When a Japan Builder Gets the Value Investor Stamp

Sekisui House (SKHSY) just hit a 77% rating bump under Validea’s John Neff model—that legendary dude who averaged 13.7% annual returns from 1964-1995, crushing the S&P 500’s 10.6%. Here’s what flipped: the stock now looks cheap relative to earnings growth and dividend yield, which is textbook Neff territory.

The breakdown: P/E ratio, EPS growth, sales growth, and total return/PE all check out. But here’s the catch—the model flagged weak spots on future EPS growth, free cash flow, and earnings persistence. So it’s a “interesting but not a slam dunk” signal.

Sekisui’s basically Japan’s homebuilder-to-everything-real-estate play: detached houses, rental buildings, urban redevelopment, you name it. The 77% score sits just below the 80% threshold where Neff’s model usually starts paying real attention.

Bottom line: Value play with room, but the fundamentals tell a mixed story.