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

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AGORA Hospitality Group Co., Ltd.

(Frankfurt:9704)

Rating:47Neutral
Price Target:
¥61.00
▼(-1.61%Downside)
AGORA Hospitality Group's score is primarily impacted by high financial leverage and negative cash flow, despite improved revenue. Technical indicators show bearish trends, and the valuation appears stretched.

AGORA Hospitality Group Co., Ltd. (9704) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionAGORA Hospitality Group Co., Ltd. (9704) is a Japan-based company engaged in the hospitality industry. The company primarily focuses on the management and operation of hotels and resorts. AGORA Hospitality Group offers a range of services including accommodation, dining, banquets, and wellness facilities to cater to both leisure and business travelers. With a focus on providing high-quality service and unique experiences, the company aims to create memorable stays for its guests.
How the Company Makes MoneyAGORA Hospitality Group Co., Ltd. generates revenue primarily through its hotel and resort operations. The company earns money by providing accommodation services, where guests pay for their stays. Additionally, the company offers dining options through its restaurants and cafes, which contribute to its earnings. AGORA also hosts events and functions, such as weddings and corporate meetings, which provide another stream of income through venue rentals and catering services. The company may also engage in partnerships with travel agencies and online booking platforms to increase its customer base and occupancy rates, further boosting its revenue.

AGORA Hospitality Group Co., Ltd. Financial Statement Overview

Summary
AGORA Hospitality Group is improving, with revenue growth and a return to profitability. However, high debt and negative free cash flow pose risks.
Income Statement
65
Positive
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
55
Neutral
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
40
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue8.38B7.31B4.95B3.36B3.32B
Gross Profit2.78B1.99B427.00M254.83M288.28M
EBITDA741.00M486.20M-613.74M-1.10B-597.21M
Net Income108.07M-149.51M-1.37B-1.75B-1.23B
Balance Sheet
Total Assets20.65B18.23B17.04B16.66B17.36B
Cash, Cash Equivalents and Short-Term Investments2.94B3.12B2.45B2.45B2.42B
Total Debt8.94B7.68B7.09B6.80B6.70B
Total Liabilities14.01B12.89B11.89B10.57B9.58B
Stockholders Equity3.80B3.51B3.63B4.87B6.51B
Cash Flow
Free Cash Flow-2.28B-806.37M-523.16M-517.36M-1.89B
Operating Cash Flow435.00M394.00M240.76M-373.36M-814.03M
Investing Cash Flow-2.63B-617.31M-763.92M-4.15M2.20B
Financing Cash Flow2.10B980.84M647.56M-21.47M-527.32M

AGORA Hospitality Group Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price62.00
Price Trends
50DMA
65.26
Negative
100DMA
72.39
Negative
200DMA
60.74
Positive
Market Momentum
MACD
-0.07
Negative
RSI
50.49
Neutral
STOCH
40.00
Neutral
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 62 is above the 20-day moving average (MA) of 61.75, below the 50-day MA of 65.26, and above the 200-day MA of 60.74, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 50.49 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥135.32B15.25
0.35%14.07%-0.42%
72
Outperform
¥20.10B7.87
1.42%7.35%9.94%
70
Neutral
¥14.97B7.43
1.61%16.69%141.13%
61
Neutral
¥13.52B8.10
0.56%21.75%92.79%
60
Neutral
¥7.82B10.51
0.46%2.41%-13.76%
56
Neutral
HK$25.22B4.10-2.03%6.15%-0.31%-67.64%
47
Neutral
€16.00B237.281.65%12.51%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9704
AGORA Hospitality Group Co., Ltd.
63.00
14.00
28.57%
JP:4691
Washington Hotel Corp.
1,221.00
451.82
58.74%
JP:6565
ABHOTEL Co., Ltd.
1,411.00
-67.22
-4.55%
JP:9713
Royal Hotel, Ltd.
882.00
-141.80
-13.85%
JP:9722
Fujita Kanko Inc.
11,570.00
2,635.47
29.50%
JP:9723
Kyoto Hotel, Ltd.
637.00
-147.77
-18.83%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 16, 2025