OTCPK:ADZZ.F

Stock Analysis Report

Advance Residence Investment

Executive Summary

Advance Residence Investment Corporation (Securities code: 3269) is listed on the Real Estate Investment Trust Securities Market of Tokyo Stock Exchange.


Snowflake Analysis

Acceptable track record unattractive dividend payer.

Share Price & News

How has Advance Residence Investment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ADZZ.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

ADZZ.F

-10.1%

US REITs

-10.6%

US Market


1 Year Return

n/a

ADZZ.F

5.9%

US REITs

5.2%

US Market

Return vs Industry: Insufficient data to determine how ADZZ.F performed against the US REITs industry.

Return vs Market: Insufficient data to determine how ADZZ.F performed against the US Market.


Shareholder returns

ADZZ.FIndustryMarket
7 Day0%-10.1%-10.6%
30 Day0%-6.5%-8.5%
90 Day0%-4.5%-4.6%
1 Yearn/a10.1%5.9%7.4%5.2%
3 Yearn/a24.8%9.3%31.7%23.2%
5 Yearn/a48.4%17.9%56.4%39.3%

Price Volatility Vs. Market

How volatile is Advance Residence Investment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Advance Residence Investment undervalued compared to its fair value and its price relative to the market?

33.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ADZZ.F ($3050) is trading above our estimate of fair value ($12.54)

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


Price To Earnings Ratio

PE vs Industry: ADZZ.F is good value based on its PE Ratio (33.5x) compared to the REITs industry average (37.8x).

PE vs Market: ADZZ.F is poor value based on its PE Ratio (33.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: ADZZ.F is poor value based on its PEG Ratio (20.1x)


Price to Book Ratio

PB vs Industry: ADZZ.F is overvalued based on its PB Ratio (2.1x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Advance Residence Investment forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADZZ.F's forecast earnings growth (1.7% per year) is below the savings rate (2.7%).

Earnings vs Market: ADZZ.F's earnings (1.7% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: ADZZ.F's earnings are forecast to grow, but not significantly.

Revenue vs Market: ADZZ.F's revenue (1% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: ADZZ.F's revenue (1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ADZZ.F's Return on Equity is forecast to be low in 3 years time (6.7%).


Next Steps

Past Performance

How has Advance Residence Investment performed over the past 5 years?

4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADZZ.F has high quality earnings.

Growing Profit Margin: ADZZ.F's current net profit margins (43.2%) are higher than last year (43.1%).


Past Earnings Growth Analysis

Earnings Trend: ADZZ.F's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: ADZZ.F's earnings growth over the past year (1.4%) is below its 5-year average (4.2% per year).

Earnings vs Industry: ADZZ.F earnings growth over the past year (1.4%) underperformed the REITs industry 8.1%.


Return on Equity

High ROE: ADZZ.F's Return on Equity (6.4%) is considered low.


Next Steps

Financial Health

How is Advance Residence Investment's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: ADZZ.F has a high level of physical assets or inventory.

Debt Coverage by Assets: ADZZ.F's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: ADZZ.F's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if ADZZ.F has a sufficient allowance for bad loans.

Low Risk Liabilities: ADZZ.F reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if ADZZ.F has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ADZZ.F has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if ADZZ.F has an appropriate level of bad loans.


Next Steps

Dividend

What is Advance Residence Investment's current dividend yield, its reliability and sustainability?

3.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ADZZ.F's dividend (3.13%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: ADZZ.F's dividend (3.13%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ADZZ.F has been paying a dividend for less than 10 years.

Growing Dividend: ADZZ.F's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.9%), ADZZ.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.4yrs

Average board tenure


CEO

Advance Residence Investment has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Isao Kudo
GM of Investment & Asset Management Division I and Executive Director1.4yrsno datano data
Tomoyuki Kimura
Director & Deputy CFO of Corporate Management Department0yrsno datano data
Yoshiki Oshima
Supervisory Director9.7yrsno datano data
Yoshitsugu Oba
Supervisory Director2.1yrsno datano data
Takeshi Takano
Substitute Executive Director0.08yrsno datano data
Satoru Kobayashi
Supervisory Director0.08yrsno datano data
Yoichi Sonoda
Non-Executive Director1.4yrsno datano data
Tomonari Nakamura
Non-Executive Corporate Auditor1.4yrsno datano data

1.4yrs

Average Tenure

64.5yo

Average Age

Experienced Board: ADZZ.F's board of directors are not considered experienced ( 1.4 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.


Top Shareholders

Company Information

Advance Residence Investment Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Advance Residence Investment Corporation
  • Ticker: ADZZ.F
  • Exchange: OTCPK
  • Founded: 2010
  • Industry: Residential REITs
  • Sector: Real Estate
  • Market Cap: JP¥483.365b
  • Listing Market Cap: JP¥4.429b
  • Shares outstanding: 1.39m
  • Website: https://www.adr-reit.com

Location

  • Advance Residence Investment Corporation
  • Jinbocho Mitsui Building
  • 17th Floor
  • Tokyo
  • 101-0051
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3269TSE (The Tokyo Stock Exchange)YesInvestment SecuritiesJPJPYMar 2010
ADZZ.FOTCPK (Pink Sheets LLC)YesInvestment SecuritiesUSUSDMar 2010

Biography

Advance Residence Investment Corporation (Securities code: 3269) is listed on the Real Estate Investment Trust Securities Market of Tokyo Stock Exchange. ADR has the largest portfolio among the residential REITs in Japan in terms of assets. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 00:08
End of Day Share Price2019/08/13 00:00
Earnings2019/07/31
Annual Earnings2019/07/31


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.