Heiwa Real Estate Co., Ltd. (8803) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Tokyo Tatemono Co., Ltd.

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Hulic Co., Ltd.

Starts Corp., Inc.

Nomura Real Estate Holdings, Inc.

Heiwa Real Estate Co., Ltd.

AEON Mall Co., Ltd.

Relo Group, Inc.

Ichigo, Inc.

Sumitomo Realty & Development Co., Ltd.

Tokyu Fudosan Holdings Corp.

Why is Heiwa Real Estate Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 7.21%

Poor long term growth as Operating profit has grown by an annual rate of 3.89%

The company declared positive results in Mar'25 after very negative results in Dec'24

NET SALES(HY) At JPY 19,649 MM has Grown at 20.05%

With ROE of 8.11%, it has a very attractive valuation with a 1.48 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -1.43%, its profits have risen by 13% ; the PEG ratio of the company is 1.4
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

Even though the market (Japan Nikkei 225) has generated returns of 36.73% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -1.43% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Heiwa Real Estate Co., Ltd. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

No Data Found

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.00%

EBIT Growth (5y)

3.89%

EBIT to Interest (avg)

8.69

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

23.07%

Dividend Payout Ratio

50.16%

Pledged Shares

Institutional Holding

ROCE (avg)

15.23%

ROE (avg)

7.21%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.48

EV to EBIT

11.26

EV to EBITDA

7.89

EV to Capital Employed

1.62

EV to Sales

3.53

PEG Ratio

1.39

Dividend Yield

0.03%

ROCE (Latest)

14.43%

ROE (Latest)

8.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

NET SALES(HY)

At JPY 19,649 MM has Grown at 20.05%

-15What is not working for the Company

INTEREST(HY)

At JPY 1,233 MM has Grown at 33.44%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.87 times

RAW MATERIAL COST(Y)

Grown by 8.38% (YoY

PRE-TAX PROFIT(Q)

At JPY 2,600 MM has Fallen at -28.05%

NET PROFIT(Q)

At JPY 1,819 MM has Fallen at -30.58%

Here's what is working for Heiwa Real Estate Co., Ltd.

Net Sales

At JPY 19,649 MM has Grown at 20.05%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Depreciation

Highest at JPY 1,522 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Heiwa Real Estate Co., Ltd.

Interest

At JPY 1,233 MM has Grown at 33.44%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 0.87 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Pre-Tax Profit

At JPY 2,600 MM has Fallen at -28.05%

over average net sales of the previous four periods of JPY 3,613.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,819 MM has Fallen at -30.58%

over average net sales of the previous four periods of JPY 2,620.25 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Raw Material Cost

Grown by 8.38% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales