Improving Cash GenerationConsistent and improving operating and free cash flow (OCF 1.97B, FCF 1.80B in 2025) indicates the business can fund operations, capex and distributions internally. High FCF conversion (~91% of net income) supports dividend sustainability and continued de‑leveraging over the medium term.

Strong Profitability And MarginsMargins recovered materially post‑pandemic—high gross and operating margins imply pricing power or efficient cost structure in core travel services. Durable margin levels support long‑term cash generation and resilience to cyclical demand, enabling reinvestment or shareholder returns.

Materially Reduced LeverageLeverage has come down meaningfully from crisis levels (debt-to-equity ~11.14 in 2022 to ~0.95 in 2025). A stronger equity base and lower absolute debt improve financial flexibility, reduce refinancing risk, and create room for strategic investments or continued balance‑sheet repair.

Bears Say

Modest Revenue GrowthRevenue growth remains tepid (4.9% in 2025 after minimal growth in 2024), suggesting limited demand momentum. For a travel services operator, sustained modest top‑line expansion constrains scale benefits, may limit margin upside, and increases reliance on operational efficiencies or new offerings to drive medium‑term growth.

Remaining Sizable Debt And Past StressDespite improvement, material legacy debt and recent balance‑sheet stress mean financial flexibility is still constrained. Residual leverage elevates vulnerability to revenue shocks and can limit capital allocation, making the company more sensitive to macro or industry setbacks over the next several quarters.

OCF Does Not Fully Cover Accounting EarningsOperating cash flow covering only ~76% of net income points to working‑capital and timing volatility. That inconsistency can produce earnings/cash conversion swings, complicating forecasting and increasing risk that reported profits may not translate to reliable free cash for investment or payouts in weaker periods.

6561 FAQ

What was HANATOUR JAPAN CO.LTD.’s price range in the past 12 months?

HANATOUR JAPAN CO.LTD. lowest stock price was ¥838.00 and its highest was ¥1421.00 in the past 12 months.

What is HANATOUR JAPAN CO.LTD.’s market cap?

HANATOUR JAPAN CO.LTD.’s market cap is ¥10.80B.

When is HANATOUR JAPAN CO.LTD.’s upcoming earnings report date?

HANATOUR JAPAN CO.LTD.’s upcoming earnings report date is May 19, 2026 which is in 88 days.

How were HANATOUR JAPAN CO.LTD.’s earnings last quarter?

HANATOUR JAPAN CO.LTD. released its earnings results on Feb 13, 2026. The company reported ¥25.01 earnings per share for the quarter, beating the consensus estimate of N/A by ¥25.01.

Is HANATOUR JAPAN CO.LTD. overvalued?

According to Wall Street analysts HANATOUR JAPAN CO.LTD.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does HANATOUR JAPAN CO.LTD. pay dividends?

HANATOUR JAPAN CO.LTD. pays a Annually dividend of ¥40 which represents an annual dividend yield of 3.16%. See more information on HANATOUR JAPAN CO.LTD. dividends here

What is HANATOUR JAPAN CO.LTD.’s EPS estimate?

HANATOUR JAPAN CO.LTD.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does HANATOUR JAPAN CO.LTD. have?

HANATOUR JAPAN CO.LTD. has 12,664,700 shares outstanding.

What happened to HANATOUR JAPAN CO.LTD.’s price movement after its last earnings report?

HANATOUR JAPAN CO.LTD. reported an EPS of ¥25.01 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -0.544%.

Which hedge fund is a major shareholder of HANATOUR JAPAN CO.LTD.?

Currently, no hedge funds are holding shares in JP:6561

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

HANATOUR JAPAN CO.LTD.

Hanatour Japan Co., Ltd. operates as a travel company in Japan and internationally. The company arranges inbound travel services from South Korea, China, Southeast Asia, Europe, and America. It also operates JAPAN TOPKEN, an online sales site that sells admission tickets for sightseeing spots, transportation passes, and optional tour products; and Gorilla, a sales site, which provides travel services, as well as sells travel products, such as hotels, various tickets, transportation passes, optional tours, and restaurant tickets. In addition, the company engages in the general charter passenger car transportation business; hotel management; and software and Web system development, operation, and maintenance businesses. The company was incorporated in 2005 and is headquartered in Tokyo, Japan. Hanatour Japan Co., Ltd. is a subsidiary of Hanatour Service Inc.