Fujita Kanko Inc. (9722) AI Stock Analysis

• Market Cap: ¥151.31B
• Dividend Yield: 0.3%
• Average Volume (3M): 68.39K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.84
• Revenue Growth: 10.26%
• EPS Growth: 6.31%
• Country: JP
• Employees: 1,530
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): 20.10
• Shares Outstanding: 61,037,120
• 10 Day Avg. Volume: 56,880
• 30 Day Avg. Volume: 68,390
• PEG Ratio: 1.31
• Price to Book (P/B): 3.91
• Price to Sales (P/S): 1.32
• P/FCF Ratio: 7.75
• 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: 76 Outperform
• Price Target: ¥2,813.00 ▼(-75.73% Downside)

Fujita Kanko Inc. demonstrates strong financial performance with robust revenue growth and profitability, supported by effective cash flow management. The technical analysis indicates a positive trend, although valuation metrics suggest the stock is fairly valued. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Strong free cash flow growth

A 120.6% increase in free cash flow demonstrates durable cash generation ability, enabling sustained reinvestment in properties, debt reduction, or strategic refurbishments. Strong FCF cushions cyclical downturns in hospitality and supports medium-term financial flexibility and capital allocation.

High return on equity

A 35.6% ROE indicates efficient use of shareholders' equity and strong profitability on invested capital. This level of ROE suggests management effectively allocates capital within hotel, wedding and leisure operations, supporting sustainable shareholder returns and competitive positioning over the next several quarters.

Improving revenue and margins

An 18% revenue increase alongside a 21% gross margin and 12% net margin signals structural improvement in pricing, cost control and mix. Higher margins suggest enhanced operational efficiency that should persist through reinvestment and scale, supporting sustainable profitability in hospitality and events.

Negative Factors

Moderate leverage on balance sheet

A debt-to-equity of 1.46 with a 27.3% equity ratio indicates material leverage for a capital-intensive hospitality operator. This reduces financial flexibility for new investments, increases interest and refinancing exposure, and raises vulnerability to demand shocks or rate increases over the medium term.

Revenue sensitivity to demand cycles

Reliance on occupancy, room rates and event volumes makes revenues intrinsically cyclical and sensitive to macro swings, travel trends, and corporate event demand. Such structural exposure can compress margins and cash flow in downturns, limiting predictability of earnings across 2–6 month horizons.

Modest dividend income for investors

A 0.38% dividend yield offers minimal recurring income, reducing appeal to yield-focused investors and limiting a steady shareholder return channel. If management prioritizes reinvestment over distributions, income-seeking holders may find long-term cash returns constrained despite operational improvements.

Fujita Kanko Inc. Business Overview & Revenue Model

Company Description

Fujita Kanko Inc. (9722) is a prominent Japanese company engaged primarily in the hospitality and real estate sectors. Established in 1957, the company operates various hotels, resorts, and restaurants, catering to both domestic and international tourists. Fujita Kanko is known for its commitment to providing high-quality service and unique experiences, with properties that often highlight local culture and heritage. The company also engages in real estate development and management, further diversifying its portfolio.

How the Company Makes Money

Fujita 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

Fujita Kanko Inc. shows a strong financial performance with growing revenues and improving profitability. The balance sheet indicates moderate leverage with a healthy return on equity. Cash flow generation is robust, supporting the company's financial stability and growth trajectory.

Income Statement

Fujita Kanko Inc. has shown significant improvement in revenue and profitability over the years. The gross profit margin has improved from negative values to a positive 21% in 2024, while the net profit margin has increased substantially to 12%. The revenue growth rate from 2023 to 2024 is 18%, indicating robust expansion. EBIT and EBITDA margins have also improved, signaling enhanced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio stands at 1.46, reflecting a moderate level of leverage. Return on Equity (ROE) is strong at 35.6%, showcasing effective use of equity to generate profits. The equity ratio of 27.3% suggests a stable but moderately leveraged position.

