Azuma House Co., Ltd. (3293) AI Stock Analysis

Azuma House Co., Ltd.

(TSE/TYO:3293)

Select Model

Rating:51Neutral

Price Target:JPY 776.00▲(4.86% Upside)

Action:reiterated

Date:08/17/26

Azuma House scores below average, driven primarily by its weak financial outlook — projected revenue and earnings declines in FY2026, thin margins, low ROE, and volatile cash flows represent the most significant drag on the score. The attractive 4.5% dividend yield and modest P/E of 12.1x provide some valuation support, preventing a lower score, but the apparent cheapness may reflect justified market skepticism about the earnings trajectory. Technicals are neutral, offering no meaningful catalyst in either direction. The low beta limits downside volatility but also suggests limited upside participation in broader market rallies. Overall, this is a below-average profile of a stable but stagnating real estate developer facing cyclical or structural pressures, with income appeal partially offsetting fundamental concerns.

Positive Factors

Margin improvementRising gross margins from ~31% to ~34% indicate structural improvement in project-level profitability. For a developer, higher margins enhance resilience across cycles, improve per-project cash generation and help sustain operating earnings even when volumes soften, supporting long-term earnings durability.

Negative Factors

Revenue and net income declineAn ~11.5% revenue decline with falling net income signals weaker demand or adverse project timing. For a developer, this reduces earnings visibility and operating leverage, can delay project rollouts and limits the firm’s ability to rebuild retained earnings, constraining medium-term growth capacity.

Azuma House Co., Ltd. (3293) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 6.00B
Dividend Yield: 4.70%
Average Volume (3M): 3,016
Price to Earnings (P/E): 11.7
Beta (1Y): 0.23
Revenue Growth: -12.15%
EPS Growth: -27.60%
Country: Japan
Employees: 224
Sector: Real Estate
Sector Strength: 65
Industry: Real Estate - Development

Azuma House Co., Ltd. Business Overview & Revenue Model

Company Description

Operating within Japan, AZUMA HOUSE Co., Ltd. is primarily involved in the property development and construction sectors. Its core activities include the creation and sale of diverse real estate assets such as residential land, houses, ready-built ho...

How the Company Makes Money

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Azuma House Co., Ltd. Financial Statement Overview

Summary

Azuma House faces a deteriorating earnings trajectory with FY2026 revenue projected to decline ~11.5% and net income dropping ~34%. Margins are thin (net margin ~5-6%), ROE is low at ~4.5%, and cash flows are volatile. The balance sheet shows gradual deleveraging (D/E improving to 0.73), which is a modest positive, but stagnant revenue over five years and weak capital efficiency weigh heavily. The income statement score of 42, balance sheet score of 50, and cash flow score of 48 collectively reflect a below-average financial profile with meaningful near-term headwinds.

Income Statement

42Neutral

Balance Sheet

50Neutral

Cash Flow

48Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	13.13B	11.62B	13.28B	13.09B	14.16B	13.91B
Gross Profit	4.46B	4.12B	4.52B	4.42B	4.64B	4.51B
EBITDA	2.01B	1.55B	1.81B	1.83B	1.75B	1.79B
Net Income	708.56M	504.57M	765.33M	797.07M	723.94M	755.92M
Balance Sheet
Total Assets	31.62B	32.06B	31.74B	32.44B	30.88B	31.33B
Cash, Cash Equivalents and Short-Term Investments	4.57B	4.74B	4.55B	4.64B	4.43B	5.03B
Total Debt	12.57B	12.60B	12.55B	13.70B	12.62B	13.39B
Total Liabilities	14.55B	14.76B	14.67B	15.85B	14.74B	15.53B
Stockholders Equity	17.06B	17.29B	17.07B	16.59B	16.14B	15.80B
Cash Flow
Free Cash Flow	0	462.18M	1.19B	-1.02B	645.18M	844.58M
Operating Cash Flow	0	1.36B	2.71B	793.95M	1.29B	1.60B
Investing Cash Flow	0	-1.04B	-1.44B	-1.13B	-903.58M	-446.41M
Financing Cash Flow	0	-259.40M	-1.30B	653.01M	-1.17B	-869.55M

Azuma House Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

JP:3293 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:1847	82Outperform	JPY 47.27B	6.51	―	4.54%	14.95%	58.56%
JP:1814	77Outperform	JPY 41.47B	7.79	―	5.39%	23.50%	120.22%
JP:3299	70Neutral	JPY 37.84B	7.93	―	7.67%	-2.46%	-26.95%
Sector *	65Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
JP:1925	63Neutral	JPY 2.99T	7.90	12.78%	5.96%	4.66%	16.74%
JP:8897	59Neutral	JPY 54.02B	7.45	9.01%	6.65%	24.52%	5.03%
JP:3293	51Neutral	JPY 6.00B	11.70	2.98%	4.70%	-12.15%	-27.60%

* Real Estate Sector Average

Performance Comparison

JP:3293 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3293	Azuma House Co., Ltd.	745.00	7.28	0.99%
JP:1925	Daiwa House Industry Co	2282.50	-233.30	-9.27%
JP:8897	Takara Leben Co., Ltd.	406.00	49.74	13.96%
JP:1814	DAISUE CONSTRUCTION CO., LTD.	3955.00	721.30	22.31%
JP:1847	Ichiken Co., Ltd.	3250.00	1412.97	76.92%
JP:3299	Mugen Estate Co., Ltd.	1578.00	-326.90	-17.16%

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 17, 2026

Azuma House Co., Ltd. AI Stock Analysis