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

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

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JP:8996

HouseFreedom Co., Ltd.

(8996)

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Neutral 67 (OpenAI - 5.2)
Rating:67Neutral
Price Target:
¥1,174.00
▲(26.10% Upside)
Action:DowngradedDate:02/11/26
The score is primarily supported by very strong valuation (low P/E and high dividend yield). Financial performance is improving, but high leverage and inconsistent cash-flow conversion limit the score. Technically, the trend is strong, yet indicators are extremely overextended, raising near-term pullback risk.
Positive Factors
Re-accelerating Revenue Growth
Sustained re-acceleration in revenue shows improving demand and market traction for core services. Over a 2-6 month horizon this underpins more predictable top-line cash generation, supports operating leverage, and reduces execution risk compared with prior flat growth periods.
Negative Factors
High Leverage
A debt-to-equity ratio north of 3x leaves the company highly sensitive to interest rates, refinancing risk, and earnings volatility. Over the medium term this constrains strategic flexibility, increases fixed obligations, and raises the likelihood that adverse shocks impair cash available for operations or dividends.
Read all positive and negative factors
Positive Factors
Negative Factors
Re-accelerating Revenue Growth
Sustained re-acceleration in revenue shows improving demand and market traction for core services. Over a 2-6 month horizon this underpins more predictable top-line cash generation, supports operating leverage, and reduces execution risk compared with prior flat growth periods.
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. sells newly detached homes in Japan. The company also engages in the construction contract business; real estate rental and brokerage; and non-life insurance agency business, such as fire and earthquake insurance. The company...
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 propert...

HouseFreedom Co., Ltd. Financial Statement Overview

Summary
Income statement trends are improving (re-accelerating revenue growth and higher net income), but overall financial quality is held back by high leverage (~3.05x debt-to-equity) and uneven cash-flow reliability with weak cash conversion in the latest year.
Income Statement
72
Positive
Balance Sheet
46
Neutral
Cash Flow
52
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue15.22B16.93B14.49B11.79B12.97B11.80B
Gross Profit4.66B4.91B4.36B3.89B3.82B3.49B
EBITDA1.01B1.24B1.01B797.17M822.77M657.12M
Net Income485.04M658.81M484.65M343.44M420.21M281.54M
Balance Sheet
Total Assets17.33B17.01B16.11B16.55B15.10B13.89B
Cash, Cash Equivalents and Short-Term Investments4.04B4.80B3.96B3.66B3.64B3.81B
Total Debt12.76B11.77B11.25B12.15B10.92B9.90B
Total Liabilities14.08B13.15B12.74B13.34B12.07B11.11B
Stockholders Equity3.25B3.86B3.37B3.20B3.04B2.78B
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
Neutral
Last Price931.00
Price Trends
50DMA
1012.74
Negative
100DMA
964.65
Positive
200DMA
893.51
Positive
Market Momentum
MACD
-4.84
Positive
RSI
37.31
Neutral
STOCH
8.13
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8996, the sentiment is Neutral. The current price of 931 is below the 20-day moving average (MA) of 1037.05, below the 50-day MA of 1012.74, and above the 200-day MA of 893.51, indicating a neutral trend. The MACD of -4.84 indicates Positive momentum. The RSI at 37.31 is Neutral, neither overbought nor oversold. The STOCH value of 8.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
69
Neutral
¥5.26B20.830.63%178.02%
67
Neutral
¥4.07B5.420.50%12.29%139.06%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
60
Neutral
¥4.94B-4.302.51%86.49%83.40%
51
Neutral
¥4.26B13.501.03%5.69%15.12%
45
Neutral
¥4.96B-27.5157.41%-9.29%
43
Neutral
¥3.40B-4.073.41%31.33%174.39%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8996
HouseFreedom Co., Ltd.
1,008.00
215.51
27.19%
JP:2978
TSUKURUBA, Inc.
435.00
-334.00
-43.43%
JP:3238
Central General Development Co., Ltd.
351.00
-104.00
-22.86%
JP:3490
AZ Planning Co., Ltd.
2,823.00
389.58
16.01%
JP:4445
Living Technologies, Inc.
3,910.00
920.00
30.77%
JP:8944
Land Business Co., Ltd.
249.00
54.00
27.69%
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: Feb 11, 2026