HouseFreedom Co., Ltd. (8996) AI Stock Analysis

• Market Cap: ¥3.80B
• Dividend Yield: 0.53%
• Average Volume (3M): 5.10K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.20
• Revenue Growth: 16.67%
• EPS Growth: 69.36%
• Country: JP
• Employees: 237
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 27.16
• Shares Outstanding: 4,110,000
• 10 Day Avg. Volume: 4,100
• 30 Day Avg. Volume: 5,100
• PEG Ratio: 0.15
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 2.00
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥1,070.00 ▲(12.39% Upside)

The stock's strong technical momentum and attractive valuation are the primary drivers of its score. While financial performance shows potential, high leverage and limited profitability are risks that need to be managed. The absence of earnings call and corporate events data did not impact the score.

HouseFreedom Co., Ltd. Business Overview & Revenue Model

Company Description

HouseFreedom Co., Ltd. (8996) is a dynamic company specializing in the real estate and property management sector. The company focuses on providing innovative housing solutions, including residential and commercial property development, real estate investment services, and property management. With a commitment to enhancing living standards and creating sustainable communities, HouseFreedom Co., Ltd. aims to meet the diverse needs of its clients through high-quality housing options and professional services.

How the Company Makes Money

HouseFreedom Co., Ltd. generates revenue primarily through several key streams: property development, where the company constructs and sells residential and commercial properties; property management services, which include managing rental properties for clients and collecting management fees; and real estate investment, where the company invests in real estate assets, generating income through capital appreciation and rental income. Additionally, strategic partnerships with local governments and financial institutions enhance its project financing capabilities and market reach, contributing to its overall earnings.

HouseFreedom Co., Ltd. Financial Statement Overview

Summary

HouseFreedom Co., Ltd. shows strong revenue growth and improved cash flow management, but faces challenges with high leverage and limited profitability.

Income Statement

HouseFreedom Co., Ltd. has shown a robust revenue growth rate of 22.91% from 2023 to 2024, indicating strong business performance. However, the net profit margin for 2024 is at 3.34%, which suggests limited profitability. The gross profit margin has improved to 30.10%, reflecting efficient cost management. EBIT and EBITDA margins are 6.09% and 6.98%, respectively, indicating moderate operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 3.34, highlighting significant leverage, which poses a financial risk. The return on equity (ROE) is at 14.36%, suggesting a decent return on shareholder investments. The equity ratio is 20.91%, indicating a relatively low proportion of equity in the capital structure, which could limit financial flexibility.

Cash Flow

HouseFreedom Co., Ltd. has significantly improved its free cash flow from a negative position in 2023 to positive in 2024, indicating stronger cash management. The operating cash flow to net income ratio is 3.55, suggesting strong cash generation relative to net income. The free cash flow to net income ratio is 3.17, further supporting the company's enhanced liquidity position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.22B	14.49B	11.79B	12.97B	11.80B	12.16B
Gross Profit	4.66B	4.36B	3.89B	3.82B	3.49B	3.88B
EBITDA	1.01B	1.01B	797.17M	822.77M	657.12M	1.12B
Net Income	485.04M	484.65M	343.44M	420.21M	281.54M	559.04M
Balance Sheet
Total Assets	17.33B	16.11B	16.55B	15.10B	13.89B	10.69B
Cash, Cash Equivalents and Short-Term Investments	4.04B	3.96B	3.66B	3.64B	3.81B	3.90B
Total Debt	12.76B	11.25B	12.15B	10.92B	9.90B	6.55B
Total Liabilities	14.08B	12.74B	13.34B	12.07B	11.11B	8.04B
Stockholders Equity	3.25B	3.37B	3.20B	3.04B	2.78B	2.65B
Cash Flow
Free Cash Flow	0.00	1.54B	-1.05B	-1.01B	-3.32B	1.13B
Operating Cash Flow	0.00	1.72B	181.45M	-453.45M	-1.80B	1.50B
Investing Cash Flow	0.00	-180.67M	-1.22B	-554.32M	-1.42B	-354.29M
Financing Cash Flow	0.00	-1.24B	1.05B	845.78M	3.12B	-204.29M

HouseFreedom Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 952.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8996, the sentiment is Positive. The current price of 952 is above the 20-day moving average (MA) of 946.55, above the 50-day MA of 908.84, and above the 200-day MA of 831.56, indicating a bullish trend. The MACD of 16.21 indicates Positive momentum. The RSI at 58.49 is Neutral, neither overbought nor oversold. The STOCH value of 53.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8996.

HouseFreedom Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8996	―	¥3.80B	7.47	―	0.53%	16.67%	69.36%
3297	―	¥3.07B	9.37	―	3.45%	4.57%	49.68%
3490	―	¥4.11B	6.01	―	1.08%	5.69%	15.12%
8912	―	¥2.65B	24.57	―	1.87%	6.32%	-10.34%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3494	―	¥3.25B	11.26	―	1.45%	46.64%	137.70%
8836	―	¥3.26B	251.11	―	―	9.80%	―