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Air Water Inc. (JP:4088)
:4088
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Air Water (4088) AI Stock Analysis

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JP:4088

Air Water

(4088)

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Neutral 69 (OpenAI - 4o)
Rating:69Neutral
Price Target:
¥2,393.00
▲(11.25% Upside)
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
Revenue Growth
Strong revenue growth reflects increasing demand and market expansion, supporting long-term business sustainability and competitive positioning.
Market Diversification
Diversification across multiple sectors reduces dependency on a single market, enhancing resilience against sector-specific downturns.
Strategic Partnerships
Partnerships facilitate cross-selling opportunities and market expansion, strengthening competitive advantage and revenue potential.
Negative Factors
Free Cash Flow Decline
Declining free cash flow may limit the company's ability to invest in growth opportunities and manage financial obligations effectively.
Operational Efficiency
Lower operational margins indicate potential inefficiencies, which could impact profitability and competitiveness if not addressed.
Debt Levels
While leverage is moderate, any increase in debt could heighten financial risk, affecting long-term financial stability and flexibility.

Air Water (4088) vs. iShares MSCI Japan ETF (EWJ)

Air Water Business Overview & Revenue Model

Company DescriptionAir Water Inc. (4088) is a Japanese company primarily engaged in the production and supply of industrial gases, water purification systems, and related services. Operating in various sectors including healthcare, food and beverage, and manufacturing, Air Water offers a diverse range of products such as oxygen, nitrogen, and carbon dioxide, as well as water treatment solutions and logistics services. The company focuses on innovation and sustainable practices to enhance efficiency and environmental responsibility in its operations.
How the Company Makes MoneyAir Water generates revenue through multiple streams, primarily from the sale of industrial gases, which include oxygen, nitrogen, and argon used in various industries. The company also earns income from its water purification and treatment systems, which cater to both municipal and industrial clients. Additionally, Air Water has a logistics segment that provides transportation and supply chain solutions, contributing further to its earnings. Strategic partnerships with other companies in sectors such as healthcare and food processing enhance Air Water's market reach and create opportunities for cross-selling its products and services, bolstering its overall revenue.

Air Water Financial Statement Overview

Summary
Air Water demonstrates strong revenue growth and stable profitability, supported by a solid balance sheet with moderate leverage. However, the decline in free cash flow growth is a concern, indicating potential challenges in cash management.
Income Statement
85
Very Positive
Air Water's income statement shows robust revenue growth, with a TTM revenue growth rate of 90.8%, indicating strong market demand. The gross profit margin of 21.7% and net profit margin of 4.6% are stable, reflecting efficient cost management. However, the EBIT margin of 6.8% and EBITDA margin of 10.3% suggest room for improvement in operational efficiency.
Balance Sheet
78
Positive
The balance sheet reflects a healthy equity position with a debt-to-equity ratio of 0.84, indicating moderate leverage. The return on equity (ROE) of 9.9% demonstrates effective use of equity to generate profits. The equity ratio of 42.1% shows a strong capital structure, though there is potential risk if debt levels increase.
Cash Flow
70
Positive
The cash flow statement reveals a decline in free cash flow growth by 39.1% TTM, which could impact future investments. The operating cash flow to net income ratio of 0.28 indicates adequate cash generation relative to net income. However, the free cash flow to net income ratio of 0.18 suggests limited cash availability for discretionary spending.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.09T1.08T1.02T1.00T888.67B806.63B
Gross Profit235.87B231.53B220.27B200.08B199.11B180.90B
EBITDA111.40B124.30B115.51B106.34B107.95B88.84B
Net Income50.44B49.08B44.36B40.14B43.21B27.37B
Balance Sheet
Total Assets1.22T1.25T1.22T1.09T1.02T926.82B
Cash, Cash Equivalents and Short-Term Investments60.46B70.61B64.97B65.94B59.55B45.98B
Total Debt429.69B446.73B443.25B390.21B373.74B337.82B
Total Liabilities692.13B713.29B714.21B645.16B602.17B554.43B
Stockholders Equity513.66B517.14B488.56B430.23B395.13B357.80B
Cash Flow
Free Cash Flow15.69B25.76B16.16B-9.72B25.24B24.57B
Operating Cash Flow87.40B93.24B79.63B56.95B71.57B76.60B
Investing Cash Flow-65.14B-62.17B-97.97B-71.14B-53.15B-52.70B
Financing Cash Flow-26.25B-27.34B14.72B19.26B-6.62B-20.89B

Air Water Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2151.00
Price Trends
50DMA
2358.24
Negative
100DMA
2338.37
Negative
200DMA
2123.01
Positive
Market Momentum
MACD
-47.24
Positive
RSI
38.42
Neutral
STOCH
21.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4088, the sentiment is Negative. The current price of 2151 is below the 20-day moving average (MA) of 2215.55, below the 50-day MA of 2358.24, and above the 200-day MA of 2123.01, indicating a neutral trend. The MACD of -47.24 indicates Positive momentum. The RSI at 38.42 is Neutral, neither overbought nor oversold. The STOCH value of 21.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4088.

