Japan Excellent, Inc. (8987) AI Stock Analysis

• Market Cap: ¥200.89B
• Dividend Yield: 3.84%
• Average Volume (3M): 1.96K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 0.22
• 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: 2,183
• 30 Day Avg. Volume: 1,956
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥160,535 ▲(5.62% 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.

Positive Factors

Operational Efficiency

Strong operational efficiency and robust profit margins indicate effective cost management and the ability to generate consistent cash flow, supporting long-term financial stability.

Revenue Growth

High revenue growth reflects successful market penetration and asset utilization, suggesting a strong competitive position and potential for future expansion.

Cash Flow Generation

Consistent operating cash flow generation ensures the company can fund operations and investments, supporting long-term growth and shareholder returns.

Negative Factors

Debt Reliance

Reliance on debt financing can increase financial risk, especially in rising interest rate environments, potentially impacting cash flow and financial flexibility.

Revenue Volatility

Inconsistent revenue growth can indicate market challenges or operational inefficiencies, potentially affecting long-term profitability and strategic planning.

Free Cash Flow Fluctuations

Erratic free cash flow growth may hinder the company's ability to consistently invest in growth opportunities or return capital to shareholders, impacting long-term financial health.

Japan Excellent, Inc. Business Overview & Revenue Model

Company Description

JEI invests primarily in office buildings located in major metropolitan areas and pursues to create portfolio that produces stable growth of income by acquiring properties with a strict investment criteria and a close monitoring of real estate market trends.

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: 152000.00
• 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:8987, the sentiment is Positive. The current price of 152000 is above the 20-day moving average (MA) of 149780.00, above the 50-day MA of 148164.00, and above the 200-day MA of 137512.72, indicating a bullish trend. The MACD of 576.46 indicates Negative momentum. The RSI at 53.81 is Neutral, neither overbought nor oversold. The STOCH value of 80.72 is Negative, 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
8975	75 Outperform	¥149.95B	16.18	―	6.18%	55.69%	24.75%
8987	67 Neutral	¥200.89B	24.37	―	3.84%	64.38%	0.79%
8958	66 Neutral	¥138.52B	16.34	―	5.91%	90.94%	40.39%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3295	64 Neutral	¥255.74B	21.41	―	4.63%	-5.47%	14.66%
8976	64 Neutral	¥351.93B	25.24	―	3.94%	19.18%	-23.37%

Japan Excellent, Inc. Corporate Events

Japan Excellent, Inc. Sets Loan Interest Rates and Executes Interest Rate Swap

Japan Excellent, Inc. announced the determination of interest rates for its upcoming long-term loans and the execution of an interest rate swap agreement. The fixed interest rates for the loans, which will be drawn down on November 28, 2025, range from 1.60063% to 1.94750% with varying borrowing periods. Additionally, the company has decided to hedge against interest rate fluctuations by fixing the future interest rate for a floating rate loan at 1.69500% through an agreement with Nomura Securities Co., Ltd. This strategic move aims to stabilize the company’s financial costs and manage risks associated with interest rate volatility, potentially enhancing its financial stability and attractiveness to investors.

Japan Excellent, Inc. Announces Early Repayment of Short-term Borrowing

Japan Excellent, Inc. has announced an early repayment of a 4 billion yen short-term borrowing, utilizing proceeds from the transfer of the JEI Hamamatsucho Building. This strategic financial move reduces the company’s total interest-bearing debt, potentially strengthening its financial position and providing flexibility for future investments.

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.

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.

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.

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.