Washington Hotel Corp. (4691) AI Stock Analysis

• Market Cap: ¥16.37B
• Dividend Yield: 1.47%
• Average Volume (3M): 38.28K
• Price to Earnings (P/E): 2.9
• Beta (1Y): 0.74
• Revenue Growth: 19.31%
• EPS Growth: 202.53%
• Country: JP
• Employees: 405
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): 117.12
• Shares Outstanding: 12,170,000
• 10 Day Avg. Volume: 74,650
• 30 Day Avg. Volume: 38,280
• PEG Ratio: 0.05
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 7.45
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥1,528.00 ▲(11.29% Upside)
• Action: Upgraded Date: 02/14/26
• Date: Action: Upgraded 02/14/26

The score is driven primarily by improving financial performance (profitability and strong cash flow growth), supported by very attractive valuation (low P/E and a dividend). Technicals are positive but tempered by overextended momentum readings (high RSI/Stoch), which add short-term pullback risk.

Positive Factors

Revenue and Margin Recovery

A meaningful top-line rebound with margins turned positive shows structural operational recovery and improved pricing or cost control. Sustained revenue growth plus positive gross and net margins supports reinvestment, strengthens operating leverage, and underpins multi‑month cash generation resilience.

Robust Free Cash Flow Generation

Very strong FCF growth and high cash conversion indicate the business is converting earnings into liquidity efficiently. Durable cash generation enhances flexibility for capex, debt servicing, dividends, and strategic investments over the coming quarters without reliance on external funding.

Improved Return on Equity

A double‑digit ROE signals effective capital deployment and operational improvement by management. Sustained elevated ROE supports shareholder returns and indicates the company can generate attractive profits from its equity base, aiding long‑term financial stability.

Negative Factors

Elevated Leverage

Significant leverage limits financial flexibility and raises interest and refinancing risk over time. In a capital‑intensive hospitality business, higher debt amplifies sensitivity to demand shocks and rate rises, constraining the company’s ability to invest or absorb prolonged downturns.

Thin Equity Base

A moderate equity ratio implies a relatively thin capital buffer versus assets. That reduces resilience to unexpected losses and increases dependence on debt markets for growth, elevating long‑term funding and solvency risk if operating volatility returns.

Industry Cyclicality Exposure

Operating in travel and lodging means revenue and occupancy remain cyclical and macro‑sensitive over months. Even with current recovery, demand swings from economic cycles, travel patterns or shocks can materially affect occupancy, rates and margins over a multi‑month horizon.

Washington Hotel Corp. Business Overview & Revenue Model

Company Description

Washington Hotel Corporation engages in the hotels business in Japan. It operates Washington Hotel Plaza, and R & B Hotel. The company also manages restaurants in golf course clubhouses. The company was incorporated in 1961 and is headquartered in Nagoya, Japan.

How the Company Makes Money

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Washington Hotel Corp. Financial Statement Overview

Summary

Strong recovery in profitability and growth: gross margin turned positive (13.97% in 2025), net margin improved to 9.56%, and revenue grew 16.67% (2024–2025). Cash generation is healthy with strong free cash flow growth (93.56%) and solid cash conversion (operating cash flow to net income 1.65). The main constraint is leverage: debt-to-equity remains relatively high and equity ratio is moderate (28.22%), despite ROE improving to 21.54%.

Income Statement

Washington Hotel Corp. has shown a strong recovery in its income statement metrics. The gross profit margin improved significantly from negative figures in 2021 and 2022 to a positive 13.97% in 2025. The net profit margin also turned positive at 9.56% in 2025, indicating improved profitability. Revenue growth has been robust, with a 16.67% increase from 2024 to 2025. EBIT and EBITDA margins have also improved, reflecting better operational efficiency.

Balance Sheet

The balance sheet shows a moderate financial position. The debt-to-equity ratio is relatively high, indicating significant leverage, but it has improved over the years. The return on equity (ROE) has turned positive at 21.54% in 2025, showing effective use of equity. The equity ratio is 28.22%, suggesting a moderate level of equity financing.

Cash Flow

Cash flow metrics indicate a positive trend. The free cash flow growth rate is strong, with a 93.56% increase from 2024 to 2025. The operating cash flow to net income ratio is 1.65, suggesting healthy cash generation relative to net income. The free cash flow to net income ratio is 0.95, indicating efficient conversion of net income into free cash flow.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	21.35B	18.29B	17.53B	8.55B	4.76B
Gross Profit	2.98B	2.20B	3.72B	-2.45B	-5.94B
EBITDA	3.20B	2.18B	4.18B	-2.02B	-6.26B
Net Income	2.02B	835.69M	3.22B	-3.26B	-7.52B
Balance Sheet
Total Assets	33.75B	33.25B	35.84B	32.23B	27.02B
Cash, Cash Equivalents and Short-Term Investments	5.97B	6.47B	9.00B	4.88B	2.87B
Total Debt	20.69B	22.84B	26.14B	26.28B	17.58B
Total Liabilities	24.30B	25.71B	29.23B	28.86B	20.42B
Stockholders Equity	9.45B	7.54B	6.61B	3.36B	6.60B
Cash Flow
Free Cash Flow	1.94B	1.00B	4.18B	-2.89B	-7.88B
Operating Cash Flow	3.42B	2.04B	5.03B	-2.67B	-6.73B
Investing Cash Flow	-1.55B	-1.07B	-767.39M	-306.57M	-816.48M
Financing Cash Flow	-2.37B	-3.50B	-143.28M	5.02B	7.32B

Washington Hotel Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1373.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4691, the sentiment is Negative. The current price of 1373 is below the 20-day moving average (MA) of 1479.30, below the 50-day MA of 1412.08, and below the 200-day MA of 1416.54, indicating a bearish trend. The MACD of -16.47 indicates Positive momentum. The RSI at 38.78 is Neutral, neither overbought nor oversold. The STOCH value of 6.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4691.

Washington Hotel Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6565	80 Outperform	¥21.56B	5.47	―	1.27%	12.08%	17.87%
4691	75 Outperform	¥16.37B	2.93	―	1.47%	19.31%	202.53%
9723	69 Neutral	¥8.26B	2.04	―	0.48%	4.02%	-9.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9704	61 Neutral	¥10.67B	10.59	32.34%	―	20.16%	1467.54%
9713	58 Neutral	¥14.57B	2.42	―	0.55%	35.22%	413.40%
9720	53 Neutral	¥6.50B	37.82	―	0.39%	10.52%	-31.01%