Leopalace21 (8848) AI Stock Analysis

• Market Cap: ¥196.97B
• Dividend Yield: 1.58%
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.96
• Revenue Growth: 2.21%
• EPS Growth: -70.44%
• Country: JP
• Employees: 3,853
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 1.51
• Shares Outstanding: 334,415,680
• 10 Day Avg. Volume: 1,647,770
• 30 Day Avg. Volume: 1,759,463
• PEG Ratio: -0.18
• Price to Book (P/B): 2.27
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 7.26
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: ¥696.00 ▲(7.57% Upside)

Leopalace21's overall stock score reflects a solid financial recovery, but is tempered by bearish technical indicators and a moderate valuation. The company's improved financial performance is a positive sign, but technical analysis suggests caution due to potential downward momentum. The valuation is reasonable, but not compelling enough to offset technical concerns.

Leopalace21 Business Overview & Revenue Model

Company Description

Leopalace21 Corporation (TSE: 8848) is a Japan-based company primarily engaged in the real estate and housing industry. It provides a range of services including the leasing and management of residential properties, construction of prefabricated homes, and real estate brokerage. The company operates in sectors such as rental apartments, property management, and home construction, catering to both domestic and international clients. Leopalace21 also offers services related to property renovation and real estate investment.

How the Company Makes Money

Leopalace21 generates revenue primarily through its rental business, which includes leasing out apartments and residential properties. The company earns income from monthly rents paid by tenants, as well as from property management fees. Additionally, Leopalace21 has a construction division that builds prefabricated homes, contributing to its revenue through sales and construction contracts. The company also engages in real estate brokerage activities, earning commissions on property transactions. Strategic partnerships with various stakeholders in the real estate market, including financial institutions and local governments, further support its revenue generation. The company's ability to adapt to market trends and consumer demands is crucial for maintaining and increasing its earnings.

Leopalace21 Financial Statement Overview

Summary

Leopalace21 demonstrates a solid financial recovery with improved profitability and cash flow. The company has effectively managed its leverage, reflected in a healthier balance sheet. Continued growth in revenue and profitability will be crucial to sustain this positive trajectory, as high liabilities and past earnings volatility remain areas to monitor.

Income Statement

Leopalace21 shows a strong recovery in its income statement, with a notable increase in revenue from 398.4 billion JPY in 2022 to 431.8 billion JPY in 2025. The gross profit margin has improved significantly, reflecting enhanced cost management. Net profit margin also shows strong recovery, moving from losses in past years to a positive margin of 4.1% in 2025. However, the sharp decline in net income from 2024 to 2025 indicates potential volatility.

Balance Sheet

The balance sheet reflects a stable recovery in stockholders' equity, increasing from negative figures in 2021 to 81.7 billion JPY in 2025. The debt-to-equity ratio has improved, indicating manageable leverage, although total liabilities remain high. The equity ratio shows a strong improvement, suggesting enhanced financial stability. However, the relatively high level of liabilities could pose risks if revenue growth falters.

Cash Flow

The cash flow statement indicates strong free cash flow generation, with positive growth in free cash flow from 2022 to 2025. Operating cash flow has improved significantly, showing better operational efficiency. The free cash flow to net income ratio is healthy, indicating efficient cash conversion. However, fluctuations in financing and investing cash flows suggest ongoing adjustments in capital structure.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	434.63B	431.83B	422.67B	406.45B	398.37B	408.96B
Gross Profit	80.95B	77.29B	68.83B	53.29B	46.08B	21.09B
EBITDA	34.93B	32.73B	27.97B	16.46B	11.13B	-18.76B
Net Income	8.62B	17.86B	42.06B	19.81B	11.85B	-23.68B
Balance Sheet
Total Assets	229.05B	216.63B	205.00B	166.55B	145.43B	161.71B
Cash, Cash Equivalents and Short-Term Investments	105.56B	88.51B	68.63B	53.56B	45.72B	54.96B
Total Debt	31.53B	31.63B	30.88B	31.85B	33.04B	35.41B
Total Liabilities	124.90B	128.35B	133.32B	133.63B	134.40B	158.43B
Stockholders Equity	98.19B	81.66B	64.15B	24.40B	1.43B	-8.11B
Cash Flow
Free Cash Flow	24.51B	25.56B	21.10B	9.94B	-5.95B	-43.65B
Operating Cash Flow	24.85B	25.90B	21.42B	10.54B	-4.46B	-40.82B
Investing Cash Flow	-604.00M	-604.00M	851.00M	906.00M	886.00M	11.83B
Financing Cash Flow	-6.40B	-6.40B	-7.12B	-2.82B	-5.89B	23.57B

Leopalace21 Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 647.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8848, the sentiment is Negative. The current price of 647 is below the 20-day moving average (MA) of 664.55, below the 50-day MA of 697.05, and above the 200-day MA of 623.51, indicating a bearish trend. The MACD of -19.80 indicates Positive momentum. The RSI at 27.09 is Positive, neither overbought nor oversold. The STOCH value of 20.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8848.

