| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 793.27 | 108 |
| Intrinsic value (DCF) | 105916.06 | 27699 |
| Graham-Dodd Method | 592.58 | 56 |
| Graham Formula | 1552.45 | 307 |
Properst Co., Ltd. (3236.T) is a Tokyo-based real estate developer specializing in residential properties in Japan. Established in 1987, the company focuses on developing, renting, and selling condominiums, community housing, and apartment buildings while offering value-added services. Operating in Japan's competitive real estate market, Properst leverages its local expertise to cater to urban housing demand, particularly in Tokyo and surrounding regions. The company's diversified portfolio includes both rental and sale properties, providing steady revenue streams. With a market capitalization of approximately ¥6.31 billion, Properst plays a niche role in Japan's real estate sector, balancing development projects with asset management. Investors eyeing mid-cap Japanese real estate developers may find Properst an intriguing option due to its focused residential strategy and established regional presence.
Properst Co. presents a mixed investment profile. Positives include a stable revenue base (¥23.3 billion in FY2024) and solid net income (¥1.82 billion), with a diluted EPS of ¥52.82. The company's low beta (0.502) suggests relative stability compared to broader markets. However, concerning signals include negative operating cash flow (-¥1.88 billion) despite modest capex, and high debt (¥20.33 billion) outweighing cash reserves (¥3.06 billion). The modest dividend (¥4/share) offers limited yield appeal. Properst may appeal to investors seeking exposure to Japan's residential real estate sector, but its leveraged balance sheet and cash flow challenges warrant caution. The stock could suit risk-tolerant investors betting on Japan's urban housing demand recovery.
Properst operates in Japan's fragmented residential development sector, competing against larger diversified real estate firms and niche residential specialists. Its competitive positioning hinges on localized project execution and mid-scale developments, avoiding direct competition with mega-developers like Mitsui Fudosan. The company's asset-light approach (evidenced by low capex) allows flexibility but limits land bank advantages enjoyed by larger peers. Properst's ¥6.3 billion market cap positions it as a small player, lacking the economies of scale of top-tier Japanese developers. Its focus on Tokyo-area housing provides regional expertise but exposes it to local market cycles. The negative operating cash flow suggests challenges in working capital management compared to more operationally efficient competitors. Properst's debt-heavy capital structure (debt-to-equity likely elevated given ¥20.3B debt vs. market cap) limits financial flexibility versus better-capitalized rivals. The company's niche may be sustainable in Tokyo's steady housing demand environment, but it lacks the diversified revenue streams (office, retail) that buffer larger competitors during residential downturns.