Japan Airport Terminal Co (9706) AI Stock Analysis

• Market Cap: ¥448.17B
• Dividend Yield: 2.25%
• Average Volume (3M): 295.37K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.70
• Revenue Growth: 12.25%
• EPS Growth: 25.90%
• Country: JP
• Employees: 2,660
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 76.90
• Shares Outstanding: 93,145,400
• 10 Day Avg. Volume: 290,670
• 30 Day Avg. Volume: 295,370
• PEG Ratio: 0.32
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 1.42
• P/FCF Ratio: 11.84
• 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: ¥3,800.00
• Price Target Upside: -23.14% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥5,327.00 ▲(7.75% Upside)

Japan Airport Terminal Co's stock score is primarily driven by its strong financial performance, characterized by robust revenue growth and improved profitability. The technical analysis presents mixed signals with a slight bearish trend, while the valuation metrics suggest the stock is fairly valued. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates the company's successful recovery and expansion in the airport management sector, enhancing its market position.

Cash Generation Ability

Efficient cash generation supports financial flexibility, enabling the company to fund growth initiatives and sustain operations effectively.

Profitability Margins

High profitability margins reflect effective cost management, which can sustain competitive advantages and long-term financial health.

Negative Factors

Operational Efficiency

Suboptimal operational efficiency could hinder profitability improvements, suggesting a need for better cost control and process optimization.

Debt Levels

While leverage is controlled, the debt level remains a consideration that could impact financial flexibility and risk profile if not managed.

Leverage Concerns

High leverage can limit strategic options and increase vulnerability to economic downturns, necessitating careful debt management.

Japan Airport Terminal Co Business Overview & Revenue Model

Company Description

Japan Airport Terminal Co., Ltd. primarily engages in the management of passenger terminal buildings in Japan. It operates through three segments: Facilities Management, Merchandise Sales, and Food and Beverage. The company constructs, manages, and operates domestic passenger terminal buildings; rents offices, stores, and other facilities to airline companies and airport concessionaires; and operates and manages parking lots. It is also involved in the operation of merchandise stores in domestic and international terminals, including stores in the lobby; and provision of airport passenger, travel insurance agency, and hotel reservation services, as well as rental of halls and conference rooms. In addition, the company engages in the international and domestic travel sales, and ticket sales for transportation and events; and management and operation of Haneda Airport Wharf. Further, it is involved in the wholesale of duty-free goods; operation of commissioned duty-free shops at the Narita International Airport, Kansai International Airport, and Central Japan International Airport; and the product sales at Chengdu Shuangli International Airport. Additionally, the company operates restaurants; and manufactures and sells in-flight meals, box meals, retort food, etc. Japan Airport Terminal Co., Ltd. was incorporated in 1953 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Japan Airport Terminal Co., Ltd. generates revenue through various streams primarily associated with airport terminal operations. Key revenue streams include retail and concession sales from shops and restaurants located within airport terminals, which cater to both domestic and international travelers. The company also earns from facility management fees, leasing space to airlines and other businesses, and offering passenger services such as lounges and information centers. Additionally, Japan Airport Terminal Co. benefits from partnerships with airlines and commercial entities, which enhance its service offerings and contribute to its earnings. The company's strategic location in major Japanese airports, coupled with its diverse service portfolio, positions it well to capitalize on passenger traffic growth and tourism trends.

Japan Airport Terminal Co Financial Statement Overview

Summary

Japan Airport Terminal Co has demonstrated robust financial recovery with significant revenue growth and improved profitability margins. The balance sheet is stable with a healthy equity ratio and controlled leverage. Cash flow metrics indicate strong cash generation and financial flexibility. While there are areas for operational efficiency improvements, the overall financial health indicates a positive outlook with reduced risks moving forward.

Income Statement

Japan Airport Terminal Co has shown a significant recovery in revenue, with a robust growth rate of 24% over the past year. The company has maintained strong gross and net profit margins at 53.9% and 10.2%, respectively, indicating effective cost management. However, the EBIT and EBITDA margins, at 14.3% and 24.7%, reflect room for improvement in operational efficiency. Overall, the income statement reflects a solid recovery trajectory post-pandemic with improving profitability metrics.

