AGORA Hospitality Group Co., Ltd. (9704) AI Stock Analysis

• Market Cap: ¥13.46B
• Dividend Yield: N/A
• Average Volume (3M): 1.84M
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.42
• Revenue Growth: 20.16%
• EPS Growth: 1467.54%
• Country: JP
• Employees: 404
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): 4.38
• Shares Outstanding: 281,708,920
• 10 Day Avg. Volume: 2,687,830
• 30 Day Avg. Volume: 1,836,703
• PEG Ratio: -0.67
• Price to Book (P/B): 3.27
• Price to Sales (P/S): 1.49
• P/FCF Ratio: -5.47
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ¥54.00 ▲(5.88% Upside)

AGORA Hospitality Group's stock score is primarily influenced by its financial performance and valuation. The company is on a recovery path with improved revenue and profitability, but high leverage and negative free cash flow pose risks. The stock's technical indicators suggest bearish momentum, but its low P/E ratio indicates potential undervaluation.

AGORA Hospitality Group Co., Ltd. Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

AGORA Hospitality Group generates revenue through multiple streams, primarily from the operation of its hotel and resort properties. Key revenue sources include room bookings, food and beverage sales, and ancillary services such as spa treatments and event hosting. The company also benefits from strategic partnerships with online travel agencies and corporate clients, which help drive occupancy rates and increase visibility. Additionally, AGORA may engage in franchise agreements, allowing it to earn royalties from properties that use its brand and operational standards, thereby diversifying its income sources. Seasonal promotions and loyalty programs further enhance revenue by attracting repeat customers and encouraging longer stays.

AGORA Hospitality Group Co., Ltd. Financial Statement Overview

Summary

AGORA Hospitality Group has shown revenue growth and returned to profitability, but faces challenges with high leverage and negative free cash flow due to capital expenditures.

Income Statement

AGORA Hospitality Group has shown a significant turnaround with a 14.6% revenue growth from 2023 to 2024, a marked improvement after previous years of decline. Gross and net profit margins are positive at 33.2% and 1.3% respectively in 2024, indicating improved operational efficiency. However, the company has only recently returned to profitability, suggesting potential volatility.

Balance Sheet

The balance sheet reflects a moderately high debt-to-equity ratio of 2.35, indicating leverage that could pose risks if revenue growth does not continue. The equity ratio of 18.4% suggests limited equity financing compared to total assets. Although the return on equity has improved to 2.8%, it remains low, highlighting the need for continued improvement in profitability.

Cash Flow

Despite positive operating cash flow, the free cash flow remains negative at -¥2.28 billion due to high capital expenditures, indicating cash flow challenges. The operating cash flow to net income ratio of 4.04 suggests operational cash generation exceeds net income, but the negative free cash flow to net income ratio reflects ongoing investment needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.34B	8.38B	7.31B	4.95B	3.36B	3.32B
Gross Profit	3.04B	2.78B	1.99B	427.00M	254.83M	288.28M
EBITDA	1.25B	741.00M	486.20M	-613.74M	-1.12B	-627.07M
Net Income	258.93M	108.07M	-149.51M	-1.30B	-1.68B	-1.19B
Balance Sheet
Total Assets	20.83B	20.65B	18.23B	17.04B	16.66B	17.36B
Cash, Cash Equivalents and Short-Term Investments	3.27B	2.94B	3.12B	2.45B	2.45B	2.42B
Total Debt	9.12B	8.94B	7.68B	7.09B	6.80B	6.70B
Total Liabilities	13.40B	14.01B	12.89B	11.89B	10.57B	9.58B
Stockholders Equity	4.48B	3.80B	3.51B	3.63B	4.87B	6.51B
Cash Flow
Free Cash Flow	0.00	-2.28B	-806.37M	-523.16M	-517.36M	-1.89B
Operating Cash Flow	0.00	435.00M	394.00M	240.76M	-373.36M	-814.03M
Investing Cash Flow	0.00	-2.63B	-617.31M	-763.92M	-4.15M	2.20B
Financing Cash Flow	0.00	2.10B	980.84M	647.56M	-21.47M	-527.32M

AGORA Hospitality Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 51.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9704, the sentiment is Neutral. The current price of 51 is above the 20-day moving average (MA) of 49.60, below the 50-day MA of 53.54, and below the 200-day MA of 64.39, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 55.82 is Neutral, neither overbought nor oversold. The STOCH value of 94.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9704.

AGORA Hospitality Group Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6565	80 Outperform	¥23.16B	8.16	―	1.27%	12.08%	17.87%
9722	76 Outperform	¥165.24B	17.22	―	0.30%	10.26%	6.31%
4691	69 Neutral	¥17.48B	5.86	―	1.47%	19.31%	202.53%
9723	69 Neutral	¥7.49B	9.78	―	0.48%	4.02%	-9.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9713	58 Neutral	¥13.95B	5.35	―	0.55%	35.22%	413.40%
9704	55 Neutral	¥13.46B	9.21	32.34%	―	20.16%	1467.54%