Airport Facilities Co., Ltd. (8864) AI Stock Analysis

• Market Cap: ¥54.49B
• Dividend Yield: 1.92%
• Average Volume (3M): 135.49K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.57
• Revenue Growth: 28.90%
• EPS Growth: 51.06%
• Country: JP
• Employees: 124
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 30.57
• Shares Outstanding: 52,979,350
• 10 Day Avg. Volume: 150,370
• 30 Day Avg. Volume: 135,493
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,110.00
• Price Target Upside: 1.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: ¥1,110.00 ▲(1.74% Upside)

The company's strong financial performance, highlighted by robust revenue and profit growth, is the most significant positive factor. Technical indicators show bullish momentum, although overbought signals suggest caution. The stock's valuation is reasonable with a good P/E ratio and dividend yield, supporting its attractiveness. Absence of recent earnings call and corporate events data did not impact the score.

Airport Facilities Co., Ltd. Business Overview & Revenue Model

Company Description

Airport Facilities Co., Ltd. engages in the real estate, area heating and cooling, water supply and drainage service, and other businesses in Japan. The company leases various facilities comprising multi-purpose general buildings, hangars, maintenance plants, apartments, domestic air cargo terminal, aircraft washing facilities, sanitary disposal plant, and office buildings, as well as office equipment, applied electronic machines and apparatus, vehicles, aircraft, aircraft parts, other aircraft and space-related instruments, transportation equipment, etc. It also provides cooling and heating services, and shared telecommunication systems. In addition, the company owns, rents, operates, and manages waterworks, meeting spaces, parking spaces, hotels, restaurants and tearooms, sewerage, and airport-related facilities. Further, it engages in the renewable energy business. Additionally, the company collects, transports, and treats general and industrial wastes, as well as provides money and debt guarantee loans. Airport Facilities Co., Ltd. was founded in 1970 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Airport Facilities Co., Ltd. generates revenue primarily through service contracts with airport authorities and airlines. These contracts typically involve fees for the maintenance and management of airport infrastructure, including cleaning, repairs, and upgrades. The company also earns income from environmental services such as waste management and recycling, which are increasingly in demand as airports strive to enhance their sustainability. Furthermore, strategic partnerships with airlines and airport operators contribute to its earnings by ensuring ongoing contracts and opportunities for expanded service offerings.

Airport Facilities Co., Ltd. Financial Statement Overview

Summary

The company shows strong financial health with robust revenue and profit growth, efficient operations, and stable financial leverage. Income statement performance is particularly strong with improving margins and revenue growth. The balance sheet is solid with a healthy equity position, but there is room for improvement in leveraging debt. Cash flow management is positive, with significant improvements in free cash flow.

Income Statement

The company has demonstrated strong income statement performance with consistent revenue growth and improving margins. The gross profit margin increased from 20.3% in 2024 to 21.4% in 2025, while the net profit margin improved from 7.8% to 8.3% over the same period. Revenue growth was robust at 19.9% from 2024 to 2025. EBIT and EBITDA margins have also shown positive trends, indicating efficient operations and cost management.

Balance Sheet

The balance sheet reflects a solid equity base with a moderate debt-to-equity ratio of 0.45 in 2025, down from 0.55 in 2024. However, the equity ratio decreased slightly from 52.6% to 55.2%, indicating a stable financial structure. Return on equity improved to 4.3% in 2025 from 3.5% in 2024, showcasing better utilization of shareholder funds. While debt levels are substantial, the company maintains a healthy equity position.

Cash Flow

Cash flow performance is positive with a significant improvement in free cash flow, which turned positive in 2025 to ¥1.64 billion from a negative ¥1.24 billion in the prior year. The operating cash flow to net income ratio was strong at 2.14, indicating efficient cash conversion. Free cash flow to net income ratio also improved, reflecting better cash management. However, cash flow from financing activities is negative, suggesting debt repayments or dividend payouts.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.12B	31.12B	25.95B	25.52B	23.78B	24.16B
Gross Profit	6.74B	6.77B	5.28B	4.61B	5.37B	5.71B
EBITDA	9.20B	9.21B	8.00B	7.33B	7.42B	8.10B
Net Income	2.58B	2.58B	2.02B	1.56B	821.41M	-933.79M
Balance Sheet
Total Assets	108.58B	108.58B	110.46B	100.40B	102.47B	100.43B
Cash, Cash Equivalents and Short-Term Investments	7.16B	7.16B	10.85B	8.60B	9.61B	6.58B
Total Debt	27.05B	27.05B	32.14B	27.30B	30.76B	34.71B
Total Liabilities	45.99B	45.99B	49.70B	43.03B	47.16B	45.46B
Stockholders Equity	59.91B	59.91B	58.13B	54.85B	52.78B	52.47B
Cash Flow
Free Cash Flow	0.00	1.64B	-1.24B	-163.71M	7.51B	2.10B
Operating Cash Flow	0.00	5.53B	928.09M	2.02B	8.47B	4.76B
Investing Cash Flow	0.00	-3.42B	-3.83B	1.20B	-449.19M	-2.70B
Financing Cash Flow	0.00	-5.66B	5.10B	-4.46B	-5.12B	-1.91B

Airport Facilities Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1091.00
• 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:8864, the sentiment is Positive. The current price of 1091 is above the 20-day moving average (MA) of 1078.90, above the 50-day MA of 1021.46, and above the 200-day MA of 746.87, indicating a bullish trend. The MACD of 20.45 indicates Positive momentum. The RSI at 57.32 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8864.

