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Air Water
(4088)
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Rating:58Neutral
Price Target:
Â¥2,618.00
â–²(0.31% Upside)
Action:Reiterated
Date:08/02/26
The score is driven primarily by mixed financial performance: stable operating margins and improving free cash flow are positives, but revenue and net income declined and leverage rose, increasing risk if profitability softens. Technically, shares are weaker in the near term (below 20/50 DMA) but still supported by longer-term averages. Valuation is clouded by a negative P/E, with the ~3% dividend yield offering only partial support.
Positive Factors
Recurring on-site gas contracts
On-site generation contracts create recurring, sticky revenue and long-tail service relationships. These contracts align incentives for uptime and maintenance, enabling steady utilization, predictable cash flows and cross-sell of equipment/services—supporting durable earnings across cycles.
Negative Factors
Rising leverage
A meaningful increase in debt-to-equity raises interest and refinancing exposure, constraining capital allocation flexibility. Higher leverage lowers the firm's resilience to demand shocks and margin compression and increases default risk if cash generation weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring on-site gas contracts
On-site generation contracts create recurring, sticky revenue and long-tail service relationships. These contracts align incentives for uptime and maintenance, enabling steady utilization, predictable cash flows and cross-sell of equipment/services—supporting durable earnings across cycles.
Read all positive factors
Air Water (4088) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
Â¥569.26B
Dividend Yield2.98%
Average Volume (3M)1.04M
Price to Earnings (P/E)―
Beta (1Y)0.60
Revenue Growth4.29%
EPS Growth-83.34%
CountryJP
Employees20,836
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 Ratio-0.65
Price to Book (P/B)1.25
Price to Sales (P/S)0.48
P/FCF Ratio14.20
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)N/A
Revenue Forecast (FY)N/A
Air Water Business Overview & Revenue Model
Company Description
Air Water Inc., established in 1929 and headquartered in Osaka, Japan, is a diversified conglomerate operating across numerous sectors including industrial gas, chemicals, medical products, energy, agriculture, and food. Its industrial gas divisio...
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
67
Positive
Balance Sheet
58
Neutral
Cash Flow
63
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.01T | 1.08T | 1.02T | 1.00T | 888.67B |
| Gross Profit | 223.76B | 214.00B | 203.61B | 184.71B | 184.95B |
| EBITDA | 123.70B | 128.14B | 117.57B | 108.84B | 109.89B |
| Net Income | 39.93B | 49.08B | 44.36B | 40.14B | 43.22B |
Balance Sheet | |||||
| Total Assets | 1.22T | 1.25T | 1.22T | 1.09T | 1.02T |
| Cash, Cash Equivalents and Short-Term Investments | 94.37B | 70.61B | 64.97B | 65.94B | 59.55B |
| Total Debt | 515.67B | 441.63B | 442.98B | 390.22B | 373.74B |
| Total Liabilities | 805.32B | 713.29B | 714.21B | 645.16B | 602.17B |
| Stockholders Equity | 390.23B | 517.14B | 488.56B | 430.23B | 395.13B |
Cash Flow | |||||
| Free Cash Flow | 34.30B | 25.76B | 16.16B | -7.60B | 26.60B |
| Operating Cash Flow | 107.58B | 93.24B | 79.63B | 56.95B | 71.57B |
| Investing Cash Flow | -88.61B | -62.17B | -97.97B | -71.14B | -53.15B |
| Financing Cash Flow | -5.71B | -27.34B | 14.72B | 19.26B | -6.62B |
Air Water Technical Analysis
Positive
2610.00
Price Trends
2581.76
Negative
2404.58
Positive
2299.80
Positive
Market Momentum
-6.59
Positive
49.54
Neutral
42.32
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 2610 is above the 20-day moving average (MA) of 2565.40, above the 50-day MA of 2581.76, and above the 200-day MA of 2299.80, indicating a neutral trend. The MACD of -6.59 indicates Positive momentum. The RSI at 49.54 is Neutral, neither overbought nor oversold. The STOCH value of 42.32 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥344.45B | 11.38 | 6.43% | 2.74% | 0.55% | 26.28% | |
71 Outperform | ¥658.35B | 15.81 | 14.24% | 1.58% | 8.25% | 15.02% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | ¥1.29T | 15.10 | 5.92% | 3.35% | 1.39% | ― | |
60 Neutral | ¥828.29B | 23.14 | 4.01% | 3.40% | -7.76% | 7.92% | |
58 Neutral | ¥569.26B | -81.04 | 1.56% | 2.87% | 4.29% | -83.34% | |
58 Neutral | ¥814.97B | -20.29 | -6.25% | 2.29% | -4.57% | -190.44% |
* Basic Materials Sector Average
JP:4088
Air Water
2,576.00
217.82
9.24%
JP:5201
AGC
5,811.00
1,333.98
29.80%
JP:4118
Kaneka
5,972.00
1,668.15
38.76%
JP:4182
Mitsubishi Gas Chemical Company
4,458.00
2,116.97
90.43%
JP:4183
Mitsui Chemicals
2,177.50
454.73
26.40%
JP:4403
NOF
2,772.50
-52.01
-1.84%
Air Water Corporate Events
Air Water Details Governance Reforms and Outlook Alongside FY2025 Results
Jul 31, 2026
Air Water Inc. has released explanatory materials on its fiscal year 2025 full-year financial results, outlining the impact of previously identified inappropriate accounting on performance and the scope of its voluntary investigation. The company ...
