company background image
8987

Japan Excellent TSE:8987 Stock Report

Last Price

JP¥124.00k

Market Cap

JP¥166.8b

7D

-0.8%

1Y

-15.3%

Updated

10 Aug, 2022

Data

Company Financials
8987 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance2/6
Financial Health3/6
Dividends5/6

8987 Stock Overview

JEI invests primarily in office buildings located in major metropolitan areas and pursues to create portfolio that produces stable growth of income by acquiring properties with a strict investment criteria and a close monitoring of real estate market trends.

Japan Excellent Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Japan Excellent
Historical stock prices
Current Share PriceJP¥124,000.00
52 Week HighJP¥148,400.00
52 Week LowJP¥118,100.00
Beta0.76
1 Month Change2.40%
3 Month Change1.14%
1 Year Change-15.30%
3 Year Change-23.03%
5 Year Change-2.74%
Change since IPO11.51%

Recent News & Updates

Shareholder Returns

8987JP REITsJP Market
7D-0.8%-0.04%0.3%
1Y-15.3%-6.0%-1.8%

Return vs Industry: 8987 underperformed the JP REITs industry which returned -6% over the past year.

Return vs Market: 8987 underperformed the JP Market which returned -1.8% over the past year.

Price Volatility

Is 8987's price volatile compared to industry and market?
8987 volatility
8987 Average Weekly Movement2.2%
REITs Industry Average Movement2.5%
Market Average Movement3.9%
10% most volatile stocks in JP Market8.0%
10% least volatile stocks in JP Market2.1%

Stable Share Price: 8987 is less volatile than 75% of JP stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 8987's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2006n/an/ahttps://www.excellent-reit.co.jp

JEI invests primarily in office buildings located in major metropolitan areas and pursues to create portfolio that produces stable growth of income by acquiring properties with a strict investment criteria and a close monitoring of real estate market trends.

Japan Excellent Fundamentals Summary

How do Japan Excellent's earnings and revenue compare to its market cap?
8987 fundamental statistics
Market CapJP¥166.80b
Earnings (TTM)JP¥7.69b
Revenue (TTM)JP¥21.33b

21.6x

P/E Ratio

7.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
8987 income statement (TTM)
RevenueJP¥21.33b
Cost of RevenueJP¥12.04b
Gross ProfitJP¥9.29b
Other ExpensesJP¥1.60b
EarningsJP¥7.69b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 18, 2022

Earnings per share (EPS)5.75k
Gross Margin43.56%
Net Profit Margin36.06%
Debt/Equity Ratio82.5%

How did 8987 perform over the long term?

See historical performance and comparison

Dividends

4.5%

Current Dividend Yield

65%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 8987 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 8987?

Other financial metrics that can be useful for relative valuation.

8987 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue13.4x
Enterprise Value/EBITDA22.3x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 8987's PE Ratio compare to its peers?

8987 PE Ratio vs Peers
The above table shows the PE ratio for 8987 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.6x
8961 MORI TRUST Sogo Reit
19.8xn/aJP¥190.5b
8975 Ichigo Office REIT Investment
17.3xn/aJP¥127.9b
8958 Global One Real Estate Investment
22.6xn/aJP¥104.8b
3234 Mori Hills REIT Investment
26.3xn/aJP¥291.9b
8987 Japan Excellent
21.6xn/aJP¥166.8b

Price-To-Earnings vs Peers: 8987 is expensive based on its Price-To-Earnings Ratio (21.6x) compared to the peer average (21.6x).


Price to Earnings Ratio vs Industry

How does 8987's PE Ratio compare vs other companies in the JP REITs Industry?

Price-To-Earnings vs Industry: 8987 is good value based on its Price-To-Earnings Ratio (21.6x) compared to the JP REITs industry average (26.3x)


Price to Earnings Ratio vs Fair Ratio

What is 8987's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

8987 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.6x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 8987's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 8987 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 8987 (¥124000) is trading below our estimate of fair value (¥251337.54)

Significantly Below Fair Value: 8987 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Future Growth

How is Japan Excellent forecast to perform in the next 1 to 3 years based on estimates from 0 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


6.7%

Forecasted Real Estate industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Japan Excellent has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Discover growth companies

  • Examine whether Japan Excellent is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Japan Excellent 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


5.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 8987 has high quality earnings.

Growing Profit Margin: 8987's current net profit margins (36.1%) are lower than last year (45%).


Past Earnings Growth Analysis

Earnings Trend: 8987's earnings have grown by 5.2% per year over the past 5 years.

Accelerating Growth: 8987's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 8987 had negative earnings growth (-22.5%) over the past year, making it difficult to compare to the REITs industry average (5.4%).


Return on Equity

High ROE: 8987's Return on Equity (5.1%) is considered low.


Discover strong past performing companies

Financial Health

How is Japan Excellent'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: 8987's short term assets (¥23.1B) exceed its short term liabilities (¥16.3B).

Long Term Liabilities: 8987's short term assets (¥23.1B) do not cover its long term liabilities (¥125.5B).


Debt to Equity History and Analysis

Debt Level: 8987's net debt to equity ratio (77.6%) is considered high.

Reducing Debt: 8987's debt to equity ratio has reduced from 96% to 82.5% over the past 5 years.

Debt Coverage: 8987's debt is not well covered by operating cash flow (9.8%).

Interest Coverage: 8987's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet


Discover healthy companies

Dividend

What is Japan Excellent current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.52%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 8987's dividend (4.52%) is higher than the bottom 25% of dividend payers in the JP market (1.63%).

High Dividend: 8987's dividend (4.52%) is in the top 25% of dividend payers in the JP market (3.63%)


Stability and Growth of Payments

Stable Dividend: 8987's dividends per share have been stable in the past 10 years.

Growing Dividend: 8987's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (64.5%), 8987's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (608%), 8987's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

8.8yrs

Average board tenure


CEO

Japan Excellent has no CEO, or we have no data on them.


Board Members

Experienced Board: 8987's board of directors are considered experienced (8.8 years average tenure).


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.


Top Shareholders

Company Information

Japan Excellent, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Japan Excellent, Inc.
  • Ticker: 8987
  • Exchange: TSE
  • Founded: 2006
  • Industry: Office REITs
  • Sector: Real Estate
  • Implied Market Cap: JP¥166.798b
  • Shares outstanding: 1.34m
  • Website: https://www.excellent-reit.co.jp

Location

  • Japan Excellent, Inc.
  • 1-15-9 Minami Aoyama
  • Minato-ku
  • Tokyo
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/10 00:00
End of Day Share Price2022/08/10 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.