Japan Airlines Co (9201) AI Stock Analysis

• Market Cap: ¥1.27T
• Dividend Yield: 3.11%
• Average Volume (3M): 1.81M
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.62
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥4,099.84
• Price Target Upside: 41.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥3,128.00 ▲(7.86% Upside)

Japan Airlines' stock score is primarily driven by its strong financial performance and attractive valuation. The company's recovery in profitability and cash flow metrics, along with a stable balance sheet, are significant strengths. However, technical analysis indicates a neutral to slightly bearish outlook, which tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates Japan Airlines' ability to expand its market presence and enhance its service offerings, supporting long-term business stability.

Profitability

Improved profitability margins reflect effective cost management and pricing strategies, contributing to sustainable financial health and competitive advantage.

Cash Generation

Strong cash generation enhances Japan Airlines' ability to invest in growth opportunities, reduce debt, and provide shareholder returns, supporting long-term financial resilience.

Negative Factors

Cash Flow Constraints

Limited cash flow conversion may restrict Japan Airlines' ability to reinvest in business operations or service debt, potentially impacting future growth and financial flexibility.

High Capital Expenditure

High capital expenditure requirements can strain financial resources, affecting Japan Airlines' ability to maintain leverage and invest in strategic initiatives.

Operational Efficiency

Suboptimal operational efficiency may limit Japan Airlines' ability to maximize profitability, necessitating focus on cost control and process optimization to enhance margins.

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	1.94T	1.84T	1.65T	1.38T	705.46B	481.22B
Gross Profit	1.29T	1.31T	811.04B	601.73B	135.49B	-47.56B
EBITDA	352.48B	329.21B	301.60B	227.44B	-58.73B	-195.34B
Net Income	124.81B	107.04B	95.53B	34.42B	-177.55B	-286.69B
Balance Sheet
Total Assets	3.05T	2.79T	2.65T	2.52T	2.37T	2.11T
Cash, Cash Equivalents and Short-Term Investments	949.69B	749.03B	713.87B	639.25B	494.23B	408.33B
Total Debt	886.79B	896.02B	887.29B	925.50B	928.46B	515.15B
Total Liabilities	1.81T	1.78T	1.70T	1.66T	1.53T	1.13T
Stockholders Equity	1.21T	975.06B	909.95B	816.29B	799.74B	947.46B
Cash Flow
Free Cash Flow	133.13B	85.94B	145.87B	175.42B	-264.85B	-309.20B
Operating Cash Flow	351.96B	375.92B	363.94B	292.91B	-103.55B	-219.52B
Investing Cash Flow	-215.82B	-286.90B	-195.10B	-112.77B	-173.77B	-91.01B
Financing Cash Flow	60.35B	-53.52B	-105.03B	-38.47B	359.28B	388.62B

Japan Airlines Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2900.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9201, the sentiment is Negative. The current price of 2900 is below the 20-day moving average (MA) of 2900.97, below the 50-day MA of 2917.09, and above the 200-day MA of 2845.34, indicating a neutral trend. The MACD of 1.18 indicates Negative momentum. The RSI at 48.40 is Neutral, neither overbought nor oversold. The STOCH value of 61.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥1.41T	9.48	―	1.97%	9.28%	2.58%
9201	68 Neutral	¥1.27T	10.14	11.50%	3.11%	11.16%	49.16%
9206	66 Neutral	¥7.73B	6.32	―	―	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 Updates on Share Repurchase Program

Japan Airlines Co., Ltd. announced the status of its share repurchase program, which was resolved by the Board of Directors on October 30, 2025. The company repurchased 2,296,500 common shares for a total of 6,714,198,100 yen between November 1 and November 30, 2025, as part of a larger plan to buy back up to 8,000,000 shares by March 31, 2026. The repurchased shares may be used for strategic investments or stock-based compensation, with the possibility of cancellation if not utilized.

Japan Airlines Announces Strategic Share Repurchase Plan

Japan Airlines Co., Ltd. has announced a share repurchase plan, resolving to buy back up to 8 million of its common shares, representing 1.8% of its total issued shares, for a maximum of 20 billion yen. This strategic move, which began on October 31, 2025, and will continue until March 31, 2026, aims to utilize the repurchased shares for potential strategic investments and stock-based compensation, with the possibility of cancellation if not used.

Japan Airlines Announces Share Buyback Plan

Japan Airlines Co., Ltd. has announced a share buyback program, aiming to acquire 8 million common shares, representing 1.8% of its total issued shares. This move is part of the company’s strategy to enhance shareholder returns, targeting a total shareholder return ratio of around 50%, and may support future strategic investments or stock-based compensation plans.

Japan Airlines Announces Interim Dividends of 46 Yen Per Share

Japan Airlines Co., Ltd. announced a resolution to pay interim dividends of 46 yen per share from retained earnings, with a record date of September 30, 2025. This decision aligns with the company’s policy of providing stable shareholder returns while maintaining internal reserves for growth and adapting to market changes.

Japan Airlines Reports Strong Financial Growth in First Half of 2025

Japan Airlines Co., Ltd reported a significant improvement in its financial performance for the six months ending September 30, 2025. The company achieved a 9.1% increase in revenue and a substantial rise in profit before tax by 34.7% compared to the previous year. This financial growth reflects a strong recovery in the aviation sector, positively impacting stakeholders and enhancing the company’s market position.