Nippon Ski Resort Development Co., Ltd. (6040) AI Stock Analysis

• Market Cap: ¥20.99B
• Dividend Yield: 0.76%
• Average Volume (3M): 83.06K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.61
• Revenue Growth: 20.69%
• EPS Growth: 17.46%
• Country: JP
• Employees: 233
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): -6.30
• Shares Outstanding: 48,008,700
• 10 Day Avg. Volume: 72,950
• 30 Day Avg. Volume: 83,063
• PEG Ratio: 0.33
• Price to Book (P/B): 2.84
• Price to Sales (P/S): 2.24
• P/FCF Ratio: 23.40K
• 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: 66 Neutral
• Price Target: ¥481.00 ▲(1.91% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

Nippon Ski Resort Development Co., Ltd. has a solid financial foundation with strong revenue growth and profitability, which is the most significant factor in its score. However, the technical analysis indicates a bearish trend, and the valuation suggests the stock is fairly valued with limited income potential. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

High margins & recent revenue growth

Sustained double-digit revenue growth with industry-strong gross and operating margins indicates durable pricing power and efficient cost structure. High EBIT/EBITDA margins provide structural profitability that supports reinvestment into resorts, seasonal buffer capacity, and resilience across cycles.

Solid balance sheet and strong ROE

Moderate leverage and a substantial equity ratio create financial flexibility for capital investments in lift and resort infrastructure. A high ROE demonstrates effective capital deployment, enabling long-term growth funding or selective M&A without excessive reliance on costly external financing.

Robust operating cash generation

Consistent operating cash flow well above net income shows the business converts earnings into cash, supporting working capital needs and seasonal funding. Reliable cash generation underpins sustainable operations, capex funding for mountain assets, and reduces dependency on external capital.

Negative Factors

Volatile free cash flow

Material volatility in free cash flow limits the firm's ability to consistently fund capex, dividends, or debt reduction. For a capital-intensive resort operator, uneven FCF creates structural financing and planning risk, potentially forcing stop-start investments or external borrowing in weak seasons.

High exposure to weather and seasonality

Core revenues depend on ski season length and snowfall, creating persistent seasonality and sensitivity to climate patterns. This structural exposure reduces revenue predictability, pressures utilization in poor seasons, and makes multi-year planning and steady cash flows more challenging without diversification.

Concentrated, tourism-dependent revenue mix

Revenue concentration in guest-driven resort services leaves earnings vulnerable to localized demand shocks, travel trends, or tourism declines. The absence of detailed portfolio diversification raises structural concentration risk, limiting downside protection and scalability across adverse regional conditions.

Nippon Ski Resort Development Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Ski Resort Development Co.,Ltd., together with its subsidiaries, manages and operates ski resorts in Japan. It also provides consulting and advisory services on ski resorts, including technical support, business support, designated management, rental business support, and other services; contract management of cableway; and rental of outdoor equipment. The company was incorporated in 2005 and is headquartered in Kitaazumi, Japan. Nippon Ski Resort Development Co.,Ltd. is a subsidiary of NIPPON PARKING DEVELOPMENT Co.,Ltd.

How the Company Makes Money

Nippon Ski Resort Development generates revenue through multiple streams, primarily from ticket sales for ski lift access, rentals of ski equipment, and accommodation services within its resorts. The company also benefits from food and beverage sales at its facilities and offers various recreational activities, such as snowboarding and guided tours, which contribute additional income. Strategic partnerships with local tourism boards and travel agencies enhance visitor numbers, thereby increasing overall revenue. Seasonal promotions and marketing campaigns aimed at attracting tourists during peak winter months further bolster its earnings.

Nippon Ski Resort Development Co., Ltd. Financial Statement Overview

Summary

Nippon Ski Resort Development Co., Ltd. demonstrates strong financial health with impressive revenue growth and profitability. The balance sheet is stable with moderate leverage, and cash flow from operations is robust. However, the volatility in free cash flow growth poses a potential risk.

Income Statement

Nippon Ski Resort Development Co., Ltd. has shown strong revenue growth with a 12.69% increase in the latest year. The company maintains healthy margins, with a gross profit margin of 44.63% and a net profit margin of 15.16%. The EBIT and EBITDA margins are also robust at 21.47% and 31.28%, respectively, indicating efficient operations and profitability.

Balance Sheet

The company has a solid balance sheet with a debt-to-equity ratio of 0.41, indicating moderate leverage. The return on equity is strong at 19.24%, reflecting effective use of equity to generate profits. The equity ratio stands at 61.50%, showing a stable capital structure with a significant portion of assets financed by equity.

Cash Flow

Operating cash flow is strong, with a ratio of 1.71 to net income, indicating good cash generation from operations. However, free cash flow growth is volatile, with a significant increase in the latest year but previously negative figures. The free cash flow to net income ratio is low, suggesting limited free cash flow relative to net income.

Breakdown	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	10.46B	8.25B	6.90B	5.57B	4.55B
Gross Profit	4.67B	3.56B	2.83B	1.90B	1.18B
EBITDA	3.27B	2.28B	1.69B	875.34M	265.21M
Net Income	1.59B	1.09B	952.69M	32.05M	-480.25M
Balance Sheet
Total Assets	13.40B	10.99B	7.61B	7.20B	6.91B
Cash, Cash Equivalents and Short-Term Investments	3.46B	3.14B	1.74B	2.37B	1.96B
Total Debt	3.41B	2.86B	682.71M	1.42B	1.48B
Total Liabilities	4.70B	3.93B	1.69B	2.13B	1.80B
Stockholders Equity	8.24B	6.72B	5.68B	4.84B	4.91B
Cash Flow
Free Cash Flow	1.00M	-774.42M	196.60M	579.86M	-1.32B
Operating Cash Flow	2.71B	1.97B	1.59B	1.22B	-209.98M
Investing Cash Flow	-2.83B	-2.68B	-1.36B	-607.25M	-1.10B
Financing Cash Flow	436.00M	2.11B	-851.57M	-199.95M	-1.37B

Nippon Ski Resort Development Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 472.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6040, the sentiment is Negative. The current price of 472 is below the 20-day moving average (MA) of 482.30, below the 50-day MA of 490.30, and below the 200-day MA of 515.74, indicating a bearish trend. The MACD of -9.49 indicates Positive momentum. The RSI at 29.60 is Positive, neither overbought nor oversold. The STOCH value of 19.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6040.

Nippon Ski Resort Development Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6565	80 Outperform	¥22.70B	7.49	―	1.27%	12.08%	17.87%
6040	66 Neutral	¥20.99B	15.22	―	0.76%	20.69%	17.46%
4681	63 Neutral	¥404.76B	25.63	15.18%	1.64%	14.75%	22.10%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9704	61 Neutral	¥11.17B	9.25	32.34%	―	20.16%	1467.54%
9713	58 Neutral	¥13.81B	8.01	―	0.55%	35.22%	413.40%
9656	55 Neutral	¥6.26B	12.86	―	2.41%	<0.01%	23.81%