Grandy House Corporation (8999) AI Stock Analysis

• Market Cap: ¥18.44B
• Dividend Yield: 5.27%
• Average Volume (3M): 58.02K
• Price to Earnings (P/E): 24.9
• Beta (1Y): 0.59
• Revenue Growth: -1.41%
• EPS Growth: 194.28%
• Country: JP
• Employees: 856
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 6.18
• Shares Outstanding: 30,823,200
• 10 Day Avg. Volume: 43,760
• 30 Day Avg. Volume: 58,020
• PEG Ratio: 1.84
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 1.84
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥657.00 ▲(7.00% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

Grandy House Corporation's overall stock score is primarily influenced by its mixed financial performance, with strengths in cash flow improvements but challenges in leverage and profitability. The technical analysis indicates a short-term bearish trend, while the valuation suggests the stock might be overvalued, though it offers an attractive dividend yield. The absence of earnings call data and corporate events means these factors did not impact the score.

Positive Factors

Free Cash Flow Recovery

The company reported a strong recovery in free cash flow in 2025 with improved operating cash flow to net income and free cash flow to net income ratios. That durable cash-generation improvement supports debt repayment, reinvestment and dividend sustainability over the coming months.

Improving Operating Margins

EBIT and EBITDA margins have edged higher and net profit margin has slightly improved, indicating the business is stabilizing operationally. Sustained margin improvement enhances earnings quality and resilience to cost pressures, supporting medium-term profitability and cash conversion.

Attractive Dividend Yield

A 5.65% dividend yield provides a durable cash return to shareholders. Coupled with the improved free cash flow profile, the yield can be supported by operations rather than one-offs, making the payout a structural appeal for income-focused investors over the next several quarters.

Negative Factors

High Leverage

The company's relatively high debt-to-equity ratio signals material leverage. Persistent leverage raises interest expense and reduces financial flexibility, constraining capital allocation and making the firm more vulnerable to rate moves or cyclical softness unless free cash flow is consistently redeployed to de-lever.

Modest Profitability

Despite slight margin improvements, net profit margins remain low, limiting internal funding capacity. Modest profitability reduces the buffer against revenue volatility and makes sustained dividend payouts and debt reduction more challenging without continued margin expansion or structural cost improvements.

Mixed / Weak Revenue Trend

Reported revenue growth shows a recent modest decline, reflecting mixed top-line performance. In real-estate related services, sustained revenue growth is critical for scale and margin recovery; continued revenue weakness would strain profit improvement and lengthen the timeframe to repair leverage.

Grandy House Corporation Business Overview & Revenue Model

Company Description

Grandy House Corporation constructs and sells houses and custom houses in Japan. It is also involved in the house remodeling and regeneration activities; real estate leasing business; and building material manufacture and sales business. The company was formerly known as Shin Nihon Grandy Corporation and changed its name to Grandy House Corporation in 2004. Grandy House Corporation was incorporated in 1991 and is headquartered in Utsunomiya, Japan.

How the Company Makes Money

Grandy House Corporation generates revenue through multiple streams, primarily focusing on product sales of its home goods. The company earns money by manufacturing and selling furniture and appliances directly to consumers through its retail outlets and e-commerce platforms. Additionally, Grandy House Corporation has established strong partnerships with various large retailers, which allows it to distribute its products on a wider scale, significantly increasing its market reach. The company also benefits from a growing demand for sustainable and eco-friendly products, which has led to the development of specialized lines that command higher price points. Furthermore, the corporation engages in value-added services, such as interior design consultations and after-sales support, which contribute to customer loyalty and repeat business.

Grandy House Corporation Financial Statement Overview

Summary

Grandy House Corporation presents a mixed financial position with strengths in recent cash flow improvements and revenue growth, but also faces challenges such as high leverage and modest profitability. The company’s ability to manage costs and leverage while enhancing profitability will be crucial for its financial stability in the future.

