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HouseFreedom Co., Ltd. (8996) AI Stock Analysis

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JP:8996

HouseFreedom Co., Ltd.

(TSE/TYO:8996)

Select Model
Rating:66Neutral
Price Target:JPY 1,142.00â–²(2.88% Upside)
Action:downgraded
Date:11/07/26

The stock's attractive valuation, with a very low P/E of 4.42 and a high 4.93% dividend yield, is the primary strength. This is balanced by a moderately strong but risky financial profile, marked by high leverage and declining operating cash flow. Technical indicators show near-term price weakness, which tempers the overall score.

Positive Factors
Re-accelerating Revenue GrowthThe return to double-digit revenue growth indicates renewed business momentum after a flat period. If maintained, stronger sales can broaden the earnings base, support operating leverage, and provide a durable foundation for reinvestment over the next several quarters.
Negative Factors
High LeverageDebt remains high relative to equity, leaving the business more sensitive to funding conditions and earnings volatility. Although leverage has improved, the heavy debt load can constrain financial flexibility and make sustained growth more dependent on stable operating performance.

HouseFreedom Co., Ltd. (8996) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%30%JP:8996+21.50%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 4.25B
Dividend Yield
4.95%
Average Volume (3M)
2,110
Price to Earnings (P/E)
4.5
Beta (1Y)
0.40
Revenue Growth
18.59%
EPS Growth
78.41%
Country
Japan
Employees
243
Sector
Real Estate
Sector Strength
65
Industry
Real Estate - Services

HouseFreedom Co., Ltd. Business Overview & Revenue Model

Company Description

HouseFreedom Co.,Ltd. primarily specializes in selling newly built detached houses across Japan. The company further diversifies its activities through construction contracts, property rental and brokerage services, and by serving as a non-life insur...

HouseFreedom Co., Ltd. Financial Statement Overview

Summary

Revenue growth of 11.2% and improving margins are positive, but high debt (D/E 3.05x) and a significant drop in operating cash flow to ¥640M raise concerns. Overall financial health is moderately strong, supported by a healthy 17.1% ROE and deleveraging trend.

Income Statement

75Positive

Balance Sheet

65Positive

Cash Flow

55Neutral
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue17.97B16.93B14.49B11.79B12.97B11.80B
Gross Profit8.97B4.91B4.36B3.89B3.82B3.49B
EBITDA1.62B1.24B1.01B797.17M822.77M657.12M
Net Income917.41M658.81M484.65M343.44M420.21M281.54M
Balance Sheet
Total Assets18.22B17.01B16.11B16.55B15.10B13.89B
Cash, Cash Equivalents and Short-Term Investments4.48B4.80B3.96B3.66B3.64B3.81B
Total Debt12.84B11.77B11.25B12.15B10.92B9.90B
Total Liabilities14.26B13.15B12.74B13.34B12.07B11.11B
Stockholders Equity3.96B3.86B3.37B3.20B3.04B2.78B
Cash Flow
Free Cash Flow0503.42M1.54B-1.05B-1.01B-3.32B
Operating Cash Flow0640.30M1.72B181.45M-453.45M-1.80B
Investing Cash Flow0-137.56M-180.67M-1.22B-554.32M-1.42B
Financing Cash Flow0343.17M-1.24B1.05B845.78M3.12B

HouseFreedom Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive
Last Price1110.00

Price Trends

50DMA1097.46Positive
100DMA1067.40Positive
200DMA1039.30Positive

Market Momentum

MACD-1.34Positive
RSI53.41Neutral
STOCH87.33Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8996, the sentiment is Positive. The current price of 1110.00 is above the 20-day moving average (MA) of 1103.00, above the 50-day MA of 1097.46, and above the 200-day MA of 1039.30, indicating a bullish trend. The MACD of -1.34 indicates Positive momentum. The RSI at 53.41 is Neutral, neither overbought nor oversold. The STOCH value of 87.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8996.

HouseFreedom Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (65)

Financial Indicators

JP:8996 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3490JP:349066NeutralJPY 4.66B7.53―0.98%25.95%-10.96%
JP:8944JP:894466NeutralJPY 4.72B2.63―2.52%46.21%―
JP:8996JP:899666NeutralJPY 4.48B4.49―4.95%18.59%78.41%
Sector *65Neutral$2.17B12.193.79%4.94%3.15%1.96%
JP:4445JP:444564NeutralJPY 4.76B32.95――3.83%-45.88%
JP:3238JP:323845NeutralJPY 3.36B4.95―1.44%30.03%34.91%
JP:2978JP:297843NeutralJPY 3.20B24.68――39.66%11.78%

* Real Estate Sector Average

Performance Comparison

-40%-20%0%20%40%JP:8996JP:2978JP:3238JP:3490JP:4445JP:8944Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:8996 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:8996HouseFreedom Co., Ltd.1110.00193.5421.12%
JP:2978TSUKURUBA, Inc.273.00-222.00-44.85%
JP:3238Central General Development Co., Ltd.347.00-62.49-15.26%
JP:3490AZ Planning Co., Ltd.3065.00233.608.25%
JP:4445Living Technologies, Inc.1770.00-70.00-3.80%
JP:8944Land Business Co., Ltd.238.003.691.58%
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 07, 2026