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

• Market Cap: ¥24.10B
• Dividend Yield: 1.18%
• Average Volume (3M): 21.63K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.73
• Revenue Growth: 10.08%
• EPS Growth: 15.90%
• Country: JP
• Employees: 60
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): 51.32
• 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: ¥1,955.00
• Price Target Upside: 13.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: ¥1,955.00 ▲(13.66% Upside)

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.

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 generates revenue primarily through room bookings at its hotels, which form the core of its business model. The company charges guests for overnight stays, and revenue is boosted by offering various room types and packages. Additional income streams include food and beverage sales from on-site restaurants and bars, as well as event hosting services for conferences, weddings, and other gatherings. Strategic partnerships with travel agencies and online booking platforms also contribute to its earnings by increasing visibility and bookings. Seasonal promotions and loyalty programs help retain customers and encourage repeat business, further enhancing profitability.

ABHOTEL Co., Ltd. Financial Statement Overview

Summary

ABHOTEL Co., Ltd. shows strong financial performance with significant revenue growth and high profitability margins. The balance sheet is solid with manageable leverage, although cash flow management requires 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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	26.29B	22.86B	21.61B	20.44B	20.44B
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	13.54B	12.43B	13.32B	13.90B	14.45B
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: Neutral
• Last Price: 1720.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 1720 is above the 20-day moving average (MA) of 1718.15, above the 50-day MA of 1648.76, and above the 200-day MA of 1536.33, indicating a neutral trend. The MACD of 8.03 indicates Positive momentum. The RSI at 48.48 is Neutral, neither overbought nor oversold. The STOCH value of 43.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥24.10B	8.76	―	1.18%	10.08%	15.90%
6547	72 Outperform	¥33.70B	6.59	―	1.44%	21.18%	12.24%
4691	72 Outperform	¥18.58B	6.96	―	1.25%	20.01%	290.10%
9723	72 Outperform	¥7.69B	9.25	―	0.47%	3.63%	-7.07%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9713	60 Neutral	¥15.12B	6.38	―	0.50%	28.56%	213.63%
9704	49 Neutral	¥15.49B	63.19	6.59%	―	17.45%	664.98%