TipRanks
Go Ultimate55% OFF

Dear Life Co., Ltd. (3245) AI Stock Analysis

JP:3245

Dear Life Co., Ltd.

(TSE/TYO:3245)

Select Model
Rating:71Outperform
Price Target:JPY 995.00â–²(10.56% Upside)
Action:upgraded
Date:08/06/26

The score is driven primarily by solid financial performance (strong revenue growth, improved leverage, and improving cash generation) and supported by attractive valuation (low P/E and high dividend yield). Technical indicators are mixed and closer to neutral, limiting the overall score despite the favorable fundamentals and valuation.

Positive Factors
Revenue GrowthRevenue growth of 19.33% demonstrates strong recent expansion in the company’s business activity. If maintained, this scale can support operating leverage, strengthen its position in healthcare distribution and retail, and provide a durable base for continued earnings growth.
Negative Factors
Gross Margin PressureThe decline in gross profit margin indicates that revenue growth has not translated fully into higher gross profit. Continued pressure could limit operating leverage and earnings expansion, making cost efficiency important to preserving profitability as the business grows.

Dear Life Co., Ltd. (3245) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%JP:3245-12.60%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 45.30B
Dividend Yield
7.11%
Average Volume (3M)
433.35K
Price to Earnings (P/E)
8.1
Beta (1Y)
0.48
Revenue Growth
9.71%
EPS Growth
8.62%
Country
Japan
Employees
639
Sector
Real Estate
Sector Strength
65
Industry
Real Estate - Services

Dear Life Co., Ltd. Business Overview & Revenue Model

Company Description

Dear Life Co.,Ltd. operates within Japan's property market, focusing on developing residential, commercial, and office structures. Its offerings extend to comprehensive real estate services, including strategic planning, architectural design, and con...

Dear Life Co., Ltd. Financial Statement Overview

Summary

Financial statements indicate solid fundamentals: strong revenue growth (19.33%) and stable profitability, improving leverage (debt-to-equity 0.54) with strong ROE (18.93%), and cash flow turning positive with free cash flow nearly matching net income. Offsetting this, gross margin compression and prior operating cash flow weakness suggest cost control and cash conversion still need attention.

Income Statement

75Positive

Balance Sheet

70Positive

Cash Flow

65Positive
Financial statement breakdown
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue72.18B78.50B46.88B43.50B51.91B26.37B
Gross Profit10.22B10.78B7.09B8.56B8.72B5.36B
EBITDA8.26B8.58B5.06B6.41B6.00B4.07B
Net Income5.12B5.32B3.17B4.30B4.20B2.69B
Balance Sheet
Total Assets70.65B47.38B47.06B41.71B36.46B27.74B
Cash, Cash Equivalents and Short-Term Investments20.73B27.42B18.69B21.89B19.85B14.59B
Total Debt33.33B15.17B18.85B13.86B11.85B9.81B
Total Liabilities36.15B18.88B21.99B17.55B15.20B12.13B
Stockholders Equity34.09B28.10B24.69B23.78B20.87B15.21B
Cash Flow
Free Cash Flow14.13B14.13B-5.99B1.30B4.91B1.72B
Operating Cash Flow14.14B14.14B-5.93B1.36B5.04B1.75B
Investing Cash Flow41.00M41.00M141.00M346.00M-1.10B278.00M
Financing Cash Flow-5.73B-5.73B2.58B529.00M1.02B-369.00M

Dear Life Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price900.00

Price Trends

50DMA996.26Negative
100DMA990.46Negative
200DMA1002.89Negative

Market Momentum

MACD-20.97Positive
RSI27.87Positive
STOCH25.99Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3245, the sentiment is Negative. The current price of 900.00 is below the 20-day moving average (MA) of 934.75, below the 50-day MA of 996.26, and below the 200-day MA of 1002.89, indicating a bearish trend. The MACD of -20.97 indicates Positive momentum. The RSI at 27.87 is Positive, neither overbought nor oversold. The STOCH value of 25.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3245.

