Want to see JP:8987 full AI Analyst Report?
Top Page
Japan Excellent, Inc.
(8987)
Select Model
Select Model
Rating:56Neutral
Price Target:
¥145,230
▼(-2.53% Downside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by average-to-good financial performance supported by steady leverage and healthy margins, offset by weak and inconsistent cash flow (including negative free cash flow in 2025). Technical indicators are neutral overall, and valuation is supported by a solid dividend yield but tempered by a mid-to-high P/E.
Positive Factors
Strong Operating Margins
Healthy net and EBITDA margins indicate the portfolio converts rental revenue into operating profit efficiently. This profitability provides resilience against property expenses and supports recurring distributions, although margins have moderated from unusually strong prior years.
Negative Factors
Declining and Volatile Revenue
The sharp 2025 revenue decline and historically uneven top-line performance reduce visibility into recurring growth. Volatility may reflect changing occupancy, rents, asset sales, or one-offs, making sustained expansion of the rental income base less certain.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Operating Margins
Healthy net and EBITDA margins indicate the portfolio converts rental revenue into operating profit efficiently. This profitability provides resilience against property expenses and supports recurring distributions, although margins have moderated from unusually strong prior years.
Read all positive factors
Japan Excellent, Inc. (8987) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥185.55B
Dividend Yield4.34%
Average Volume (3M)1.96K
Price to Earnings (P/E)20.8
Beta (1Y)0.16
Revenue Growth-17.75%
EPS Growth8.74%
CountryJP
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)6780.79
Shares Outstanding1,321,614
10 Day Avg. Volume2,183
30 Day Avg. Volume1,956
Financial Highlights & Ratios
PEG Ratio1.68
Price to Book (P/B)1.32
Price to Sales (P/S)6.17
P/FCF Ratio-91.14
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)6,814
Revenue Forecast (FY)¥23.59B
Japan Excellent, Inc. Business Overview & Revenue Model
Company Description
Japan Excellent, Inc. (JEI) focuses its capital predominantly on commercial office buildings situated in prime metropolitan regions. The firm's objective is to cultivate a real estate portfolio that consistently delivers growing income, a feat acc...
How the Company Makes Money
Japan Excellent, Inc. makes money primarily by earning rental and other property-related income from its real estate portfolio. The core revenue stream is lease income paid by tenants occupying its properties under rental contracts; this includes ...
Japan Excellent, Inc. Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
64
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 33.06B | 31.39B | 24.21B | 45.55B | 21.77B | 21.23B |
| Gross Profit | 7.42B | 7.34B | 10.61B | 9.55B | 10.12B | 10.32B |
| EBITDA | 14.12B | 13.98B | 13.04B | 12.89B | 12.69B | 12.51B |
| Net Income | 8.75B | 8.80B | 7.94B | 7.93B | 7.60B | 7.82B |
Balance Sheet | ||||||
| Total Assets | 299.27B | 291.19B | 295.34B | 294.82B | 294.54B | 293.96B |
| Cash, Cash Equivalents and Short-Term Investments | 15.68B | 15.02B | 12.84B | 10.47B | 6.39B | 7.46B |
| Total Debt | 136.10B | 127.60B | 129.60B | 128.60B | 128.60B | 125.60B |
| Total Liabilities | 152.58B | 144.98B | 146.26B | 144.16B | 144.32B | 141.75B |
| Stockholders Equity | 146.69B | 146.21B | 149.07B | 150.66B | 150.22B | 152.21B |
Cash Flow | ||||||
| Free Cash Flow | 5.43B | -2.12B | 11.83B | 11.37B | 7.06B | -5.64B |
| Operating Cash Flow | 22.72B | 19.66B | 28.11B | 34.09B | 16.60B | 11.26B |
| Investing Cash Flow | -17.44B | -16.11B | -15.91B | -22.86B | -14.72B | -16.69B |
| Financing Cash Flow | -5.24B | -13.67B | -8.61B | -7.52B | -6.59B | -8.03B |
Japan Excellent, Inc. Technical Analysis
Negative
149000.00
Price Trends
139596.04
Positive
139262.37
Positive
142542.55
Negative
Market Momentum
42.91
Positive
46.51
Neutral
34.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8987, the sentiment is Negative. The current price of 149000 is above the 20-day moving average (MA) of 142525.00, above the 50-day MA of 139596.04, and above the 200-day MA of 142542.55, indicating a neutral trend. The MACD of 42.91 indicates Positive momentum. The RSI at 46.51 is Neutral, neither overbought nor oversold. The STOCH value of 34.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8987.
Japan Excellent, Inc. Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥143.60B | 18.82 | ― | 6.26% | -17.50% | -15.10% | |
71 Outperform | ¥863.10B | 23.33 | 6.70% | 4.05% | -1.30% | -3.43% | |
67 Neutral | ¥552.00B | 20.81 | ― | 4.10% | 5.25% | 19.44% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | ¥1.13T | 25.96 | 5.94% | 3.65% | -21.35% | -7.99% | |
62 Neutral | ¥302.86B | 19.74 | ― | 3.94% | 23.62% | 10.38% | |
56 Neutral | ¥185.55B | 20.76 | ― | 3.82% | -17.75% | 8.74% |
* Real Estate Sector Average
JP:8987
Japan Excellent, Inc.
140,600.00
49.56
0.04%
JP:8952
Japan Real Estate Investment
119,500.00
-4,936.27
-3.97%
JP:8951
Nippon Building
130,200.00
-8,812.80
-6.34%
JP:8954
ORIX JREIT Inc.
101,300.00
5,411.08
5.64%
JP:8975
Ichigo Office REIT Investment Corporation
94,800.00
1,960.08
2.11%
JP:8976
Daiwa Office Investment Corporation
325,000.00
-22,169.16
-6.39%
Japan Excellent, Inc. Corporate Events
Japan Excellent to Cut Short-Term Debt by ¥5 Billion After Property Transfer
Jul 22, 2026
Japan Excellent, Inc. has decided to make an early repayment of 5.0 billion yen in short-term borrowings on July 31, 2026, using part of the proceeds from the transfer of the BIZCORE AKASAKA-MITSUKE property. The repayment targets two floating-rat...
Japan Excellent Eases Capex Limits to Bolster Property Competitiveness
Jun 25, 2026
Japan Excellent, Inc.’s asset management company has revised its internal asset management guidelines to allow capital expenditures across the portfolio to exceed total depreciation expense when necessary to maintain or enhance property valu...
Japan Excellent Issues ¥3 Billion Green Bonds to Refinance Short-Term Debt
May 21, 2026
Japan Excellent, Inc. has decided to issue ¥3 billion in 23rd Series Unsecured Investment Corporation Bonds, branded as its 6th JEI Green Bonds, with a five-year term to 2031, a 2.436% coupon and an AA- rating from Japan Credit Rating Agency....
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.