Mitsui Fudosan (MTSFY) AI Stock Analysis

• Market Cap: $31.30B
• Dividend Yield: 1.86%
• Average Volume (3M): 1.38K
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.27
• Revenue Growth: 19.34%
• EPS Growth: 74.50%
• Country: US
• Employees: 25,593
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 0.48
• Shares Outstanding: 918,638,200
• 10 Day Avg. Volume: 1,802
• 30 Day Avg. Volume: 1,380
• PEG Ratio: 1.33
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 1.43
• P/FCF Ratio: 11.42
• Enterprise Value/Market Cap: 302.59
• Enterprise Value/Revenue: 3.39
• Enterprise Value/Gross Profit: 13.68
• Enterprise Value/Ebitda: 16.64
• 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: 69 Neutral
• Price Target: $37.00 ▲(4.61% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is primarily supported by solid financial performance led by strong revenue growth and stable margins, but is held back by higher leverage and only moderate operating cash flow efficiency. Technically, the uptrend is positive, yet overbought momentum signals increase short-term risk. Valuation appears reasonable on earnings but offers limited support from dividend yield.

Positive Factors

Strong revenue growth

Sustained double-digit revenue growth indicates durable demand across Mitsui Fudosan's businesses and validates execution on development and leasing. Over 2-6 months this supports recurring cash inflows, strengthens forecasting, and underpins reinvestment in projects and tenant relationships.

Diversified real estate portfolio

A broad mix across office, retail, residential, logistics and hospitality reduces single-segment cyclicality and provides multiple recurring income streams. This structural diversification enhances resilience to localized downturns and supports steady long-term rental and fee revenue.

Healthy free cash flow conversion

Strong free cash flow conversion signals the business converts profits into cash at a solid rate, enabling debt servicing, development funding, and distributions. Over months this improves financial flexibility and reduces reliance on external financing for pipeline execution.

Negative Factors

Elevated leverage

A debt-to-equity ratio around 1.40 indicates significant leverage for a real estate operator; this raises sensitivity to interest rate moves and refinancing risk. Over several months higher interest costs can compress cash flow available for development and capital allocation.

Moderate operating cash efficiency

Operating cash flow at ~32% of net income suggests profits are not fully converting to near-term cash, leaving funding gaps for capex or debt repayment. Structurally this constrains liquidity buffers and heightens reliance on project timing and asset sales for cash needs.

Pressure on operating margin

A declining EBIT margin points to rising operating costs or lower operating leverage in parts of the portfolio. Persisting margin pressure reduces internal cash generation capacity and could limit reinvestment or resilience during slower market conditions over the medium term.

Mitsui Fudosan Business Overview & Revenue Model

Company Description

Mitsui Fudosan Co., Ltd. operates as a real estate company in Japan. It operates through four segments: Leasing, Property Sales, Management, and Other. The Leasing segment leases office buildings and commercial facilities, and other properties. The Property Sales segment is involved in the sale of condominiums and detached housing to individuals; and rental housing and office buildings and other to investors. The Management segment engages in the property management and brokerage and asset management businesses. The Other segment engages in the housing construction and renovation business; and housing related material sales business. The company also offers car park leasing services; and operates hotels, golf courses, and resort facilities. In addition, it engages in the renewal work for offices and retail facilities; and electricity transmission and distribution and heat supply businesses, as well as operates as a retailer of flowers and ornamental plants, seeds, and other gardening products. The company was founded in 1941 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mitsui Fudosan primarily makes money through a mix of recurring income from owned/managed properties and transaction-based income from development and sales. Key revenue streams include: (1) Leasing and operations: rent and related income from office buildings, retail facilities (e.g., shopping centers), logistics/industrial properties, and residential rentals; occupancy levels and rent rates are major drivers. (2) Property and facility management: fees earned for managing buildings and residential properties for both Mitsui Fudosan-owned assets and third-party owners, including operations, maintenance, and tenant services. (3) Real estate sales/development: profits from developing and selling condominiums, houses, and other properties, as well as gains from selling investment properties; results can be more cyclical and depend on development pipeline, market pricing, and timing of project completions and dispositions. (4) Hospitality and related operations: income from hotel and resort-related businesses and services tied to its real estate assets (to the extent operated within the group rather than purely leased to third parties). (5) Other real-estate-related businesses: revenue from ancillary services tied to its platforms and commercial properties (e.g., tenant-related services and value-added real estate solutions), where applicable. The company’s earnings are influenced by Japanese and global real estate conditions, interest rates and financing costs, asset valuation and disposal timing, and the scale and performance of its development pipeline; specific significant partnerships are null.

