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Japan Excellent, Inc.
(8987)
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Rating:56Neutral
Price Target:
¥128,441
▼(-13.80% Downside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by average-to-good financial performance supported by steady leverage and healthy margins, offset by weak and inconsistent cash flow (including negative free cash flow in 2025). Technical indicators are neutral overall, and valuation is supported by a solid dividend yield but tempered by a mid-to-high P/E.
Positive Factors
Manageable Leverage
Debt-to-equity near 0.87 has remained fairly steady, while equity and assets are broadly stable. This indicates controlled leverage and preserves financial flexibility for property operations, refinancing and selective investment, although it remains exposed to funding costs and property values.
Negative Factors
Revenue Volatility
Revenue fell about 22% in 2025 after a sharp 2023 increase, demonstrating uneven top-line performance. Such volatility makes growth less predictable and may complicate planning for distributions, reinvestment and financing even though net income has been relatively stable.
Read all positive and negative factors
Positive Factors
Negative Factors
Manageable Leverage
Debt-to-equity near 0.87 has remained fairly steady, while equity and assets are broadly stable. This indicates controlled leverage and preserves financial flexibility for property operations, refinancing and selective investment, although it remains exposed to funding costs and property values.
Read all positive factors
Japan Excellent, Inc. (8987) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥164.81B
Dividend Yield4.9%
Average Volume (3M)2.57K
Price to Earnings (P/E)18.4
Beta (1Y)0.16
Revenue Growth-17.75%
EPS Growth8.74%
CountryJP
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)6780.79
Shares Outstanding1,321,614
10 Day Avg. Volume2,734
30 Day Avg. Volume2,567
Financial Highlights & Ratios
PEG Ratio1.68
Price to Book (P/B)1.32
Price to Sales (P/S)6.17
P/FCF Ratio-91.14
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)7,716.95
Revenue Forecast (FY)¥24.74B
Japan Excellent, Inc. Business Overview & Revenue Model
Company Description
Japan Excellent, Inc. (hereinafter, JEI) under the Law Concerning Investment Trusts and Investment Corporations of Japan, is a real estate investment corporation which primarily invests in office buildings. JEI is externally managed by a licensed ...
How the Company Makes Money
Japan Excellent, Inc. makes money primarily by earning rental and other property-related income from its real estate portfolio. The core revenue stream is lease income paid by tenants occupying its properties under rental contracts; this includes ...
Japan Excellent, Inc. Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
64
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 33.06B | 31.39B | 24.21B | 45.55B | 21.77B | 21.23B |
| Gross Profit | 7.42B | 7.34B | 10.61B | 9.55B | 10.12B | 10.32B |
| EBITDA | 14.12B | 13.98B | 13.04B | 12.89B | 12.69B | 12.51B |
| Net Income | 8.75B | 8.80B | 7.94B | 7.93B | 7.60B | 7.82B |
Balance Sheet | ||||||
| Total Assets | 299.27B | 291.19B | 295.34B | 294.82B | 294.54B | 293.96B |
| Cash, Cash Equivalents and Short-Term Investments | 15.68B | 15.02B | 12.84B | 10.47B | 6.39B | 7.46B |
| Total Debt | 136.10B | 127.60B | 129.60B | 128.60B | 128.60B | 125.60B |
| Total Liabilities | 152.58B | 144.98B | 146.26B | 144.16B | 144.32B | 141.75B |
| Stockholders Equity | 146.69B | 146.21B | 149.07B | 150.66B | 150.22B | 152.21B |
Cash Flow | ||||||
| Free Cash Flow | 5.43B | -2.12B | 11.83B | 11.37B | 7.06B | -5.64B |
| Operating Cash Flow | 22.72B | 19.66B | 28.11B | 34.09B | 16.60B | 11.26B |
| Investing Cash Flow | -17.44B | -16.11B | -15.91B | -22.86B | -14.72B | -16.69B |
| Financing Cash Flow | -5.24B | -13.67B | -8.61B | -7.52B | -6.59B | -8.03B |
Japan Excellent, Inc. Technical Analysis
Negative
149000.00
Price Trends
136688.00
Negative
136848.22
Negative
141088.38
Negative
Market Momentum
-3253.32
Positive
16.63
Positive
7.32
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8987, the sentiment is Negative. The current price of 149000 is above the 20-day moving average (MA) of 130625.00, above the 50-day MA of 136688.00, and above the 200-day MA of 141088.38, indicating a bearish trend. The MACD of -3253.32 indicates Positive momentum. The RSI at 16.63 is Positive, neither overbought nor oversold. The STOCH value of 7.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8987.