Leopalace21 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1766	―	¥190.92B	11.53	―	2.34%	6.74%	55.77%
8934	―	$110.99B	6.83	16.86%	2.87%	48.91%	52.49%
8818	―	¥81.11B	19.22	―	2.38%	3.73%	23.40%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8919	―	$196.43B	19.22	24.25%	2.21%	5.63%	22.43%
8848	―	¥196.97B	16.43	15.36%	1.58%	2.21%	-70.44%
2337	―	¥162.37B	8.62	16.39%	2.70%	7.21%	112.45%

Leopalace21 Corporate Events

Leopalace21 Wins Defamation Case Against SHINCHOSHA

Leopalace21 Corporation announced a favorable judgment from the Tokyo District Court regarding a lawsuit against SHINCHOSHA Publishing Co., Ltd. The court ruled that SHINCHOSHA’s articles, which accused Leopalace21 of inflating occupancy rates and manipulating financial data, harmed the company’s reputation and were not based on truth. SHINCHOSHA was ordered to pay JPY 3,300,000, although other requests by Leopalace21 were dismissed. The judgment is not expected to impact the company’s financial performance.

The most recent analyst rating on (JP:8848) stock is a Hold with a Yen696.00 price target. To see the full list of analyst forecasts on Leopalace21 stock, see the JP:8848 Stock Forecast page.

Leopalace21 Announces Change in Largest Shareholder

Leopalace21 Corporation announced a change in its largest and principal shareholder as Chidori sold 34,000,000 shares, reducing its stake from 26.60% to 15.90%. Consequently, UH Partners 2, Inc. has become the largest shareholder with a 15.92% stake. This transition is not expected to impact the company’s business results.

The most recent analyst rating on (JP:8848) stock is a Hold with a Yen861.00 price target. To see the full list of analyst forecasts on Leopalace21 stock, see the JP:8848 Stock Forecast page.

Leopalace21 Faces Potential Shift in Major Shareholder

Leopalace21 Corporation announced a potential change in its largest and principal shareholder, as Chidori Godo Kaisha plans to sell a portion of its shares. This sale could result in UH Partners 2, Inc. becoming the largest shareholder, potentially impacting the company’s shareholder structure and market positioning.

The most recent analyst rating on (JP:8848) stock is a Hold with a Yen861.00 price target. To see the full list of analyst forecasts on Leopalace21 stock, see the JP:8848 Stock Forecast page.

Leopalace21 to Cancel 28.3% of Treasury Stock

Leopalace21 Corporation has announced its decision to cancel a significant portion of its treasury stock, amounting to 132,046,640 shares, which represents 28.3% of its total issued shares. This move aims to reduce the company’s treasury stock to a target maximum holding ratio of 5.0%, facilitating future employee stock compensation and potentially impacting shareholder value positively.

The most recent analyst rating on (JP:8848) stock is a Buy with a Yen753.00 price target. To see the full list of analyst forecasts on Leopalace21 stock, see the JP:8848 Stock Forecast page.

Leopalace21 Reports Strong Q1 FY2025 Financial Results

Leopalace21 Corporation reported strong financial results for the first quarter of fiscal year 2025, with net sales and profits exceeding expectations due to the robust performance of its leasing business. The company’s positive financial outcomes highlight its effective business strategies and may strengthen its position in the market, potentially benefiting stakeholders.

The most recent analyst rating on (JP:8848) stock is a Buy with a Yen753.00 price target. To see the full list of analyst forecasts on Leopalace21 stock, see the JP:8848 Stock Forecast page.

Leopalace21 Introduces Performance-Linked Share-Based Remuneration System

Leopalace21 Corporation has announced the implementation of a performance-linked share-based remuneration system for its executive directors and officers, as well as a revised incentive plan for employees, including those of its subsidiaries. This initiative, approved at the recent shareholders’ meeting, involves the acquisition of company shares to be held in trust, aiming to align the interests of directors and employees with the company’s performance, potentially impacting its operational dynamics and shareholder value.

Leopalace21 Introduces Share-Based Remuneration and Incentive Plans

Leopalace21 Corporation has announced the disposal of treasury shares as part of its new Share-Based Remuneration System and updated Employees Incentive Plan. This initiative aims to align the interests of directors and employees with shareholders by linking remuneration to company performance and stock value, thereby enhancing corporate value over the medium to long term. The disposal involves 2,939,100 common shares, with the impact on the trading market expected to be negligible.

Leopalace21 Reports Q1 2025 Financial Results with Mixed Performance

Leopalace21 Corporation reported its financial results for the three months ended June 30, 2025, showing a slight increase in net sales by 2.6% compared to the previous year. Despite this, the net income attributable to shareholders saw a significant decline of 91.4%, indicating potential challenges in profitability. The company maintained its dividend forecast and completed a treasury stock repurchase, reflecting ongoing efforts to manage shareholder value.

Leopalace21 Secures JPY 10 Billion Commitment Line with Mizuho Bank

Leopalace21 Corporation has announced the conclusion of a Commitment Line Agreement with Mizuho Bank, Ltd., allowing the company access to flexible financing options up to JPY 10 billion. This agreement is intended to support the company’s sustainable growth and strengthen its financial base, although it is not expected to materially impact the current fiscal year’s financial results.