Japan Airport Terminal Co (9706) AI Stock Analysis

• Market Cap: ¥491.85B
• Dividend Yield: 2.25%
• Average Volume (3M): 295.37K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.74
• 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): 95.22
• 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): 271.3
• Revenue Forecast (FY): ¥292.83B

• Rating: 72 Outperform
• Price Target: ¥5,862.00 ▲(18.57% Upside)
• Action: Reiterated Date: 11/18/25
• Date: Action: Reiterated 11/18/25

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

Strong free cash flow generation

A 90.5% rise in free cash flow and an FCF/net income ratio of 1.27 show the company converts earnings to cash efficiently. Durable cash generation supports capex for terminal upgrades, tenant incentives, dividends, and debt reduction, improving financial flexibility over months.

Stable balance sheet and strong ROE

An improving equity ratio (39.9%), controlled leverage (D/E ~1.10), and a 14.7% ROE indicate disciplined capital structure and effective equity deployment. This stability reduces solvency risk and preserves capacity for strategic investments or cyclical stress over the medium term.

Diversified terminal monetization model

Monetization across retail concessions, space leasing, facility/service fees, advertising and parking spreads revenue risk and ties cash flows to multiple demand drivers. This diversified model creates recurring, resilient income aligned with structural passenger trends at Haneda.

Negative Factors

Remaining debt level

While leverage is managed, the noted outstanding debt means interest and principal obligations could constrain capital allocation. In a downturn or if passenger trends soften, servicing debt may force prioritization of liquidity over growth or tenant investment within months.

Operational efficiency headroom

Despite strong gross margin, moderate EBIT/EBITDA margins indicate operating cost structure or lower operating leverage versus peers. Persistent efficiency gaps can limit conversion of revenue into operating profits and cap long-term margin expansion and cashflow resilience.

Concentration on Haneda passenger traffic

The business is structurally concentrated in Haneda terminal operations, making revenues sensitive to local passenger volumes, regulatory changes, or capacity shifts. This geographic and airport concentration raises multi-month exposure to localized demand or policy shocks.

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 and growth. The income statement shows 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	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
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: Neutral
• Last Price: 4944.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9706, the sentiment is Neutral. The current price of 4944 is below the 20-day moving average (MA) of 5387.40, above the 50-day MA of 4931.16, and above the 200-day MA of 4722.21, indicating a neutral trend. The MACD of 104.75 indicates Positive momentum. The RSI at 53.71 is Neutral, neither overbought nor oversold. The STOCH value of 16.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
9044	78 Outperform	¥352.97B	14.09	―	1.61%	6.55%	-12.49%
9009	72 Outperform	¥688.76B	12.68	13.92%	1.50%	6.30%	-16.29%
9706	72 Outperform	¥491.85B	15.99	15.15%	2.25%	12.25%	25.90%
9045	68 Neutral	¥347.83B	12.10	8.87%	1.19%	-8.30%	14.55%
9041	64 Neutral	¥625.52B	13.87	8.64%	1.82%	3.90%	5.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4666	60 Neutral	¥355.53B	23.21	18.49%	1.45%	9.50%	-14.58%

Japan Airport Terminal Co Corporate Events

Japan Airport Terminal to Exit Ginza Downtown Duty-Free Venture Despite Recovery

The company will close its downtown duty-free store inside Ginza Mitsukoshi by September 2026 and may dissolve its Japan Duty Free Fa-So-La Mitsukoshi Isetan joint venture, after COVID-era shifts in travel, brand access issues, and concentrated regional demand rendered the business model too risky despite a recent return to profitability; management expects little effect on near-term consolidated results but will reassess the subsidiary’s future with joint venture partners.

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 lifts profits on steady traffic, keeps FY2025 outlook intact

The operator reported nine-month FY2025 revenue of ¥217.1 billion, up 7.7% year on year, with operating profit rising 11.1% to ¥35.6 billion and net income advancing 18.6% to ¥22.2 billion on steady passenger traffic recovery, while assets and equity ratios also improved. Management kept its FY2025 outlook unchanged, targeting ¥288.3 billion in revenue and a ¥90 dividend, signaling confidence in sustained travel demand despite a projected dip in full-year profit growth due to prior-year rebound effects.

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.