Central General Development Co., Ltd. (3238) AI Stock Analysis

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Central General Development Co., Ltd.

(TSE/TYO:3238)

Select Model

Rating:50Neutral

Price Target:JPY 353.00▲(0.00% Upside)

Action:reiterated

Date:11/12/26

The score is held back primarily by weakening financial quality—margin compression, higher leverage, and persistently negative free cash flow—alongside bearish price trends below major moving averages. These risks are partially offset by an inexpensive valuation (low P/E) and a modest dividend yield.

Positive Factors

Revenue growthThe upward revenue trend indicates continued project deliveries or sales activity, with particularly strong growth in 2026. Sustained top-line expansion can support future earnings recovery if the company improves pricing, cost control, and project-level profitability.

Negative Factors

Higher leverageThe substantial increase in debt relative to equity leaves the company with a more risk-prone capital structure and a smaller earnings buffer. Higher leverage can restrict financial flexibility, increase funding sensitivity, and make future development investment more dependent on external capital.

Central General Development Co., Ltd. (3238) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 3.35B
Dividend Yield: 1.43%
Average Volume (3M): 18.02K
Price to Earnings (P/E): 5.0
Beta (1Y): 0.43
Revenue Growth: 30.03%
EPS Growth: 34.91%
Country: Japan
Employees: 176
Sector: Real Estate
Sector Strength: 65
Industry: Real Estate - Development

Central General Development Co., Ltd. Business Overview & Revenue Model

Company Description

Central General Development Co., Ltd. operates within the real estate sector across Japan. Its core business involves the conceptualization, building, and marketing of residential condominium units. Beyond property development, the firm provides rent...

How the Company Makes Money

Central General Development Co., Ltd. primarily makes money through real estate development economics, where revenue is recognized when properties are sold and delivered to customers. Key revenue streams typically include: (1) Sales of developed prop...

Central General Development Co., Ltd. Financial Statement Overview

Summary

Despite improving revenue (notably +18.0% YoY in 2026), profitability has deteriorated sharply (net margin down to 0.4% in 2026). Balance sheet risk has risen with higher leverage (debt-to-equity up to 3.04x) and falling ROE (down to 1.4%). Cash flow quality is weak with negative free cash flow across 2024–2026, indicating strained cash conversion and higher reliance on external funding.

Income Statement

56Neutral

Balance Sheet

42Neutral

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	42.35B	38.45B	30.88B	31.93B	30.39B	29.31B
Gross Profit	6.86B	5.96B	5.76B	6.10B	5.18B	5.06B
EBITDA	1.92B	1.13B	1.41B	1.84B	1.64B	1.25B
Net Income	672.71M	147.60M	497.35M	904.57M	845.48M	630.07M
Balance Sheet
Total Assets	44.72B	46.10B	45.42B	36.59B	28.96B	29.24B
Cash, Cash Equivalents and Short-Term Investments	1.43B	1.09B	978.25M	1.42B	2.53B	2.04B
Total Debt	30.18B	31.32B	30.70B	22.39B	15.27B	16.50B
Total Liabilities	34.22B	35.80B	35.16B	26.65B	19.88B	20.89B
Stockholders Equity	10.49B	10.30B	10.26B	9.94B	9.09B	8.35B
Cash Flow
Free Cash Flow	0	-383.44M	-8.60B	-8.09B	1.87B	1.11B
Operating Cash Flow	0	178.04M	-7.61B	-6.85B	2.66B	2.36B
Investing Cash Flow	0	-545.13M	-969.22M	-1.25B	-789.67M	-1.25B
Financing Cash Flow	0	481.19M	8.14B	6.98B	-1.38B	-370.72M

Central General Development Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price353.00

Price Trends

50DMA376.78Negative

100DMA375.79Negative

200DMA380.92Negative

Market Momentum

MACD-7.50Positive

RSI37.64Neutral

STOCH25.81Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3238, the sentiment is Negative. The current price of 353.00 is below the 20-day moving average (MA) of 366.35, below the 50-day MA of 376.78, and below the 200-day MA of 380.92, indicating a bearish trend. The MACD of -7.50 indicates Positive momentum. The RSI at 37.64 is Neutral, neither overbought nor oversold. The STOCH value of 25.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3238.

Central General Development Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

JP:3238 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3252	70Outperform	JPY 63.78B	6.08	―	4.31%	87.05%	146.41%
JP:8944	66Neutral	JPY 4.84B	2.69	―	2.47%	65.37%	―
Sector *	65Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
JP:8996	63Neutral	JPY 4.40B	4.64	―	5.04%	18.59%	78.41%
JP:2991	59Neutral	JPY 11.43B	4.91	―	2.24%	14.54%	-0.80%
JP:3238	50Neutral	JPY 3.38B	5.03	―	1.43%	30.03%	34.91%
JP:3237	40Underperform	JPY 3.25B	-6.74	―	―	0.79%	72.90%

* Real Estate Sector Average

Performance Comparison

JP:3238 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3238	Central General Development Co., Ltd.	353.00	-54.51	-13.38%
JP:2991	LANDNET, Inc.	496.00	-202.06	-28.95%
JP:3237	Intrance Co., Ltd.	73.00	-1.00	-1.35%
JP:3252	JINUSHI Co.,Ltd.	2898.00	72.13	2.55%
JP:8944	Land Business Co., Ltd.	243.00	3.81	1.59%
JP:8996	HouseFreedom Co., Ltd.	1091.00	183.12	20.17%

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: Nov 12, 2026

Central General Development Co., Ltd. AI Stock Analysis