Japan Excellent, Inc. (8987) AI Stock Analysis

• Market Cap: ¥188.86B
• Dividend Yield: 4.04%
• Average Volume (3M): 2.62K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 0.23
• Revenue Growth: -16.98%
• EPS Growth: 1.05%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 56
• Industry: REIT - Office
• EPS (TTM): N/A
• Shares Outstanding: 1,321,614
• 10 Day Avg. Volume: 3,327
• 30 Day Avg. Volume: 2,618
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥148,795.00
• Price Target Upside: 4.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥148,795 ▲(4.13% Upside)

The overall stock score is primarily driven by strong technical analysis and stable financial performance. The stock's momentum is a key strength, although overbought signals suggest caution. Valuation metrics indicate moderate pricing, with a decent dividend yield providing some support.

Japan Excellent, Inc. Business Overview & Revenue Model

Company Description

Japan Excellent, Inc. (8987) is a real estate investment trust (REIT) that primarily focuses on the acquisition, management, and leasing of office properties in Japan. The company is dedicated to maximizing the value of its real estate portfolio through strategic investments and efficient property management, catering to a diverse range of corporate tenants.

How the Company Makes Money

Japan Excellent, Inc. generates revenue primarily through the leasing of its office properties. The company acquires high-quality commercial real estate assets, which it then rents out to businesses and corporations. Rental income from these leases constitutes the main revenue stream for the company. Additionally, Japan Excellent, Inc. may engage in strategic property sales and reinvestment activities to optimize its portfolio and enhance earnings. The company also benefits from partnerships with property management firms and real estate developers, which help in maintaining and increasing the value of its assets.

Japan Excellent, Inc. Financial Statement Overview

Summary

Japan Excellent, Inc. demonstrates strong operational efficiency with robust profit margins and positive cash flow generation. However, the reliance on debt financing poses a risk in a rising interest rate environment. Additionally, inconsistent revenue and free cash flow growth require careful management.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.21B	45.55B	21.77B	21.23B	23.76B
Gross Profit	10.61B	9.55B	10.12B	10.32B	12.58B
EBITDA	13.04B	12.89B	12.69B	12.82B	14.99B
Net Income	7.94B	7.93B	7.60B	7.82B	9.92B
Balance Sheet
Total Assets	295.34B	294.82B	294.54B	293.96B	294.00B
Cash, Cash Equivalents and Short-Term Investments	12.84B	10.47B	6.39B	7.46B	19.65B
Total Debt	129.60B	128.60B	128.60B	125.60B	125.60B
Total Liabilities	146.26B	144.16B	144.32B	141.75B	141.59B
Stockholders Equity	149.07B	150.66B	150.22B	152.21B	152.42B
Cash Flow
Free Cash Flow	11.82B	11.34B	6.99B	-5.64B	16.38B
Operating Cash Flow	28.11B	34.09B	16.60B	11.26B	27.73B
Investing Cash Flow	-15.91B	-22.86B	-14.72B	-16.69B	-11.65B
Financing Cash Flow	-8.61B	-7.52B	-6.59B	-8.03B	-3.94B

Japan Excellent, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 142900.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 142900 is above the 20-day moving average (MA) of 138945.00, above the 50-day MA of 134779.04, and above the 200-day MA of 123453.28, indicating a bullish trend. The MACD of 2572.39 indicates Negative momentum. The RSI at 79.41 is Negative, neither overbought nor oversold. The STOCH value of 89.74 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
8958	76 Outperform	¥145.45B	22.05		4.32%	67.12%	0.19%
8976	75 Outperform	¥338.83B	24.00		3.86%	19.18%	-23.37%
3295	74 Outperform	¥239.47B	21.41		4.59%	-29.52%	9.41%
8987	71 Outperform	¥188.86B	23.85		4.04%	-16.98%	1.05%
8975	70 Outperform	¥150.05B	16.18		6.23%	44.45%	40.59%
Sector *	63 Neutral	$6.82B	13.38	-0.62%	7.30%	3.67%	-27.09%

Japan Excellent, Inc. Corporate Events

Japan Excellent, Inc. Announces New Debt Financing Rates

Japan Excellent, Inc. announced the interest rates for its new debt financing arrangements, which involve loans from several major banks totaling 5,300 million yen. This strategic move is likely to impact the company’s financial structure and its ability to manage and expand its real estate portfolio effectively.

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. Announces Early Repayment of Short-term Borrowing

Japan Excellent, Inc. announced an early repayment of 1.2 billion yen in short-term borrowing, utilizing cash in hand, which will reduce its total interest-bearing debt from 135.6 billion yen to 134.4 billion yen. This move reflects the company’s strategic financial management to optimize its debt structure and potentially improve its financial stability, benefiting stakeholders by maintaining a robust financial position.

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. Completes Acquisition and Cancellation of Investment Units

Japan Excellent, Inc. has completed the acquisition and cancellation of its own investment units as per the resolution made by its Board of Directors in February 2025. The company acquired a total of 31,127 units for approximately 3.99 billion yen and will cancel these units by June 27, 2025, resulting in a 2.36% reduction in total issued units. This move is part of JEI’s strategic management of its investment units, although it does not affect the company’s operating forecasts for the periods ending in June and December 2025.

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.

Leadership Change at Japan Excellent Asset Management Co., Ltd.

Japan Excellent, Inc. announced a significant leadership change in its asset management company, Japan Excellent Asset Management Co., Ltd. The current Director and Chief Financial Officer, Kazuhiro Ono, will resign, and Masahiro Sato will take over the role on June 25, 2025. This change is part of the company’s ongoing efforts to strengthen its management team and align with regulatory requirements, potentially impacting its operational strategy and stakeholder relations.

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.