Dear Life Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (65)

Financial Indicators

JP:3245 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3245JP:324571OutperformJPY 43.66B8.11―7.11%9.71%8.62%
Sector *65Neutral$2.17B12.193.79%4.94%3.15%1.96%
JP:2970JP:297062NeutralJPY 18.87B13.78――24.28%-6.41%
JP:3252JP:325260NeutralJPY 57.05B8.18―4.73%36.85%83.36%
JP:2980JP:298059NeutralJPY 35.69B11.89―0.82%43.47%151.64%
JP:2986JP:298659NeutralJPY 60.92B12.90―8.74%-4.35%-40.42%
JP:2991JP:299144NeutralJPY 12.01B5.07―2.22%14.54%-0.80%

* Real Estate Sector Average

Performance Comparison

-20%0%20%40%JP:3245JP:2970JP:2980JP:2986JP:2991JP:3252Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:3245 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:3245Dear Life Co., Ltd.900.00-135.40-13.08%
JP:2970GOOD LIFE COMPANY,INC.1089.00-141.00-11.46%
JP:2980SRE Holdings Corp.2193.00-610.38-21.77%
JP:2986LA Holdings Co.,Ltd2662.00258.2410.74%
JP:2991LANDNET, Inc.501.00-160.78-24.30%
JP:3252JINUSHI Co.,Ltd.2645.00-134.86-4.85%

Dear Life Co., Ltd. Corporate Events

Dear Life Expands Tokyo Rental Portfolio with Otsuka Property Acquisition

Oct 30, 2026

Dear Life Co., Ltd. has acquired a new income-producing property in Kitaotsuka, Toshima-ku, Tokyo, tentatively named DeLCCS Otsuka. The reinforced concrete, five-story building near JR Otsuka Station combines retail and condominium use, and the purch...

Dear Life Expands Tokyo Portfolio With Kamikitazawa Rental Property Acquisition

Oct 30, 2026

Dear Life Co., Ltd., a Tokyo-listed real estate operator, continues to expand its portfolio of income-generating assets in the capital region. The company specializes in retail and condominium properties, leveraging a mix of internal funds and bank f...

Dear Life acquires leased Tokyo condominium to expand income portfolio

Oct 29, 2026

Dear Life Co., Ltd. has acquired a new income-producing condominium property in Koto Ward, Tokyo, tentatively named DeLCCS Kiba-Koen, funded through a mix of internal capital and bank borrowings. The 11-story reinforced concrete building, located wit...

Dear Life acquires leased condominium asset in Tokyo’s Oota-ku

Oct 20, 2026

Dear Life Co., Ltd. has decided to acquire a new income-producing condominium property tentatively named DeLCCS Unoki in Oota-ku, Tokyo, located a two-minute walk from Unoki Station on the Tokyu Tamagawa Line. The five-story reinforced-concrete build...

Dear Life Slashes FY2026 Forecasts After Project Sale Delays but Keeps Dividend Plan

Sep 24, 2026

Dear Life Co., Ltd. has revised its consolidated performance targets for the fiscal year ending September 30, 2026, cutting its net sales and profit forecasts significantly from previous guidance. The company now expects lower net sales and profits c...

Dear Life Expands Tokyo Portfolio with Mixed-Use Harajuku Property

Aug 31, 2026

Dear Life Co., Ltd. has acquired a new income-producing property in central Tokyo, tentatively named DEAR LIFE HarajukuⅡ, located in Jingumae, Shibuya-ku, just a two-minute walk from Harajuku Station. The steel-framed, three-story building has...

Dear Life Acquires Leased Condominium Asset in Tokyo

Aug 13, 2026

Dear Life Co., Ltd. has acquired a new income-producing condominium property, tentatively named DeLCCS Nishi-Ojima II, located in Koto-ku, Tokyo, an eight-minute walk from Nishi-Ojima Station on the Toei Shinjuku Line. The building is an eight-story...

Dear Life Co. Posts Lower Profit and EPS Amid Softer Property Acquisitions

Aug 13, 2026

Dear Life Co., Ltd., which focuses on acquiring and managing property assets, reported a challenging first nine months of fiscal 2026, with key indicators pointing to weaker profitability and a slightly smaller portfolio. The company’s capital...

Dear Life Posts Lower Nine-Month Earnings but Maintains Strong Full-Year Targets

Aug 13, 2026

Dear Life Co., Ltd. reported consolidated net sales of ¥29.13 billion for the nine months ended June 30, 2026, a 17.8% year-on-year decline, with operating profit down 4.8% to ¥2.77 billion and profit attributable to owners of parent fallin...

Dear Life Expands Tokyo Income Property Portfolio With Koenji Acquisition

Aug 12, 2026

Dear Life Co., Ltd. has acquired a new income-generating property tentatively named DeLCCS KoenjiⅡ in Koenji-Minami, Suginami-ku, Tokyo, comprising reinforced concrete retail and condominium space over six floors and funded through a mix of int...

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: Aug 06, 2026