Mitsui Fudosan Financial Statement Overview

Summary

Income statement strength (78) is driven by solid revenue growth (+11.19%) and stable profitability, but operating efficiency appears slightly pressured via a lower EBIT margin. Balance sheet leverage is a key risk (debt-to-equity 1.40) despite improved ROE (7.90%). Cash flow is improving but cash generation efficiency is only moderate (operating cash flow to net income 0.32), keeping the cash flow score (65) restrained.

Income Statement

Mitsui Fudosan has demonstrated strong revenue growth, with an 11.19% increase in the latest year, indicating robust demand and effective business strategies. The gross profit margin remains healthy at 24.19%, and the net profit margin is stable at 9.48%, reflecting efficient cost management. However, the EBIT margin has slightly decreased, suggesting potential pressure on operating efficiency.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 1.40, indicating significant leverage, which could pose risks if not managed carefully. However, the return on equity has improved to 7.90%, showcasing better profitability for shareholders. The equity ratio stands at a moderate level, suggesting a balanced asset structure.

Cash Flow

Mitsui Fudosan's free cash flow has shown substantial growth, but the operating cash flow to net income ratio is moderate at 0.32, indicating room for improvement in cash generation efficiency. The free cash flow to net income ratio is healthy at 0.55, reflecting good cash conversion from profits.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	2.80T	2.63T	2.38T	2.27T	2.10T	2.01T
Gross Profit	692.16B	635.13B	593.13B	526.68B	450.44B	397.92B
EBITDA	569.22B	513.25B	473.42B	476.69B	356.48B	301.97B
Net Income	308.01B	248.80B	224.65B	197.00B	176.99B	129.58B
Balance Sheet
Total Assets	9.75T	9.86T	9.49T	8.84T	8.21T	7.74T
Cash, Cash Equivalents and Short-Term Investments	234.28B	169.68B	189.81B	144.26B	156.23B	199.64B
Total Debt	4.52T	4.42T	4.43T	4.05T	3.67T	3.62T
Total Liabilities	6.43T	6.59T	6.25T	5.81T	5.29T	5.09T
Stockholders Equity	3.21T	3.15T	3.11T	2.90T	2.80T	2.56T
Cash Flow
Free Cash Flow	0.00	327.77B	20.86B	-65.04B	29.90B	-88.47B
Operating Cash Flow	0.00	599.25B	241.70B	297.71B	271.47B	187.86B
Investing Cash Flow	0.00	-321.97B	-286.99B	-422.03B	-210.06B	-131.03B
Financing Cash Flow	0.00	-269.37B	59.99B	111.45B	-139.60B	-66.56B

Mitsui Fudosan Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTSFY, the sentiment is Negative. The current price of 35.37 is below the 20-day moving average (MA) of 37.31, below the 50-day MA of 36.86, and above the 200-day MA of 32.86, indicating a neutral trend. The MACD of -0.94 indicates Positive momentum. The RSI at 35.84 is Neutral, neither overbought nor oversold. The STOCH value of 10.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MTSFY.

Mitsui Fudosan Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EQR	71 Outperform	$21.89B	21.34	10.14%	4.52%	4.78%	24.74%
AVB	70 Outperform	$22.61B	38.46	8.88%	3.83%	7.06%	12.05%
MTSFY	69 Neutral	$31.30B	17.80	10.15%	1.86%	19.34%	74.50%
VTR	66 Neutral	$40.13B	140.08	2.10%	2.45%	15.69%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
IRM	58 Neutral	$29.47B	169.47	-17.37%	3.98%	10.88%	51.13%
WY	53 Neutral	$16.19B	57.73	3.41%	3.57%	-1.64%	-37.58%