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Mitsui Fudosan (MTSFY) (MTSFY)
:MTSFY
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Mitsui Fudosan
(OTC:MTSFY)
Rating:75Outperform
Price Target:―
Mitsui Fudosan (MTSFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.16B
Dividend Yield1.52%
Average Volume (3M)582.00
Price to Earnings (P/E)16.1
Beta (1Y)0.33
Revenue Growth-6.74%
EPS Growth-13.89%
CountryUS
Employees25,593
SectorReal Estate
Sector Strength62
IndustryReal Estate - Diversified
Share Statistics
EPS (TTM)0.74
Shares Outstanding927,396,550
10 Day Avg. Volume0
30 Day Avg. Volume582
Financial Highlights & Ratios
PEG Ratio-0.61
Price to Book (P/B)1.13
Price to Sales (P/S)0.00
P/FCF Ratio26.08
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Mitsui Fudosan Business Overview & Revenue Model
Company DescriptionMitsui Fudosan Co., Ltd. (MTSFY) is a leading real estate company based in Japan, engaged in a wide array of real estate-related businesses. The company operates through several segments, including leasing, property sales, management, and other services. Mitsui Fudosan is known for its development and management of a diverse portfolio of properties, including office buildings, retail facilities, residential properties, and hotels. Additionally, the company is involved in logistics facilities, mixed-use developments, and real estate investment trust (REIT) management.
How the Company Makes MoneyMitsui Fudosan generates revenue through multiple streams, primarily from its leasing and property sales activities. The leasing segment involves renting out office spaces, commercial facilities, and residential units, providing a stable and recurring revenue flow. Property sales include the sale of condominiums, detached houses, and other residential properties, contributing to significant one-time revenue. The management segment adds revenue by offering property management, brokerage, and consulting services. Additionally, Mitsui Fudosan earns from its interests in real estate investment trusts and through its involvement in urban redevelopment projects. Strategic partnerships and joint ventures, particularly in international markets, also play a critical role in its business expansion and revenue generation.
Mitsui Fudosan Earnings Call Summary
Earnings Call Date:May 09, 2025
(Q3-2024)
| % Change Since: -7.58%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements, including record financial performance and upward revisions of forecasts, indicating strong business momentum. However, challenges such as increased interest burden and losses in nonoperating income and property sales to investors present potential headwinds.Q3-2024 Updates
Positive Updates
Record Highs in Financial Performance
Achieved new record highs for 9-month third quarter in sales, operating income, ordinary income, and profit attributable to owners of parent. Second consecutive record high for operating income and third consecutive record high for net profit.
Upward Revision of Full Year Forecast
Full year forecast for ordinary income revised up from JPY 255 billion to JPY 265 billion, and profit attributable to owners of parent from JPY 215 billion to JPY 220 billion.
Dividend Increase
Full year dividend per share guidance increased by JPY 2 to JPY 72, reflecting the upward revision of the earnings forecast.
Growth in Leasing Segment
Leasing segment revenue increased JPY 47.1 billion and operating income increased JPY 15.2 billion year-on-year, with improvements in office vacancy rates.
Strong Overseas Profit Growth
Overseas profits increased by JPY 20.4 billion year-on-year, with significant contributions from property disposals in the U.S.
Negative Updates
Interest Burden Increase
Interest burden under net interest income and expense increased JPY 17.6 billion year-on-year, primarily due to rising U.S. interest rates.
Decline in Property Sales to Investors
Operating revenue for property sales to investors and overseas individuals fell JPY 35.8 billion and operating income decreased by JPY 12.1 billion year-on-year.
Widening Nonoperating Income and Expense Losses
Overall nonoperating income and expenses was a negative JPY 45.5 billion, a JPY 18.4 billion widening of losses.