Air Water Flags Material Internal Control Weaknesses and Launches Governance Overhaul
Jul 31, 2026
Air Water Inc. has disclosed material weaknesses in its internal control over financial reporting at the parent company and certain consolidated subsidiaries. The issues span entity-level controls, business processes and financial closing procedur...
Air Water Hit With Qualified Audit Opinion After Accounting Irregularities Probe
Jul 31, 2026
Air Water Inc. disclosed that its auditor, KPMG AZSA LLC, issued a qualified opinion on the company’s consolidated financial statements for the fiscal year ended March 31, 2026. The qualification stems from extensive inappropriate accounting...
Air Water Files Delayed Annual Report and Releases Postponed Earnings Summaries
Jul 31, 2026
Air Water Inc. announced that it has completed the filing of its Annual Securities Report for the 26th fiscal year, covering the period ended March 31, 2026, with the Director-General of the Kanto Local Finance Bureau. This filing follows an appro...
Air Water Revises Q1 FY2026 Figures but Confirms Dividend Outlook
Jul 31, 2026
Air Water Inc., a major Japanese industrial group based in Osaka, reported consolidated revenue of ¥239.7 billion for the three months ended June 30, 2025, up 2.1% year on year, with operating profit rising 23.7% and profit attributable to ow...
Air Water Corrects Q3 FY2025 Results While Maintaining Dividend Outlook
Jul 31, 2026
Air Water Inc. has issued corrections to its previously disclosed consolidated financial results for the third quarter of the fiscal year ending March 31, 2025. The company stated that numerous numerical items in the February 7, 2025 release have ...
Air Water Corrects IFRS First-Quarter Results for FY2025
Jul 31, 2026
Air Water Inc. has announced partial corrections to its previously disclosed consolidated financial results for the first quarter of the fiscal year ending March 31, 2025. The revisions involve numerical data in the IFRS-based statements released ...
Air Water Moves to Restore Credibility After Delayed 2026 Earnings Disclosure
Jul 31, 2026
Air Water Inc. has disclosed its consolidated financial results for the third quarter and full fiscal year ended March 31, 2026 later than standard market practice, exceeding 45 days after quarter-end and 50 days after year-end. The company public...
Air Water Posts Deeper-Than-Expected Loss on Stricter Accounting and Impairments
Jul 31, 2026
Air Water Inc. reported consolidated results for the fiscal year ended March 31, 2026 that fell significantly short of its February 2026 forecast, with revenue declining to ¥1,066.8 billion and a shift to a substantial net loss, including a s...
Air Water Swings to FY2025 Loss but Targets Rebound Amid Portfolio Shift
Jul 31, 2026
Air Water Inc. reported FY2025 revenue of ¥1.07 trillion, up 5.3% from the previous year, but swung to an operating loss of ¥37.2 billion and a net loss attributable to owners of ¥63.9 billion. The downturn erased prior profitabilit...
Air Water Swings to Loss Despite Higher Sales, Keeps Dividend as Outlook Darkens
Jul 31, 2026
Air Water reported consolidated revenue of ¥769.6 billion for the nine months ended December 31, 2025, up 3.5% year on year, but operating profit dropped 52.6% to ¥23.8 billion and profit attributable to owners of the parent swung to a l...
Air Water Restates Multiple Years of Accounts After Inventory Accounting Probe
Jul 31, 2026
Air Water Inc. has filed correction reports for multiple prior-year securities filings and amended financial results summaries after uncovering inappropriate inventory accounting at a consolidated subsidiary. The company launched a Special Investi...
Air Water Overhauls Governance After Accounting Scandal
Jul 31, 2026
Air Water Inc. has resolved to overhaul its governance framework by shifting from a Company with an Audit Supervisory Board to a Company with an Audit and Supervisory Committee, pending shareholder approval of articles of incorporation changes at...
