Professional
Added to YB: 2024-03-05
Pitch date: 2024-02-20
8919.T [bullish]
KATITAS CO., Ltd.
+68.36%
current return
Author Info
Sweet Stocks is a former portfolio manager at an international small cap fund who shares pitches for international equities. Sign up for his blog.
Company Info
KATITAS CO., Ltd. surveys, purchases, refurbishes, remodels, and sells used homes to individuals and families in Japan.
Market Cap
JPY 172.7B
Pitch Price
JPY 1.9K
Price Target
N/A
Dividend
N/A
EV/EBITDA
12.91
P/E
19.10
EV/Sales
1.38
Sector
Real Estate Management and Development
Category
growth
Katitas – flipping attractive
KATITAS: Japan's top house flipper, 12% sales CAGR FY16-23. Affordable refurbished homes, 20%+ ROIC. Recent tax dispute cut profits 15%, creating value entry. Avg 6mo inventory turns, low capex. Risks: taxes, staff retention, mortgage instability, new low-price strategy. Still, beats rivals with room to grow. Sees 8% unit growth, margin recovery FY24-28E. At 14.6x Mar'26E P/E, undervalued vs potential. Small-cap discount to large caps signals mean reversion upside.
Read full article (9 min)