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Fujita Kanko Inc. (JP:9722)
:9722
Japanese Market

Fujita Kanko Inc. (9722) AI Stock Analysis

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JP:9722

Fujita Kanko Inc.

(9722)

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Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
¥2,541.00
▼(-78.08% Downside)
Action:DowngradedDate:02/18/26
The score is driven mainly by improved financial performance (profitability and cash flow strength since 2022 with better leverage trends). This is offset by weak technical momentum (below key short-term moving averages with negative MACD). Valuation is reasonable on earnings but offers a low dividend yield.
Positive Factors
Revenue & Profitability Recovery
A multi-year recovery in revenue and sustained profitability since 2022 indicates restored demand, improved pricing and operating leverage. This durable improvement supports reinvestment capacity, steadier operating margins and greater ability to fund strategic initiatives over the next several quarters.
Strengthened Cash Generation
Consistent positive operating and free cash flow across 2023–2025 enhances the company's ability to service debt, fund maintenance capex and pursue selective investments without relying on external financing. Strong cash conversion provides a durable cushion against seasonal swings and supports balance sheet repair.
Improving Leverage Trajectory
Declining total debt and expanding equity signal a healthier capital structure, improving financial flexibility and credit profile. The trend reduces refinancing pressure and increases capacity for strategic spending, making the business better positioned to weather cyclical downturns over the medium term.
Negative Factors
Historical Earnings Volatility
A recent history of deep losses and volatile cash flows highlights that earnings can revert quickly under stress. For a hospitality operator, prior periods of severe underperformance imply limited margin durability and raise the risk that external shocks or demand slippage could rapidly erode recent gains.
Material Debt Burden
Leverage above 1x equity in recent years leaves the company exposed to interest and refinancing risk. In a capital-intensive, cyclical lodging business, this level of debt constrains strategic flexibility, increases fixed costs and magnifies downside risk if revenues weaken or funding conditions tighten.
Cyclicality & Downside Sensitivity
The company's revenues and cash flows are structurally tied to travel, events and discretionary spending. That cyclicality means economic slowdowns, travel shocks or event cancellations can quickly reduce cash generation and profitability, making future earnings and investment plans more uncertain.

Fujita Kanko Inc. (9722) vs. iShares MSCI Japan ETF (EWJ)

Fujita Kanko Inc. Business Overview & Revenue Model

Company DescriptionFujita Kanko Inc. operates as a tourism company in Japan and East Asia. It operates hotels, wedding and banquet venues, restaurants, and resorts, as well as leisure facilities, such as theme parks, aquariums, and golf courses. The company also offers supplementary services, including hotel room cleaning, flower provision and arrangement, garden care and landscaping, and photography. In addition, it provides management services for resorts and urban condominiums, and property management services for land to be used for building villas. Fujita Kanko Inc. was founded in 1955 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyFujita Kanko generates revenue through multiple streams, primarily from its hospitality operations, which include room bookings, food and beverage sales, and event hosting services in its hotels and resorts. The company also earns income from its restaurant operations, catering to both guests and locals. In addition to these core services, Fujita Kanko engages in real estate development and management, contributing to its revenue through property leasing and sales. Strategic partnerships with travel agencies and tourism boards help enhance visibility and attract more guests, while seasonal promotions and packages boost occupancy rates and customer engagement during peak travel times.

