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

• Market Cap: ¥40.30B
• Dividend Yield: N/A
• Average Volume (3M): 68.54K
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.80
• Revenue Growth: 8.03%
• EPS Growth: 13.35%
• Country: JP
• Employees: 3,226
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Services
• EPS (TTM): 26.20
• Shares Outstanding: 27,331,013
• 10 Day Avg. Volume: 48,620
• 30 Day Avg. Volume: 68,536
• PEG Ratio: 2.23
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 9.16
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥1,877.00 ▲(22.36% Upside)

KNT-CT Holdings demonstrates strong technical momentum and an attractive valuation, which are the primary drivers of the stock's score. Financial performance is solid, with improvements in revenue and profitability, though cash flow management requires attention. The lack of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The company's revenue growth indicates a positive trajectory post-pandemic, suggesting a recovery in demand for travel services and potential for sustained business expansion.

Balance Sheet Health

A strong balance sheet with minimal leverage enhances financial stability and provides flexibility for future investments and growth opportunities.

Profitability Improvement

Improved profitability reflects better cost management and operational efficiencies, which can support long-term financial health and shareholder value.

Negative Factors

Cash Flow Management

Weak cash flow management may hinder the company's ability to fund operations and investments, posing a risk to sustainable growth and financial stability.

Operational Efficiency

Low operational efficiency can limit profitability and competitiveness, necessitating strategic improvements to enhance margins and business performance.

Gross Profit Margin Decline

A declining gross profit margin suggests increasing cost pressures or pricing challenges, which could affect long-term profitability if not addressed.

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

Company Description

KNT-CT Holdings Co., Ltd., together with its subsidiaries, provides travel services in Japan. It also sells airline tickets; and offers reinsurance underinsurance products. The company was formerly known as Kinki Nippon Tourist Co., Ltd. and changed its name to KNT-CT Holdings Co., Ltd. in January 2013. KNT-CT Holdings Co., Ltd. was founded in 1947 and is headquartered in Tokyo, Japan. KNT-CT Holdings Co., Ltd. is a subsidiary of Kintetsu Group Holdings Co.,Ltd.

How the Company Makes Money

KNT-CT Holdings generates revenue primarily through its travel agency operations, which include the sale of travel packages, accommodations, and transportation services. The company earns money from commissions on bookings made through its platforms, as well as service fees for customized travel arrangements. Additionally, KNT-CT Holdings may benefit from partnerships with airlines, hotels, and other travel service providers, enabling it to offer competitive pricing and exclusive deals. Seasonal travel trends, promotional campaigns, and loyalty programs also play a significant role in driving customer engagement and repeat business, contributing to the company's overall revenue.

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

Summary

KNT-CT Holdings is on a recovery path with improving revenue and profitability metrics. The balance sheet is strong with low leverage, but cash flow management needs attention to ensure sustainable growth. The company is well-positioned in the travel services industry, but operational efficiencies and cash flow improvements are necessary to maintain momentum.

Income Statement

KNT-CT Holdings has shown a strong recovery in revenue with a growth rate of 7.5% over the past year, indicating a positive trajectory post-pandemic. The gross profit margin has remained relatively stable, although slightly declining from 21.6% to 19.1% over the past three years. Net profit margin has improved to 2.8% from negative figures in previous years, showcasing enhanced profitability. However, EBIT and EBITDA margins are still low, indicating room for operational efficiency improvements.

Balance Sheet

The company's balance sheet reflects a solid equity base with a debt-to-equity ratio of 0.0, indicating minimal leverage and financial risk. Return on equity has improved significantly to 14.9%, reflecting better profitability. However, the equity ratio has decreased slightly, suggesting a need for better asset utilization.

Cash Flow

Cash flow from operations has decreased significantly, impacting the operating cash flow to net income ratio, which stands at 0.05, indicating potential liquidity issues. Free cash flow growth is strong, but the free cash flow to net income ratio of 0.82 suggests that not all earnings are translating into cash flow, which could be a concern for future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	279.13B	274.52B	255.43B	252.15B	139.96B	87.89B
Gross Profit	53.79B	52.46B	51.98B	54.58B	30.99B	21.97B
EBITDA	7.67B	8.12B	7.68B	11.34B	-4.85B	-26.89B
Net Income	7.85B	7.68B	7.54B	11.79B	-5.78B	-28.48B
Balance Sheet
Total Assets	146.21B	136.73B	132.08B	138.67B	102.34B	62.82B
Cash, Cash Equivalents and Short-Term Investments	93.10B	88.38B	85.28B	71.25B	56.20B	24.28B
Total Debt	1.99B	169.00M	329.00M	420.00M	60.00M	58.00M
Total Liabilities	92.86B	85.41B	87.91B	102.75B	78.03B	72.47B
Stockholders Equity	53.28B	51.26B	44.12B	35.88B	24.28B	-9.69B
Cash Flow
Free Cash Flow	0.00	3.48B	13.24B	14.24B	-9.49B	-25.61B
Operating Cash Flow	0.00	4.22B	13.96B	14.99B	-8.24B	-24.17B
Investing Cash Flow	0.00	-941.00M	-99.00M	29.00M	76.00M	-301.00M
Financing Cash Flow	0.00	-218.00M	-41.00M	-30.00M	39.86B	-51.00M

KNT-CT Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1534.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1534 is above the 20-day moving average (MA) of 1503.20, below the 50-day MA of 1568.58, and above the 200-day MA of 1264.13, indicating a neutral trend. The MACD of -2.51 indicates Negative momentum. The RSI at 53.82 is Neutral, neither overbought nor oversold. The STOCH value of 88.21 is Negative, 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
9726	78 Outperform	¥40.30B	5.14	―	―	8.03%	13.35%
6191	71 Outperform	$16.90B	9.17	12.41%	1.36%	5.47%	-8.67%
6030	70 Outperform	¥19.49B	-10.61	―	1.10%	9.72%	-335.09%
6561	63 Neutral	¥12.40B	7.34	―	3.38%	8.41%	20.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6577	39 Underperform	¥3.11B	326.43	―	0.90%	-18.91%	-96.26%
7048	39 Underperform	¥6.62B	―	―	―	10.87%	98.92%