ABHOTEL Co., Ltd. (6565) AI Stock Analysis

• Market Cap: ¥21.56B
• Dividend Yield: 1.27%
• Average Volume (3M): 21.63K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.79
• Revenue Growth: 12.08%
• EPS Growth: 17.87%
• Country: JP
• Employees: 60
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): 71.06
• Shares Outstanding: 14,176,000
• 10 Day Avg. Volume: 21,510
• 30 Day Avg. Volume: 21,626
• PEG Ratio: 0.88
• Price to Book (P/B): 1.75
• Price to Sales (P/S): 2.09
• P/FCF Ratio: -42.48
• 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: 80 Outperform
• Price Target: ¥1,749.00 ▲(12.48% Upside)
• Action: Reiterated Date: 10/21/25
• Date: Action: Reiterated 10/21/25

ABHOTEL Co., Ltd. receives a strong overall score due to its robust financial performance and attractive valuation. The technical analysis supports a positive outlook with the stock showing upward momentum. However, attention to cash flow management is necessary to mitigate potential risks.

Positive Factors

High Profitability Margins

ABHOTEL's very strong gross and operating margins indicate superior unit economics and efficient cost control at the property level. High margins support durable cash generation, fund reinvestment in properties, and provide a buffer against cyclical revenue shocks in lodging.

Robust Revenue Growth

A 21.9% recent revenue increase shows sustained demand growth and successful commercial execution. Durable top-line momentum supports scaling fixed-cost leverage in hotels, improving long-term profitability and providing headroom for network expansion or targeted capital investments.

Manageable Leverage & Strong ROE

A debt-to-equity near 0.83 with ROE ~20% reflects prudent leverage and effective capital allocation. This balance allows growth financing without excessive risk while delivering strong shareholder returns, supporting financial flexibility for maintenance capex or selective expansion.

Negative Factors

Volatile Free Cash Flow

Recent negative and fluctuating free cash flow signals variability in cash generation after capex. For a capital-intensive business like hotels this raises risks to funding new projects, dividends or debt servicing and requires tighter capex planning or external financing to sustain growth.

Concentration in Hotel Operations

Revenue is concentrated in lodging and on-site services, leaving the company exposed to travel demand swings, tourism cycles, and regional downturns. Limited diversification increases sensitivity to macro and sector-specific shocks, challenging revenue stability over time.

Limited Scale / Diversification

A small employee base suggests a relatively compact operation and limited geographic scale. Smaller scale can constrain bargaining power, distribution reach and the ability to spread fixed costs, making growth and margin maintenance harder versus larger, more diversified hotel operators.

ABHOTEL Co., Ltd. Business Overview & Revenue Model

Company Description

Abhotel Co., Ltd. engages in the hotel business in Japan. The company was incorporated in 2014 and is based in Anjo, Japan.

How the Company Makes Money

ABHOTEL makes money mainly by operating and managing hotels and generating revenue from hotel guests. Key revenue streams typically include (1) room accommodation charges, where the company earns nightly rates from individual and corporate travelers, and (2) ancillary hotel-related income such as food and beverage sales and other on-site services provided to guests. Specific breakdowns of revenue by segment, major customer categories, property portfolio details, and material partnerships or contractual arrangements are null.

ABHOTEL Co., Ltd. Financial Statement Overview

Summary

ABHOTEL Co., Ltd. shows strong financial performance with impressive revenue growth and profitability margins. The balance sheet is solid with a manageable debt level, but cash flow management needs attention due to recent fluctuations in free cash flow.

Income Statement

ABHOTEL Co., Ltd. has demonstrated strong revenue growth over the past few years, with a significant increase of 21.87% in the most recent year. The company maintains robust profitability, evidenced by a high net profit margin of 23.80% and a gross profit margin of 43.30%. The EBIT and EBITDA margins are also impressive at 37.10% and 45.32% respectively, indicating efficient operational management. These metrics suggest a solid financial performance, although the company must continue to innovate to maintain its growth trajectory.

Balance Sheet

The company's balance sheet is solid, supported by a strong equity base that has grown consistently. The debt-to-equity ratio stands at 0.83, reflecting a manageable level of leverage. Return on equity is high at 19.94%, showcasing the company's ability to generate profits from shareholders' investments. However, the equity ratio of 48.51% suggests there is room to improve asset utilization. Maintaining a balanced approach to leverage and equity will be crucial for sustained stability.

Cash Flow

ABHOTEL's cash flow position is mixed. The operating cash flow to net income ratio is 1.29, which is a positive indicator of cash generation. However, free cash flow has fluctuated, with a significant decline recently, showing a negative free cash flow. This fluctuation poses a potential risk, requiring careful management of capital expenditures and financing activities to stabilize cash flows and support future investments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.11B	10.68B	9.95B	8.80B	6.35B	4.74B
Gross Profit	4.92B	4.62B	4.20B	3.49B	1.36B	414.93M
EBITDA	4.89B	4.84B	4.44B	3.71B	1.74B	804.28M
Net Income	2.71B	2.54B	2.31B	1.81B	567.68M	10.07M
Balance Sheet
Total Assets	26.45B	26.49B	23.06B	21.61B	20.44B	20.67B
Cash, Cash Equivalents and Short-Term Investments	6.19B	5.92B	5.59B	4.78B	3.28B	2.98B
Total Debt	10.58B	10.58B	9.52B	10.22B	11.47B	12.59B
Total Liabilities	13.26B	13.74B	12.63B	13.32B	13.90B	14.68B
Stockholders Equity	13.19B	12.75B	10.43B	8.29B	6.54B	5.99B
Cash Flow
Free Cash Flow	0.00	-524.97M	1.58B	2.62B	1.55B	-2.08B
Operating Cash Flow	0.00	3.28B	2.84B	3.00B	2.06B	-10.38M
Investing Cash Flow	0.00	-3.78B	-1.16B	-194.43M	-516.12M	-2.07B
Financing Cash Flow	0.00	836.12M	-872.61M	-1.30B	-1.24B	1.15B

ABHOTEL Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1555.00
• 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:6565, the sentiment is Negative. The current price of 1555 is below the 20-day moving average (MA) of 1564.40, below the 50-day MA of 1597.68, and below the 200-day MA of 1588.68, indicating a bearish trend. The MACD of -27.44 indicates Positive momentum. The RSI at 42.89 is Neutral, neither overbought nor oversold. The STOCH value of 49.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6565.

ABHOTEL 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%
4691	75 Outperform	¥16.37B	2.93	―	1.47%	19.31%	202.53%
9708	63 Neutral	¥178.68B	15.25	―	0.49%	-1.00%	5.32%
9722	63 Neutral	¥120.23B	17.02	―	0.30%	10.26%	6.31%
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%