Company Guidance
In the third quarter earnings call for Mitsui Fudosan, Executive Manager Atsuro Uchida highlighted several key metrics that underscored the company's financial performance and future outlook. The company achieved record highs in sales, operating income, ordinary income, and profit attributable to owners of parent for the nine-month period, with operating income reaching JPY 245.2 billion, a 15% increase year-on-year. Ordinary income rose by 7.3% to JPY 199.7 billion, while profit attributable to owners of parent surged by 13.1% to JPY 166.4 billion. The full year forecast for ordinary income was revised upwards by JPY 10 billion to JPY 265 billion, and profit attributable to owners of parent was also increased by JPY 5 billion to JPY 220 billion, setting a new record high. In response to these strong results, the company raised its full year dividend per share guidance to JPY 72, up from the previously announced JPY 70, reflecting their confidence in sustained growth. Additionally, the Leasing segment reported significant gains with operating revenues of JPY 606.1 billion, driven by key projects like 50 Hudson Yards in New York, while the Property Sales segment saw mixed results with a decline in operating revenue but stable contract rates. The Management and Facility Operations segments also showed positive momentum, with the latter benefiting from increased ADRs and spectator numbers at Tokyo Dome. Overall, Mitsui Fudosan demonstrated robust financial health and strategic adjustments to capitalize on market conditions.Mitsui Fudosan Financial Statement Overview
Summary
Mitsui Fudosan demonstrates strong financial health characterized by consistent revenue growth, improving profitability margins, and effective cash flow management. While the company maintains a high level of debt typical in the real estate sector, its increasing equity and positive cash flow trends provide a foundation for stability and potential growth. The financial statements reflect a well-managed company with a positive outlook, albeit the high leverage warrants careful monitoring.Income Statement
Mitsui Fudosan shows a strong income statement with consistent revenue growth over the years. The gross profit margin improved from 23.2% in 2023 to 24.9% in 2024, and the net profit margin stood at 9.4% in 2024, up from 8.7% in 2023. EBIT and EBITDA margins have also shown improvement, indicating efficient operations. The revenue growth rate was 5.0% from 2023 to 2024, showing a positive growth trajectory.85
Very Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.42 in 2024, which is relatively high but manageable for the real estate industry. Return on equity (ROE) improved to 7.2% in 2024 from 6.8% in 2023. The equity ratio also increased to 32.8% in 2024, showing a strong equity base. While leverage is high, the company’s equity position is solid, providing stability.70
Positive
Cash Flow
Cash flow analysis indicates a significant improvement in free cash flow, which turned positive in 2024 at ¥20.9 billion from a negative ¥65.0 billion in 2023. The operating cash flow to net income ratio is 1.08 in 2024, suggesting effective conversion of net income into cash. Free cash flow growth is robust, showcasing effective cash management and reduced capital expenditure compared to prior years.78
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.45T | 2.38T | 2.27T | 2.10T | 2.01T | 1.91T | Gross Profit |
| 622.30B | 593.13B | 526.68B | 450.44B | 397.92B | 469.74B | EBIT |
| 430.38B | 339.69B | 305.40B | 244.98B | 203.77B | 280.62B | EBITDA |
| 469.06B | 473.42B | 476.69B | 405.51B | 301.97B | 372.05B | Net Income Common Stockholders |
| 203.81B | 224.65B | 197.00B | 176.99B | 129.58B | 183.97B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 288.97B | 189.81B | 144.26B | 156.23B | 199.64B | 190.31B | Total Assets |
| 9.66T | 9.49T | 8.84T | 8.21T | 7.74T | 7.40T | Total Debt |
| 4.74T | 4.43T | 4.05T | 3.67T | 3.62T | 3.48T | Net Debt |
| 4.46T | 4.25T | 3.91T | 3.52T | 3.43T | 3.30T | Total Liabilities |
| 6.47T | 6.25T | 5.81T | 5.29T | 5.09T | 4.91T | Stockholders Equity |
| 3.07T | 3.11T | 2.90T | 2.80T | 2.56T | 2.41T |
| Cash Flow | Free Cash Flow | ||||
| 134.85B | 20.86B | -65.04B | 29.90B | -88.47B | -386.72B | Operating Cash Flow |
| 134.85B | 241.70B | 297.71B | 271.47B | 187.86B | 87.09B | Investing Cash Flow |
| 0.00 | -286.99B | -422.03B | -210.06B | -131.03B | -532.81B | Financing Cash Flow |
| 0.00 | 59.99B | 111.45B | -139.60B | -66.56B | 467.75B |
Mitsui Fudosan Technical Analysis
Neutral
28.29
Price Trends
28.91
Negative
27.57
Positive
27.20
Positive
Market Momentum
-0.17
Positive
43.18
Neutral
12.98
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTSFY, the sentiment is Neutral. The current price of 28.29 is below the 20-day moving average (MA) of 28.74, below the 50-day MA of 28.91, and above the 200-day MA of 27.20, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 43.18 is Neutral, neither overbought nor oversold. The STOCH value of 12.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MTSFY.
Mitsui Fudosan Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $26.16B | 16.10 | 7.82% | 1.52% | -6.74% | -13.89% | |
74 Outperform | $26.81B | 26.71 | 9.01% | 3.97% | 3.91% | 8.78% | |
72 Outperform | $28.90B | 25.27 | 9.67% | 3.37% | 5.61% | 19.66% | |
70 Outperform | $13.58B | 114.66 | 3.40% | 4.15% | 2.35% | -73.89% | |
63 Neutral | $18.61B | 26.71 | 12.09% | 3.55% | 7.61% | 27.83% | |
61 Neutral | $2.83B | 10.91 | 0.42% | 8438.90% | 5.74% | -20.95% | |
57 Neutral | $18.00B | 31.18 | 9.37% | 3.98% | 1.55% | 0.73% |
* Real Estate Sector Average
Performance Comparison
MTSFY
Mitsui Fudosan
28.29
-0.68
-2.35%
AVB
AvalonBay
203.15
10.06
5.21%
EQR
Equity Residential
68.50
4.90
7.70%
MAA
Mid-America Apartment
149.89
16.79
12.61%
ESS
Essex Property
279.09
18.83
7.24%
UDR
UDR
41.07
2.84
7.43%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.