Mitsubishi Estate Company (8802) AI Stock Analysis

• Market Cap: $4.12T
• Dividend Yield: 1.28%
• Average Volume (3M): 2.58M
• Price to Earnings (P/E): 21.4
• Beta (1Y): 0.90
• Revenue Growth: 4.42%
• EPS Growth: 13.51%
• Country: JP
• Employees: 11,045
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 66.81
• Shares Outstanding: 1,250,838,700
• 10 Day Avg. Volume: 2,417,880
• 30 Day Avg. Volume: 2,582,216
• PEG Ratio: 1.11
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 1.93
• P/FCF Ratio: -25.74
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 3.64
• Enterprise Value/Gross Profit: 13.77
• Enterprise Value/Ebitda: 13.96
• 1Y Price Target: $3,705.81
• Price Target Upside: 8.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: ¥3,212.00 ▼(-6.22% Downside)

Mitsubishi Estate Company is well-positioned with strong financials and positive technical indicators suggesting growth potential. However, the negative free cash flow due to capital expenditures and slightly high valuation relative to earnings temper the overall outlook.

Positive Factors

Negative Factors

Mitsubishi Estate Company Business Overview & Revenue Model

Company Description

Mitsubishi Estate Co., Ltd. engages in the real estate activities in Japan and internationally. The company is involved in the development, leasing, property management, and sale of office buildings; planning, development, and tenant leasing of retail facilities/outlets; investment, development, operational management, and asset management of logistics facilities; operation of 16 hotels under the Royal Park Hotels brand in Japan and the Marunouchi Hotel in the Marunouchi area; and operation of Takamatsu Airport, Miyako Shimojishima Airport Terminal, Mt. Fuji Shizuoka Airport, and seven airports in Hokkaido. It also engages in the development and rebuilding, redevelopment, purchasing and sale, brokerage, and management of condominiums; and rental of apartments. In addition, the company provides real estate investment trust, as well as private placement funds management services. Further, it offers architectural design and engineering services, including construction, civil engineering, and urban and regional development planning and consulting. Additionally, the company provides real estate problem-solving solutions, such as real estate brokerage, condominium and office building leasing management support, and real estate appraisal. Mitsubishi Estate Co., Ltd. was founded in 1890 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mitsubishi Estate Company generates revenue through a diversified portfolio of real estate activities. Key revenue streams include rental income from its extensive portfolio of office buildings and commercial properties, sales of residential units, and property management fees. The company also earns from development projects both domestically and internationally, leveraging its expertise in urban development to create high-value properties. Additionally, Mitsubishi Estate benefits from strategic partnerships and joint ventures that enhance its market reach and development capabilities. The company's earnings are also supported by its involvement in the hospitality sector, through the operation and management of hotels, providing a steady stream of income.

Mitsubishi Estate Company Financial Statement Overview

Summary

The company displays strong revenue and profit growth, supported by a robust balance sheet and effective cost management. However, high capital expenditures have led to negative free cash flow, which is a concern despite good cash generation from operations.

Income Statement

The company shows strong revenue growth with a CAGR of approximately 4% over the past five years, highlighted by a recent year-over-year increase of 5.0%. Gross profit margins remain robust at around 26.5% for the latest year, indicating efficient cost management. The net profit margin has improved to 12.0%, reflecting enhanced profitability. EBIT and EBITDA margins are healthy at 19.6% and 26.2%, respectively. Overall, the income statement reflects a solid financial performance with consistent revenue growth and improved profitability.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 32.1%, up from previous years, indicating a stable financial position. The debt-to-equity ratio has slightly increased to 1.3, suggesting a balanced approach to leverage. Return on equity has improved to 7.4%, demonstrating effective use of shareholder funds. While the balance sheet shows a healthy equity position, the increasing debt levels warrant monitoring to ensure financial stability.

