KNT-CT Holdings Co., Ltd. (9726) AI Stock Analysis

• Market Cap: ¥32.54B
• Dividend Yield: N/A
• Average Volume (3M): 30.51K
• Price to Earnings (P/E): 4.5
• Beta (1Y): 0.81
• Revenue Growth: 3.76%
• EPS Growth: -15.66%
• Country: JP
• Employees: 3,226
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Travel Services
• EPS (TTM): 110.80
• Shares Outstanding: 27,331,013
• 10 Day Avg. Volume: 19,960
• 30 Day Avg. Volume: 30,510
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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

KNT-CT Holdings Co., Ltd., in the Travel Services industry, demonstrates a strong recovery with improving profitability and financial stability. However, the lack of cash flow generation and the bearish technical indicators present challenges. The low P/E ratio suggests that the stock may be undervalued, providing a potential opportunity for value investors.

KNT-CT Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

KNT-CT Holdings Co., Ltd. (9726) is a diversified Japanese company primarily engaged in the travel and tourism industry. The company operates through various segments, including travel services, which encompasses the planning and selling of travel packages and tours, and other related services. It is known for its comprehensive range of travel solutions that cater to both domestic and international clients, including individual travelers, groups, and corporate clients.

How the Company Makes Money

KNT-CT Holdings Co., Ltd. generates revenue primarily through its travel services segment. The company earns money by selling travel packages, which include transportation, accommodation, and guided tours. These packages are marketed to a diverse clientele base, ranging from individual tourists to corporate clients organizing business trips or incentive tours. Additionally, the company may earn commissions from partnerships and collaborations with airlines, hotels, and local tour operators. The company's ability to negotiate favorable terms with these partners and manage operational costs effectively also contributes significantly to its profitability. Furthermore, technological advancements and digital platforms are leveraged to enhance customer engagement and streamline booking processes, thus potentially increasing sales and reducing overhead costs.

KNT-CT Holdings Co., Ltd. Financial Statement Overview

Summary

The company exhibits a strong recovery trajectory with improvements in profitability and a robust balance sheet featuring zero debt. However, cash flow generation remains weak with no operating or free cash flow reported in the TTM period, highlighting a need for improvement in operational efficiency.

Income Statement

The income statement shows solid performance with a strong recovery trajectory. The company reported a TTM revenue of ¥271.79 billion, reflecting a revenue growth rate of 6.41% from the previous annual period. Gross Profit Margin stands at 19.41% TTM, and Net Profit Margin is 2.66% TTM, showing profitability improvement. However, these margins indicate room for better operational efficiency. EBIT Margin is 2.27% TTM, and EBITDA Margin is 2.46% TTM, both showing improvement over past losses, indicating recovery.

Balance Sheet

The balance sheet is robust with a debt-free position, providing financial stability. The Equity Ratio is 37.39% TTM, suggesting a strong equity base. Return on Equity is 14.51% TTM, indicating effective use of equity in generating profits. However, there is a need for growth in asset utilization to enhance returns further.

Cash Flow

Cash flow analysis indicates challenges, as the company reported zero operating and free cash flows in the TTM period. Historically, there has been volatility in cash flows, with positive free cash flow in previous years. The absence of recent cash flows suggests a need for improvement in cash generation from operations, despite the past positive cash flow trends.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
255.43B	252.15B	139.96B	87.89B	385.36B
	Gross Profit
51.98B	54.58B	30.99B	21.97B	67.28B
	EBIT
7.27B	11.41B	-7.69B	-27.08B	-1.61B
	EBITDA
7.68B	11.62B	-4.85B	-26.89B	-2.01B
	Net Income Common Stockholders
7.54B	11.79B	-5.78B	-28.48B	-7.45B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
85.28B	17.65B	13.58B	12.76B	17.34B
	Total Assets
132.08B	138.67B	102.34B	62.82B	90.63B
	Total Debt
329.00M	420.00M	60.00M	58.00M	79.00M
	Net Debt
-84.62B	-17.23B	-13.52B	-12.71B	-17.26B
	Total Liabilities
87.91B	102.75B	78.03B	72.47B	72.21B
	Stockholders Equity
44.12B	35.88B	24.28B	-9.69B	18.36B
Cash Flow		Free Cash Flow
13.24B	14.24B	-9.49B	-25.61B	-22.02B
	Operating Cash Flow
13.96B	14.99B	-8.24B	-24.17B	-18.92B
	Investing Cash Flow
-99.00M	29.00M	76.00M	-301.00M	-3.07B
	Financing Cash Flow
-41.00M	-30.00M	39.86B	-51.00M	-41.00M

KNT-CT Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1208.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9726, the sentiment is Positive. The current price of 1208 is above the 20-day moving average (MA) of 1166.35, above the 50-day MA of 1166.00, and below the 200-day MA of 1230.01, indicating a neutral trend. The MACD of 14.10 indicates Negative momentum. The RSI at 59.57 is Neutral, neither overbought nor oversold. The STOCH value of 70.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9726.

KNT-CT Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9722	76 Outperform	¥105.36B	11.98		0.43%	14.07%	-0.42%
9726	67 Neutral	¥32.54B	4.50		―	3.76%	-15.66%
9729	67 Neutral	$75.82B	12.14		2.70%	7.65%	6.79%
9603	64 Neutral	¥121.56B	12.86	19.01%	0.69%	24.42%	147.88%
Sector *	61 Neutral	$6.69B	11.69	3.01%	3.94%	2.60%	-21.51%