Mitsui Fudosan (MTSFY) AI Stock Analysis

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Mitsui Fudosan

(OTC:MTSFY)

Rating:77Outperform

Price Target:

$37.00

▲(15.34% Upside)

Mitsui Fudosan's strong technical indicators and positive earnings call results are the primary drivers of its high score. Financial performance is solid but tempered by high leverage, while valuation is fair. The absence of significant corporate events does not affect the score.

Mitsui Fudosan (MTSFY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$30.39B

Dividend Yield2.51%

Average Volume (3M)2.54K

Price to Earnings (P/E)14.6

Beta (1Y)0.34

Revenue Growth13.85%

EPS Growth53.50%

CountryUS

Employees25,593

SectorReal Estate

Sector Strength52

IndustryReal Estate - Diversified

Share Statistics

EPS (TTM)0.93

Shares Outstanding927,396,550

10 Day Avg. Volume1,087

30 Day Avg. Volume2,535

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.88

Enterprise Value/Revenue0.02

Enterprise Value/Gross Profit0.09

Enterprise Value/Ebitda0.11

Forecast

1Y Price Target

$37.00

Price Target Upside15.34% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Mitsui Fudosan Business Overview & Revenue Model

Company DescriptionMitsui 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 MoneyMitsui Fudosan generates revenue through multiple streams, primarily from the leasing of its extensive portfolio of properties, which includes commercial office spaces, retail centers, and residential units. The company also earns income through property sales and development projects, where it builds and sells residential and commercial properties. Additionally, Mitsui Fudosan engages in real estate investment management, providing asset management services for third-party investors. Key partnerships with local and international firms enhance its development capabilities and market reach. The company's strong brand reputation and strategic locations of its properties contribute significantly to its profitability.

Mitsui Fudosan Earnings Call Summary

Earnings Call Date:Aug 05, 2025

(Q3-2024)

% Change Since: |

Next Earnings Date:Nov 05, 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

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.63T	2.63T	2.38T	2.27T	2.10T	2.01T
Gross Profit	635.13B	635.13B	593.13B	526.68B	450.44B	397.92B
EBITDA	509.02B	513.25B	473.42B	430.70B	356.48B	301.97B
Net Income	248.80B	248.80B	224.65B	197.00B	176.99B	129.58B
Balance Sheet
Total Assets	9.86T	9.86T	9.49T	8.84T	8.21T	7.74T
Cash, Cash Equivalents and Short-Term Investments	169.68B	169.68B	189.81B	144.26B	156.23B	199.64B
Total Debt	4.42T	4.42T	4.43T	4.05T	3.67T	3.62T
Total Liabilities	6.59T	6.59T	6.25T	5.81T	5.29T	5.09T
Stockholders Equity	3.15T	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

Positive

Last Price32.08

Price Trends

50DMA

29.41

Positive

100DMA

29.21

Positive

200DMA

27.38

Positive

Market Momentum

MACD

1.13

Positive

RSI

69.33

Neutral

STOCH

47.32

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTSFY, the sentiment is Positive. The current price of 32.08 is above the 20-day moving average (MA) of 31.59, above the 50-day MA of 29.41, and above the 200-day MA of 27.38, indicating a bullish trend. The MACD of 1.13 indicates Positive momentum. The RSI at 69.33 is Neutral, neither overbought nor oversold. The STOCH value of 47.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MTSFY.

Mitsui Fudosan Peers Comparison

Overall Rating

UnderperformOutperform

Sector (53)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTSFY	77 Outperform	$30.39B	14.55	9.89%	2.51%	13.85%	53.50%
VTR	76 Outperform	$31.72B	156.16	1.81%	2.73%	12.45%	―
AVB	73 Outperform	$27.71B	23.88	9.77%	3.52%	6.44%	37.67%
EQR	69 Neutral	$24.62B	24.67	9.20%	4.14%	4.49%	5.87%
WY	65 Neutral	$18.72B	67.99	2.85%	3.21%	-6.57%	-62.32%
IRM	60 Neutral	$27.27B	669.85	-35.81%	3.25%	10.72%	-81.96%
Sector *	53 Neutral	$1.21B	2.91	-5.63%	5.83%	-2.74%	-80.64%

* Real Estate Sector Average

Performance Comparison

MTSFY

Mitsui Fudosan

32.08

-0.23

-0.71%

AVB

AvalonBay

195.85

-22.73

-10.40%

EQR

Equity Residential

66.12

-5.96

-8.27%

IRM

Iron Mountain

92.33

-17.65

-16.05%

VTR

Ventas

68.08

7.77

12.88%

Weyerhaeuser

25.87

-3.74

-12.63%

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 16, 2025