Profitability TurnaroundA return to positive and materially higher net margins indicates the company has restored pricing power and/or cost control after prior losses. Sustained mid‑teens margin recovery supports durable earnings, stronger ROE (noted at ~22.5%) and capacity to reinvest in core hotel operations over the medium term.

Higher Operating MarginsAn expanded EBITDA margin reflects improved operating leverage in its hotel operations, implying more of incremental revenue drops to the bottom line. If maintained, this margin base improves cash generation potential and resilience to modest revenue swings common in lodging.

Revenue Growth MomentumDouble‑digit revenue growth points to recovering demand across its accommodation and on‑property services. Given the business model earns recurring room, F&B and event revenues, sustained top‑line growth supports occupancy/ADR recovery and provides a structural tailwind for margins and cash flow over the next several quarters.

Bears Say

Elevated LeverageA debt-to-equity ratio near 1.6x shows meaningful reliance on external financing. In a cyclical lodging sector, this degree of leverage increases interest burden and reduces strategic flexibility, constraining ability to fund renovations, pursue acquisitions, or absorb demand shocks without raising cost of capital or restructuring.

Weak Cash ConversionOperating cash flow materially lags reported profitability and free cash flow covers only ~43% of net income. Persistent weak cash conversion undermines earnings quality, limits internal funding for capex or debt reduction, and raises reliance on external financing even when net income looks healthy.

Revenue/Profit VolatilityManagement’s performance has shown sharp rebounds and then more moderate growth, reflecting exposure to tourism and corporate travel cycles. This structural sensitivity means earnings and cash flow can reverse quickly if travel demand softens, complicating long‑term planning and capital allocation.

9704 FAQ

What was AGORA Hospitality Group Co., Ltd.’s price range in the past 12 months?

AGORA Hospitality Group Co., Ltd. lowest stock price was ¥44.00 and its highest was ¥120.00 in the past 12 months.

What is AGORA Hospitality Group Co., Ltd.’s market cap?

AGORA Hospitality Group Co., Ltd.’s market cap is ¥13.71B.

When is AGORA Hospitality Group Co., Ltd.’s upcoming earnings report date?

AGORA Hospitality Group Co., Ltd.’s upcoming earnings report date is May 18, 2026 which is in 88 days.

How were AGORA Hospitality Group Co., Ltd.’s earnings last quarter?

AGORA Hospitality Group Co., Ltd. released its earnings results on Feb 13, 2026. The company reported -¥0.61 earnings per share for the quarter, missing the consensus estimate of N/A by -¥0.61.

Is AGORA Hospitality Group Co., Ltd. overvalued?

According to Wall Street analysts AGORA Hospitality Group Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does AGORA Hospitality Group Co., Ltd. pay dividends?

AGORA Hospitality Group Co., Ltd. does not currently pay dividends.

What is AGORA Hospitality Group Co., Ltd.’s EPS estimate?

AGORA Hospitality Group Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does AGORA Hospitality Group Co., Ltd. have?

AGORA Hospitality Group Co., Ltd. has 281,708,920 shares outstanding.

What happened to AGORA Hospitality Group Co., Ltd.’s price movement after its last earnings report?

AGORA Hospitality Group Co., Ltd. reported an EPS of -¥0.61 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went up 1.887%.

Which hedge fund is a major shareholder of AGORA Hospitality Group Co., Ltd.?

Currently, no hedge funds are holding shares in JP:9704

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

AGORA Hospitality Group Co., Ltd.

AGORA Hospitality Group Co., Ltd operates in the hotel and property development activities in Japan. The company operates various hotels, including full service, limited service, resort, and traditional ryokans type hotels. It also provides hospitality management, operation and asset management, due diligence and renewal project, and repositioning and rebranding planning services. The company was formerly known as Tokai Kanko Co., Ltd. and changed its name to AGORA Hospitality Group Co., Ltd in April 2012. AGORA Hospitality Group Co., Ltd was founded in 1948 and is headquartered in Tokyo, Japan.