Japan Airlines Co (9201) AI Stock Analysis

• Market Cap: $1.25T
• Dividend Yield: 2.95%
• Average Volume (3M): 1.81M
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.63
• Revenue Growth: 11.16%
• EPS Growth: 49.16%
• Country: JP
• Employees: 36,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 90.07
• Shares Outstanding: 437,143,500
• 10 Day Avg. Volume: 2,045,210
• 30 Day Avg. Volume: 1,811,506
• PEG Ratio: 0.86
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 12.99
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 1.01
• Enterprise Value/Ebitda: 3.56
• 1Y Price Target: $3,880.00
• Price Target Upside: 31.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥3,173.00 ▲(7.36% Upside)

Japan Airlines' stock score is primarily driven by its strong valuation, indicating it may be undervalued in the market. Financial performance is solid, with a stable balance sheet and improved profitability, though cash flow challenges and industry risks persist. Technical analysis suggests a bearish trend, which may impact short-term performance.

Japan Airlines Co Business Overview & Revenue Model

Company Description

Japan Airlines Co., Ltd., together with its subsidiaries, provides scheduled and non-scheduled air transport services in Japan and internationally. The company operates through Air Transportation and Other segments. It offers domestic and international passenger, ground handling, and cargo air transport services. The company is also involved in the aerial work and other related business; and sale of package tours. As of March 31, 2021, it operated a fleet of 218 aircraft. The company was formerly known as Japan Airlines International Co., Ltd. and changed its name to Japan Airlines Co., Ltd. in April 2011. The company was founded in 1951 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Japan Airlines generates revenue primarily through the sale of passenger tickets for its domestic and international flights. The airline's revenue model includes various key streams: passenger services, which account for the majority of earnings; cargo services, where JAL transports goods and freight; and ancillary services such as in-flight sales and additional fees for extra services. Significant partnerships, including its membership in the Oneworld alliance, enhance its route offerings and customer base, contributing to higher load factors and increased revenue. Additionally, the airline's frequent flyer program, JAL Mileage Bank, encourages customer loyalty, leading to repeat business and sustained revenue growth.

Japan Airlines Co Financial Statement Overview

Summary

Japan Airlines has demonstrated a commendable recovery trajectory with improved profitability and a solid balance sheet. While the income statement reflects strong growth and efficient operations, the cash flow statement indicates potential challenges in sustaining cash generation. The airline's financial health is stable, but the industry’s inherent risks and economic sensitivity require careful monitoring.

Income Statement

Japan Airlines has shown a strong recovery with a consistent increase in revenue over the years, highlighted by a 2.87% growth in the TTM period. The gross profit margin is robust at 66.07% for TTM, indicating efficient cost management. The net profit margin has improved to 6.32%, reflecting enhanced profitability. However, the airline industry remains susceptible to economic fluctuations, which could impact future performance.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.77 in the TTM period, showing a manageable level of leverage. The return on equity is solid at 12.02%, demonstrating effective use of equity to generate profits. The equity ratio stands at 38.64%, indicating a stable financial structure. Nonetheless, the industry’s capital-intensive nature poses potential risks.

Cash Flow

Operating cash flow remains strong at 351.37 billion yen in the TTM period, but free cash flow has decreased by 17.16%, signaling potential challenges in cash generation. The operating cash flow to net income ratio of 0.39 suggests a decent conversion of income into cash. However, the decline in free cash flow growth could impact future investments and financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.90T	1.84T	1.65T	1.38T	705.46B	481.22B
Gross Profit	1.26T	1.31T	811.04B	601.73B	135.49B	-47.56B
EBITDA	355.50B	329.21B	301.60B	227.44B	-58.73B	-195.34B
Net Income	120.14B	107.04B	95.53B	34.42B	-177.55B	-286.69B
Balance Sheet
Total Assets	3.00T	2.79T	2.65T	2.52T	2.37T	2.11T
Cash, Cash Equivalents and Short-Term Investments	953.15B	749.03B	713.87B	639.25B	494.23B	408.33B
Total Debt	891.38B	896.02B	887.29B	925.50B	928.46B	515.15B
Total Liabilities	1.80T	1.78T	1.70T	1.66T	1.53T	1.13T
Stockholders Equity	1.16T	975.06B	909.95B	816.29B	799.74B	947.46B
Cash Flow
Free Cash Flow	71.57B	85.94B	145.87B	175.42B	-264.85B	-309.20B
Operating Cash Flow	351.37B	375.92B	363.94B	292.91B	-103.55B	-219.52B
Investing Cash Flow	-273.17B	-286.90B	-195.10B	-112.77B	-173.77B	-91.01B
Financing Cash Flow	58.87B	-53.52B	-105.03B	-38.47B	359.28B	388.62B

