SRE Holdings Corp. (2980) AI Stock Analysis

• Market Cap: ¥63.39B
• Dividend Yield: 0.38%
• Average Volume (3M): 238.62K
• Price to Earnings (P/E): 37.0
• Beta (1Y): 1.41
• Revenue Growth: 10.21%
• EPS Growth: 22.88%
• Country: JP
• Employees: 296
• Sector: Real Estate
• Sector Strength: 68
• Industry: Real Estate - Services
• EPS (TTM): 65.87
• Shares Outstanding: 16,233,786
• 10 Day Avg. Volume: 253,800
• 30 Day Avg. Volume: 238,620
• PEG Ratio: -1.57
• Price to Book (P/B): 4.58
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥3,725.00 ▼(-4.61%Downside)

SRE Holdings Corp.'s strong financial performance is the most significant factor driving the score, showcasing robust growth and efficiency. Technical indicators present mixed signals, adding some uncertainty, while the high valuation relative to industry norms and low dividend yield suggest caution in terms of investment value.

SRE Holdings Corp. Business Overview & Revenue Model

Company Description

SRE Holdings Corp. is a Japanese company engaged in the real estate and technology sectors. It specializes in providing comprehensive real estate solutions by integrating artificial intelligence and IT services into the traditional real estate framework. SRE Holdings leverages its expertise in data analysis and technology to offer innovative real estate consulting and AI-driven property services, enhancing the efficiency and accuracy of real estate transactions and management.

How the Company Makes Money

SRE Holdings Corp. generates revenue through various streams primarily centered on its real estate and technology services. The company earns money by providing real estate consultancy services that utilize advanced data analytics and AI to assist clients in making informed property decisions. Additionally, SRE Holdings offers IT solutions and services that enhance the operational efficiencies of real estate transactions. The company also forms strategic partnerships with other businesses in the real estate sector, allowing for collaborative projects and shared revenue opportunities. These partnerships and the company’s innovative use of technology contribute significantly to its earnings.

SRE Holdings Corp. Financial Statement Overview

Summary

SRE Holdings Corp. shows strong revenue growth and healthy profitability metrics. The income statement is a highlight with solid margins, though a slight revenue decline is a concern. The balance sheet indicates increased leverage, which could pose risks. Cash flow challenges are evident with no free cash flow reported recently, signaling potential operational cash flow issues.

Income Statement

SRE Holdings Corp. has demonstrated strong revenue growth, with a significant increase from 2021 to 2024. The gross profit margin is healthy at approximately 36.2% for TTM, and the net profit margin stands at a solid 4.4%. The company has consistently improved its EBIT and EBITDA margins, indicating efficient operations and cost management. However, a slight decline in total revenue from the previous annual report could be a concern.

Balance Sheet

The company's debt-to-equity ratio has increased, currently at 1.33, suggesting a higher reliance on debt financing which could be risky. The return on equity (ROE) is robust at 7.8% for TTM, showing effective use of equity to generate profits. The equity ratio is 38.3%, indicating moderate financial leverage, though the increase in total liabilities is a point to watch.

Cash Flow

SRE Holdings Corp. has faced challenges in cash flow generation, with zero free cash flow reported for TTM. While previous periods showed positive free cash flow, the recent inability to generate free cash flow could indicate operational cash flow issues. The operating cash flow to net income ratio is unavailable for TTM, further pointing to potential concerns.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
22.74B	24.22B	18.54B	13.57B	7.34B	3.85B
	Gross Profit
8.22B	7.46B	5.78B	4.17B	3.02B	2.53B
	EBIT
2.06B	2.21B	1.69B	1.39B	1.06B	746.75M
	EBITDA
2.58B	2.51B	2.03B	1.57B	1.26B	897.92M
	Net Income Common Stockholders
993.53M	1.39B	1.15B	892.41M	667.02M	473.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.66B	4.66B	5.23B	3.65B	3.47B	3.95B
	Total Assets
24.04B	24.02B	21.96B	23.02B	12.34B	8.05B
	Total Debt
8.43B	8.42B	8.67B	11.64B	3.19B	734.00K
	Net Debt
5.11B	5.06B	4.83B	8.64B	554.80M	-3.18B
	Total Liabilities
11.58B	11.56B	10.64B	13.22B	4.46B	963.74M
	Stockholders Equity
12.27B	12.27B	11.09B	9.80B	7.88B	7.09B
Cash Flow		Free Cash Flow
0.00	73.83M	3.78B	-8.16B	-3.82B	-2.65B
	Operating Cash Flow
0.00	452.64M	4.36B	-7.31B	-3.57B	-2.35B
	Investing Cash Flow
0.00	-376.36M	-427.07M	-1.64B	-253.80M	-351.44M
	Financing Cash Flow
0.00	-554.26M	-3.13B	9.31B	3.28B	3.40B

SRE Holdings Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3905.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2980, the sentiment is Positive. The current price of 3905 is above the 20-day moving average (MA) of 3481.25, above the 50-day MA of 3284.23, and above the 200-day MA of 3542.17, indicating a bullish trend. The MACD of 99.32 indicates Negative momentum. The RSI at 70.85 is Negative, neither overbought nor oversold. The STOCH value of 95.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2980.

SRE Holdings Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8935	81 Outperform	¥40.10B	6.19		4.40%	11.98%	0.42%
2980	71 Outperform	¥63.39B	37.03		0.38%	10.21%	22.88%
2986	68 Neutral	¥41.35B	8.34		4.41%	29.46%	32.52%
3245	63 Neutral	¥47.64B	11.36		4.12%	57.21%	16.38%
3482	61 Neutral	¥44.01B	5.00		2.61%	14.08%	46.84%
Sector *	61 Neutral	$2.81B	10.77	0.50%	8439.03%	5.72%	-20.80%
3496	58 Neutral	¥50.22B	33.87		0.30%	28.02%	37.68%

SRE Holdings Corp. Corporate Events

SRE Holdings Affirms Independence Amid Sony Affiliation

SRE Holdings Corporation announced its relationship with Sony Group Corporation, which holds a 23.30% voting stake in SRE, classifying it as an ‘Other Affiliated Company.’ Despite this affiliation, SRE maintains operational independence, with no significant financial impact from royalties paid to Sony for AI technology use. The company ensures its independence through regulatory oversight and distinct business operations, avoiding competitive overlap with Sony.

SRE Holdings Corp. Reports Strong Financial Growth for FY 2025

SRE Holdings Corporation reported a significant increase in its consolidated financial results for the fiscal year ended March 31, 2025, with net sales rising by 10.2% and operating profit increasing by 40.5%. The company also announced a dividend payment of 15 yen per share, reflecting a positive outlook for stakeholders. The inclusion of MEDIX Co, Ltd. into its consolidation scope and changes in accounting policies have been noted, indicating strategic expansion and adaptation to new standards.