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HOTEL NEWGRAND CO., LTD. (JP:9720)
:9720
Japanese Market
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HOTEL NEWGRAND CO., LTD. (9720) AI Stock Analysis

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JP:9720

HOTEL NEWGRAND CO., LTD.

(9720)

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Neutral 60 (OpenAI - 4o)
Rating:60Neutral
Price Target:
¥7,277.00
▲(5.46% Upside)
The overall stock score is primarily influenced by financial performance and technical analysis. Strong revenue growth and operational efficiency are offset by profitability and cash flow challenges. Technical indicators suggest mixed signals with short-term bearish trends but potential long-term support. Valuation metrics indicate the stock is relatively expensive with a low dividend yield, limiting its attractiveness to value and income-focused investors.

HOTEL NEWGRAND CO., LTD. (9720) vs. iShares MSCI Japan ETF (EWJ)

HOTEL NEWGRAND CO., LTD. Business Overview & Revenue Model

Company DescriptionHotel Newgrand Co.,Ltd. opeates hotels and resorts in Japan. It operates the Hotel New Grand in Yokohama. The company was incorporated in 1926 and is based in Yokohama, Japan.
How the Company Makes MoneyHOTEL NEWGRAND generates revenue primarily through its hotel operations, which include room bookings, food and beverage sales, and event hosting services. The company earns significant income from both short-term stays by leisure travelers and long-term business contracts with corporate clients. Additional revenue streams may include partnerships with travel agencies and online booking platforms, which help increase visibility and attract a larger customer base. Seasonal promotions, loyalty programs, and special events also play a crucial role in driving occupancy rates and enhancing overall earnings.

HOTEL NEWGRAND CO., LTD. Financial Statement Overview

Summary
The company exhibits robust revenue growth and improved operational efficiency with higher gross and EBITDA margins, yet faces profitability challenges with declining net and EBIT margins. The balance sheet shows moderate leverage and improved equity position, but reduced profitability is indicated by a decrease in ROE. Significant pressure from negative free cash flow suggests potential liquidity constraints.
Income Statement
72
Positive
The company showed a positive revenue growth rate of 9% from 2023 to 2024, primarily driven by the travel and lodging sector's recovery. Gross profit margin improved to 75.6%, indicating efficient cost management. However, the net profit margin decreased to 5.2% from 7.3% the previous year, highlighting a challenge in converting revenue into profit. The EBIT margin also decreased slightly to 4.4%, while the EBITDA margin improved to 11.1%, reflecting better operational efficiency despite lower EBIT.
Balance Sheet
65
Positive
The debt-to-equity ratio stands at 0.76, suggesting a moderate level of leverage. Return on Equity (ROE) decreased to 8.6% from 12.1%, indicating a decline in profitability. The equity ratio improved to 41.7%, showcasing a stronger equity position relative to assets. The company's financial stability remains moderate, with manageable debt levels but declining profitability metrics.
Cash Flow
54
Neutral
The free cash flow declined significantly, resulting in a negative trajectory, which could impact future investment capabilities. Operating cash flow to net income ratio decreased, highlighting potential challenges in converting income into cash. The free cash flow to net income ratio also turned negative, underlining cash flow management issues despite positive operating cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.21B5.86B5.37B4.28B3.20B3.06B
Gross Profit4.50B4.43B4.05B3.15B2.19B2.13B
EBITDA648.98M647.97M577.25M-40.11M1.19B-787.75M
Net Income289.45M303.42M393.36M-349.20M1.32B-1.10B
Balance Sheet
Total Assets8.66B8.47B7.95B7.74B8.07B7.88B
Cash, Cash Equivalents and Short-Term Investments2.53B2.48B2.42B2.20B2.72B542.43M
Total Debt2.62B2.69B2.34B2.58B2.80B3.54B
Total Liabilities4.78B4.94B4.70B4.89B4.88B6.01B
Stockholders Equity3.88B3.54B3.25B2.85B3.20B1.87B
Cash Flow
Free Cash Flow170.59M-581.18M445.28M-291.57M-66.94M-840.49M
Operating Cash Flow351.28M390.54M609.28M2.77M-35.22M-758.87M
Investing Cash Flow-190.88M-656.73M-141.25M-294.34M2.97B-81.62M
Financing Cash Flow-104.55M319.10M-249.07M-224.45M-754.27M1.00B

HOTEL NEWGRAND CO., LTD. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6900.00
Price Trends
50DMA
7041.40
Negative
100DMA
6788.00
Positive
200DMA
6320.40
Positive
Market Momentum
MACD
-64.90
Positive
RSI
45.01
Neutral
STOCH
14.84
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9720, the sentiment is Positive. The current price of 6900 is below the 20-day moving average (MA) of 7056.00, below the 50-day MA of 7041.40, and above the 200-day MA of 6320.40, indicating a neutral trend. The MACD of -64.90 indicates Positive momentum. The RSI at 45.01 is Neutral, neither overbought nor oversold. The STOCH value of 14.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9720.

HOTEL NEWGRAND CO., LTD. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥24.10B8.761.16%10.08%15.90%
75
Outperform
¥18.58B6.961.22%20.01%290.10%
72
Outperform
¥7.69B9.250.47%3.63%-7.07%
63
Neutral
¥15.12B6.380.50%28.56%213.63%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
60
Neutral
¥8.09B24.180.36%10.52%-31.01%
49
Neutral
¥15.49B63.196.59%17.45%664.98%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9720
HOTEL NEWGRAND CO., LTD.
6,900.00
425.55
6.57%
JP:9704
AGORA Hospitality Group Co., Ltd.
63.00
17.00
36.96%
JP:4691
Washington Hotel Corp.
1,634.00
964.16
143.94%
JP:6565
ABHOTEL Co., Ltd.
1,724.00
504.50
41.37%
JP:9713
Royal Hotel, Ltd.
998.00
135.38
15.69%
JP:9723
Kyoto Hotel, Ltd.
641.00
3.62
0.57%

HOTEL NEWGRAND CO., LTD. Corporate Events

HOTEL NEWGRAND Reports Strong Q3 2025 Financial Performance
Oct 8, 2025

HOTEL NEWGRAND CO., LTD. reported a positive financial performance for the third quarter of 2025, with net sales increasing by 12.1% and operating profit rising by 24.6% compared to the same period in the previous year. The company’s improved financial results indicate a strong market position and potential growth, benefiting stakeholders and enhancing its competitive standing in the hospitality industry.

The most recent analyst rating on (JP:9720) stock is a Hold with a Yen6810.00 price target. To see the full list of analyst forecasts on HOTEL NEWGRAND CO., LTD. stock, see the JP:9720 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 11, 2025