Air Water Inc. (JP:4088)
:4088
Top Page
Air Water
(4088)
Select Model
Select Model
Rating:69Neutral
Price Target:
¥2,698.00
▲(17.23% Upside)
Action:DowngradedDate: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 supply and scale advantages
Air Water's business includes designing, building and operating on-site gas production units and long-term supply contracts. Those scale-intensive, asset-backed arrangements create durable, contractually-linked revenue streams and high customer switching costs, supporting predictable cash flows and long-term customer relationships.
Negative Factors
Declining free cash flow growth
A near 40% drop in free cash flow growth materially reduces internal funding for maintenance capex, expansions and strategic investments. Over a multi-month horizon this weakens the firm's ability to self-fund projects, pay sustained dividends, or respond to unexpected cash needs without tapping debt or equity markets.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring on-site supply and scale advantages
Air Water's business includes designing, building and operating on-site gas production units and long-term supply contracts. Those scale-intensive, asset-backed arrangements create durable, contractually-linked revenue streams and high customer switching costs, supporting predictable cash flows and long-term customer relationships.
Read all positive factors
Air Water (4088) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥486.14B
Dividend Yield3.06%
Average Volume (3M)1.04M
Price to Earnings (P/E)―
Beta (1Y)0.62
Revenue Growth4.35%
EPS Growth7.88%
CountryJP
Employees20,348
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)N/A
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 Target
¥1,830.00Price Target Upside-20.49% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 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 system...
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
Neutral
2301.50
Price Trends
2219.84
Negative
2223.41
Negative
2270.50
Negative
Market Momentum
-20.14
Negative
51.52
Neutral
69.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4088, the sentiment is Neutral. The current price of 2301.5 is above the 20-day moving average (MA) of 2099.45, above the 50-day MA of 2219.84, and above the 200-day MA of 2270.50, indicating a neutral trend. The MACD of -20.14 indicates Negative momentum. The RSI at 51.52 is Neutral, neither overbought nor oversold. The STOCH value of 69.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥754.09B | 17.03 | 12.15% | 1.58% | 2.62% | 2.81% | |
74 Outperform | ¥303.74B | 9.05 | 5.47% | 3.41% | 2.60% | 9.50% | |
69 Neutral | ¥486.14B | -4.57 | 1.56% | 3.06% | 4.35% | 7.88% | |
67 Neutral | ¥761.62B | 77.75 | -2.50% | 3.49% | -6.83% | -123.67% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | ¥757.13B | 12.79 | 2.01% | 3.82% | -4.63% | -65.11% | |
58 Neutral | ¥1.19T | 15.92 | 3.63% | 3.98% | -1.17% | ― |
* Basic Materials Sector Average
JP:4088
Air Water
2,173.00
262.30
13.73%
JP:5201
AGC
5,574.00
1,106.76
24.77%
JP:4118
Kaneka
4,808.00
953.50
24.74%
JP:4182
Mitsubishi Gas Chemical Company
3,886.00
1,533.12
65.16%
JP:4183
Mitsui Chemicals
1,957.50
246.67
14.42%
JP:4403
NOF
3,242.00
1,147.22
54.77%
Air Water Corporate Events
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...
Air Water Elevates Outside Director to Board Chair Amid Governance Reforms
Jan 30, 2026
Air Water Inc. has promoted outside director Yoshihiro Senzai to chairperson of the board of directors, effective January 30, 2026, elevating an external member to lead the board. The move follows an ongoing investigation into inappropriate accoun...
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.