HANATOUR JAPAN CO.LTD. (6561) AI Stock Analysis

• Market Cap: ¥11.10B
• Dividend Yield: 3.16%
• Average Volume (3M): 12.10K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.78
• Revenue Growth: 8.41%
• EPS Growth: 20.97%
• Country: JP
• Employees: 307
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Services
• EPS (TTM): 25.01
• Shares Outstanding: 12,664,700
• 10 Day Avg. Volume: 14,630
• 30 Day Avg. Volume: 12,103
• PEG Ratio: -0.55
• Price to Book (P/B): 2.52
• Price to Sales (P/S): 1.57
• P/FCF Ratio: 6.28
• 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: 70 Outperform
• Price Target: ¥942.00 ▲(4.67% Upside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

The score is driven primarily by improved financial performance (strong profitability and free cash flow, with reduced leverage versus prior stress years) and supportive valuation (low P/E and strong dividend yield). These positives are partially offset by weak technical signals, with the stock trading below key moving averages and showing bearish momentum.

Positive Factors

Improving cash generation

Consistent and improving operating and free cash flow (OCF 1.97B, FCF 1.80B in 2025) indicates the business can fund operations, capex and distributions internally. High FCF conversion (~91% of net income) supports dividend sustainability and continued de‑leveraging over the medium term.

Strong profitability and margins

Margins recovered materially post‑pandemic—high gross and operating margins imply pricing power or efficient cost structure in core travel services. Durable margin levels support long‑term cash generation and resilience to cyclical demand, enabling reinvestment or shareholder returns.

Materially reduced leverage

Leverage has come down meaningfully from crisis levels (debt-to-equity ~11.14 in 2022 to ~0.95 in 2025). A stronger equity base and lower absolute debt improve financial flexibility, reduce refinancing risk, and create room for strategic investments or continued balance‑sheet repair.

Negative Factors

Modest revenue growth

Revenue growth remains tepid (4.9% in 2025 after minimal growth in 2024), suggesting limited demand momentum. For a travel services operator, sustained modest top‑line expansion constrains scale benefits, may limit margin upside, and increases reliance on operational efficiencies or new offerings to drive medium‑term growth.

Remaining sizable debt and past stress

Despite improvement, material legacy debt and recent balance‑sheet stress mean financial flexibility is still constrained. Residual leverage elevates vulnerability to revenue shocks and can limit capital allocation, making the company more sensitive to macro or industry setbacks over the next several quarters.

OCF does not fully cover accounting earnings

Operating cash flow covering only ~76% of net income points to working‑capital and timing volatility. That inconsistency can produce earnings/cash conversion swings, complicating forecasting and increasing risk that reported profits may not translate to reliable free cash for investment or payouts in weaker periods.

HANATOUR JAPAN CO.LTD. Business Overview & Revenue Model

Company Description

Hanatour Japan Co., Ltd. operates as a travel company in Japan and internationally. The company arranges inbound travel services from South Korea, China, Southeast Asia, Europe, and America. It also operates JAPAN TOPKEN, an online sales site that sells admission tickets for sightseeing spots, transportation passes, and optional tour products; and Gorilla, a sales site, which provides travel services, as well as sells travel products, such as hotels, various tickets, transportation passes, optional tours, and restaurant tickets. In addition, the company engages in the general charter passenger car transportation business; hotel management; and software and Web system development, operation, and maintenance businesses. The company was incorporated in 2005 and is headquartered in Tokyo, Japan. Hanatour Japan Co., Ltd. is a subsidiary of Hanatour Service Inc.

How the Company Makes Money

HANATOUR JAPAN generates revenue primarily through the sale of travel packages, which include transportation, accommodation, and guided tours. The company also earns money through ancillary services such as travel insurance, car rentals, and event ticketing. Key revenue streams include partnerships with hotels, airlines, and local attractions, which allow HANATOUR to offer competitive pricing and exclusive deals to its customers. Additionally, the company may benefit from commissions and fees associated with booking services and promotional collaborations with other travel-related businesses. Seasonal promotions and targeted marketing strategies also play a crucial role in boosting sales and attracting new customers.

