Air Water (4088) AI Stock Analysis

• Market Cap: $495.64B
• Dividend Yield: 2.92%
• Average Volume (3M): 602.59K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.79
• Revenue Growth: 5.02%
• EPS Growth: 10.23%
• Country: JP
• Employees: 20,348
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Chemicals - Specialty
• EPS (TTM): 61.38
• Shares Outstanding: 229,755,050
• 10 Day Avg. Volume: 564,230
• 30 Day Avg. Volume: 602,590
• PEG Ratio: -1.26
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -38.78
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2,287.81
• Price Target Upside: 4.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥2,485.00 ▲(13.01%Upside)

Air Water's strong financial performance, characterized by robust revenue growth and effective cash flow management, is a key driver of its score. The technical indicators reflect a positive trend but also suggest caution due to overbought conditions. The valuation is favorable with a low P/E ratio and attractive dividend yield, enhancing the stock's appeal as a potential investment.

Air Water Business Overview & Revenue Model

Company Description

Air Water Inc. engages in the industrial gas, chemical, medical, energy, agriculture and food products, and other businesses in Japan. The company offers oxygen, nitrogen, argon, carbon dioxide, hydrogen, and helium; air separation systems; gas equipment and systems; argon-based shielding gases; special gases; and integrated engineering solutions. It also provides quinone and organic acid products, fine chemicals, custom synthesis services, pharmaceutical and agricultural chemical intermediates, electronic materials and printed circuit boards, and carbon materials. The company offers medical oxygen, nitric oxide, and liquefied helium; operates hospital facilities; offers endoscope systems, hyperbaric oxygen chambers, and respiratory-related equipment and operation equipment; provides medical supply inventory management and medical instruments sterilization; and offers oxygen concentrators and infusion pumps, hygiene materials, injection needles, dental technical equipment and materials, and nursing care products and equipment. It also provides liquefied petroleum (LP) gas, kerosene, and natural gas (LNG); water heaters, stoves, boilers, kitchens, toilets, unit baths, garages, and carports; LP gas-type mobile power source cars; LNG transport equipment; LP gas/kerosene lorries; hams and sausages; frozen food products; sweets; fresh vegetables; agricultural machineries; and soft drinks, vegetable beverages, and fruit beverages, as well as offers fruit and vegetable wholesale, processing, and retail services. The company offers high-pressure gas transport, general cargo transport, food logistics, and bodywork services; salt, environmental products, seaweed and adsorbent products, electricity services, and magnesia; aerosol products; and electronics materials, phenolic resins, O-rings, metal surface treatment services, artificial recycled wood, SiC substrates, and engineering services. Air Water Inc. was incorporated in 1929 and is headquartered in Osaka, Japan.

How the Company Makes Money

Air Water Inc. generates revenue through a diversified portfolio of business segments. The industrial gases segment, which includes the production and sale of oxygen, nitrogen, argon, and other gases, serves as a significant revenue stream by supplying these essential gases to industries such as steel, chemical, and electronics. The company's chemicals segment offers a wide range of chemical products that support various industrial applications. In the healthcare sector, Air Water provides medical gases, equipment, and services to healthcare facilities, contributing to its earnings. The energy segment involves the supply of LP gas and other energy solutions, further diversifying its income sources. Additionally, the agriculture and food products division enhances revenue by offering agricultural solutions and processed food products. Strategic partnerships and acquisitions also play a vital role in expanding its market reach and capabilities, thereby contributing to its overall profitability.

Air Water Financial Statement Overview

Summary

Air Water demonstrates strong financial health with consistent revenue growth, solid profitability margins, and effective cash flow management. The balanced capital structure supports positive growth prospects, though there's room for improvement in reducing debt levels.

Income Statement

Air Water has shown a consistent growth in revenue over the years, with a notable increase in Gross Profit Margin and Net Profit Margin. The revenue growth rate from 2024 to 2025 was approximately 5.0%, indicating strong market demand. EBIT and EBITDA margins remain healthy, ensuring solid operational profitability.

