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

• Market Cap: ¥46.78B
• Dividend Yield: N/A
• Average Volume (3M): 68.54K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.81
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥1,983.00 ▲(13.70% 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 recovery

KNT-CT shows a clear recovery trajectory with roughly 7.5%-8% revenue growth and positive net margins. Sustained top-line growth and returning profitability indicate restored demand and better cost control, supporting durable cash generation and reinvestment capacity over coming quarters.

Very low financial leverage

A debt-to-equity ratio of zero implies minimal leverage, giving the company strong financial flexibility to fund marketing, product development, or absorb travel demand shocks without constrained interest costs. This structural strength supports resilience across cycles.

Strong free cash flow growth

Robust free cash flow growth and an FCF-to-net-income ratio near 0.82 indicate the business is converting a meaningful portion of earnings into cash. That improves capacity to fund capex, strategic initiatives, or build reserves, a durable positive for long-term operations.

Negative Factors

Poor operating cash conversion

Operating cash flow has fallen sharply and the OCF-to-net-income ratio is very low (~0.05), signalling earnings are not converting to cash. Over months this can limit funding for growth, force reliance on equity or asset sales, and reduce operational flexibility when demand softens.

Margin pressure

A multi-year decline in gross margin and persistently low operating margins constrain the firm's ability to absorb cost inflation or invest in differentiation. Structural margin pressure requires sustained efficiency gains or pricing power to maintain long-term profitability.

High seasonality and demand sensitivity

The travel business is structurally seasonal and sensitive to events, producing revenue and cash flow volatility across quarters. Over a 2-6 month horizon this makes planning, capacity utilization and liquidity management more challenging, requiring diversification or stronger corporate demand to smooth cycles.

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: Neutral
• Last Price: 1744.00
• 50DMA: Positive
• 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:9726, the sentiment is Neutral. The current price of 1744 is below the 20-day moving average (MA) of 1758.60, above the 50-day MA of 1646.22, and above the 200-day MA of 1376.68, indicating a neutral trend. The MACD of 26.13 indicates Positive momentum. The RSI at 50.48 is Neutral, neither overbought nor oversold. The STOCH value of 7.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥46.78B	5.69	―	―	8.03%	13.35%
6191	64 Neutral	¥16.36B	9.18	12.02%	1.34%	5.77%	-11.65%
6561	63 Neutral	¥11.31B	6.67	―	3.16%	8.41%	20.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6030	46 Neutral	¥13.32B	-6.49	―	1.18%	9.72%	-335.09%
7048	46 Neutral	¥6.48B	-2,897.82	―	―	10.87%	98.92%
6577	39 Underperform	¥2.99B	-94.25	―	0.91%	-8.75%	-111.94%