TSUKURUBA, Inc. (2978) AI Stock Analysis

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TSUKURUBA, Inc.

(TSE/TYO:2978)

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Rating:52Neutral

Price Target:JPY 276.00▲(1.10% Upside)

Action:upgraded

Date:09/15/26

TSUKURUBA's overall score is severely impacted by fundamental vulnerabilities despite impressive top-line growth. Deteriorating margins, elevated debt levels, and an inability to generate positive free cash flow are the most significant risks. A stretched valuation (31.1x P/E) and long-term bearish technical trends further constrain the stock's outlook, leaving little margin of safety for investors.

Positive Factors

Rapid Revenue GrowthRapid revenue expansion indicates that the residential real-estate platform is increasing transaction activity and scaling its commercial reach. Continued top-line growth can strengthen operating infrastructure, broaden customer engagement, and provide a foundation for improving earnings over the next several quarters.

Negative Factors

Thin and Compressing MarginsMeaningful margin compression has limited the earnings benefit from strong sales growth, leaving only a small operating cushion. With EBIT margin near 1.5%, modest increases in costs or weaker transaction economics could materially reduce profits and slow the company’s progress toward more durable returns.

TSUKURUBA, Inc. (2978) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 3.26B
Dividend Yield: ―
Average Volume (3M): 6,310
Price to Earnings (P/E): 24.7
Beta (1Y): 0.43
Revenue Growth: 39.66%
EPS Growth: 11.78%
Country: Japan
Employees: 289
Sector: General
Sector Strength: 55
Industry: Real Estate - Services

TSUKURUBA, Inc. Business Overview & Revenue Model

Company Description

Tsukuruba Inc. specializes in technology-driven services for the real estate sector. A key initiative is their creation of cowcamo, a digital brokerage platform tailored for pre-owned and refurbished properties. Beyond this, they extend their experti...

How the Company Makes Money

The company generates revenue primarily from its residential real-estate transaction platform and related services. Key revenue streams include (1) fees or commissions earned when property transactions are facilitated through its marketplace (e.g., b...

TSUKURUBA, Inc. Financial Statement Overview

Summary

TSUKURUBA shows explosive revenue growth and recently achieved profitability. However, deteriorating gross margins (falling to 34.4%), a heavy debt burden (1.54x debt-to-equity), and persistent negative free cash flows significantly weigh down its fundamental health.

Income Statement

68Positive

Balance Sheet

62Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Jul 2026	Jul 2025	Jul 2024	Jul 2023	Jul 2022
Income Statement
Total Revenue	11.31B	11.31B	8.10B	5.48B	4.15B	2.77B
Gross Profit	3.89B	3.89B	3.54B	2.82B	2.52B	1.84B
EBITDA	190.82M	192.95M	231.85M	250.97M	-111.13M	-773.45M
Net Income	127.43M	127.43M	106.64M	215.66M	-165.52M	-822.42M
Balance Sheet
Total Assets	6.21B	6.21B	6.14B	4.22B	3.06B	2.88B
Cash, Cash Equivalents and Short-Term Investments	1.69B	1.69B	1.87B	1.92B	1.77B	1.65B
Total Debt	3.38B	3.38B	3.65B	2.12B	1.19B	1.64B
Total Liabilities	4.02B	4.02B	4.21B	2.42B	1.55B	1.97B
Stockholders Equity	2.19B	2.19B	1.93B	1.80B	1.51B	909.61M
Cash Flow
Free Cash Flow	0	-75.04M	-1.50B	-939.00M	-94.33M	-1.11B
Operating Cash Flow	0	16.09M	-1.48B	-900.55M	-85.48M	-1.03B
Investing Cash Flow	0	-105.80M	-76.00M	81.07M	-59.26M	-108.78M
Financing Cash Flow	0	-95.58M	1.50B	954.28M	263.01M	544.46M

TSUKURUBA, Inc. Technical Analysis

Technical Analysis SentimentNegative

Last Price273.00

Price Trends

50DMA312.26Negative

100DMA328.99Negative

200DMA376.71Negative

Market Momentum

MACD-12.01Positive

RSI32.93Neutral

STOCH48.25Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2978, the sentiment is Negative. The current price of 273.00 is below the 20-day moving average (MA) of 290.90, below the 50-day MA of 312.26, and below the 200-day MA of 376.71, indicating a bearish trend. The MACD of -12.01 indicates Positive momentum. The RSI at 32.93 is Neutral, neither overbought nor oversold. The STOCH value of 48.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2978.

TSUKURUBA, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:2978 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4487	74Outperform	JPY 2.46B	12.81	―	―	28.76%	-20.95%
JP:8944	66Neutral	JPY 4.96B	2.63	―	2.52%	65.37%	―
JP:4445	64Neutral	JPY 4.73B	32.95	―	―	3.83%	-45.88%
JP:8996	63Neutral	JPY 4.46B	4.49	―	4.97%	18.59%	78.41%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:2978	52Neutral	JPY 3.20B	24.68	―	―	39.66%	11.78%
JP:3238	45Neutral	JPY 3.41B	4.95	―	1.44%	30.03%	34.91%

* General Sector Average

Performance Comparison

JP:2978 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:2978	TSUKURUBA, Inc.	273.00	-222.00	-44.85%
JP:3238	Central General Development Co., Ltd.	347.00	-62.49	-15.26%
JP:4445	Living Technologies, Inc.	1770.00	-70.00	-3.80%
JP:4487	Space Market, Inc.	199.00	-122.00	-38.01%
JP:8944	Land Business Co., Ltd.	238.00	3.69	1.58%
JP:8996	HouseFreedom Co., Ltd.	1110.00	193.54	21.12%

TSUKURUBA, Inc. Corporate Events

TSUKURUBA Boosts Sales and Equity but Faces Margin Pressure in FY2026

Sep 14, 2026

TSUKURUBA, Inc. reported robust top-line growth for the fiscal year ended July 31, 2026, with net sales rising 39.7% to ¥11,310 million. However, profitability weakened as operating profit fell 38.1% to ¥169 million and ordinary profit dropped 80.9%...

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: Sep 15, 2026

TSUKURUBA, Inc. AI Stock Analysis