Air Water Inc. (JP:4088)
:4088
Want to see JP:4088 full AI Analyst Report?
Top Page
Air Water
(4088)
Select Model
Select Model
Rating:69Neutral
Price Target:
¥2,076.00
▼(-9.80% Downside)
Action:Downgraded
Date:10/29/25
Air Water's strong financial performance and attractive valuation are offset by bearish technical indicators. The company's robust revenue growth and stable profitability are positive, but the decline in free cash flow and negative market momentum present challenges. The low P/E ratio and high dividend yield suggest potential value, but caution is advised due to current market trends.
Positive Factors
Recurring on-site contracts
Air Water's business includes long-term on-site gas generation contracts and recurring consumable gas supply. This creates durable, predictable revenue streams with high customer stickiness and cross-sell opportunities, supporting steady cash flows and service-led margins over time.
Negative Factors
Free cash flow decline
A 39.1% TTM decline in free cash flow reduces the firm's ability to fund discretionary investments, repay debt, or increase returns to shareholders. Over months, weaker FCF constrains strategic initiatives, limits capital allocation flexibility, and raises sensitivity to demand swings.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring on-site contracts
Air Water's business includes long-term on-site gas generation contracts and recurring consumable gas supply. This creates durable, predictable revenue streams with high customer stickiness and cross-sell opportunities, supporting steady cash flows and service-led margins over time.
Read all positive factors
Air Water (4088) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥556.82B
Dividend Yield3.06%
Average Volume (3M)1.04M
Price to Earnings (P/E)73.8
Beta (1Y)0.63
Revenue Growth2.75%
EPS Growth-83.60%
CountryJP
Employees20,348
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)33.90
Shares Outstanding229,755,050
10 Day Avg. Volume2,002,900
30 Day Avg. Volume1,041,256
Financial Highlights & Ratios
PEG Ratio0.86
Price to Book (P/B)0.83
Price to Sales (P/S)0.40
P/FCF Ratio16.76
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)174.55
Revenue Forecast (FY)¥1.25T
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 eq...
How the Company Makes Money
Air Water makes money primarily by manufacturing, distributing, and servicing gases and adjacent industrial products and solutions across multiple business segments. Its key revenue streams include: (1) Industrial and medical gases: recurring sale...
Air Water Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.08T | 1.08T | 1.02T | 1.00T | 888.67B | 806.63B |
| Gross Profit | 238.76B | 214.00B | 203.61B | 184.71B | 184.95B | 166.93B |
| EBITDA | 105.41B | 113.99B | 108.45B | 94.69B | 102.79B | 84.53B |
| Net Income | 7.74B | 49.08B | 44.36B | 40.14B | 43.22B | 27.37B |
Balance Sheet | ||||||
| Total Assets | 1.15T | 1.25T | 1.22T | 1.09T | 1.02T | 926.82B |
| Cash, Cash Equivalents and Short-Term Investments | 63.79B | 70.61B | 64.97B | 65.94B | 59.55B | 45.98B |
| Total Debt | 423.55B | 441.63B | 442.98B | 390.22B | 373.74B | 337.82B |
| Total Liabilities | 693.95B | 713.29B | 714.21B | 645.16B | 602.17B | 554.43B |
| Stockholders Equity | 444.75B | 517.14B | 488.56B | 430.23B | 395.13B | 357.80B |
Cash Flow | ||||||
| Free Cash Flow | 18.36B | 25.76B | 16.16B | -7.60B | 26.60B | 26.29B |
| Operating Cash Flow | 90.24B | 93.24B | 79.63B | 56.95B | 71.57B | 76.60B |
| Investing Cash Flow | -58.57B | -62.17B | -97.97B | -71.14B | -53.15B | -52.70B |
| Financing Cash Flow | -27.97B | -27.34B | 14.72B | 19.26B | -6.62B | -20.89B |
Air Water Technical Analysis
Positive
2301.50
Price Trends
2259.24
Positive
2233.15
Positive
2269.55
Positive
Market Momentum
93.63
Negative
58.21
Neutral
17.02
Positive
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 2301.5 is below the 20-day moving average (MA) of 2361.00, above the 50-day MA of 2259.24, and above the 200-day MA of 2269.55, indicating a bullish trend. The MACD of 93.63 indicates Negative momentum. The RSI at 58.21 is Neutral, neither overbought nor oversold. The STOCH value of 17.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4088.
Air Water Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥336.01B | 11.08 | 5.47% | 3.41% | 0.55% | 25.37% | |
71 Outperform | ¥630.85B | 15.14 | 12.15% | 1.58% | 8.25% | 14.61% | |
69 Neutral | ¥556.82B | 73.82 | 1.56% | 3.06% | 2.75% | -83.60% | |
65 Neutral | ¥1.62T | 19.77 | 3.63% | 3.98% | 1.39% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | ¥815.58B | 23.03 | 2.01% | 3.82% | -7.76% | 7.92% | |
58 Neutral | ¥1.02T | -25.74 | -2.50% | 3.49% | -4.57% | -190.44% |
* Basic Materials Sector Average
JP:4088
Air Water
2,490.00
545.44
28.05%
JP:5201
AGC
8,221.00
4,128.50
100.88%
JP:4118
Kaneka
5,611.00
1,835.12
48.60%
JP:4182
Mitsubishi Gas Chemical Company
5,382.00
3,275.08
155.44%
JP:4183
Mitsui Chemicals
2,131.50
576.06
37.03%
JP:4403
NOF
2,680.50
145.98
5.76%
Air Water Corporate Events
Air Water Shares Placed on Alert as TSE Imposes Listing Violation Penalty
Apr 30, 2026
Air Water Inc., a Tokyo Stock Exchange Prime Market and Sapporo Stock Exchange–listed company, disclosed that its shares have been designated as a Security on Alert by the Tokyo Stock Exchange effective May 1, 2026, following a notification ...