HANATOUR JAPAN CO.LTD. Financial Statement Overview

Summary

Financials reflect a strong post-pandemic recovery with solid profitability and improving free cash flow, but moderate revenue growth and remaining balance-sheet leverage keep overall quality from scoring higher.

Income Statement

Profitability has materially improved versus the pandemic years: 2025 revenue rose to 7.18B (up 4.9% YoY) and margins stayed strong (about 79.6% gross margin and 19.3% net margin). Operating profit also strengthened (about 27.8% operating margin). The key weakness is growth momentum—top-line growth is modest in 2025 after a very small increase in 2024, and net margin fell versus 2024 (about 24.4% to 19.3%), suggesting some normalization in earnings power.

Balance Sheet

Leverage has improved meaningfully: debt-to-equity declined from very high levels in 2022–2023 to ~0.95 in 2025, supported by a larger equity base (4.49B in 2025 vs 1.85B in 2023). Total debt also decreased from 6.15B (2023) to 4.25B (2025). Still, the company is coming off a period of heavy balance-sheet stress (debt-to-equity was ~11.14 in 2022), and debt remains sizable relative to the business, keeping financial flexibility as a watch item.

Cash Flow

Cash generation is solid and improving: 2025 operating cash flow was 1.97B and free cash flow was 1.80B, both higher than 2024. Free cash flow conversion is healthy (free cash flow is ~91% of net income in 2025, similar to 2023–2024). The main weakness is that operating cash flow has not consistently covered accounting earnings (operating cash flow is ~76% of net income in 2025), indicating working-capital or timing effects that can add volatility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.84B	7.18B	6.66B	5.15B	2.01B	864.40M
Gross Profit	5.40B	5.72B	5.20B	3.78B	1.52B	511.06M
EBITDA	2.17B	2.34B	2.08B	1.23B	-137.94M	-1.41B
Net Income	1.69B	1.39B	1.63B	1.22B	-657.40M	-1.97B
Balance Sheet
Total Assets	10.19B	11.22B	10.74B	9.68B	8.92B	9.99B
Cash, Cash Equivalents and Short-Term Investments	2.51B	2.95B	2.55B	1.99B	1.94B	2.94B
Total Debt	4.89B	4.25B	5.27B	6.15B	7.21B	7.78B
Total Liabilities	6.28B	6.74B	7.26B	7.83B	8.27B	8.69B
Stockholders Equity	3.91B	4.49B	3.48B	1.85B	647.64M	1.31B
Cash Flow
Free Cash Flow	0.00	1.80B	1.60B	1.13B	-700.62M	-1.17B
Operating Cash Flow	0.00	1.97B	1.82B	1.29B	-676.47M	-1.02B
Investing Cash Flow	0.00	-881.92M	-375.00M	-74.12M	273.85M	-2.17M
Financing Cash Flow	0.00	-1.39B	-890.33M	-1.10B	-595.22M	966.26M

HANATOUR JAPAN CO.LTD. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 900.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6561, the sentiment is Neutral. The current price of 900 is above the 20-day moving average (MA) of 887.55, above the 50-day MA of 894.70, and below the 200-day MA of 981.02, indicating a bearish trend. The MACD of -9.41 indicates Positive momentum. The RSI at 50.19 is Neutral, neither overbought nor oversold. The STOCH value of 47.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6561.

HANATOUR JAPAN CO.LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6191	71 Outperform	¥17.10B	6.87	12.02%	1.34%	5.77%	-11.65%
9376	71 Outperform	¥3.46B	26.44	―	3.75%	4.12%	-5.53%
6561	70 Outperform	¥11.10B	8.01	―	3.16%	8.41%	20.97%
7048	62 Neutral	¥7.98B	56.77	―	―	10.87%	98.92%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6548	51 Neutral	¥3.03B	-7.76	―	―	51.63%	-141.13%
6577	39 Underperform	¥2.92B	-92.01	―	0.91%	-8.75%	-111.94%