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HouseFreedom Co., Ltd. (JP:8996)
:8996
Japanese Market
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HouseFreedom Co., Ltd. (8996) AI Stock Analysis

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JP:8996

HouseFreedom Co., Ltd.

(8996)

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Outperform 72 (OpenAI - 5.2)
Rating:72Outperform
Price Target:
¥1,157.00
▲(24.27% Upside)
Action:Upgraded
Date:08/06/26
The score is driven primarily by strong valuation (low P/E and high dividend yield) and favorable technical positioning (price above key moving averages with positive momentum). These positives are tempered by financial risk factors—especially high leverage and inconsistent cash flow conversion—keeping the overall score from ranking higher.
Positive Factors
Revenue re-acceleration
Sustained revenue re-acceleration (+11.2% in 2025) with net income rising to ¥658.8M signals recovering demand and improving top-line momentum. Over 2–6 months this supports operating leverage, stronger earnings durability and a firmer base for reinvestment or debt paydown if maintained.
Negative Factors
High leverage
A debt-to-equity ratio around 3.05x leaves the company highly sensitive to interest rates and refinancing risk. Even with improvement, elevated leverage constrains strategic flexibility, increases fixed financial costs and raises vulnerability to cyclical downturns in real estate demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue re-acceleration
Sustained revenue re-acceleration (+11.2% in 2025) with net income rising to ¥658.8M signals recovering demand and improving top-line momentum. Over 2–6 months this supports operating leverage, stronger earnings durability and a firmer base for reinvestment or debt paydown if maintained.
Read all positive factors

HouseFreedom Co., Ltd. (8996) vs. iShares MSCI Japan ETF (EWJ)

HouseFreedom Co., Ltd. Business Overview & Revenue Model

Company Description
HouseFreedom Co.,Ltd. primarily specializes in selling newly built detached houses across Japan. The company further diversifies its activities through construction contracts, property rental and brokerage services, and by serving as a non-life in...
How the Company Makes Money
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HouseFreedom Co., Ltd. Financial Statement Overview

Summary
Income statement momentum is improving (2025 revenue +11.2% and net income up to 658.8M), but financial quality is constrained by a highly leveraged balance sheet (debt-to-equity ~3.05x) and volatile cash generation with weak latest cash conversion (operating cash flow to net income ~0.10x).
Income Statement
72
Positive
Balance Sheet
46
Neutral
Cash Flow
52
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue16.52B16.93B14.49B11.79B12.97B11.80B
Gross Profit4.97B4.91B4.36B3.89B3.82B3.49B
EBITDA1.36B1.24B1.01B797.17M822.77M657.12M
Net Income739.72M658.81M484.65M343.44M420.21M281.54M
Balance Sheet
Total Assets18.05B17.01B16.11B16.55B15.10B13.89B
Cash, Cash Equivalents and Short-Term Investments4.21B4.80B3.96B3.66B3.64B3.81B
Total Debt13.01B11.77B11.25B12.15B10.92B9.90B
Total Liabilities14.37B13.15B12.74B13.34B12.07B11.11B
Stockholders Equity3.68B3.86B3.37B3.20B3.04B2.78B
Cash Flow
Free Cash Flow0.00503.42M1.54B-1.05B-1.01B-3.32B
Operating Cash Flow0.00640.30M1.72B181.45M-453.45M-1.80B
Investing Cash Flow0.00-137.56M-180.67M-1.22B-554.32M-1.42B
Financing Cash Flow0.00343.17M-1.24B1.05B845.78M3.12B

HouseFreedom Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price931.00
Price Trends
50DMA
1001.62
Positive
100DMA
1010.22
Positive
200DMA
979.09
Positive
Market Momentum
MACD
13.02
Negative
RSI
66.81
Neutral
STOCH
63.52
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 931 is below the 20-day moving average (MA) of 1032.95, below the 50-day MA of 1001.62, and below the 200-day MA of 979.09, indicating a bullish trend. The MACD of 13.02 indicates Negative momentum. The RSI at 66.81 is Neutral, neither overbought nor oversold. The STOCH value of 63.52 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥4.19B4.480.50%18.08%89.27%
69
Neutral
¥5.01B17.72-1.57%66.39%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
64
Neutral
¥4.90B2.682.51%65.37%
59
Neutral
¥4.81B8.931.03%13.08%-39.86%
45
Neutral
¥4.02B172.4536.25%
44
Neutral
¥3.64B26.163.41%30.03%34.91%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8996
HouseFreedom Co., Ltd.
1,073.00
276.70
34.75%
JP:2978
TSUKURUBA, Inc.
338.00
-252.00
-42.71%
JP:3238
Central General Development Co., Ltd.
401.00
-15.43
-3.71%
JP:3490
AZ Planning Co., Ltd.
3,165.00
289.05
10.05%
JP:4445
Living Technologies, Inc.
1,864.00
101.50
5.76%
JP:8944
Land Business Co., Ltd.
243.00
46.05
23.38%
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.Date of analysis: Aug 06, 2026