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

• Market Cap: ¥3.54B
• Dividend Yield: 0.57%
• Average Volume (3M): 5.50K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.20
• Revenue Growth: 16.67%
• EPS Growth: 69.36%
• Country: JP
• Employees: 237
• Sector: Real Estate
• Sector Strength: 49
• Industry: Real Estate - Services
• EPS (TTM): 27.16
• Shares Outstanding: 4,110,000
• 10 Day Avg. Volume: 5,860
• 30 Day Avg. Volume: 5,500
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥873.00
• Price Target Upside: -0.57% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥873.00 ▼(-0.57% Downside)

The stock's overall score is driven by strong valuation metrics and decent financial performance, particularly in revenue growth and cash flow management. However, technical indicators suggest some caution due to potential downward momentum. High leverage remains a risk factor that needs to be monitored.

HouseFreedom Co., Ltd. Business Overview & Revenue Model

Company Description

HouseFreedom Co., Ltd. operates within the real estate sector, primarily focusing on the buying, selling, and brokerage of residential and commercial properties. The company's core services include property management, real estate consulting, and housing development, catering to various customer needs in the real estate market.

How the Company Makes Money

HouseFreedom Co., Ltd. generates revenue through several key channels within the real estate industry. The company earns money from property sales and brokerage fees by facilitating real estate transactions for buyers and sellers. Additionally, HouseFreedom offers property management services, generating steady income through management fees from residential and commercial properties. The company also engages in real estate consulting, providing expert advice and strategic guidance to clients, which contributes to its revenue stream. Furthermore, HouseFreedom develops housing projects, profiting from the sale or lease of completed units. Strategic partnerships with construction firms, real estate agencies, and financial institutions play a significant role in enhancing the company's market reach and operational efficiency, thereby 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	15.75B	14.49B	11.79B	12.97B	11.80B	12.16B
Gross Profit	4.65B	4.36B	3.89B	3.82B	3.49B	3.88B
EBITDA	1.06B	1.01B	797.17M	822.77M	657.12M	1.12B
Net Income	525.52M	484.65M	343.44M	420.21M	281.54M	559.04M
Balance Sheet
Total Assets	16.70B	16.11B	16.55B	15.10B	13.89B	10.69B
Cash, Cash Equivalents and Short-Term Investments	3.68B	3.96B	3.66B	3.64B	3.81B	3.90B
Total Debt	12.15B	11.25B	12.15B	10.92B	9.90B	6.55B
Total Liabilities	13.55B	12.74B	13.34B	12.07B	11.11B	8.04B
Stockholders Equity	3.15B	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: 878.00
• 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 878 is above the 20-day moving average (MA) of 860.45, above the 50-day MA of 835.18, and above the 200-day MA of 807.75, indicating a bullish trend. The MACD of 12.92 indicates Positive momentum. The RSI at 65.72 is Neutral, neither overbought nor oversold. The STOCH value of 53.62 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
3297	79 Outperform	¥3.04B	8.93		3.43%	12.69%	61.19%
3490	79 Outperform	¥3.98B	5.04		1.03%	16.28%	146.48%
3494	69 Neutral	¥4.02B	13.91		1.01%	46.64%	137.70%
8996	66 Neutral	¥3.54B	6.94		0.57%	16.67%	69.36%
8836	60 Neutral	¥3.74B	288.04		―	9.80%	―
8912	60 Neutral	¥2.37B	22.71		1.89%	6.32%	-10.34%
Sector *	53 Neutral	$1.24B	3.03	-6.08%	5.65%	-8.21%	-81.31%