Air Water to Shift FY2026 Reporting and Governance Changes to Extraordinary Shareholders Meeting
Jul 31, 2026
Air Water’s board has decided not to hold the previously planned continued session of its 26th Annual General Meeting, where shareholders were to receive formal reports on the business results and consolidated and non‑consolidated fina...
Air Water Sets New Disclosure Date for Delayed FY2026 Earnings
Jul 27, 2026
Air Water Inc. has confirmed the dates on which it will release its delayed consolidated financial results for the third quarter and full fiscal year ended March 31, 2026. The company had previously notified markets of a delay beyond the standard ...
Air Water to Issue Restricted Stock from Treasury Shares for Management Compensation
Jul 9, 2026
Air Water’s board has approved the disposal of 37,698 treasury shares as restricted stock compensation, valued at about ¥100.5 million, to three directors, 15 executive officers and 11 subsidiary directors. The issuance, priced at ¥...
Air Water Gains One-Month Extension for Annual Securities Report Filing
Jun 30, 2026
Air Water Inc. has received regulatory approval from the Kanto Local Finance Bureau to extend the statutory filing deadline for its Annual Securities Report for the fiscal year ended March 31, 2026. The report, originally due on June 30, 2026, wil...
Air Water Seeks One-Month Extension for FY2025 Annual Securities Report Amid Accounting Probes
Jun 29, 2026
Air Water Inc. has applied to the Kanto Local Finance Bureau for approval to extend the filing deadline of its Annual Securities Report for the fiscal year ended March 31, 2026, from June 30 to July 31, 2026. The company apologized to shareholders...
Air Water weighs delay in filing annual report amid widening accounting issues
Jun 26, 2026
Air Water Inc. said it is considering applying to extend the statutory June 30 filing deadline for its annual securities report for the fiscal year ended March 31, 2026, after uncovering widespread inappropriate accounting practices at the parent ...
Air Water to Amend Past Filings After Supplementary Probe on Accounting Issues
Jun 22, 2026
Air Water has received a supplementary investigation report from its Special Investigating Committee covering additional suspected inappropriate accounting practices at the company and its group firms, following an earlier report submitted in Marc...
Air Water Sets Up External Committee to Probe Liability Over Accounting Irregularities
Jun 22, 2026
Air Water has established an Accountability Assessment Committee after uncovering inappropriate accounting treatments within its group, signaling a move to strengthen governance. The committee, composed entirely of external legal experts with no c...
Air Water Sets Record Date for Potential Extraordinary Shareholders Meeting
Jun 16, 2026
Air Water Inc. has set July 1, 2026, as the record date to determine which shareholders may exercise voting rights at a potential extraordinary general meeting of shareholders to be held within three months. Shareholders recorded in the registry o...
Air Water to Delay Financial Reporting at 26th Shareholders Meeting After Accounting Issues
Jun 4, 2026
Air Water Inc. has called its 26th Annual General Meeting of Shareholders for June 29, 2026, in Sapporo, where it will report on incidents of inappropriate accounting practices within the group and seek approval for the election of eight directors...
Air Water Maintains Annual Dividend Amid Accounting Review and Delayed Earnings
Jun 4, 2026
Air Water Inc. will pay a year-end dividend of ¥37.50 per share for the fiscal year ended March 31, 2026, matching its prior forecast and bringing the total annual dividend to ¥75.00 per share, unchanged from the previous year despite a ...
Air Water sets governance overhaul plan after TSE special alert designation
May 29, 2026
Air Water Inc. has been designated a Security on Special Alert by the Tokyo Stock Exchange, which judged that the company needs to strengthen its internal management systems following findings of inappropriate accounting practices involving senior...
Air Water Corrects Director and Executive Officer Changes in Governance Update
May 25, 2026
Air Water Inc. has issued a correction to a previously announced notice on changes in directors, Audit Supervisory Board members, executive officers, and organizational restructuring, clarifying errors in the original disclosure. The amended deta...
Air Water Overhauls Governance After Security-on-Alert Designation
May 22, 2026
Air Water Inc. is overhauling its governance structure after the Tokyo Stock Exchange placed the company under Security on Alert, following issues linked to inappropriate accounting and internal controls. The company will clearly separate oversigh...
Air Water Delays FY2026 Financial Results Amid Extensive Accounting Review
May 13, 2026
Air Water Inc. has warned that it will not be able to release its full-year financial results for the fiscal year ended March 31, 2026, within 45 days of the year-end, citing extensive ongoing verification of accounting treatments across many cons...
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.