Air Water Overhauls Top Management to Bolster Governance
Apr 16, 2026
Air Water Inc. has announced significant changes to its top management, with current Chair of the Board and outside director Yoshihiro Senzai and Senior Executive Officer and Chief Accounting and Finance Officer Yu Karato set to become representat...
Air Water Reshapes Nomination and Remuneration Committee to Strengthen Governance
Apr 3, 2026
Air Water Inc. has reshaped the composition of its Nomination and Remuneration Committee, an advisory body to the Board of Directors, effective April 3, 2026. Representative Director, President, CEO and COO Ryosuke Matsubayashi has stepped down fr...
Air Water Publishes Special Investigation Committee Report After Completing Disclosure Procedures
Apr 3, 2026
Air Water Inc. has completed necessary procedures related to an investigation by a Special Investigation Committee and has now published the committee’s report, following an earlier partial non-disclosure phase. The company has apologized to...
Air Water Imposes Pay Cuts on Executives After Probe Finds Accounting Misconduct
Apr 3, 2026
Air Water Inc. has announced disciplinary measures against top management and other related parties following an internal investigation that uncovered inappropriate accounting practices within the group. A Special Investigation Committee found tha...
Air Water Unveils Detailed Governance and Culture Reforms After Accounting Probe
Apr 3, 2026
Air Water Inc. has formally adopted a detailed set of recurrence prevention measures after an independent Special Investigating Committee found inappropriate accounting practices within the group and confirmed partial involvement of top management...
Air Water Receives Accounting Probe Report, Plans Restatements and Governance Reforms
Mar 31, 2026
Air Water Inc. has received the final investigation report from its Special Investigating Committee examining inappropriate accounting practices within the Air Water Group, and the company has pledged to prioritize measures to prevent recurrence, ...
Air Water Reissues English Results as Profitability Deteriorates in First Half 2025
Feb 17, 2026
Air Water Inc. has reissued its English-language consolidated financial results for the six months ended September 30, 2025, citing the need to align wording and formatting with Tokyo Stock Exchange examples and internal stylistic standards. The r...
Air Water Corrects EPS Figure in Sharply Downgraded Full-Year Forecast
Feb 16, 2026
Air Water Inc. has issued a correction to its recently announced revision of full-year financial forecasts for the fiscal year ending March 31, 2026, clarifying a minor numerical error in basic earnings per share. The company confirmed that while ...
Air Water Publishes Redacted Special Investigation Report to Address Governance Concerns
Feb 16, 2026
Air Water Inc. has released the public version of an investigation report compiled by a Special Investigating Committee, following internal scrutiny into unspecified matters at the company. After receiving the report dated February 9, 2026, the co...
Air Water Hit with Qualified Audit Opinion After Wide-Ranging Accounting Probe
Feb 16, 2026
Air Water Inc. disclosed that its accounting auditor, KPMG AZSA LLC, issued a qualified conclusion on the company’s interim consolidated financial statements for the fiscal year ending March 31, 2026. The qualification stems from the discove...
Air Water Restates Earnings After Accounting Probe, Files Delayed Semi-Annual Report
Feb 13, 2026
Air Water has submitted its semi-annual report for the fiscal year ending March 31, 2026, to the Kanto Local Finance Bureau after receiving an extension of the filing deadline. The company also restated past consolidated financial statements, ackn...
Air Water Swings to Projected Loss After Accounting Probe and Overseas Impairments
Feb 13, 2026
Air Water Inc. has sharply revised its full-year forecast for the year ending March 31, 2026, keeping revenue unchanged at ¥1.15 trillion but slashing expected operating profit from ¥84 billion to ¥14 billion and projecting a ¥...
Air Water Swings to Interim Loss but Maintains Full-Year Dividend Plan
Feb 13, 2026
Air Water reported consolidated revenue of ¥516.6 billion for the six months ended September 30, 2025, up 2.4% year on year, but swung to an operating loss of ¥5.4 billion and a net loss attributable to owners of the parent of ¥21.2...
Air Water Unveils Governance Reforms After Probe Finds Improper Accounting
Feb 13, 2026
Air Water has disclosed that a special investigative committee found inappropriate accounting within the group, including involvement by top management, and traced the problem to a long-standing corporate environment in which misconduct could be o...
Air Water receives interim probe report on accounting issues, plans restatements and reforms
Feb 12, 2026
Air Water Inc. has disclosed that a Special Investigating Committee of external experts, created after the discovery of inappropriate accounting practices involving loss deferrals at several subsidiaries and its Plant Gas Division, has submitted a...
Air Water Secures ¥113 Billion Commitment Line to Bolster Financial Base
Feb 12, 2026
Air Water Inc. has secured a ¥113.0 billion syndicated commitment line from Sumitomo Mitsui Trust Bank, Sumitomo Mitsui Banking Corporation, and Mizuho Bank, with the facility running from February 12, 2026 to January 29, 2027. The unsecured,...
Air Water Delays Q3 FY2026 Earnings Release Amid Ongoing Accounting Probe
Feb 6, 2026
Air Water Inc. has announced that it will delay the disclosure of its consolidated financial results for the third quarter of the fiscal year ending March 2026 beyond 45 days after the quarter’s close, citing ongoing investigations into inap...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.