Cash Flow

Fujita Kanko Inc. has demonstrated impressive cash flow management. The free cash flow growth rate is 120.6% from 2023 to 2024, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 1.74, and the free cash flow to net income ratio is 1.42, both of which highlight solid cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	80.28B	76.21B	64.55B	43.75B	28.43B	26.65B
Gross Profit	18.00B	16.00B	9.75B	-1.23B	-13.20B	-17.44B
EBITDA	18.07B	15.70B	10.81B	-2.17B	22.05B	-17.72B
Net Income	9.65B	9.13B	8.11B	-5.78B	12.68B	-22.43B
Balance Sheet
Total Assets	91.80B	94.04B	93.50B	99.96B	112.76B	96.59B
Cash, Cash Equivalents and Short-Term Investments	13.95B	14.46B	13.71B	24.14B	38.65B	3.72B
Total Debt	31.69B	37.43B	40.02B	49.73B	58.23B	64.80B
Total Liabilities	61.74B	68.39B	67.52B	77.22B	83.93B	95.25B
Stockholders Equity	30.06B	25.65B	25.97B	22.63B	28.66B	1.18B
Cash Flow
Free Cash Flow	5.52B	12.94B	5.87B	-6.35B	-17.73B	-21.15B
Operating Cash Flow	7.04B	15.90B	11.11B	645.00M	-16.30B	-17.07B
Investing Cash Flow	-1.22B	-3.83B	-5.92B	-6.12B	42.89B	-2.41B
Financing Cash Flow	-6.31B	-11.31B	-15.67B	-8.94B	8.32B	19.83B

Fujita Kanko Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11590.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9722, the sentiment is Negative. The current price of 11590 is above the 20-day moving average (MA) of 2646.85, above the 50-day MA of 2515.64, and above the 200-day MA of 2193.79, indicating a neutral trend. The MACD of -19.15 indicates Positive momentum. The RSI at 30.85 is Neutral, neither overbought nor oversold. The STOCH value of 10.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9722.

Fujita Kanko Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9722	76 Outperform	¥151.31B	15.76	―	0.30%	10.26%	6.31%
6547	72 Outperform	¥29.28B	5.54	―	1.46%	19.32%	11.35%
4691	69 Neutral	¥15.25B	5.11	―	1.47%	19.31%	202.53%
9723	69 Neutral	¥7.55B	9.85	―	0.48%	4.02%	-9.38%
9708	63 Neutral	¥165.38B	54.11	―	0.49%	-1.00%	5.32%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9713	58 Neutral	¥14.16B	5.43	―	0.55%	35.22%	413.40%

Fujita Kanko Inc. Corporate Events

Fujita Kanko Inc. Sees Growth Amid Challenges in 2025

Fujita Kanko Inc. reported increased net sales and operating profit for the nine months ending September 30, 2025, driven by a rise in foreign visitors and strengthened overseas sales activities. Despite temporary facility closures for renovations and increased labor and tax costs, the company managed to capture demand effectively, reflecting a positive impact on its financial performance and industry positioning.

The most recent analyst rating on (JP:9722) stock is a Buy with a Yen12639.00 price target. To see the full list of analyst forecasts on Fujita Kanko Inc. stock, see the JP:9722 Stock Forecast page.

Fujita Kanko Inc. Reports Strong Financial Performance for Nine Months Ending September 2025

Fujita Kanko Inc. reported a positive financial performance for the nine months ending September 30, 2025, with net sales increasing by 8.2% and operating profit rising by 14.6% compared to the previous year. The company also maintained a stable dividend forecast, indicating a strong financial position and potential for continued growth, which could positively impact stakeholders and enhance its market position.

The most recent analyst rating on (JP:9722) stock is a Buy with a Yen12639.00 price target. To see the full list of analyst forecasts on Fujita Kanko Inc. stock, see the JP:9722 Stock Forecast page.

Fujita Kanko Inc. Reports Strong Financial Performance for Nine Months Ended September 2025

Fujita Kanko Inc. reported its consolidated financial results for the nine months ended September 30, 2025, showing an increase in net sales and profits compared to the previous year. The company’s net sales rose by 8.2%, while operating profit increased by 14.6%. The financial results indicate a positive trend in the company’s performance, reflecting its strong market positioning and operational efficiency.

The most recent analyst rating on (JP:9722) stock is a Buy with a Yen12639.00 price target. To see the full list of analyst forecasts on Fujita Kanko Inc. stock, see the JP:9722 Stock Forecast page.