Balance Sheet

The balance sheet demonstrates a stable financial position with an improving equity ratio of 39.9% and a manageable debt-to-equity ratio of 1.10. ROE stands at a healthy 14.7%, showcasing effective utilization of equity. The company's leverage is under control, though the level of total debt remains a consideration. Overall, the balance sheet reflects financial stability with a strong equity base and controlled leverage.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth of 90.5%, supported by robust operating cash flow exceeding net income, indicating good cash generation efficiency. The free cash flow to net income ratio is 1.27, further highlighting solid cash flow management. Despite previous negative trends, the recent positive cash flow metrics suggest improved financial flexibility and capability to fund growth initiatives.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	273.58B	269.92B	217.58B	113.05B	57.05B	52.57B
Gross Profit	176.11B	173.53B	144.70B	83.96B	46.45B	37.47B
EBITDA	67.02B	66.78B	58.19B	19.63B	-9.02B	-18.13B
Net Income	27.60B	27.47B	19.25B	-3.90B	-25.22B	-36.58B
Balance Sheet
Total Assets	473.65B	469.95B	460.42B	446.95B	463.88B	519.19B
Cash, Cash Equivalents and Short-Term Investments	82.86B	85.91B	85.39B	90.24B	97.13B	120.36B
Total Debt	204.14B	206.40B	227.81B	243.84B	256.66B	264.53B
Total Liabilities	271.73B	271.61B	294.39B	306.00B	307.87B	323.65B
Stockholders Equity	189.06B	187.38B	168.17B	150.29B	154.17B	177.97B
Cash Flow
Free Cash Flow	0.00	32.26B	18.33B	6.09B	-14.76B	-38.11B
Operating Cash Flow	0.00	53.81B	47.76B	16.33B	-9.30B	-4.39B
Investing Cash Flow	0.00	-12.84B	-42.99B	-10.63B	-4.93B	-25.27B
Financing Cash Flow	0.00	-30.53B	-19.65B	-12.64B	-9.04B	78.23B

Japan Airport Terminal Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4944.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9706, the sentiment is Positive. The current price of 4944 is above the 20-day moving average (MA) of 4523.05, above the 50-day MA of 4559.74, and above the 200-day MA of 4532.71, indicating a bullish trend. The MACD of 69.78 indicates Negative momentum. The RSI at 70.69 is Negative, neither overbought nor oversold. The STOCH value of 89.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9706.

Japan Airport Terminal Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9064	73 Outperform	¥710.07B	16.03	7.44%	2.10%	5.58%	114.23%
9706	72 Outperform	¥448.17B	15.46	15.15%	2.25%	12.25%	25.90%
9202	70 Neutral	¥1.43T	9.64	―	1.97%	9.28%	2.58%
9142	70 Neutral	¥626.36B	14.52	9.26%	2.68%	10.39%	32.43%
9201	68 Neutral	¥1.30T	10.37	11.50%	3.11%	11.16%	49.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9147	60 Neutral	¥852.30B	36.26	―	2.99%	4.96%	1.67%

Japan Airport Terminal Co Corporate Events

Japan Airport Terminal Co. Maintains Interim Dividend Amid Expansion Plans

Japan Airport Terminal Co., Ltd. has announced its decision to maintain an interim dividend of 45 yen per share, reflecting its commitment to returning profits to shareholders while securing funds for major investments like the expansion of Haneda Airport. This decision aligns with the company’s policy of maintaining a dividend payout ratio of 30% or more, as part of its medium-term business plan, ensuring stable dividends and supporting business performance.

The most recent analyst rating on (JP:9706) stock is a Buy with a Yen5327.00 price target. To see the full list of analyst forecasts on Japan Airport Terminal Co stock, see the JP:9706 Stock Forecast page.

Japan Airport Terminal Co. Reports Revenue Growth Amid Modest Income Gains

Japan Airport Terminal Co., Ltd. reported a 7.4% increase in operating revenues for the first six months of FY2025, reaching 141,544 million yen. Despite the growth in revenues, the company experienced a modest increase in operating income by 1.7% and ordinary income by 0.2%. The net income attributable to owners of the parent rose by 11.8% to 13,401 million yen. The company has revised its forecast for the fiscal year, expecting a 6.8% increase in operating revenues and a 7.6% rise in operating income, although net income is projected to decrease by 7.5%. This financial performance indicates a steady recovery in the aviation sector, with implications for stakeholders regarding dividend payments and future financial stability.

The most recent analyst rating on (JP:9706) stock is a Buy with a Yen5327.00 price target. To see the full list of analyst forecasts on Japan Airport Terminal Co stock, see the JP:9706 Stock Forecast page.