Tokai Kisen Co., Ltd. (9173) AI Stock Analysis

• Market Cap: ¥7.18B
• Dividend Yield: 0.31%
• Average Volume (3M): 1.30K
• Price to Earnings (P/E): 23.1
• Beta (1Y): <0.01
• Revenue Growth: -0.38%
• EPS Growth: 413.00%
• Country: JP
• Employees: 365
• Sector: Industrials
• Sector Strength: 72
• Industry: Marine Shipping
• EPS (TTM): 279.55
• Shares Outstanding: 2,200,000
• 10 Day Avg. Volume: 910
• 30 Day Avg. Volume: 1,300
• PEG Ratio: -0.14
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 4.33
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥3,674.00 ▲(13.75% Upside)

Tokai Kisen Co., Ltd. demonstrates strong financial performance with significant improvements in revenue growth and profitability. The technical analysis supports a bullish outlook with positive market momentum. However, the valuation suggests moderate pricing, and the dividend yield is relatively low. The absence of recent earnings call data and notable corporate events limits further insights.

Positive Factors

Revenue Growth

The consistent revenue growth indicates expanding market reach and effective business strategies, which enhance the company's competitive position in the marine shipping industry.

Operational Efficiency

Improved operational efficiency reflects better cost management and resource utilization, leading to enhanced profitability and competitive advantage.

Cash Flow Management

Strong cash flow generation supports financial stability and provides the company with the flexibility to invest in growth opportunities and manage debt effectively.

Negative Factors

High Leverage

Despite improvements, high leverage poses financial risks, potentially limiting the company's ability to withstand economic downturns or invest in new opportunities.

Equity Ratio

A low equity ratio indicates limited buffer against liabilities, which could challenge the company's financial stability in adverse conditions.

Historical Income Volatility

Income volatility can affect predictability in financial performance, complicating strategic planning and potentially impacting investor confidence.

Tokai Kisen Co., Ltd. Business Overview & Revenue Model

Company Description

Tokai Kisen Co., Ltd. (9173) is a Japanese company primarily engaged in the maritime transport sector, focusing on passenger and cargo ferry services. The company operates various routes in Japan, including services to the Izu Islands and other coastal destinations. In addition to ferry transportation, Tokai Kisen also offers tourism-related services, contributing to the promotion of local tourism and the economy in the regions it serves.

How the Company Makes Money

Tokai Kisen generates revenue primarily through ticket sales for its ferry services, catering to both passengers and cargo transport. The company also benefits from ancillary services such as onboard sales, tourism packages, and partnerships with local businesses for joint promotions. Seasonal variations in travel demand, particularly during holidays and vacation periods, significantly influence its revenue. Furthermore, strategic partnerships with regional tourism boards and local governments enhance its visibility and customer base, contributing to steady earnings.

Tokai Kisen Co., Ltd. Financial Statement Overview

Summary

Tokai Kisen Co., Ltd. has shown significant improvement across its financial statements. Revenue growth and profitability metrics have strengthened, reflecting operational efficiency and cost management improvements. The balance sheet indicates reduced leverage and improved equity returns, though the high debt-to-equity ratio remains a concern. Strong cash flow performance highlights effective cash management and supports future growth prospects, positioning the company well in the marine shipping industry.

Income Statement

Tokai Kisen Co., Ltd. has demonstrated solid revenue growth with a 10.83% increase from 2023 to 2024. The gross profit margin improved significantly to 13.84% in 2024 from 5.72% in 2023, indicating enhanced operational efficiency. The company turned around its net income from a loss in 2023 to a positive net profit margin of 2.01% in 2024. EBIT and EBITDA margins also saw improvements, suggesting better profitability and cash flow generation from core operations. However, historical volatility in net income and EBIT indicates potential risks.

Balance Sheet

The debt-to-equity ratio decreased to 2.49 in 2024 from 2.92 in 2023, reflecting a decrease in leverage and a more stable financial structure. The return on equity improved to 6.14% in 2024, which indicates better utilization of shareholder investments. However, the equity ratio remains relatively low at 21.20%, suggesting limited equity buffer against liabilities. Despite improvements, high leverage compared to equity could pose financial risks.

Cash Flow

Operating cash flow increased significantly to 2.23 billion yen in 2024, showcasing strong operational cash generation. The free cash flow saw a remarkable increase to 1.46 billion yen, indicating robust cash management and investment efficiency. The operating cash flow to net income ratio was favorable, highlighting effective conversion of profits into cash. A consistent positive trend in free cash flow points to financial stability and future growth potential.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.69B	14.60B	13.18B	13.93B	10.81B	8.97B
Gross Profit	2.02B	2.02B	753.36M	1.92B	1.38B	754.08M
EBITDA	1.93B	1.99B	832.27M	1.76B	1.54B	587.69M
Net Income	310.51M	293.64M	-580.62M	180.75M	-78.27M	-328.21M
Balance Sheet
Total Assets	21.71B	22.51B	22.48B	23.71B	23.86B	21.43B
Cash, Cash Equivalents and Short-Term Investments	4.18B	5.10B	4.36B	4.86B	3.87B	2.03B
Total Debt	10.79B	11.89B	12.81B	13.55B	14.24B	13.40B
Total Liabilities	15.69B	16.15B	16.61B	17.37B	17.74B	16.59B
Stockholders Equity	4.46B	4.77B	4.39B	4.88B	4.72B	4.77B
Cash Flow
Free Cash Flow	0.00	1.42B	7.89M	1.51B	1.03B	-4.89B
Operating Cash Flow	0.00	2.23B	388.38M	2.14B	1.52B	-726.63M
Investing Cash Flow	0.00	-556.34M	-147.76M	-455.94M	1.53B	-2.12B
Financing Cash Flow	0.00	-926.19M	-744.41M	-692.96M	-1.27B	3.34B

Tokai Kisen Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3230.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9173, the sentiment is Neutral. The current price of 3230 is below the 20-day moving average (MA) of 3266.25, below the 50-day MA of 3245.20, and above the 200-day MA of 3016.24, indicating a neutral trend. The MACD of -3.67 indicates Positive momentum. The RSI at 32.96 is Neutral, neither overbought nor oversold. The STOCH value of 10.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9173.

Tokai Kisen Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9130	79 Outperform	¥8.01B	12.24	―	5.41%	3.22%	-87.75%
9367	75 Outperform	¥14.41B	22.66	―	1.43%	7.07%	26.88%
9173	74 Outperform	¥7.18B	23.14	―	0.31%	-0.38%	413.00%
9171	74 Outperform	¥25.39B	12.35	―	1.29%	4.21%	35.32%
9380	65 Neutral	¥10.07B	20.50	―	1.97%	-0.35%	11.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9193	63 Neutral	¥9.65B	5.32	―	5.08%	6.11%	207.55%