Keihanshin Building (TSE:8818) - Share price, News & Analysis

8818 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	4/6
Financial Health	2/6
Dividends	3/6

8818 Stock Overview

Keihanshin Building Co., Ltd., a building management company, leases buildings in Japan.

Rewards

PE ratio (8.3x) is below the JP market (12.2x)

Earnings grew by 65% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 2.8% per year for the next 3 years

Debt is not well covered by operating cash flow

Dividend of 2.59% is not well covered by earnings

Large one-off items impacting financial results

Keihanshin Building Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Keihanshin Building
Historical stock prices
Current Share Price	JP¥1,272.00
52 Week High	JP¥1,630.00
52 Week Low	JP¥1,221.00
Beta	0.44
1 Month Change	-9.85%
3 Month Change	-13.35%
1 Year Change	-10.23%
3 Year Change	20.46%
5 Year Change	90.99%
Change since IPO	57.04%

Shareholder Returns

	8818	JP Real Estate	JP Market
7D	-7.2%	-32.8%	-3.6%
1Y	-10.2%	-28.6%	-3.3%

Return vs Industry: 8818 underperformed the JP Real Estate industry which returned -0.4% over the past year.

Return vs Market: 8818 underperformed the JP Market which returned -1.2% over the past year.

Price Volatility

Is 8818's price volatile compared to industry and market?
8818 volatility
8818 Average Weekly Movement	4.4%
Real Estate Industry Average Movement	3.9%
Market Average Movement	4.5%
10% most volatile stocks in JP Market	8.9%
10% least volatile stocks in JP Market	2.5%

Stable Share Price: 8818 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 8818's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1948	46	Koichi Minami	https://www.keihanshin.co.jp

Keihanshin Building Co., Ltd., a building management company, leases buildings in Japan. The company leases office buildings, datacenter buildings, commercial buildings, logistics warehouses, and off-course betting parlors. It is also involved in subcontracting construction work for lease facilities; and the provision of building maintenance services.

Keihanshin Building Fundamentals Summary

How do Keihanshin Building's earnings and revenue compare to its market cap?
8818 fundamental statistics
Market Cap	JP¥63.79b
Earnings (TTM)	JP¥7.66b
Revenue (TTM)	JP¥17.18b

8.3x

P/E Ratio

3.7x

P/S Ratio

Is 8818 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
8818 income statement (TTM)
Revenue	JP¥17.18b
Cost of Revenue	JP¥10.69b
Gross Profit	JP¥6.48b
Other Expenses	-JP¥1.18b
Earnings	JP¥7.66b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	152.81
Gross Margin	37.74%
Net Profit Margin	44.62%
Debt/Equity Ratio	93.4%

How did 8818 perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

22%

Payout Ratio

Valuation

Is Keihanshin Building undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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

8.32x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: 8818 (¥1272) is trading above our estimate of fair value (¥719.81)

Significantly Below Fair Value: 8818 is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: 8818 is good value based on its PE Ratio (8.3x) compared to the JP Real Estate industry average (10x).

PE vs Market: 8818 is good value based on its PE Ratio (8.3x) compared to the JP market (12.2x).

Price to Earnings Growth Ratio

PEG Ratio: 8818's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: 8818 is good value based on its PB Ratio (0.9x) compared to the JP Real Estate industry average (1.1x).

Future Growth

How is Keihanshin Building forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

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

-2.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8818's earnings are forecast to decline over the next 3 years (-2.8% per year).

Earnings vs Market: 8818's earnings are forecast to decline over the next 3 years (-2.8% per year).

High Growth Earnings: 8818's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 8818's revenue (3.8% per year) is forecast to grow slower than the JP market (4.3% per year).

High Growth Revenue: 8818's revenue (3.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 8818's Return on Equity is forecast to be low in 3 years time (6.1%).

Past Performance

How has Keihanshin Building performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

18.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 8818 has a large one-off gain of ¥6.4B impacting its December 31 2021 financial results.

Growing Profit Margin: 8818's current net profit margins (44.6%) are higher than last year (30.3%).

Past Earnings Growth Analysis

Earnings Trend: 8818's earnings have grown by 18.5% per year over the past 5 years.

Accelerating Growth: 8818's earnings growth over the past year (65%) exceeds its 5-year average (18.5% per year).

Earnings vs Industry: 8818 earnings growth over the past year (65%) exceeded the Real Estate industry 25.6%.

Return on Equity

High ROE: 8818's Return on Equity (11%) is considered low.

Financial Health

How is Keihanshin Building's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

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

Financial Position Analysis

Short Term Liabilities: 8818's short term assets (¥8.7B) exceed its short term liabilities (¥7.2B).

Long Term Liabilities: 8818's short term assets (¥8.7B) do not cover its long term liabilities (¥72.3B).

Debt to Equity History and Analysis

Debt Level: 8818's net debt to equity ratio (85.1%) is considered high.

Reducing Debt: 8818's debt to equity ratio has increased from 72.1% to 93.4% over the past 5 years.

Debt Coverage: 8818's debt is not well covered by operating cash flow (4.8%).

Interest Coverage: 8818's interest payments on its debt are well covered by EBIT (20.3x coverage).

Balance Sheet

Dividend

What is Keihanshin Building current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

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

2.59%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 8818's dividend (2.59%) is higher than the bottom 25% of dividend payers in the JP market (1.6%).

High Dividend: 8818's dividend (2.59%) is low compared to the top 25% of dividend payers in the JP market (3.6%).

Stability and Growth of Payments

Stable Dividend: 8818's dividend payments have been volatile in the past 10 years.

Growing Dividend: 8818's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (21.9%), 8818's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 8818 is paying a dividend but the company has no free cash flows.

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?

2.9yrs

Average board tenure

CEO

Koichi Minami (66 yo)

no data

Tenure

Mr. Koichi Minami serves as President, CEO, Executive Officer and Director of Keihanshin Building Co., Ltd.

Board Members

Experienced Board: 8818's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.

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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/13 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2021/12/31
Annual Earnings	2021/03/31