Fujita Kanko Inc. Financial Statement Overview

Summary
Strong turnaround since 2022 with rising revenue and sustained profitability in 2023–2025, supported by robust operating and free cash flow and improving leverage. However, earlier deep losses and cash-flow volatility (2020–2022) plus still-meaningful leverage for a cyclical lodging business temper the score.
Income Statement
74
Positive
The company has staged a strong post-2022 recovery: revenue climbed sharply from 2022 to 2024 and continued to rise in 2025, while profitability turned decisively positive. Recent years show solid operating earnings and healthy net profits (2023–2025), suggesting improved pricing and operating leverage. The main weakness is volatility in the earlier period (2020–2022) with deep losses and negative margins, indicating the earnings profile can be highly cyclical in downturns.
Balance Sheet
63
Positive
Leverage has improved meaningfully: total debt declined from 2022–2025 and equity expanded, reducing balance-sheet risk versus prior years. That said, debt remains sizable relative to equity (above 1x in 2023–2024), and the historical track record includes periods of extremely high leverage and weak equity (notably 2020–2022), which highlights sensitivity to shocks. Overall, the balance sheet is on a better trajectory, but still not conservative for a cyclical lodging business.
Cash Flow
71
Positive
Cash generation has strengthened substantially versus the loss-making years: operating cash flow is robust in 2023–2025 and free cash flow is solidly positive, with a particularly strong jump in 2025. Cash conversion improved from 2022’s weak level, supporting debt reduction capacity and reinvestment. The key drawback is historical instability (negative operating and free cash flow in 2020–2021 and negative free cash flow in 2022), so cash flows may soften materially in a downturn.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue80.28B82.00B76.21B64.55B43.75B28.43B
Gross Profit18.00B18.03B16.00B9.75B-1.23B-13.20B
EBITDA18.07B18.01B15.70B10.81B-2.17B22.05B
Net Income9.65B9.29B9.13B8.11B-5.78B12.68B
Balance Sheet
Total Assets91.80B98.83B94.04B93.50B99.96B112.76B
Cash, Cash Equivalents and Short-Term Investments13.95B12.26B14.46B13.71B24.14B38.65B
Total Debt31.69B27.66B37.43B40.02B49.73B58.23B
Total Liabilities61.74B62.01B68.39B67.52B77.22B83.93B
Stockholders Equity30.06B36.82B25.65B25.97B22.63B28.66B
Cash Flow
Free Cash Flow5.52B9.97B12.94B5.87B-6.35B-17.73B
Operating Cash Flow7.04B15.92B15.90B11.11B645.00M-16.30B
Investing Cash Flow-1.22B-5.68B-3.83B-5.92B-6.12B42.89B
Financing Cash Flow-6.31B-12.43B-11.31B-15.67B-8.94B8.32B

Fujita Kanko Inc. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price11590.00
Price Trends
50DMA
2564.19
Negative
100DMA
2395.23
Negative
200DMA
2249.70
Positive
Market Momentum
MACD
-67.38
Positive
RSI
43.53
Neutral
STOCH
32.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9722, the sentiment is Neutral. The current price of 11590 is above the 20-day moving average (MA) of 2443.25, above the 50-day MA of 2564.19, and above the 200-day MA of 2249.70, indicating a neutral trend. The MACD of -67.38 indicates Positive momentum. The RSI at 43.53 is Neutral, neither overbought nor oversold. The STOCH value of 32.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9722.

Fujita Kanko Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥19.17B5.601.47%19.31%202.53%
72
Outperform
¥33.12B6.621.46%19.32%11.35%
69
Neutral
¥7.81B7.450.48%4.02%-9.38%
63
Neutral
¥177.61B58.110.49%-1.00%5.32%
63
Neutral
¥143.22B15.190.30%10.26%6.31%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
58
Neutral
¥14.28B8.290.55%35.22%413.40%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9722
Fujita Kanko Inc.
2,355.00
466.71
24.72%
JP:4691
Washington Hotel Corp.
1,590.00
486.39
44.07%
JP:6547
Greens Co. Ltd.
2,388.00
-83.88
-3.39%
JP:9708
Imperial Hotel Ltd
1,496.00
600.68
67.09%
JP:9713
Royal Hotel, Ltd.
935.00
-182.32
-16.32%
JP:9723
Kyoto Hotel, Ltd.
647.00
-55.11
-7.85%

Fujita Kanko Inc. Corporate Events

Fujita Kanko to Seek Shareholder Approval for Amendments to Articles of Incorporation
Feb 12, 2026

Fujita Kanko Inc. has resolved at a Board of Directors meeting to propose a partial amendment to its Articles of Incorporation at the 93rd Annual General Meeting of Shareholders scheduled for March 25, 2026. Details of the proposed changes are provided only in Japanese via a linked explanatory document, limiting visibility for non-Japanese stakeholders but signaling upcoming adjustments to the company’s governance framework.

The move to revise the Articles of Incorporation indicates that Fujita Kanko may be updating its corporate structure, governance rules, or business scope in response to strategic, regulatory, or market needs. While specifics have not been disclosed in the English notice, shareholders and other stakeholders should expect that the outcome of the March meeting could influence how the company is managed and positioned within the competitive hospitality industry.