Cash Flow

Operating cash flow has shown resilience with a 5.8% increase from the previous year, supporting ongoing operational needs. The free cash flow has improved but remains negative, primarily due to significant capital expenditures. The operating cash flow to net income ratio is strong at 1.7, indicating good cash generation. However, the negative free cash flow to net income ratio highlights the impact of capital investments on cash reserves.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.58T	1.58T	1.50T	1.38T	1.35T	1.21T
Gross Profit	417.97B	417.97B	392.27B	397.04B	374.76B	317.76B
EBITDA	412.20B	414.27B	412.54B	393.33B	373.10B	316.52B
Net Income	189.36B	189.36B	168.43B	165.34B	155.17B	135.66B
Balance Sheet
Total Assets	8.00T	8.00T	7.58T	6.87T	6.49T	6.07T
Cash, Cash Equivalents and Short-Term Investments	1.32T	1.32T	1.24T	945.00B	861.92B	670.85B
Total Debt	3.34T	3.34T	3.14T	2.87T	2.74T	2.52T
Total Liabilities	5.26T	5.26T	4.96T	4.49T	4.26T	4.01T
Stockholders Equity	2.56T	2.56T	2.40T	2.16T	2.00T	1.85T
Cash Flow
Free Cash Flow	0.00	-118.44B	39.90B	-10.99B	-18.23B	-87.32B
Operating Cash Flow	0.00	325.16B	491.30B	275.31B	310.36B	228.46B
Investing Cash Flow	0.00	-358.60B	-350.79B	-308.92B	-306.72B	-294.27B
Financing Cash Flow	0.00	9.97B	89.20B	27.34B	83.92B	47.39B

Mitsubishi Estate Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3425.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8802, the sentiment is Positive. The current price of 3425 is above the 20-day moving average (MA) of 3286.35, above the 50-day MA of 3086.19, and above the 200-day MA of 2559.55, indicating a bullish trend. The MACD of 77.74 indicates Positive momentum. The RSI at 66.02 is Neutral, neither overbought nor oversold. The STOCH value of 34.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8802.

Mitsubishi Estate Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3288	81 Outperform	924.70B	9.36	20.00%	2.17%	6.54%	-1.16%
1878	74 Outperform	1.11T	11.57	20.39%	4.38%	6.04%	17.46%
3289	74 Outperform	890.16B	9.96	9.43%	2.75%	4.83%	42.96%
8802	74 Outperform	$4.12T	21.42	7.99%	1.28%	4.42%	13.51%
8801	73 Outperform	4.44T	14.42	7.90%	1.87%	14.07%	52.59%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Mitsubishi Estate Company Corporate Events

Mitsubishi Estate Reports Strong Q1 FY2025 Financial Results

Mitsubishi Estate Co., Ltd. reported a notable increase in its financial performance for the first quarter of FY2025, with operating revenue rising by 8.7% and profit attributable to owners increasing by 23.3% compared to the previous year. The company plans to maintain its dividend forecast and has resolved to repurchase its own shares, indicating a strong confidence in its financial stability and future growth prospects.

Mitsubishi Estate Reports Strong Q1 FY2025 Results

Mitsubishi Estate Company reported a significant increase in operating revenue and profit for the first quarter of FY2025, driven by strong performance in its residential and international business segments. The company’s restructuring of its commercial property business into separate units has also contributed to its financial growth, indicating a positive impact on its market positioning and stakeholder value.

Mitsubishi Estate Co., Ltd. Reports Strong Start to FY2025 with Strategic Growth Initiatives

Mitsubishi Estate Co., Ltd. reported a strong start to FY2025 with an increase in operating profit and profit attributable to owners, despite a decline in overall profit due to lower capital gains. The company is progressing well towards its full-year forecast, with strong performance in leasing, retail, and hotel businesses, and ongoing sale negotiations leveraging its diverse asset portfolio. The company also announced a progressive dividend policy and a significant share buyback plan to enhance shareholder returns.

Mitsubishi Estate Announces Significant Share Repurchase

Mitsubishi Estate Co., Ltd. announced the repurchase of 5,671,600 of its own common shares, amounting to a total of 15,657,099,550 yen, through open market purchases on the Tokyo Stock Exchange. This move is part of a broader strategy approved by the board to repurchase up to 60,000,000 shares by November 2025, reflecting the company’s commitment to enhancing shareholder value.

Mitsubishi Estate Reports Progress on Share Repurchase Program

Mitsubishi Estate Co., Ltd. announced the status of its share repurchase program, revealing that it repurchased 5,457,400 common shares for a total of 14,735,864,800 yen between June 1 and June 30, 2025. This move is part of a broader plan approved by the board to repurchase up to 60 million shares, with a maximum budget of 100 billion yen, aimed at enhancing shareholder value and optimizing capital structure.

Mitsubishi Estate Reports Progress on Share Repurchase Program

Mitsubishi Estate Co., Ltd. announced the status of its share repurchase program, revealing the acquisition of over 5 million common shares for approximately 12.89 billion yen between May 13 and May 31, 2025. This move is part of a larger plan approved by the board to repurchase up to 60 million shares, reflecting the company’s strategy to enhance shareholder value and optimize its capital structure.