Kyoto Hotel, Ltd. (9723) AI Stock Analysis

• Market Cap: ¥8.26B
• Dividend Yield: 0.48%
• Average Volume (3M): 4.00K
• Price to Earnings (P/E): 2.0
• Beta (1Y): 0.20
• Revenue Growth: 4.02%
• EPS Growth: -9.38%
• Country: JP
• Employees: 427
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): 74.44
• Shares Outstanding: 12,065,400
• 10 Day Avg. Volume: 4,110
• 30 Day Avg. Volume: 4,000
• PEG Ratio: -0.61
• Price to Book (P/B): 3.22
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 7.10
• 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: 69 Neutral
• Price Target: ¥701.00 ▲(14.17% Upside)
• Action: Reiterated Date: 10/28/25
• Date: Action: Reiterated 10/28/25

Kyoto Hotel, Ltd. demonstrates strong financial performance with impressive revenue growth and profitability, though high leverage remains a concern. The technical indicators suggest stable market conditions, with a slight bullish trend. The stock's valuation is attractive, with a low P/E ratio indicating potential undervaluation.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates effective market strategies and increasing demand for its services, supporting long-term expansion.

Gross Profit Margin

A high gross profit margin reflects efficient operations, allowing the company to maintain profitability even in competitive markets.

Cash Flow Management

Strong cash flow management ensures the company can fund operations and growth initiatives, enhancing financial stability.

Negative Factors

High Leverage

High leverage increases financial risk, potentially impacting the company's ability to withstand economic downturns.

Net Profit Margin Decline

A declining net profit margin suggests increasing costs or pricing pressures, which could affect long-term profitability.

Low Equity Ratio

A low equity ratio indicates potential vulnerability to market volatility, limiting financial flexibility and resilience.

Kyoto Hotel, Ltd. Business Overview & Revenue Model

Company Description

The Kyoto Hotel, Ltd. operates accommodation, banquet, restaurant, and other facilitates in Japan. It operates hotels under the Karasuma Kyoto Hotel and Kyoto Hotel Okura names. The Kyoto Hotel, Ltd. was incorporated in 1927 and is headquartered in Kyoto, Japan.

How the Company Makes Money

Kyoto Hotel, Ltd. generates revenue primarily through room bookings, food and beverage sales, and event hosting services. The company earns money from the accommodation sector by attracting guests to its various hotel properties, which charge nightly rates. Additionally, revenue is supplemented through the on-site restaurants and bars, which provide dining options for both hotel guests and local patrons. The hotel also hosts conferences, weddings, and other events, creating another significant revenue stream. Partnerships with travel agencies and online booking platforms further enhance its visibility and customer reach, contributing to increased occupancy rates and overall profitability.

Kyoto Hotel, Ltd. Financial Statement Overview

Summary

Kyoto Hotel, Ltd. shows strong revenue growth and profitability metrics, with a notable revenue increase and impressive gross profit margin. However, high leverage and a decrease in net profit margin pose risks, despite effective cash flow management.

Income Statement

Kyoto Hotel, Ltd. has shown a strong recovery in revenue over recent years, with a notable revenue growth from 2022 to 2023 of 72.3%, and further growth in 2024 of 24.3%. The gross profit margin is impressive at approximately 77.7% in 2025, indicating efficient cost management. However, the net profit margin decreased from 9.8% in 2024 to 8.2% in 2025, suggesting pressures on net profitability. The EBIT and EBITDA margins remain healthy, supporting overall profitability.

Balance Sheet

The company's debt-to-equity ratio has improved, but it remains high at approximately 4.6 in 2025, indicating a significant reliance on debt financing. Return on equity improved to 29% in 2025, showing better utilization of equity. The equity ratio of 16% highlights a relatively low proportion of equity in the capital structure, which could pose risks in volatile markets.

Cash Flow

Kyoto Hotel, Ltd. demonstrates robust cash flow management, with a significant operating cash flow that supports its net income. The free cash flow to net income ratio improved significantly in 2025, indicating strong cash generation capabilities. The free cash flow growth rate was negative in 2025, but the company effectively manages capital expenditures to maintain positive free cash flow.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.36B	9.14B	7.35B	4.27B	3.85B
Gross Profit	7.28B	7.02B	5.31B	2.66B	2.32B
EBITDA	1.61B	1.67B	739.49M	-1.14B	-1.71B
Net Income	771.54M	894.63M	62.22M	-652.00M	-1.97B
Balance Sheet
Total Assets	16.65B	16.47B	16.08B	16.34B	17.08B
Cash, Cash Equivalents and Short-Term Investments	3.48B	2.97B	2.31B	2.23B	1.95B
Total Debt	12.29B	12.76B	13.15B	13.70B	14.78B
Total Liabilities	13.99B	14.48B	14.98B	15.29B	16.38B
Stockholders Equity	2.66B	1.99B	1.09B	1.05B	704.32M
Cash Flow
Free Cash Flow	1.20B	1.33B	814.35M	-466.18M	-1.76B
Operating Cash Flow	1.26B	1.50B	885.49M	-403.85M	-1.46B
Investing Cash Flow	-51.59M	-169.11M	-76.60M	453.19M	-175.47M
Financing Cash Flow	-700.52M	-660.81M	-729.73M	222.32M	893.73M

Kyoto Hotel, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 614.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9723, the sentiment is Positive. The current price of 614 is below the 20-day moving average (MA) of 666.65, below the 50-day MA of 646.60, and below the 200-day MA of 637.35, indicating a bullish trend. The MACD of 13.10 indicates Negative momentum. The RSI at 66.78 is Neutral, neither overbought nor oversold. The STOCH value of 63.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9723.

Kyoto Hotel, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6565	80 Outperform	¥21.56B	5.47	―	1.27%	12.08%	17.87%
4691	75 Outperform	¥16.37B	2.93	―	1.47%	19.31%	202.53%
9723	69 Neutral	¥8.26B	2.04	―	0.48%	4.02%	-9.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9704	61 Neutral	¥10.67B	10.59	32.34%	―	20.16%	1467.54%
9713	58 Neutral	¥14.57B	2.42	―	0.55%	35.22%	413.40%
9720	53 Neutral	¥6.50B	37.82	―	0.39%	10.52%	-31.01%