Japan Excellent, Inc. reported its 38th period financial results, showing a decrease in total revenues but an increase in operating and net income compared to the previous period. The company also announced a higher distribution per unit, reflecting a robust payout ratio, while its cash flow from operating activities significantly decreased, impacting its financial situation.

The most recent analyst rating on (JP:8987) stock is a Hold with a Yen130000.00 price target. To see the full list of analyst forecasts on Japan Excellent, Inc. stock, see the JP:8987 Stock Forecast page.