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

• Market Cap: ¥6.50B
• Dividend Yield: 0.34%
• Average Volume (3M): 1.59K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.02
• Revenue Growth: 10.77%
• EPS Growth: N/A
• Country: JP
• Employees: 365
• Sector: Industrials
• Sector Strength: 87
• Industry: Marine Shipping
• EPS (TTM): -27.67
• Shares Outstanding: 2,200,000
• 10 Day Avg. Volume: 2,130
• 30 Day Avg. Volume: 1,586
• PEG Ratio: 0.04
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 69 Neutral
• Price Target: ―

Tokai Kisen Co., Ltd. shows strong financial performance with improved revenue growth and profitability, and robust cash flow management. The balance sheet reflects reduced leverage, but high debt levels pose risks. Technical analysis suggests positive price trends with support from moving averages, although valuation metrics indicate the stock might be fairly valued. Overall, the company is positioned well in the marine shipping industry with room for growth, though attention to high leverage is necessary.

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

Company Description

Tokai Kisen Co., Ltd. (9173) is a Japanese company primarily engaged in the marine transportation sector. The company provides passenger and cargo transportation services, focusing on routes that connect the Izu Islands with Tokyo and other mainland destinations. In addition to its core maritime operations, Tokai Kisen also offers related tourism and travel services, enhancing the travel experience for its customers.

How the Company Makes Money

Tokai Kisen Co., Ltd. generates revenue mainly through its passenger and cargo transportation services. A significant portion of its income is derived from ticket sales for ferry and high-speed boat services between the Izu Islands and the Japanese mainland. The company also earns revenue from transporting goods and supplies to these island destinations. Additionally, Tokai Kisen benefits from tourism-related services, including travel packages and accommodations, which attract tourists to the scenic Izu Islands. Partnerships with local businesses and travel agencies further bolster its earnings by promoting travel and increasing passenger volume.

Tokai Kisen Co., Ltd. Financial Statement Overview

Summary

Tokai Kisen Co., Ltd. has demonstrated solid revenue growth with a 10.83% increase from 2023 to 2024. The gross profit margin improved significantly, indicating enhanced operational efficiency. The company turned around its net income from a loss to a positive net profit margin, with improved EBIT and EBITDA margins. However, there is historical volatility in net income and EBIT, indicating potential risks. The balance sheet shows reduced leverage and better equity returns, though high debt-to-equity ratio remains a concern. Strong cash flow performance highlights effective cash management and supports future growth prospects.

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

Tokai Kisen Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2960.00
• 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:9173, the sentiment is Neutral. The current price of 2960 is below the 20-day moving average (MA) of 2977.60, above the 50-day MA of 2952.96, and above the 200-day MA of 2820.97, indicating a neutral trend. The MACD of 13.02 indicates Positive momentum. The RSI at 46.27 is Neutral, neither overbought nor oversold. The STOCH value of 65.06 is Neutral, 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	76 Outperform	¥7.66B	1.50		3.99%	6.93%	3385.83%
9193	75 Outperform	¥9.15B	4.48		5.43%	-3.79%	256.85%
9367	73 Outperform	¥6.18B	10.06		3.31%	4.43%	15.24%
9171	72 Outperform	¥12.73B	6.28		2.49%	8.56%	20.97%
9173	69 Neutral	¥6.50B	17.64		0.34%	10.77%	―
Sector *	67 Neutral	$2.49B	13.26	7.40%	4.55%	-0.87%	8.24%
9380	64 Neutral	¥9.02B	15.71		2.47%	-0.87%	81.58%