Airport Facilities Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8877	82 Outperform	¥86.56B	11.94	12.70%	3.30%	-18.65%	-30.68%
8864	80 Outperform	¥54.49B	16.71	―	1.92%	28.90%	51.06%
3465	76 Outperform	¥90.04B	8.83	14.73%	3.27%	24.18%	67.31%
8818	70 Outperform	¥81.11B	19.22	5.75%	2.39%	3.73%	23.40%
3479	67 Neutral	¥85.97B	28.03	9.14%	―	91.97%	-27.47%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Airport Facilities Co., Ltd. Corporate Events

Airport Facilities Co., Ltd. Reports Strong Q1 Financial Growth

Airport Facilities Co., Ltd. reported significant financial growth in the first quarter of the fiscal year ending March 31, 2026, with net sales increasing by 41.5% and profit attributable to owners of the parent rising by 85% compared to the same period last year. This strong performance reflects the company’s strategic positioning and operational improvements, potentially enhancing its competitive edge in the airport facilities market and positively impacting stakeholders.

Airport Facilities Co., Ltd. Completes Treasury Stock Disposal

Airport Facilities Co., Ltd. has completed the disposal of 65,277 shares of its treasury stock as restricted stock remuneration, following a decision made by its Board of Directors on May 16, 2025. This move involves a total disposal price of 47,521,656 yen, with shares allotted to directors and executive officers, potentially impacting the company’s equity structure and aligning management incentives with shareholder interests.

Airport Facilities Co., Ltd. Details Shareholder Influence and Strategic Relationships

Airport Facilities Co., Ltd. announced details about its controlling shareholders, highlighting that Japan Airlines Co., Ltd. and ANA HOLDINGS INC. hold significant voting rights and are key affiliates. These relationships impact the company’s operations and management decisions, as a substantial portion of its sales depends on these affiliates. The company aims to maintain independence in its management decisions while fostering cooperative relationships with its affiliates.

Airport Facilities Co., Ltd. Announces Treasury Stock Disposal for Executive Compensation

Airport Facilities Co., Ltd. announced the disposal of 65,277 shares of treasury stock as part of a restricted stock remuneration plan for its directors and executive officers. This initiative aims to align the interests of its management with shareholders and enhance corporate value, reflecting a strategic move to incentivize leadership and promote long-term growth.

Airport Facilities Co., Ltd. Opposes Shareholder Proposal on Governance Disclosure

Airport Facilities Co., Ltd. (AFC) has announced its Board of Directors’ decision to oppose a shareholder proposal from LIM Japan Event Master Fund. The proposal sought amendments to the Articles of Incorporation to disclose the involvement of Japan Airlines Co., Ltd. and ANA Holdings Inc. in AFC’s decision-making processes. The Board argues that despite these airlines being major shareholders, they do not influence AFC’s management decisions, and the company maintains independence in its governance. AFC emphasizes its commitment to protecting minority shareholders and ensuring transparent management practices. The company is also focused on sustainable growth and enhancing corporate value, as evidenced by its revised management plan and record-high dividend plans.

Airport Facilities Co., Ltd. Announces Leadership Changes

Airport Facilities Co., Ltd. announced changes in its board of directors and executive officers, effective June 26, 2025. The company aims to strengthen its leadership team with the appointment of Yoshika Ohashi as a new outside director, while Takehiko Sugiyama will retire. The restructuring is expected to enhance the company’s strategic direction and operational efficiency.

Airport Facilities Co., Ltd. Announces Year-End Dividend

Airport Facilities Co., Ltd. announced a resolution to pay a year-end dividend of 12 yen per share for the fiscal year ended March 31, 2025, maintaining the amount previously forecasted. This decision reflects the company’s commitment to returning profits to shareholders while preparing for future business and investment opportunities, indicating a stable financial performance and a focus on long-term growth.

Airport Facilities Co., Ltd. Abolishes Shareholder Benefit Program to Boost Dividends

Airport Facilities Co., Ltd. has decided to abolish its shareholder benefit program, opting instead to enhance shareholder returns through increased dividends and strategic share repurchases. This decision aligns with the company’s revised medium- to long-term management plan, aiming to improve capital efficiency and ensure shareholder equality. The company will raise its dividend payout ratio to 60% and introduce a new dividend guideline, reflecting a commitment to prioritizing shareholder returns and enhancing corporate value.

Airport Facilities Co., Ltd. Revises Year-End Dividend Forecast

Airport Facilities Co., Ltd. announced a revision to its year-end dividend forecast, increasing the dividend per share from 11 yen to 12 yen for the fiscal year ended March 31, 2025. This adjustment reflects the company’s policy of providing stable returns and increasing dividends in line with improved business performance, aiming for a payout ratio of over 40%.

Airport Facilities Co., Ltd. Reports Strong Financial Growth for FY 2025

Airport Facilities Co., Ltd. reported its financial results for the fiscal year ending March 31, 2025, showing significant growth in net sales and operating income compared to the previous year. The company achieved a 19.9% increase in net sales and a 40.4% rise in operating income, reflecting strong operational performance. The announcement highlights AFC’s robust financial health and its strategic positioning to enhance shareholder value through increased dividends, indicating a positive outlook for stakeholders.

Airport Facilities Co., Ltd. Revises Management Plan to Enhance Growth and Profitability

Airport Facilities Co., Ltd. announced a revision to its Medium- to Long-Term Management Plan for FY2022-FY2028, reflecting progress and changes in the business environment. The company aims to strengthen its earnings base and enhance profitability through restructured business strategies and capital policies, including the Haneda Airport 1-chome Project, to achieve sustained growth and improve market valuation.