The most recent analyst rating on (JP:9722) stock is a Buy with a Yen2737.00 price target. To see the full list of analyst forecasts on Fujita Kanko Inc. stock, see the JP:9722 Stock Forecast page.

Fujita Kanko to Boost Year-End Dividend After Business Recovery
Feb 12, 2026

Fujita Kanko Inc. has announced a significant increase in its planned year-end dividend from surplus for the fiscal year ended December 31, 2025, proposing 70 yen per common share, up from its prior forecast of 40 yen and the previous year’s 40 yen. The total dividend payout on common shares is expected to reach 838 million yen, with no Class A preferred share dividends following the acquisition and cancellation of all such shares in August 2025.

The company cites a recovery in business performance and financial position as the basis for the higher payout, aligning the move with its stated policy of returning profits to shareholders while reinforcing its corporate structure and internal reserves. The dividend, sourced from retained earnings and based on the pre-split share count ahead of a five-for-one stock split effective January 1, 2026, underscores management’s confidence in ongoing earnings strength and is likely to be welcomed by equity investors seeking improved yield and clearer visibility on capital returns.

The most recent analyst rating on (JP:9722) stock is a Buy with a Yen2737.00 price target. To see the full list of analyst forecasts on Fujita Kanko Inc. stock, see the JP:9722 Stock Forecast page.

Fujita Kanko Reshapes Shareholder Structure With NSSK-GAMMA2 Alliance
Feb 12, 2026

Fujita Kanko Inc. has announced a shift in its largest associated shareholder following the transfer of a 25% stake, representing both issued shares and voting rights, from Dowa Holdings Co., Ltd. to NSSK-GAMMA2 Limited Liability Company on February 10, 2026. As a result, NSSK-GAMMA2 is now classified as an other associated company of Fujita Kanko, while Dowa Holdings no longer holds that status.

In connection with this change, Fujita Kanko has entered into a capital and business alliance agreement with NSSK-GAMMA2 aimed at supporting the company’s business growth and enhancing corporate value. Under the agreement, NSSK-GAMMA2 gains the right to nominate up to two directors and must give prior consent for key actions such as amendments to the Articles of Incorporation, certain equity issuances, and major asset sales, while both parties emphasize that the company’s overall decision-making independence will be maintained.

The most recent analyst rating on (JP:9722) stock is a Buy with a Yen2737.00 price target. To see the full list of analyst forecasts on Fujita Kanko Inc. stock, see the JP:9722 Stock Forecast page.

Fujita Kanko Books ¥5.99 Billion Extraordinary Gain on Investment Security Sale
Feb 12, 2026

Fujita Kanko Inc., a Japan-based hospitality group listed on the TSE Prime, operates hotels, resorts, and leisure facilities, providing accommodation and tourism services to domestic and international guests. The company leverages its diversified portfolio of hospitality assets to capture travel demand and corporate event business across key Japanese markets.

Fujita Kanko has completed the sale of one investment security, realizing an extraordinary gain of ¥5,999 million on February 12, 2026. The gain will be booked as extraordinary income for the three months ending March 31, 2026 and has already been factored into the company’s earnings forecast for the fiscal year ending December 31, 2026, reinforcing visibility around its near-term financial performance.

The most recent analyst rating on (JP:9722) stock is a Buy with a Yen2737.00 price target. To see the full list of analyst forecasts on Fujita Kanko Inc. stock, see the JP:9722 Stock Forecast page.

Fujita Kanko to Introduce Restricted Stock Compensation for Directors
Feb 12, 2026

Fujita Kanko has resolved to revise its officer compensation system and introduce a restricted stock-based compensation plan for internal directors, subject to shareholder approval at its March 25, 2026 general meeting. The plan is designed to strengthen incentives for sustainable corporate value growth and better align directors’ interests with those of shareholders by granting restricted shares as part of their remuneration.

Under the new scheme, up to ¥50 million per year in compensation will be allocated in the form of restricted shares, with a maximum of 50,000 shares annually, either granted without consideration or via in-kind contribution of monetary claims. The issuance price will be linked to the market closing price of Fujita Kanko’s shares to avoid preferential treatment, and allotments will be governed by restricted share agreements, signaling a shift toward more market-linked, performance-conscious governance practices.

