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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Tokyu Fudosan Holdings Corp.

Ichigo, Inc.

Daito Trust Construction Co. Ltd.

Starts Corp., Inc.

Relo Group, Inc.

Heiwa Real Estate Co., Ltd.

Nomura Real Estate Holdings, Inc.

AEON Mall Co., Ltd.

Hulic Co., Ltd.

Sumitomo Realty & Development Co., Ltd.

Tokyo Tatemono Co., Ltd.

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 28,251 MM has Grown at 46.4%
NET PROFIT(HY) At JPY 6,884 MM has Grown at 122.68%

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 5.04%, 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

The stock has generated a return of 5.04% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 29.35%

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

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

No Trend

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

18What is working for the Company

NET SALES(HY)

At JPY 28,251 MM has Grown at 46.4%

NET PROFIT(HY)

At JPY 6,884 MM has Grown at 122.68%

-12What is not working for the Company

INTEREST(HY)

At JPY 1,170 MM has Grown at 34.02%

DEBT-EQUITY RATIO (HY)

Highest at 198.29 %

RAW MATERIAL COST(Y)

Grown by 9.02% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.03%

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

Net Profit

At JPY 6,884 MM has Grown at 122.68%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

At JPY 13,123 MM has Grown at 24.76%

over average net sales of the previous four periods of JPY 10,518.75 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Profit

Higher at JPY 6,884 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (JPY MM)

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

Interest

At JPY 1,170 MM has Grown at 34.02%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 198.29 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 1.03%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 9.02% (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