Mitsui Fudosan Co (8801) AI Stock Analysis

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JP:8801 Dividends

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Mitsui Fudosan Co

(OTC:8801)

73Outperform

Mitsui Fudosan's strong financial performance, evidenced by revenue growth and profitability, is a major strength, though it faces some leverage risks. The earnings call provides a positive outlook with record highs in financial metrics and revised forecasts, while technical analysis supports a cautious but generally positive view. Valuation remains balanced, enhancing the stock's attractiveness. Overall, the company appears well-positioned but should address cash flow management to support sustainable growth.

Mitsui Fudosan Co (8801) vs. S&P 500 (SPY)

Market Cap

$3.92T

Dividend Yield2%

Average Volume (3M)10.27M

Price to Earnings (P/E)19.5

Beta (1Y)0.87

Revenue Growth0.83%

EPS Growth-6.10%

CountryJP

Employees25,593

SectorReal Estate

Sector Strength76

IndustryReal Estate - Diversified

Share Statistics

EPS (TTM)72.35

Shares Outstanding2,782,189,700

10 Day Avg. Volume7,551,010

30 Day Avg. Volume10,266,573

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

Price to Cash Flow (P/CF)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$1,650.00

Price Target Upside16.90% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Mitsui Fudosan Co Business Overview & Revenue Model

Company DescriptionMitsui Fudosan Co., Ltd. is a leading real estate development company based in Japan. The company operates across various sectors including office buildings, retail properties, housing, logistics facilities, and hotels. As a key player in the real estate industry, Mitsui Fudosan focuses on urban development, property management, and real estate investment, aiming to enhance the value of urban environments and create sustainable communities.

How the Company Makes MoneyMitsui Fudosan Co., Ltd. generates revenue primarily through the development and leasing of commercial real estate properties such as office buildings, shopping centers, and logistics facilities. The company also earns income from residential real estate sales, property management services, and real estate investment trusts (REITs). Additionally, Mitsui Fudosan is involved in urban redevelopment projects and international real estate ventures, which further contribute to its earnings. Strategic partnerships and joint ventures with other real estate and investment firms also play a significant role in expanding its portfolio and revenue streams.

Mitsui Fudosan Co Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
2.36T	2.38T	2.27T	2.10T	2.01T	1.91T
	Gross Profit
575.09B	593.13B	526.68B	450.44B	397.92B	469.74B
	EBIT
384.80B	339.69B	305.40B	244.98B	203.77B	280.62B
	EBITDA
450.79B	473.42B	430.70B	356.48B	301.97B	372.05B
	Net Income Common Stockholders
202.21B	224.65B	197.00B	176.99B	129.58B	183.97B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
239.69B	189.81B	144.26B	156.23B	199.64B	190.31B
	Total Assets
9.82T	9.49T	8.84T	8.21T	7.74T	7.40T
	Total Debt
4.94T	4.43T	4.05T	3.67T	3.62T	3.48T
	Net Debt
4.70T	4.25T	3.91T	3.52T	3.43T	3.30T
	Total Liabilities
6.69T	6.25T	5.81T	5.29T	5.09T	4.91T
	Stockholders Equity
3.01T	3.11T	2.90T	2.80T	2.56T	2.41T
Cash Flow		Free Cash Flow
0.00	20.86B	-65.04B	29.90B	-88.47B	-386.72B
	Operating Cash Flow
0.00	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 Co Technical Analysis

Technical Analysis Sentiment

Positive

Last Price1411.50

Price Trends

50DMA

1332.38

Positive

100DMA

1302.17

Positive

200DMA

1349.53

Positive

Market Momentum

MACD

28.23

Negative

RSI

55.74

Neutral

STOCH

75.60

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8801, the sentiment is Positive. The current price of 1411.5 is above the 20-day moving average (MA) of 1375.97, above the 50-day MA of 1332.38, and above the 200-day MA of 1349.53, indicating a bullish trend. The MACD of 28.23 indicates Negative momentum. The RSI at 55.74 is Neutral, neither overbought nor oversold. The STOCH value of 75.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8801.

Mitsui Fudosan Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8801	73 Outperform	$3.92T	19.52	6.51%	2.00%	0.83%	-6.10%
3289	72 Outperform	$718.89B	10.10	9.23%	3.14%	6.15%	12.10%
8804	69 Neutral	¥527.77B	8.03	12.46%	3.47%	23.35%	46.19%
8802	68 Neutral	$3.00T	15.61	8.35%	1.63%	16.32%	43.72%
8830	68 Neutral	¥2.56T	14.24	8.41%	1.23%	5.85%	3.72%
Sector *	59 Neutral	$2.73B	11.65	0.11%	8783.19%	5.45%	-17.32%
8803	59 Neutral	€176.13B	28.44	4.72%	2.90%	-25.86%	-45.61%

* Real Estate Sector Average

Performance Comparison

JP:8801

Mitsui Fudosan Co

1,411.50

-124.97

-8.13%

JP:8803

Heiwa Real Estate Co., Ltd.