The most recent analyst rating on (JP:9722) stock is a Buy with a Yen2737.00 price target. To see the full list of analyst forecasts on Fujita Kanko Inc. stock, see the JP:9722 Stock Forecast page.

Fujita Kanko Lifts Dividend as Profitability and Equity Base Strengthen in 2025
Feb 12, 2026

Fujita Kanko reported consolidated net sales of ¥82.0 billion for the fiscal year ended December 31, 2025, up 7.6% year on year, with operating profit rising 12.1% to ¥13.8 billion and profit attributable to owners edging up 1.7% to ¥9.3 billion. Profitability metrics remained strong despite slower bottom-line growth, with an operating margin of 16.8% and ROE of 29.8%, while comprehensive income surged 65.1%, indicating solid overall performance.

The company’s financial position strengthened markedly as total assets reached ¥98.8 billion and equity climbed to ¥36.8 billion, lifting its equity ratio to 37.3% and net assets per share to ¥614.47. Reflecting this improved balance sheet and earnings base, Fujita Kanko raised its annual dividend for 2025 to ¥70 per share from ¥40, even as it forecasts modest 2026 sales growth and a decline in operating profit, with full-year operating income projected at ¥12.0 billion and basic EPS at ¥191.93.

Operating cash flow remained robust at ¥15.9 billion, though increased investment outflows and higher financing outflows reduced cash and cash equivalents to ¥12.2 billion at year-end. Share count was essentially stable, with only a small increase in treasury shares, signaling a steady capital structure while the company balances shareholder returns with continued investment in its hospitality operations.

The most recent analyst rating on (JP:9722) stock is a Buy with a Yen2737.00 price target. To see the full list of analyst forecasts on Fujita Kanko Inc. stock, see the JP:9722 Stock Forecast page.

Fujita Kanko to Book ¥6.5 Billion Extraordinary Gain From DOWA Share Sale
Feb 10, 2026

Fujita Kanko Inc. has decided to sell part of its shareholdings in DOWA Holdings Co., Ltd. after a board resolution, responding to DOWA’s plan to repurchase its own shares through an off-exchange ToSTNeT-3 transaction. The move follows Fujita Kanko’s review of its cross-shareholdings under Japan’s Corporate Governance Code, leading to a decision to reduce its stake in DOWA.

The sale, scheduled for February 12, 2026, is expected to generate an extraordinary gain on sale of investment securities of approximately ¥6.5 billion. This gain will be booked as extraordinary income in the quarter ending March 31, 2026 and will be reflected in the company’s forecast for the fiscal year ending December 31, 2026, potentially strengthening its financial position and capital allocation flexibility.

The most recent analyst rating on (JP:9722) stock is a Buy with a Yen2737.00 price target. To see the full list of analyst forecasts on Fujita Kanko Inc. stock, see the JP:9722 Stock Forecast page.

Fujita Kanko Forms NSSK Alliance as New Largest Shareholder Takes 25% Stake
Feb 10, 2026

Fujita Kanko has entered a capital and business alliance with NSSK-GAMMA2, an investment vehicle linked to Nippon Sangyo Suishin Kiko, as part of its Medium-Term Management Plan 2028 aimed at sustainable growth, stronger talent pipelines, and a more robust financial base. The company seeks to accelerate development capabilities, M&A execution, and brand power by tapping NSSK’s expertise while continuing to build on post-pandemic recovery and prior structural reforms.

As part of the alliance, NSSK-GAMMA2 will acquire 14,980,000 Fujita Kanko shares, or 25% of outstanding stock excluding treasury shares, from current largest shareholder Dowa Holdings via an off-market secondary offering. This transaction will make NSSK-GAMMA2 the new largest major shareholder and comes with consent rights over key corporate actions, underscoring a shift in governance and positioning Fujita Kanko for more aggressive expansion through hotel acquisitions, property development, and value-enhancement initiatives.

The most recent analyst rating on (JP:9722) stock is a Buy with a Yen2737.00 price target. To see the full list of analyst forecasts on Fujita Kanko Inc. stock, see the JP:9722 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: Feb 18, 2026