Balance Sheet

The company's Debt-to-Equity Ratio is moderate, reflecting a balanced approach to leveraging. Return on Equity (ROE) has improved, suggesting effective use of shareholder funds to generate profit. The Equity Ratio is stable, indicating a solid capital structure with a good proportion of equity financing.

Cash Flow

Air Water has demonstrated robust Free Cash Flow growth, driven by strong Operating Cash Flow. The Operating Cash Flow to Net Income ratio is favorable, showing efficient cash management. The Free Cash Flow to Net Income ratio indicates healthy cash generation relative to profit.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.08T	1.02T	1.00T	888.67B	806.63B
Gross Profit	231.53B	220.27B	200.08B	199.11B	180.90B
EBITDA	124.30B	115.51B	99.00B	104.64B	86.49B
Net Income	49.08B	44.36B	40.14B	43.21B	27.37B
Balance Sheet
Total Assets	1.25T	1.22T	1.09T	1.02T	926.82B
Cash, Cash Equivalents and Short-Term Investments	70.61B	64.97B	72.09B	64.88B	50.57B
Total Debt	418.23B	418.72B	366.73B	346.50B	307.51B
Total Liabilities	713.29B	714.21B	645.16B	602.17B	554.43B
Stockholders Equity	517.14B	488.56B	430.23B	395.13B	357.80B
Cash Flow
Free Cash Flow	25.76B	16.16B	-9.72B	25.24B	24.57B
Operating Cash Flow	93.24B	79.63B	56.95B	71.57B	76.60B
Investing Cash Flow	-62.17B	-97.97B	-71.14B	-53.15B	-52.70B
Financing Cash Flow	-27.34B	14.72B	19.26B	-6.62B	-20.89B

Air Water Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2199.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4088, the sentiment is Positive. The current price of 2199 is above the 20-day moving average (MA) of 2134.97, above the 50-day MA of 2050.32, and above the 200-day MA of 1923.95, indicating a bullish trend. The MACD of 42.59 indicates Negative momentum. The RSI at 76.88 is Negative, neither overbought nor oversold. The STOCH value of 83.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4088.

Air Water Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4088	76 Outperform	$495.64B	10.21	9.64%	2.92%	5.02%	10.23%
Sector *	58 Neutral	HK$16.77B	4.60	-5.52%	5.25%	-3.57%	-61.41%
DACHF		$2.18B	6.92	13.58%	4.86%	―	―
KANKF		$1.71B	10.26	5.38%	0.02%	―	―
MBGCF		$3.10B	9.70	6.78%	0.03%	―	―
MITUF		$4.37B	20.58	3.69%	4.36%	―	―
NOFCF		$4.54B	18.78	13.21%	0.01%	―	―

Air Water Corporate Events

Air Water Inc. Announces Treasury Share Disposal for Executive Compensation

Air Water Inc. has announced the disposal of treasury shares as part of a restricted stock compensation plan aimed at aligning the interests of its directors and executives with those of shareholders. This move is expected to enhance corporate value and motivate key personnel by tying their compensation to the company’s stock performance, with a minimal dilution impact on existing shares.

Air Water Inc. Unveils ‘terrAWell30 2nd Stage’ Plan to Boost Profitability

Air Water Inc. has announced its ‘terrAWell30 2nd stage’ medium-term management plan for FY2025-2027, shifting focus from expanding scale to pursuing profitability. The company plans to review existing businesses, invest in growth sectors, and improve low-growth areas to double its market capitalization by FY2030, enhancing its position for sustainable growth.

Air Water Inc. Increases Year-End Dividend to Enhance Shareholder Returns

Air Water Inc. has announced a decision by its Board of Directors to increase the year-end dividend for the fiscal year ending March 31, 2025, to ¥43 per share, up from the previous forecast of ¥32. This increase reflects the company’s revised dividend payout ratio target from 30% to 35%, aligning with its policy of progressive dividends and commitment to shareholder returns. The total annual dividend will now be ¥75 per share, indicating a payout ratio of 35.0%. This move is part of Air Water’s strategy to ensure stable dividend distribution while enhancing internal reserves for strategic investments.