Income Statement

Grandy House Corporation's revenue has shown a modest growth trend over the years, with a notable increase from 2024 to 2025. The gross profit margin has slightly decreased as of 2025 compared to prior years, indicating some pressure on cost management. While the net profit margin has slightly improved, it remains relatively low, reflecting modest profitability. The EBIT and EBITDA margins have shown slight improvement, suggesting a stable operating performance.

Balance Sheet

The company's debt-to-equity ratio is relatively high, indicating significant leverage which could pose a risk if not managed properly. The return on equity has been modest, reflecting average efficiency in generating returns on shareholders' equity. The equity ratio has shown stability, indicating a consistent proportion of assets financed by equity.

Cash Flow

Grandy House Corporation exhibited a strong recovery in free cash flow in 2025, following a significant negative free cash flow in prior years. The operating cash flow to net income ratio has improved significantly, indicating enhanced cash generation relative to reported earnings. The free cash flow to net income ratio has also shown improvement, supporting the company’s ability to generate cash relative to its net income.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2021
Income Statement
Total Revenue	53.73B	53.96B	51.52B	55.21B	54.88B	47.02B
Gross Profit	7.45B	7.34B	7.58B	9.78B	10.49B	7.82B
EBITDA	1.86B	1.60B	1.69B	3.90B	4.48B	3.37B
Net Income	664.81M	486.25M	416.85M	2.17B	2.58B	1.72B
Balance Sheet
Total Assets	67.67B	68.77B	74.47B	72.65B	60.90B	58.11B
Cash, Cash Equivalents and Short-Term Investments	9.55B	10.86B	10.19B	10.84B	11.10B	13.57B
Total Debt	37.36B	36.62B	43.47B	39.78B	28.91B	29.02B
Total Liabilities	43.58B	43.90B	49.42B	46.45B	36.24B	34.82B
Stockholders Equity	24.08B	24.87B	25.05B	26.20B	24.66B	23.16B
Cash Flow
Free Cash Flow	0.00	8.34B	-2.80B	-10.54B	-1.16B	3.08B
Operating Cash Flow	0.00	8.64B	-2.22B	-8.85B	-444.49M	3.48B
Investing Cash Flow	0.00	-316.07M	-463.32M	-1.49B	-481.77M	-410.36M
Financing Cash Flow	0.00	-7.66B	2.04B	10.08B	-1.34B	-58.86M

Grandy House Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 614.00
• 50DMA: Negative
• 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:8999, the sentiment is Negative. The current price of 614 is below the 20-day moving average (MA) of 646.10, below the 50-day MA of 633.66, and above the 200-day MA of 581.02, indicating a neutral trend. The MACD of 2.72 indicates Positive momentum. The RSI at 37.26 is Neutral, neither overbought nor oversold. The STOCH value of 22.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8999.

Grandy House Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3484	75 Outperform	¥23.77B	13.81	―	2.47%	15.04%	68.39%
2982	74 Outperform	¥21.01B	5.14	―	2.76%	45.01%	89.71%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3300	61 Neutral	¥19.18B	8.85	―	4.52%	-3.46%	-42.76%
5078	61 Neutral	¥16.80B	29.48	―	1.96%	―	―
8999	60 Neutral	¥18.44B	24.88	―	5.27%	-1.41%	194.28%

Grandy House Corporation Corporate Events

Grandy House Lifts Profit Despite Lower Sales, Keeps Dividend Outlook

Grandy House Corporation reported consolidated net sales of ¥38.8 billion for the nine months ended December 31, 2025, down 3.1% year on year, but sharply improved profitability, with operating profit up 60.3% to ¥1.14 billion and profit attributable to owners of parent more than doubling to ¥496 million. The company maintained a solid financial position with stable total assets and an equity ratio of 36.3%, kept its dividend forecast at ¥32 per share for the full fiscal year, and projected full-year net sales of ¥57 billion and a 44% increase in profit attributable to owners of parent, signaling confidence in continued earnings recovery for shareholders.

The most recent analyst rating on (JP:8999) stock is a Hold with a Yen683.00 price target. To see the full list of analyst forecasts on Grandy House Corporation stock, see the JP:8999 Stock Forecast page.