SRE Holdings (TSE:2980) - Share price, News & Analysis

2980 fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	3/6
Past Performance	2/6
Financial Health	3/6
Dividends	0/6

2980 Stock Overview

SRE Holdings Corporation operates in the real estate, IT platform, and AI solutions businesses in Japan.

Rewards

Trading at 14.5% below our estimate of its fair value

Earnings are forecast to grow 20.48% per year

Earnings grew by 33.7% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over the past 3 months

Shareholders have been diluted in the past year

SRE Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for SRE Holdings
Historical stock prices
Current Share Price	JP¥2,019.00
52 Week High	JP¥10,270.00
52 Week Low	JP¥1,930.00
Beta	1.14
1 Month Change	-42.56%
3 Month Change	-48.50%
1 Year Change	-58.84%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-17.59%

Shareholder Returns

	2980	JP Real Estate	JP Market
7D	-12.9%	-0.3%	-0.02%
1Y	-58.8%	-2.6%	-3.6%

Return vs Industry: 2980 underperformed the JP Real Estate industry which returned -0% over the past year.

Return vs Market: 2980 underperformed the JP Market which returned -2.5% over the past year.

Price Volatility

Is 2980's price volatile compared to industry and market?
2980 volatility
2980 Average Weekly Movement	13.7%
Real Estate Industry Average Movement	3.9%
Market Average Movement	4.6%
10% most volatile stocks in JP Market	9.1%
10% least volatile stocks in JP Market	2.5%

Stable Share Price: 2980 is more volatile than 90% of JP stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: 2980's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of JP stocks.

About the Company

Founded	Employees	CEO	Website
2014	136	Kazuyoshi Nishiyama	https://www.sre-group.co.jp

SRE Holdings Corporation operates in the real estate, IT platform, and AI solutions businesses in Japan. It engages in the management and brokerage of real estate properties; buying and selling of properties through its platform; and provision of solutions for real estate business. The company was formerly known as Sony Real Estate Corporation and changed its name to SRE Holdings Corporation in June 2019.

SRE Holdings Fundamentals Summary

How do SRE Holdings's earnings and revenue compare to its market cap?
2980 fundamental statistics
Market Cap	JP¥32.18b
Earnings (TTM)	JP¥892.00m
Revenue (TTM)	JP¥13.57b

36.1x

P/E Ratio

2.4x

P/S Ratio

Is 2980 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
2980 income statement (TTM)
Revenue	JP¥13.57b
Cost of Revenue	JP¥9.40b
Gross Profit	JP¥4.17b
Other Expenses	JP¥3.28b
Earnings	JP¥892.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	55.97
Gross Margin	30.72%
Net Profit Margin	6.57%
Debt/Equity Ratio	118.8%

How did 2980 perform over the long term?

See historical performance and comparison

Valuation

Is SRE Holdings undervalued compared to its fair value and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

14.5%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 2980 (¥2019) is trading below our estimate of fair value (¥2360.61)

Significantly Below Fair Value: 2980 is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: 2980 is poor value based on its PE Ratio (36.1x) compared to the JP Real Estate industry average (10.1x).

PE vs Market: 2980 is poor value based on its PE Ratio (36.1x) compared to the JP market (12.1x).

Price to Earnings Growth Ratio

PEG Ratio: 2980 is poor value based on its PEG Ratio (1.8x)

Price to Book Ratio

PB vs Industry: 2980 is overvalued based on its PB Ratio (3.3x) compared to the JP Real Estate industry average (1x).

Future Growth

How is SRE Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

20.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2980's forecast earnings growth (20.5% per year) is above the savings rate (0.02%).

Earnings vs Market: 2980's earnings (20.5% per year) are forecast to grow faster than the JP market (8.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 2980's revenue (2.6% per year) is forecast to grow slower than the JP market (4.2% per year).

High Growth Revenue: 2980's revenue (2.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 2980's Return on Equity is forecast to be low in 3 years time (14%).

Past Performance

How has SRE Holdings performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

33.7%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: 2980 has high quality earnings.

Growing Profit Margin: 2980's current net profit margins (6.6%) are lower than last year (9.1%).

Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 2980's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare 2980's past year earnings growth to its 5-year average.

Earnings vs Industry: 2980 earnings growth over the past year (33.7%) exceeded the Real Estate industry 23.5%.

Return on Equity

High ROE: 2980's Return on Equity (9.1%) is considered low.

Financial Health

How is SRE Holdings's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 2980's short term assets (¥20.3B) exceed its short term liabilities (¥5.1B).

Long Term Liabilities: 2980's short term assets (¥20.3B) exceed its long term liabilities (¥8.1B).

Debt to Equity History and Analysis

Debt Level: 2980's net debt to equity ratio (88.2%) is considered high.

Reducing Debt: Insufficient data to determine if 2980's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 2980's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 2980's interest payments on its debt are well covered by EBIT (26.3x coverage).

Balance Sheet

Dividend

What is SRE Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2980's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2980's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2980's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2980's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 2980 has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Real Estate industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

CEO

Kazuyoshi Nishiyama (46 yo)

no data

Tenure

Mr. Kazuyoshi Nishiyama is the President and Chief Executive Officer of SRE Holdings Corporation and has been its Director.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.8%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31