KOSE R.E. Co., Ltd. (3246) AI Stock Analysis

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KOSE R.E. Co., Ltd.

(TSE/TYO:3246)

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Rating:61Neutral

Price Target:JPY 731.00▲(6.87% Upside)

Action:reiterated

Date:11/05/26

The score is held back primarily by weak recent cash generation (negative operating and free cash flow in 2025–2026), which increases execution and funding risk despite profitability. Offsetting this, technicals are mildly bullish (price above major moving averages with positive MACD) and valuation is supportive (low P/E and solid dividend yield).

Positive Factors

Revenue RecoveryThe sharp 2026 revenue rebound shows that demand can recover after a weaker period, supporting the company’s ability to restore scale. Continued sales across property development and related activities could improve operating absorption and provide a stronger base for earnings over the next several quarters.

Negative Factors

Weak Cash ConversionNegative operating and free cash flow alongside accounting profits indicates that earnings are not consistently converting into cash. If this pattern persists, KOSE R.E. may need greater external funding to support property activity, increasing execution risk and reducing financial flexibility.

KOSE R.E. Co., Ltd. (3246) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 6.92B
Dividend Yield: 3.51%
Average Volume (3M): 5,661
Price to Earnings (P/E): 10.5
Beta (1Y): 0.38
Revenue Growth: 40.39%
EPS Growth: 269.30%
Country: Japan
Employees: 81
Sector: Real Estate
Sector Strength: 65
Industry: Real Estate - Development

KOSE R.E. Co., Ltd. Business Overview & Revenue Model

Company Description

KOSE R.E. Co.,Ltd. focuses on the entire process of condominium properties throughout Japan, from their initial design and construction to their ultimate sale. Their offerings encompass a variety of condominium types, including new residential units,...

How the Company Makes Money

KOSE R.E. generates revenue primarily through real estate transactions and recurring property-related income streams. Key sources typically include: (1) sales revenue from developing and selling real estate properties (e.g., condominium units or othe...

KOSE R.E. Co., Ltd. Financial Statement Overview

Summary

Income statement and balance sheet are moderate (revenue rebound in 2026 and improved leverage vs earlier years), but cash flow is a major weakness: operating cash flow and free cash flow were negative in both 2025 and 2026 despite positive net income, indicating strained cash conversion and higher funding reliance risk.

Income Statement

64Positive

Balance Sheet

67Positive

Cash Flow

38Negative

Financial statement breakdown
Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	9.92B	10.05B	7.65B	10.16B	11.00B	11.29B
Gross Profit	2.21B	2.27B	1.91B	3.08B	3.06B	2.81B
EBITDA	1.06B	1.13B	354.00M	1.64B	1.65B	1.18B
Net Income	659.65M	695.71M	341.11M	1.26B	1.26B	880.01M
Balance Sheet
Total Assets	19.15B	19.77B	17.02B	14.68B	15.48B	17.42B
Cash, Cash Equivalents and Short-Term Investments	2.26B	4.88B	5.35B	5.64B	6.18B	6.52B
Total Debt	7.82B	7.25B	5.12B	3.05B	4.31B	7.33B
Total Liabilities	8.76B	9.11B	6.76B	4.39B	6.08B	9.03B
Stockholders Equity	10.39B	10.66B	10.21B	10.23B	9.34B	8.33B
Cash Flow
Free Cash Flow	0	-2.29B	-1.99B	1.13B	2.94B	6.22B
Operating Cash Flow	0	-1.26B	-1.14B	1.22B	2.95B	6.23B
Investing Cash Flow	0	-114.09M	-842.87M	897.42M	-497.27M	-2.46M
Financing Cash Flow	0	1.81B	1.72B	-1.65B	-3.28B	-4.71B

KOSE R.E. Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price684.00

Price Trends

50DMA689.54Negative

100DMA669.22Positive

200DMA664.56Positive

Market Momentum

MACD-2.58Positive

RSI48.05Neutral

STOCH52.08Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3246, the sentiment is Neutral. The current price of 684.00 is below the 20-day moving average (MA) of 687.60, below the 50-day MA of 689.54, and above the 200-day MA of 664.56, indicating a neutral trend. The MACD of -2.58 indicates Positive momentum. The RSI at 48.05 is Neutral, neither overbought nor oversold. The STOCH value of 52.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3246.

KOSE R.E. Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

JP:3246 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8850	76Outperform	JPY 215.01B	8.39	―	3.44%	6.64%	11.39%
JP:8803	72Outperform	JPY 154.11B	13.67	9.01%	4.59%	23.16%	8.37%
Sector *	65Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
JP:3246	61Neutral	JPY 6.88B	10.52	―	3.51%	40.39%	269.30%
JP:3242	58Neutral	JPY 19.76B	8.92	―	4.56%	16.09%	13.44%
JP:3280	56Neutral	JPY 5.20B	14.99	―	3.79%	-52.86%	-84.40%
JP:3475	51Neutral	JPY 30.24B	12.24	―	4.49%	27.64%	6.54%

* Real Estate Sector Average

Performance Comparison

JP:3246 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3246	KOSE R.E. Co., Ltd.	684.00	1.56	0.23%
JP:8803	Heiwa Real Estate Co., Ltd.	2307.00	104.81	4.76%
JP:3242	Urbanet Corporation Co., Ltd.	526.00	-51.65	-8.94%
JP:3280	S Trust Co., Ltd.	870.00	-166.05	-16.03%
JP:3475	Good Com Asset Co.,Ltd.	1024.00	-240.31	-19.01%
JP:8850	Starts Corporation Inc.	4355.00	-297.90	-6.40%

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 05, 2026

KOSE R.E. Co., Ltd. AI Stock Analysis