Nippon Building Fund Incorporation (8951.T) stock analysis

In our weekly check, Nippon Building Fund Incorporation is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 2, red flags: 11.

About Nippon Building Fund Incorporation

Nippon Building Fund Incorporation is a Real Estate company (REIT - Office) based in Japan, listed on JPX as 8951.T.

What our checks show for 8951.T

Red flags

• Net debt is 9.7x a year of EBITDA (debt/equity 0.83). That limits room in a downturn and raises refinancing risk.
• Operating profit does not cover the interest bill (0.1x): interest is paid from cash or new debt.
• The net margin fell by 13.2 points over 5 years, to 33.5%: the company keeps less of each sale as profit.
• The gross margin fell by 42.2 points, to 24.6%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 8.2% a year.
• Free cash flow is negative (-14.1% of revenue): the business spends more cash than it brings in.
• The dividend takes 15497% of profit: little cushion if profit falls.
• The stock has fallen as much as 69% from a peak. Would you have held through that?
• Thinly traded (about 34 thousand shares a day): buying and selling can move the price.
• Return on capital (ROCE) is only 3.4%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Earnings per share fell 2.4% a year over the last 3 years.
• The stock is still below its previous peak.

Strengths

• Operating cash flow is 2.05x net profit: the profit arrives as real cash.
• Analysts expect the net margin to improve by 11.4 points from today's 33.5%.
• The company keeps 33.5% of its revenue as net profit.
• The price moves calmly: 19.1% annual volatility.
• Beta 0.3: the stock usually moves less than the market.

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Questions

What grade does Nippon Building Fund Incorporation (8951.T) have?

In our weekly check, Nippon Building Fund Incorporation is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 2, red flags: 11. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 8951.T stock?

This week's biggest flags for Nippon Building Fund Incorporation: High debt, Weak interest cover, Margins falling. In total 13 of 25 checks show a warning or a red flag.

What does Nippon Building Fund Incorporation do?

Nippon Building Fund Incorporation is a Real Estate company (REIT - Office) based in Japan, listed on JPX as 8951.T.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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