Imperial Hotel Ltd (9708) AI Stock Analysis

• Market Cap: ¥121.10B
• Dividend Yield: 0.59%
• Average Volume (3M): 73.05K
• Price to Earnings (P/E): 44.3
• Beta (1Y): 0.35
• Revenue Growth: -2.44%
• EPS Growth: -16.60%
• Country: JP
• Employees: 1,758
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): 6.98
• Shares Outstanding: 118,800,000
• 10 Day Avg. Volume: 96,680
• 30 Day Avg. Volume: 73,053
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,100.00
• Price Target Upside: 7.84% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ―

Imperial Hotel Ltd's strengths lie in its solid financial position, marked by a debt-free balance sheet and improving profitability. However, challenges in cash flow visibility and overvaluation concerns due to a high P/E ratio temper the overall outlook. The technical analysis suggests potential resistance in the short term, contributing to a cautious view on the stock.

Imperial Hotel Ltd Business Overview & Revenue Model

Company Description

Imperial Hotel, Ltd. operates hotels in Japan. The company manages the Imperial Hotel Tokyo, the Imperial Hotel Osaka, and the Kamikochi Imperial Hotel. Its hotels offer accommodation, dining, banquet, and other facilities. The company was founded in 1890 and is based in Tokyo, Japan.

How the Company Makes Money

Imperial Hotel Ltd generates revenue primarily through room bookings, which constitute the largest portion of its income. The company also makes money from food and beverage sales in its restaurants and bars, catering to both hotel guests and outside customers. Additionally, the hotel offers event spaces for conferences, weddings, and other gatherings, contributing to its income through rental fees and event services. The wellness facilities, such as spas and fitness centers, provide another revenue stream by offering memberships and individual services. Partnerships with travel agencies and online booking platforms enhance the hotel's visibility and accessibility, driving more bookings and, consequently, revenue.

Imperial Hotel Ltd Financial Statement Overview

Summary

Imperial Hotel Ltd shows strong financial stability with a debt-free balance sheet and improving net profit margins. However, the lack of recent cash flow data and historical volatility in cash flows suggest caution in cash management. Overall, the financial health is positive, with a focus on operational efficiency and cash flow stability.

Income Statement

Imperial Hotel Ltd has shown a strong gross profit margin of 77.6% TTM, indicating effective cost management. The net profit margin is 4.7% TTM, which is modest but has improved significantly from negative margins in previous years. Revenue growth has been volatile, with a recent positive trend from a low base after a significant drop in 2021. The EBIT margin of 2.6% TTM reflects improved operational efficiency but remains an area for growth.

Balance Sheet

The company has a robust balance sheet with a debt-to-equity ratio of 0, reflecting its debt-free status. The equity ratio stands at 63.1% TTM, indicating strong financial stability and potential for leveraging if needed. Return on equity is 5.6% TTM, which is an improvement from previous years, showing increasing profitability.

Cash Flow

Cash flow from operations in the latest TTM period is not available, indicating potential challenges in cash flow management. Historically, free cash flow has varied significantly, with recent positive free cash flow growth, suggesting recovery from past cash flow issues. The lack of current free cash flow data limits the ability to fully assess cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	52.61B	52.61B	53.34B	43.77B	28.62B	22.05B
Gross Profit	39.92B	39.92B	42.30B	34.22B	22.14B	17.71B
EBITDA	4.03B	4.61B	5.36B	3.06B	-8.15B	-9.12B
Net Income	2.58B	2.58B	3.38B	1.95B	-7.89B	-14.36B
Balance Sheet
Total Assets	69.03B	69.03B	65.71B	61.74B	59.11B	65.42B
Cash, Cash Equivalents and Short-Term Investments	23.18B	23.18B	30.34B	30.24B	28.12B	31.95B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	23.68B	23.68B	22.67B	21.74B	21.14B	19.35B
Stockholders Equity	45.35B	45.35B	43.03B	40.00B	37.97B	46.07B
Cash Flow
Free Cash Flow	0.00	-7.69B	636.00M	2.13B	-3.13B	-9.60B
Operating Cash Flow	0.00	7.06B	4.20B	3.94B	-1.72B	-8.32B
Investing Cash Flow	0.00	-14.14B	-3.07B	-1.58B	-1.43B	217.00M
Financing Cash Flow	0.00	-724.00M	-718.00M	-240.00M	-282.00M	-474.00M

Imperial Hotel Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1020.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9708, the sentiment is Positive. The current price of 1020 is above the 20-day moving average (MA) of 999.45, above the 50-day MA of 994.36, and above the 200-day MA of 939.16, indicating a bullish trend. The MACD of 4.21 indicates Negative momentum. The RSI at 64.08 is Neutral, neither overbought nor oversold. The STOCH value of 73.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9708.

Imperial Hotel Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9726	78 Outperform	¥44.45B	5.67	14.98%	―	7.18%	8.24%
9729	73 Outperform	¥80.30B	17.64	5.56%	2.55%	9.69%	-28.11%
9723	72 Outperform	¥7.66B	9.29	29.00%	0.47%	3.63%	-7.07%
9722	69 Neutral	¥128.01B	13.27	35.61%	0.37%	12.65%	6.66%
9708	60 Neutral	¥121.10B	44.35	―	0.59%	-2.44%	-16.60%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Imperial Hotel Ltd Corporate Events

Imperial Hotel Reports Decline in Financial Performance

Imperial Hotel, Ltd. announced a decrease in its financial performance for the nine months ending December 31, 2024, compared to the same period in 2023. The company reported a decline in net sales, operating profit, and ordinary profit, attributing this to various market challenges. The equity-to-asset ratio slightly decreased, reflecting on the company’s balance sheet, while the dividends per share were adjusted following a recent share split.