Royal Hotel, Ltd. (9713) AI Stock Analysis

• Market Cap: ¥15.72B
• Dividend Yield: 0.49%
• Average Volume (3M): 34.19K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.46
• Revenue Growth: 28.56%
• EPS Growth: 213.63%
• Country: JP
• Employees: 1,726
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Travel Lodging
• EPS (TTM): 30.71
• Shares Outstanding: 15,303,369
• 10 Day Avg. Volume: 78,080
• 30 Day Avg. Volume: 34,186
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥939.00
• Price Target Upside: -8.75% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ¥939.00 ▼(-8.75% Downside)

The overall score reflects strong financial recovery and an attractive valuation, despite the lack of significant market momentum. The company's low leverage and recent positive cash flow are strengths, but potential risks from past liabilities require attention. Technical indicators suggest caution, with the stock trading below key moving averages.

Royal Hotel, Ltd. Business Overview & Revenue Model

Company Description

Royal Hotel, Ltd. (9713) operates within the hospitality sector, offering a range of premium accommodation services. The company is known for its luxurious hotels and resorts, providing guests with high-end amenities and personalized services. Royal Hotel, Ltd. focuses on delivering exceptional customer experiences through its elegant room offerings, fine dining restaurants, and comprehensive leisure facilities.

How the Company Makes Money

Royal Hotel, Ltd. generates revenue primarily through room bookings and hospitality services. The company earns money by offering accommodations to guests, which include room rates and additional charges for premium amenities and services. Dining services within the hotels also contribute significantly to their revenue, with restaurants offering gourmet meals to guests and outside visitors. Conference and event hosting further bolster income, as the company provides venues for meetings, weddings, and other gatherings. Partnerships with travel agencies, corporate clients, and online booking platforms enhance visibility and drive occupancy rates, supporting steady revenue inflows.

Royal Hotel, Ltd. Financial Statement Overview

Summary

Royal Hotel, Ltd. is demonstrating strong revenue growth and improved profitability metrics. The balance sheet is stable with low leverage, but past fluctuations in liabilities are a potential risk. Cash flow has shown improvement, but maintaining positive free cash flow is essential for long-term health.

Income Statement

Royal Hotel, Ltd. has shown a strong recovery in revenue with a growth rate of 21.74% from 2024 to 2025, following challenging years. Gross profit margin improved to 82.2% in 2025, indicating efficient cost management. However, net profit margin at 6.9% suggests room for improvement in profitability. EBIT and EBITDA margins have rebounded significantly, demonstrating operational improvements.

Balance Sheet

The company's debt-to-equity ratio is low at 0.03, indicating low leverage and financial stability. Return on equity at 8.09% for 2025 suggests moderate profitability. The equity ratio of 56.0% implies a strong capital structure, though there's potential risk due to historical fluctuations in liabilities.

Cash Flow

Free cash flow turned positive in 2025 after previous deficits, with significant improvement from -209.4 million Yen in 2024 to 690 million Yen. Operating cash flow to net income ratio at 0.70 shows decent cash conversion, while free cash flow to net income ratio indicates better cash management. However, the company needs to sustain this positive trend.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	25.16B	20.67B	26.40B	16.46B	15.64B
Gross Profit	20.70B	17.06B	20.68B	12.47B	11.63B
EBITDA	2.44B	797.00M	-1.58B	-2.87B	-5.36B
Net Income	1.74B	901.00M	13.31B	-4.81B	-9.33B
Balance Sheet
Total Assets	38.36B	31.57B	32.10B	59.92B	61.87B
Cash, Cash Equivalents and Short-Term Investments	11.36B	12.34B	14.36B	3.56B	4.76B
Total Debt	633.00M	38.00M	38.00M	31.89B	37.20B
Total Liabilities	15.32B	11.69B	13.16B	43.83B	50.97B
Stockholders Equity	21.48B	19.88B	18.94B	16.09B	10.90B
Cash Flow
Free Cash Flow	690.00M	-2.09B	-503.00M	-5.16B	-5.26B
Operating Cash Flow	1.21B	-1.62B	81.00M	-4.10B	-3.98B
Investing Cash Flow	-3.81B	-478.00M	53.42B	-1.13B	-1.32B
Financing Cash Flow	-255.00M	-36.00M	-42.70B	4.03B	7.48B

Royal Hotel, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1029.00
• 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:9713, the sentiment is Positive. The current price of 1029 is above the 20-day moving average (MA) of 940.75, above the 50-day MA of 906.42, and above the 200-day MA of 925.24, indicating a bullish trend. The MACD of 33.87 indicates Negative momentum. The RSI at 78.49 is Negative, neither overbought nor oversold. The STOCH value of 81.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9713.

Royal Hotel, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6565	77 Outperform	¥22.48B	8.30		1.29%	10.08%	15.90%
4691	72 Outperform	¥19.53B	7.31		1.49%	20.01%	290.10%
9723	70 Neutral	¥7.77B	9.42		0.47%	3.63%	-7.07%
Sector *	67 Neutral	¥277.48B	14.88	6.81%	2.50%	5.07%	-22.68%
9713	61 Neutral	¥15.72B	6.63		0.49%	28.56%	213.63%
9704	58 Neutral	¥17.78B	72.51	6.59%	―	17.45%	664.98%
9720	57 Neutral	¥7.95B	27.72		0.38%	9.47%	-57.17%