4,735.00

649.30

15.89%

JP:3289

Tokyu Fudosan Holdings

994.90

-118.13

-10.61%

JP:8802

Mitsubishi Estate Company

2,456.00

-302.86

-10.98%

JP:8830

Sumitomo Realty & Development Co

5,358.00

35.57

0.67%

JP:8804

Tokyo Tatemono Co

2,526.50

56.96

2.31%

Mitsui Fudosan Co Earnings Call Summary

Earnings Call Date: Feb 7, 2025 | % Change Since: 2.19% | Next Earnings Date: May 9, 2025

Earnings Call Sentiment Positive

The earnings call detailed significant achievements including record highs in various financial metrics, an upward revision of forecasts, and strong performance in segments such as leasing and overseas operations. However, the call also highlighted challenges such as increased interest burden and a decline in property sales to investors. Despite these issues, the positive highlights overshadow the lowlights, indicating overall strong financial health and performance.

Highlights

Record Highs in Key Financial Metrics

Achieved new record highs for 9-month third quarter in sales, operating income, ordinary income, and profit attributable to owners. Second consecutive record for operating income and third for net profit.

Upward Revision of Full Year Forecast

Revised full year forecast for ordinary income from JPY 255 billion to JPY 265 billion and profit attributable to owners from JPY 215 billion to JPY 220 billion, setting new record highs.

Dividend Increase

Increased full year dividend per share guidance to JPY 72 from JPY 70, with fiscal year-end dividend per share raised to JPY 37 from JPY 35.

Leasing Segment Performance

Leasing segment recorded 9-month operating revenues of JPY 606.1 billion and operating income of JPY 130.7 billion, with a notable reduction in office vacancy rates to the low 2% range.

Strong Overseas Profits

Overseas profits increased by JPY 20.4 billion year-on-year, with leasing and property sales segments showing significant revenue and profit growth.

Facility Operations Growth

Facility Operations segment saw operating revenues improve by JPY 37.6 billion year-on-year and operating income rise by JPY 24.4 billion, driven by improved ADRs and increased spectators at Tokyo Dome.

Lowlights

Interest Burden Increase

Interest burden under net interest income and expense increased by JPY 17.6 billion year-on-year due to rising U.S. interest rates.

Decline in Property Sales to Investors

Property sales to investors and overseas individuals saw a decline with operating revenue down JPY 35.8 billion and operating income down JPY 12.1 billion year-on-year.

Nonoperating Income and Expense Losses

Nonoperating income and expenses faced a negative JPY 45.5 billion, widening losses by JPY 18.4 billion.

Company Guidance

During the third quarter earnings call for Mitsui Fudosan, Executive Manager Atsuro Uchida highlighted several key metrics reflecting the company's strong financial performance and revised forecasts. The company achieved record highs in sales, operating income, ordinary income, and profit attributable to owners of the parent for the nine-month period, with operating revenue reaching JPY 1.699 trillion, a 4.5% increase year-on-year. Operating income rose by 15% to JPY 245.2 billion, while ordinary income increased by 7.3% to JPY 199.7 billion. Profit attributable to owners of the parent grew by 13.1% to JPY 166.4 billion. The company also revised its full-year forecasts, raising ordinary income from JPY 255 billion to JPY 265 billion and profit attributable to owners of the parent from JPY 215 billion to JPY 220 billion. Additionally, the full-year dividend per share guidance was increased to JPY 72 from JPY 70, signaling confidence in continued strong performance. The call also detailed segment results, with notable improvements in the Leasing and Facility Operations segments, and discussed the impact of foreign exchange rates on the balance sheet. Overall, Mitsui Fudosan demonstrated robust progress toward its financial targets, underpinned by strategic investments and favorable market conditions.

Mitsui Fudosan Co Corporate Events

Mitsui Fudosan Announces Share Repurchase Progress

Apr 1, 2025

Mitsui Fudosan Co., Ltd. announced the repurchase of 1,430,400 of its common shares for a total of 1,780,332,350 yen, conducted through open market purchases on the Tokyo Stock Exchange during March 2025. This move is part of a broader share repurchase program approved by the board, allowing for the repurchase of up to 50 million shares, reflecting the company’s strategy to enhance shareholder value and optimize its capital structure.

Mitsui Fudosan Revises Stock Compensation System to Align with Long-Term Vision

Mar 27, 2025

Mitsui Fudosan Co., Ltd. announced a revision to its stock compensation system for directors, excluding outside directors, as part of a broader review of its officer compensation strategy. This revision, aligned with the company’s Long-Term Vision & INNOVATION 2030, aims to enhance corporate value and shareholder engagement by introducing restricted stock units (RSUs) to secure funds for tax liabilities when transfer restrictions on restricted stock are lifted.

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.