Japan Airlines Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2955.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9201, the sentiment is Neutral. The current price of 2955.5 is above the 20-day moving average (MA) of 2926.95, below the 50-day MA of 2987.49, and above the 200-day MA of 2782.37, indicating a neutral trend. The MACD of -6.38 indicates Negative momentum. The RSI at 51.57 is Neutral, neither overbought nor oversold. The STOCH value of 93.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9201.

Japan Airlines Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9202	70 Neutral	¥1.39T	9.33	―	1.99%	9.28%	2.58%
9201	68 Neutral	$1.25T	9.99	11.50%	2.95%	11.16%	49.16%
9206	66 Neutral	¥8.04B	6.56	―	―	3.80%	-59.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Japan Airlines Co Corporate Events

Japan Airlines Completes Treasury Stock Disposal for Performance Plan

Japan Airlines Co., Ltd. has completed the payment for the disposal of treasury stock under its Performance-Linked Share-Based Remuneration Plan. This move involves the disposal of 110,211 common shares at a price of 2,924.5 yen per share, totaling 322,312,087 yen, and is aimed at aligning the interests of directors and executive officers with the company’s performance.

The most recent analyst rating on (JP:9201) stock is a Buy with a Yen4200.00 price target. To see the full list of analyst forecasts on Japan Airlines Co stock, see the JP:9201 Stock Forecast page.

Japan Airlines Reports Strong Q1 2025 Earnings Growth

Japan Airlines Co., Ltd., a prominent player in the air transportation industry, operates both full-service and low-cost carrier businesses, alongside mileage, finance, and commerce ventures. The company is listed on the Tokyo Stock Exchange and is known for its extensive domestic and international flight network.

Japan Airlines Announces Disposal of Treasury Shares to Align Executive Interests

Japan Airlines Co., Ltd. has announced the disposal of 110,211 treasury shares under its Performance-Linked Share-Based Remuneration Plan. This move aims to align the interests of directors and executive officers with shareholders by linking their remuneration to the company’s long-term performance and share value. The disposal represents a minor dilution of 0.03% of the total issued shares, indicating a strategic effort to enhance corporate value sustainably.

The most recent analyst rating on (JP:9201) stock is a Buy with a Yen3500.00 price target. To see the full list of analyst forecasts on Japan Airlines Co stock, see the JP:9201 Stock Forecast page.

Japan Airlines Announces Performance-Linked Share-Based Remuneration Plan

Japan Airlines Co., Ltd. has announced a resolution to grant performance-linked share-based remuneration to its eligible directors and executive officers. This initiative aims to align the interests of its leadership with shareholders by linking compensation to corporate performance and share value, promoting sustainable improvement in corporate value over the medium to long term.

The most recent analyst rating on (JP:9201) stock is a Buy with a Yen3500.00 price target. To see the full list of analyst forecasts on Japan Airlines Co stock, see the JP:9201 Stock Forecast page.

Japan Airlines Reports Strong Financial Growth in Q2 2025

Japan Airlines Co. reported significant growth in its financial performance for the three months ended June 30, 2025, with a notable increase in revenue and profit compared to the previous year. The company’s revenue rose by 11.1%, and profit before tax surged by 92.7%, indicating a strong recovery and operational efficiency. The positive financial results reflect Japan Airlines’ robust market positioning and strategic initiatives, which are likely to benefit stakeholders and enhance its competitive edge in the aviation industry.

The most recent analyst rating on (JP:9201) stock is a Buy with a Yen3500.00 price target. To see the full list of analyst forecasts on Japan Airlines Co stock, see the JP:9201 Stock Forecast page.