Japan Excellent, Inc. Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥135.92B | 17.86 | ― | 5.66% | -17.50% | -15.10% | |
71 Outperform | ¥774.24B | 20.75 | 6.70% | 4.79% | -1.30% | -3.43% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | ¥490.73B | 18.37 | ― | 5.47% | 5.25% | 19.44% | |
62 Neutral | ¥1.05T | 23.82 | 5.88% | 4.16% | -21.35% | -7.99% | |
62 Neutral | ¥273.79B | 17.82 | ― | 5.34% | 23.62% | 10.38% | |
56 Neutral | ¥164.81B | 18.40 | ― | 4.90% | -17.75% | 8.74% |
* Real Estate Sector Average
JP:8987
Japan Excellent, Inc.
124,700.00
-12,974.25
-9.42%
JP:8952
Japan Real Estate Investment
106,300.00
-12,475.24
-10.50%
JP:8951
Nippon Building
118,800.00
-14,204.97
-10.68%
JP:8954
ORIX JREIT Inc.
88,900.00
-5,816.35
-6.14%
JP:8975
Ichigo Office REIT Investment Corporation
89,900.00
1,517.15
1.72%
JP:8976
Daiwa Office Investment Corporation
292,900.00
-50,443.56
-14.69%
Japan Excellent, Inc. Corporate Events
Japan Excellent Delays Daiba Garden City Building Transfer With Minimal Earnings Impact
Sep 28, 2026
Japan Excellent, Inc. has revised the planned transfer date for the Daiba Garden City Building, one of the assets it is selling, shifting the schedule from September 30, 2026, to December 16, 2026, or an earlier mutually agreed date. The change fo...
Japan Excellent Expands Tokyo Office Portfolio with Two Strategic Acquisitions
Sep 24, 2026
Japan Excellent, Inc. will acquire trust beneficiary rights in the BIZCORE KANDA-SUDACHO office building for ¥2.711 billion and take a ¥1.2 billion equity stake in an anonymous association linked to the Kowa Nibancho Building. Both asset...
Japan Excellent Secures ¥2 Billion Loan to Fund BIZCORE KANDA-SUDACHO Acquisition
Sep 24, 2026
Japan Excellent, Inc. has arranged a ¥2.0 billion short-term, unsecured overdraft facility with Mizuho Bank at a floating JBA TIBOR-based rate, increasing its total interest-bearing debt to ¥133.1 billion. The six-month loan, maturing in...
Japan Excellent REIT Outlines Growth Policy and Fiscal 2026 Overview
Sep 3, 2026
Japan Excellent, Inc., a Japanese REIT managed by Japan Excellent Asset Management Co., Ltd., operates in the real estate investment sector, concentrating on income-generating properties and providing detailed disclosures to its unitholders. The t...
Japan Excellent Posts Steady H1 2026 Results and Lifts Distributions
Aug 21, 2026
Japan Excellent, Inc. reported solid results for the 40th fiscal period ended June 30, 2026, with total revenues of ¥11.6 billion, operating income of ¥5.3 billion, and net income of ¥4.4 billion, all slightly higher than the previo...
Japan Excellent to Sell Three Domestic Assets, Unlocking Gains and Rebalancing Portfolio
Aug 21, 2026
Japan Excellent, Inc. has decided to transfer trust beneficiary rights in the Daiba Garden City Building and Sapporo Otemachi Building, as well as a portion of land at the Urawa SH Building, as part of a portfolio reshuffle. The Daiba property wil...
Japan Excellent Lifts FY2026 Earnings Outlook on Asset Transfers, Keeps Payout Flat
Aug 21, 2026
Japan Excellent, Inc. revised its operating forecast for the fiscal period ending December 31, 2026, projecting a 14.8% increase in total revenue to ¥13.1 billion and a more than 40% jump in ordinary and net income to about ¥5.5 billion....
Japan Excellent to Cut Short-Term Debt by ¥5 Billion After Property Transfer
Jul 22, 2026
Japan Excellent, Inc. has decided to make an early repayment of 5.0 billion yen in short-term borrowings on July 31, 2026, using part of the proceeds from the transfer of the BIZCORE AKASAKA-MITSUKE property. The repayment targets two floating-rat...
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.