Air Water Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$352.46B8.379.34%4.53%-0.48%-35.29%
77
Outperform
¥700.38B19.9012.15%1.62%2.62%2.81%
74
Outperform
$265.98B10.085.47%3.55%2.60%9.50%
69
Neutral
$495.98B9.9510.06%3.09%4.35%7.88%
62
Neutral
$693.99B45.902.02%4.21%-4.63%-65.11%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
55
Neutral
$549.88B13.28-1.15%3.46%-6.83%-123.67%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4088
Air Water
2,151.00
363.48
20.33%
JP:4202
Daicel
1,263.50
-11.58
-0.91%
JP:4118
Kaneka
4,331.00
998.69
29.97%
JP:4182
Mitsubishi Gas Chemical Company
2,580.50
-177.14
-6.42%
JP:4183
Mitsui Chemicals
3,701.00
343.01
10.21%
JP:4403
NOF
2,966.50
796.00
36.67%

Air Water Corporate Events

Air Water Inc. Establishes Special Investigating Committee for Accounting Issues
Oct 10, 2025

Air Water Inc. has announced the establishment of a Special Investigating Committee to address inappropriate accounting practices involving the deferral of loss recognition, impacting approximately 2.5 billion yen across four cases. The company is cooperating with the investigation and will provide updates to stakeholders as findings become available, while apologizing for the inconvenience caused.

The most recent analyst rating on (JP:4088) stock is a Buy with a Yen2806.00 price target. To see the full list of analyst forecasts on Air Water stock, see the JP:4088 Stock Forecast page.

Air Water Inc. Launches Special Investigating Committee Amid Accounting Concerns
Oct 9, 2025

Air Water Inc. has announced the establishment of a Special Investigating Committee following the discovery of inappropriate accounting practices at several of its subsidiaries. The committee, composed of external experts, will conduct a thorough investigation to assess the financial impact and recommend measures to prevent recurrence. This move aims to ensure transparency and restore stakeholder confidence amid concerns over the company’s financial reporting practices.

The most recent analyst rating on (JP:4088) stock is a Buy with a Yen2806.00 price target. To see the full list of analyst forecasts on Air Water stock, see the JP:4088 Stock Forecast page.

Air Water Completes Acquisition of Ci Medical
Oct 7, 2025

Air Water Inc. has successfully completed a tender offer for the common shares of Ci Medical Co., Ltd., which will become a consolidated subsidiary of Air Water as of October 14, 2025. This acquisition is expected to enhance Air Water’s operational capabilities and market positioning within the medical industry, potentially impacting stakeholders positively by expanding its portfolio and consolidating its presence in the market.

The most recent analyst rating on (JP:4088) stock is a Buy with a Yen2806.00 price target. To see the full list of analyst forecasts on Air Water stock, see the JP:4088 Stock Forecast page.

Air Water Extends Tender Offer for Ci Medical Co., Ltd.
Sep 19, 2025

Air Water Inc. has announced an amendment to its tender offer for Ci Medical Co., Ltd., extending the offer period by 10 business days until October 6, 2025. This decision follows the Japan Fair Trade Commission’s notice that no exclusion order will be issued, allowing the tender offer to proceed without withdrawal, which could impact Air Water’s strategic positioning in the medical sector.

The most recent analyst rating on (JP:4088) stock is a Hold with a Yen2700.00 price target. To see the full list of analyst forecasts on Air Water stock, see the JP:4088 Stock Forecast page.

Air Water Inc. Reports Strong Q1 Earnings Growth
Aug 8, 2025

Air Water Inc. is a Japanese company operating in various sectors, including Digital & Industry, Energy Solutions, Health & Safety, Agriculture & Foods, and Other Businesses, with a focus on manufacturing and selling industrial gases, energy solutions, and health-related products.

Air Water Inc. Announces Tender Offer for Ci Medical Co., Ltd.
Aug 7, 2025

Air Water Inc. has announced a tender offer to acquire all shares of Ci Medical Co., Ltd., aiming to privatize the company. The tender offer is supported by Ci Medical’s board and involves a significant agreement with its largest shareholder, Mr. Kiyoto Shimizu, to consolidate ownership and facilitate the acquisition process.

Air Water Inc. Announces Strategic Company Split to Enhance Industrial Gas Operations
Aug 7, 2025

Air Water Inc. has announced a company split to transfer part of its industrial gas business to its subsidiary, Air Water Gas Products Inc., effective October 1, 2025. This move aims to streamline operations and strengthen the company’s position in the expanding electronics-related gas sector, while also focusing on global expansion.

Air Water Inc. Completes Treasury Share Disposal for Executive Compensation
Aug 1, 2025

Air Water Inc. has completed the payment procedures for the disposal of its treasury shares as restricted stock compensation, initially resolved by the Board of Directors on July 9, 2025. This move involves the disposal of 60,673 shares at a price of 2,191.5 yen per share, totaling 132,964,880 yen, and is aimed at compensating directors and executive officers, potentially impacting the company’s stock management and executive incentives.

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.Date of analysis: Oct 29, 2025