Sekisui House (1928) AI Stock Analysis

• Market Cap: $2.18T
• Dividend Yield: 3.65%
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.79
• Revenue Growth: 30.62%
• EPS Growth: 8.49%
• Country: JP
• Employees: 32,265
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Residential Construction
• EPS (TTM): 335.92
• Shares Outstanding: 662,996,900
• 10 Day Avg. Volume: 1,196,820
• 30 Day Avg. Volume: 1,848,960
• PEG Ratio: -3.01
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4,237.07
• Price Target Upside: 27.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Sekisui House's strong financial performance, particularly in revenue and profit growth, is a key strength, supported by a solid balance sheet. However, negative free cash flow poses a risk. Technically, the stock shows signs of a downtrend, but the valuation is attractive with a low P/E ratio and high dividend yield. Overall, the company has potential but needs careful cash flow management to mitigate risks.

Sekisui House Business Overview & Revenue Model

Company Description

Sekisui House, founded in 1928, is a leading Japanese homebuilder and one of the largest residential construction companies globally. The company is primarily involved in the design, construction, and sale of residential properties, including detached houses, rental housing, and condominiums. Sekisui House also engages in urban development, remodeling, and real estate management services, operating across Japan and internationally in markets such as the United States, Australia, and China.

How the Company Makes Money

Sekisui House generates revenue through several key streams. The primary source is the construction and sale of residential properties, including custom-built detached homes and multi-family rental properties. The company also earns income from its real estate development projects, such as the development and sale of condominiums and large-scale urban development projects. Additionally, Sekisui House provides remodeling services, which offer a recurring revenue stream as homeowners seek to update or expand existing properties. The company's real estate management services, which include property management and leasing services, further contribute to its earnings. Strategic partnerships and joint ventures with local developers and real estate companies in international markets also play a significant role in expanding its revenue base.

Sekisui House Financial Statement Overview

Summary

Sekisui House demonstrates strong revenue and profit growth with improving margins and operational efficiency. The balance sheet is solid, showcasing financial stability with reasonable debt levels. However, cash flow management is a concern due to negative free cash flow, indicating potential liquidity risks if not addressed.

Income Statement

Sekisui House has demonstrated strong revenue growth, increasing from ¥2.41 trillion to ¥4.06 trillion over the past five years. The gross profit margin has consistently improved, reaching 19.37% in the latest year. Net profit margin stands at 5.37%, supported by a solid EBIT margin of 8.16% and an EBITDA margin of 9.03%, indicating operational efficiency and profitability. The revenue growth rate from 2024 to 2025 was an impressive 30.63%, showcasing robust market demand and effective business strategies.

Balance Sheet

The balance sheet reveals a significant increase in total assets to ¥4.81 trillion, with a healthy equity ratio of 40.81%, reflecting financial stability. The debt-to-equity ratio is 0.94, indicating manageable leverage levels. Return on equity is strong at 11.09%, suggesting efficient use of shareholders' funds. However, the rise in total debt to ¥1.85 trillion warrants monitoring to ensure continued balance sheet health.

Cash Flow

Sekisui House's operating cash flow has been positive, with a ratio of operating cash flow to net income at 0.29, indicating good cash conversion from earnings. The free cash flow to net income ratio is negative, reflecting current capital expenditures exceeding operating cash flow, which could pressure liquidity if sustained long-term. Free cash flow growth has been volatile, highlighting a potential risk in cash management practices.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
4.06T	3.11T	2.93T	2.59T	2.45T
	Gross Profit
785.99B	623.75B	584.30B	528.88B	473.51B
	EBIT
331.37B	270.96B	261.49B	230.16B	186.52B
	EBITDA
366.60B	332.82B	303.28B	263.67B	211.38B
	Net Income Common Stockholders
217.71B	202.32B	184.52B	153.91B	123.54B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
390.56B	293.15B	332.90B	515.28B	600.28B
	Total Assets
4.81T	3.35T	3.01T	2.80T	2.63T
	Total Debt
1.90T	750.80B	584.54B	542.01B	555.20B
	Net Debt
1.51T	457.65B	251.64B	26.73B	-45.08B
	Total Liabilities
2.79T	1.56T	1.34T	1.28T	1.26T
	Stockholders Equity
1.96T	1.75T	1.63T	1.47T	1.33T
Cash Flow		Free Cash Flow
-13.81B	-61.25B	33.30B	35.08B	104.48B
	Operating Cash Flow
62.88B	15.68B	125.46B	118.03B	191.97B
	Investing Cash Flow
-697.69B	-69.12B	-165.41B	-113.71B	-95.50B
	Financing Cash Flow
720.97B	6.48B	-155.78B	-111.70B	-77.61B

Sekisui House Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3333.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1928, the sentiment is Neutral. The current price of 3333 is above the 20-day moving average (MA) of 3231.95, above the 50-day MA of 3296.48, and below the 200-day MA of 3527.24, indicating a neutral trend. The MACD of 5.88 indicates Negative momentum. The RSI at 57.98 is Neutral, neither overbought nor oversold. The STOCH value of 87.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1928.

Sekisui House Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1925	77 Outperform	$3.37T	10.37	12.60%	2.73%	2.93%	-8.11%
1926	72 Outperform	¥104.88B	14.08		2.78%	3.37%	8.07%
1928	71 Outperform	$2.18T	9.92	11.53%	3.65%	30.62%	8.49%
1861	64 Neutral	€187.61B	62.85	1.68%	3.24%	9.51%	-69.64%
Sector *	61 Neutral	$6.68B	11.75	3.01%	3.94%	2.61%	-21.96%
1801	61 Neutral	$1.45T	13.93	11.76%	2.55%	27.41%	214.53%
1803	60 Neutral	$1.02T	13.71	9.28%	2.33%	-8.60%	1300.80%

Sekisui House Corporate Events

Sekisui House Strengthens Corporate Governance and Reduces Cross-Shareholdings

Sekisui House has announced its commitment to enhancing corporate governance by adhering to the principles of the Corporate Governance Code. The company is actively reducing cross-shareholdings to improve capital efficiency, targeting a reduction to 3% or less of consolidated net assets by the end of January 2026. This move is part of their Sixth Medium-Term Management Plan, reflecting a strategic effort to optimize asset management and strengthen stakeholder trust.