Air Water (4088) AI Stock Analysis

• Market Cap: $448.94B
• Dividend Yield: 4.49%
• Average Volume (3M): 432.16K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.78
• Revenue Growth: 5.02%
• EPS Growth: 10.24%
• Country: JP
• Employees: 20,348
• Sector: Basic Materials
• Sector Strength: 65
• Industry: Chemicals - Specialty
• EPS (TTM): 61.38
• Shares Outstanding: 229,755,050
• 10 Day Avg. Volume: 607,950
• 30 Day Avg. Volume: 432,160
• PEG Ratio: 4.14
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.27
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥2,273.00 ▲(13.74%Upside)

Air Water's strong financial performance and undervaluation are the primary drivers of its stock score. The positive market momentum further supports this outlook. Lack of recent earnings call data or notable corporate events does not impact the assessment.

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 presents a strong financial profile with consistent revenue growth, efficient operations, and a stable balance sheet. The company maintains a favorable leverage position and demonstrates excellent cash generation capabilities, positioning it well for future growth opportunities.

Income Statement

Air Water has shown steady revenue growth with a TTM increase of 3.92% compared to the previous year. The gross profit margin for TTM stands at 21.53%, indicating strong cost management. The net profit margin is also healthy at 4.54%. EBIT and EBITDA margins are at 6.12% and 11.01%, respectively, reflecting robust operational efficiency.

Balance Sheet

The company's balance sheet is solid with a debt-to-equity ratio of 0.85, indicating a manageable level of debt. The return on equity (ROE) for TTM is 9.39%, showcasing effective use of equity to generate profits. The equity ratio is 40.79%, signifying a strong capital structure with significant shareholder equity.

Cash Flow

Air Water's cash flow is strong, with an operating cash flow to net income ratio of 1.86, indicating efficient cash generation from operations. The free cash flow has grown substantially by 54.44% in the TTM, demonstrating improved liquidity and potential for reinvestment or debt reduction.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.06T	1.02T	1.00T	888.67B	806.63B	809.08B
	Gross Profit
229.21B	220.27B	200.08B	199.11B	180.90B	180.62B
	EBIT
65.10B	68.27B	62.18B	65.17B	51.23B	50.62B
	EBITDA
117.16B	115.51B	99.00B	104.64B	86.49B	81.81B
	Net Income Common Stockholders
48.33B	44.36B	40.14B	43.21B	27.37B	30.43B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
65.01B	64.97B	72.09B	64.88B	50.57B	47.66B
	Total Assets
1.26T	1.22T	1.09T	1.02T	926.82B	899.70B
	Total Debt
435.09B	418.72B	366.73B	346.50B	307.51B	301.03B
	Net Debt
370.08B	353.74B	300.78B	286.95B	261.53B	259.17B
	Total Liabilities
727.62B	714.21B	645.16B	602.17B	554.43B	547.88B
	Stockholders Equity
514.40B	488.56B	430.23B	395.13B	357.80B	331.99B
Cash Flow		Free Cash Flow
24.95B	16.16B	-9.72B	25.24B	24.57B	-20.40B
	Operating Cash Flow
89.83B	79.63B	56.95B	71.57B	76.60B	43.78B
	Investing Cash Flow
-68.26B	-97.97B	-71.14B	-53.15B	-52.70B	-115.60B
	Financing Cash Flow
-22.31B	14.72B	19.26B	-6.62B	-20.89B	80.98B

Air Water Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1998.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1998.5 is above the 20-day moving average (MA) of 1980.25, above the 50-day MA of 1916.06, and above the 200-day MA of 1898.28, indicating a bullish trend. The MACD of 24.01 indicates Positive momentum. The RSI at 59.98 is Neutral, neither overbought nor oversold. The STOCH value of 48.85 is Neutral, 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	79 Outperform	$448.94B	9.25	9.64%	4.49%	5.02%	10.24%
Sector *	50 Neutral	$2.00B	-1.13	-21.16%	3.71%	2.15%	-30.95%
DACHF		$2.25B	7.08	13.58%	4.72%	―	―
KANKF		$1.66B	9.90	5.38%	3.31%	―	―
MBGCF		$2.83B	9.70	6.78%	4.32%	―	―
MITUF		$4.08B	19.36	3.69%	4.63%	―	―
NOFCF		$3.92B	14.53	13.21%	2.03%	―	―

Air Water Corporate Events

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.

Air Water Inc. Completes Successful Tender Offer for Kawamoto Corporation Shares

Air Water Inc. successfully completed its tender offer for shares of Kawamoto Corporation, acquiring a total of 2,466,684 shares, which exceeded the minimum requirement of 960,100 shares. This acquisition is expected to strengthen Air Water’s market position and expand its operational capabilities, potentially benefiting stakeholders through enhanced company growth and strategic market positioning.