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

• Market Cap: ¥21.13B
• Dividend Yield: 0.76%
• Average Volume (3M): 83.06K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.59
• Revenue Growth: 20.69%
• EPS Growth: 17.46%
• Country: JP
• Employees: 233
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 18.01
• 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): 2.83
• Price to Sales (P/S): 2.23
• P/FCF Ratio: -1.07K
• 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: ¥484.00 ▲(2.54% 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

Revenue growth & margins

Sustained top-line growth with robust gross and net margins indicates durable demand and operational efficiency across resort operations. Higher margins provide buffer against seasonal swings, enable reinvestment in facilities, and support consistent profitability over multiple seasons.

Solid balance sheet

Moderate leverage and a high equity ratio give the company financial flexibility to fund capex, renovate resorts, and absorb low-season shocks. A strong ROE shows management is converting equity into returns, supporting long-term sustainability of the resort business.

Operating cash generation

Consistent operating cash generation reduces reliance on external financing for maintenance and growth capex. Strong cash flow underpins the ability to fund seasonal working capital, invest in guest experience, and maintain assets across years despite capital intensity of resort operations.

Negative Factors

Free cash flow volatility

Irregular free cash flow limits predictable reinvestment and dividend capacity. Volatility—driven by timing of capex and seasonality—can force reliance on reserves or debt in weaker years, constraining strategic investments and hampering long-term financial planning.

Earnings growth weakness

Negative EPS growth signals pressures on profitability momentum that may stem from variable visitor mixes, rising costs, or episodic disruptions. Continued EPS declines would erode retained earnings and limit internal funding for upgrades or diversification over the medium term.

Weather & seasonality exposure

Core reliance on snowfall and seasonal visitation creates structural revenue volatility and asset underutilization off-season. Without greater diversification or year-round offerings, the business remains exposed to climate variability and changing tourism patterns over multiple seasons.

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

The company primarily makes money by operating ski resorts and charging customers for access to and use of resort facilities and services. Key revenue streams typically include (1) lift ticket and season pass sales, which monetize access to ski lifts and slopes; (2) ancillary on-mountain and resort-area spending by guests, such as rentals, lessons, and other guest services tied to the ski experience; and (3) food, beverage, and retail sales within resort premises where the company operates such outlets. The company’s earnings are influenced by visitor volumes and per-guest spend, which are in turn affected by factors such as snowfall and weather conditions, the length and quality of the ski season, and the company’s ability to attract inbound and domestic tourism. Information on specific resort portfolios, named partnerships, or segment revenue breakdowns is null.

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	1.64B	858.16M	153.43M
Net Income	1.59B	1.09B	952.69M	32.05M	-480.25M
Balance Sheet
Total Assets	13.40B	10.99B	7.62B	7.21B	6.93B
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	1.70B	2.14B	1.82B
Stockholders Equity	8.24B	6.72B	5.68B	4.84B	4.91B
Cash Flow
Free Cash Flow	-21.73M	-771.10M	200.97M	596.15M	-1.31B
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	436.56M	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: Negative
• RSI: Neutral
• STOCH: Neutral

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 above the 20-day moving average (MA) of 462.55, below the 50-day MA of 486.60, and below the 200-day MA of 516.10, indicating a bearish trend. The MACD of -8.30 indicates Negative momentum. The RSI at 39.22 is Neutral, neither overbought nor oversold. The STOCH value of 52.63 is Neutral, 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	¥21.56B	5.47	―	1.27%	12.08%	17.87%
6040	66 Neutral	¥21.13B	7.10	―	0.76%	20.69%	17.46%
4681	63 Neutral	¥395.96B	21.16	10.65%	1.64%	14.75%	22.10%
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%
9656	55 Neutral	¥6.29B	12.92	―	2.41%	<0.01%	23.81%