Royal Hotel, Ltd. (9713) AI Stock Analysis

• Market Cap: ¥13.65B
• Dividend Yield: 0.57%
• Average Volume (3M): 23.82K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 0.50
• Revenue Growth: 35.22%
• EPS Growth: 413.40%
• Country: JP
• Employees: 1,726
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): -4.67
• Shares Outstanding: 15,303,369
• 10 Day Avg. Volume: 37,050
• 30 Day Avg. Volume: 23,820
• PEG Ratio: 0.08
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 20.65
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ¥960.00 ▲(8.97% Upside)

The overall stock score is primarily influenced by the company's strong financial recovery and attractive valuation. However, technical indicators suggest bearish momentum, which poses a short-term risk. The absence of recent earnings call insights or notable corporate events leaves the analysis focused on financial and technical aspects.

Positive Factors

Revenue Growth

The strong revenue growth indicates a robust recovery and expanding market presence, which can lead to sustained business success and increased market share.

Balance Sheet Health

Low leverage enhances financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic downturns more effectively.

Cash Flow Improvement

Improved cash flow management supports operational sustainability and provides resources for strategic investments, reducing reliance on external financing.

Negative Factors

Net Profit Margin

A relatively low net profit margin indicates potential inefficiencies or cost pressures that could limit profitability and impact long-term financial health.

Historical Liability Fluctuations

Past fluctuations in liabilities could signal underlying financial instability, posing risks to future financial performance and strategic flexibility.

Sustainability of Cash Flow

While recent improvements are positive, maintaining consistent cash flow is crucial for ongoing operations and investment capacity, especially in a volatile industry.

Royal Hotel, Ltd. Business Overview & Revenue Model

Company Description

The Royal Hotel, Limited operates hotels in Japan. It operates hotels under the RIHGA Royal Hotel name in Osaka, Tokyo, Kyoto, Hiroshima, Kokura, Ehime, Okinawa, and Kagawa; and Rihga Royal Laguna Guam Resort in Guam, the United States. The company was formerly known as Shin Osaka Hotel, Ltd. and changed its name to The Royal Hotel, Limited in 1973. The Royal Hotel, Limited was incorporated in 1932 and is based in Osaka, Japan.

How the Company Makes Money

Royal Hotel, Ltd. generates revenue through multiple streams, primarily from room bookings, which account for the largest share of its income. The company also earns money from food and beverage services provided in its restaurants and bars, as well as from hosting events, conferences, and weddings in its facilities. Additional revenue is generated through ancillary services such as spa treatments, guided tours, and partnerships with local attractions. Strategic partnerships with travel agencies and online booking platforms further enhance visibility and booking rates, contributing to the company's overall earnings. Seasonal promotions and loyalty programs also play a significant role in driving repeat business and increasing occupancy rates.

Royal Hotel, Ltd. Financial Statement Overview

Summary

Royal Hotel, Ltd. is on a positive trajectory with strong revenue growth and improved profitability metrics. The balance sheet shows financial stability with low leverage, but past fluctuations in liabilities pose potential risks. Cash flow has improved, but maintaining positive free cash flow is crucial for long-term financial 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.23B	25.16B	20.67B	26.40B	16.46B	15.64B
Gross Profit	22.73B	20.70B	17.06B	20.68B	12.47B	11.63B
EBITDA	658.75M	2.44B	797.00M	15.08B	-2.87B	-5.36B
Net Income	2.37B	1.74B	901.00M	13.31B	-4.81B	-9.33B
Balance Sheet
Total Assets	38.29B	38.36B	31.57B	32.10B	59.92B	61.87B
Cash, Cash Equivalents and Short-Term Investments	11.07B	11.36B	12.34B	14.36B	3.56B	4.76B
Total Debt	413.00M	633.00M	38.00M	38.00M	31.89B	37.20B
Total Liabilities	14.87B	15.32B	11.69B	13.16B	43.83B	50.97B
Stockholders Equity	21.80B	21.48B	19.88B	18.94B	16.09B	10.90B
Cash Flow
Free Cash Flow	0.00	690.00M	-2.09B	-503.00M	-5.16B	-5.26B
Operating Cash Flow	0.00	1.21B	-1.62B	81.00M	-4.10B	-3.98B
Investing Cash Flow	0.00	-1.99B	-478.00M	53.42B	-1.13B	-1.32B
Financing Cash Flow	0.00	-255.00M	-36.00M	-42.70B	4.03B	7.48B

Royal Hotel, Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 881.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9713, the sentiment is Negative. The current price of 881 is below the 20-day moving average (MA) of 929.65, below the 50-day MA of 976.22, and below the 200-day MA of 969.10, indicating a bearish trend. The MACD of -27.56 indicates Positive momentum. The RSI at 27.46 is Positive, neither overbought nor oversold. The STOCH value of 7.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	80 Outperform	¥22.67B	7.98	―	1.25%	12.08%	17.87%
4691	69 Neutral	¥17.13B	5.74	―	1.46%	19.31%	202.53%
9723	69 Neutral	¥7.63B	9.95	―	0.48%	4.02%	-9.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9713	58 Neutral	¥13.65B	5.24	―	0.57%	35.22%	413.40%
9720	56 Neutral	¥7.91B	23.72	―	0.39%	10.52%	-31.01%
9704	55 Neutral	¥13.46B	9.21	32.34%	―	20.16%	1467.54%