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Air Water (4088) AI Stock Analysis
Air Water
(TSE/TYO:4088)
The score is driven primarily by mixed financial performance: stable operating margins and improving free cash flow are positives, but revenue and net income declined and leverage rose, increasing risk if profitability softens. Technically, shares are weaker in the near term (below 20/50 DMA) but still supported by longer-term averages. Valuation is clouded by a negative P/E, with the ~3% dividend yield offering only partial support.
Air Water (4088) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 3.19B
- Dividend Yield
- 1.30%
- Average Volume (3M)
- 1.04M
- Price to Earnings (P/E)
- -11.0
- Beta (1Y)
- 0.49
- Revenue Growth
- 6.84%
- EPS Growth
- -259.70%
- Country
- Japan
- Employees
- 21,824
- Sector
- Basic Materials
- Sector Strength
- 61
- Industry
- Chemicals - Specialty
Air Water Business Overview & Revenue Model
Company Description
Air Water Inc., established in 1929 and headquartered in Osaka, Japan, is a diversified conglomerate operating across numerous sectors including industrial gas, chemicals, medical products, energy, agriculture, and food. Its industrial gas division p...
How the Company Makes Money
Air Water primarily makes money by selling products and services across multiple business lines, with revenues generally driven by (1) recurring supply of industrial gases and (2) sales/distribution of energy products, supplemented by related enginee...
Air Water Financial Statement Overview
Summary
Financials are stable but mixed: operating profitability held up (EBITDA margin ~12%) and gross margin improved, while 2026 revenue declined (~-6.6%) and net income fell with a thin net margin (~4%). Cash flow improved with stronger free cash flow in 2026, but leverage increased (debt-to-equity ~1.20) and cash flow coverage versus debt remains low, reducing flexibility.
Income Statement
67PositiveBalance Sheet
58NeutralCash Flow
63Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.08T | 1.01T | 1.02T | 1.08T | 1.00T | 888.67B |
| Gross Profit | 236.41B | 223.76B | 203.61B | 214.00B | 184.71B | 184.95B |
| EBITDA | 115.39B | 123.70B | 117.57B | 128.14B | 108.84B | 109.89B |
| Net Income | 47.46B | 39.93B | 44.36B | 49.08B | 40.14B | 43.22B |
Balance Sheet | ||||||
| Total Assets | 1.22T | 1.22T | 1.22T | 1.25T | 1.09T | 1.02T |
| Cash, Cash Equivalents and Short-Term Investments | 60.46B | 87.14B | 64.97B | 70.61B | 65.94B | 59.55B |
| Total Debt | 429.69B | 515.67B | 442.98B | 441.63B | 390.22B | 373.74B |
| Total Liabilities | 692.13B | 805.32B | 714.21B | 713.29B | 645.16B | 602.17B |
| Stockholders Equity | 513.66B | 390.23B | 488.56B | 517.14B | 430.23B | 395.13B |
Cash Flow | ||||||
| Free Cash Flow | 14.76B | 34.30B | 16.16B | 25.76B | -7.60B | 26.60B |
| Operating Cash Flow | 87.81B | 107.58B | 79.63B | 93.24B | 56.95B | 71.57B |
| Investing Cash Flow | -65.99B | -88.61B | -97.97B | -62.17B | -71.14B | -53.15B |
| Financing Cash Flow | -25.23B | -5.71B | 14.72B | -27.34B | 19.26B | -6.62B |
Air Water Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4088, the sentiment is Positive. The current price of 2877.00 is above the 20-day moving average (MA) of 2794.00, above the 50-day MA of 2790.06, and above the 200-day MA of 2461.86, indicating a bullish trend. The MACD of -4.25 indicates Negative momentum. The RSI at 59.22 is Neutral, neither overbought nor oversold. The STOCH value of 95.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4088.
Air Water Peers Comparison
Overall Rating
JP:411878Outperform
JP:440375Outperform
JP:520162Neutral
JP:418360Neutral
JP:408858Neutral
JP:418250Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| 78Outperform | JPY 375.35B | 10.68 | 7.27% | 2.97% | 3.53% | 63.85% | |
| 75Outperform | JPY 632.84B | 16.19 | 13.70% | 2.50% | 13.23% | 20.02% | |
| 62Neutral | JPY 1.15T | 12.66 | 6.13% | 3.87% | 5.67% | 164.07% | |
| Sector * | 61Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
| 60Neutral | JPY 773.65B | 11.69 | 7.58% | 3.60% | -3.47% | 348.74% | |
| 58Neutral | JPY 650.68B | -11.03 | -13.33% | 1.30% | 6.84% | -259.70% | |
| 50Neutral | JPY 690.98B | -22.68 | -4.71% | 2.96% | 2.69% | -173.16% |
* Basic Materials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:4088 | Air Water | 2877.00 | 759.19 | 35.85% | |
| JP:5201 | AGC | 5420.00 | 765.28 | 16.44% | |
| JP:4118 | Kaneka Corporation | 6231.00 | 2115.49 | 51.40% | |
| JP:4182 | Mitsubishi Gas Chemical Company | 3543.00 | 763.38 | 27.46% | |
| JP:4183 | Mitsui Chemicals | 2086.00 | 329.51 | 18.76% | |
| JP:4403 | NOF Corporation | 2799.00 | 119.04 | 4.44% |
Air Water Corporate Events
Air Water Revises Management Reform Plan and Reports Progress to TSE
Air Water Inc. has issued a revised improvement plan and status report as it advances a comprehensive management reform program following earlier disclosures in July and September 2026. The company is concentrating on corporate culture reform, govern...
Air Water Overhauls Nomination and Remuneration Committee to Bolster Governance
Air Water has reshaped its Nomination and Remuneration Committee, appointing outside director Shinichi Kawasaki as chairperson to strengthen the body’s independence and governance role. The company also added outside director and Audit and Supe...
Air Water Issues Restricted Stock from Treasury Shares for Executive Compensation
Air Water Inc. has approved the disposal of 4,208 treasury shares as restricted stock compensation for two internal directors and one executive officer, with a payment deadline set for November 2, 2026 and a disposal price of 2,851 yen per share. The...
Air Water Revamps Governance, Names Outside Director as Board Chair
Air Water has overhauled its governance framework by transitioning to a Company with an Audit and Supervisory Committee following shareholder approval at an extraordinary meeting on September 22, 2026. The move is designed to enable more substantive...
Air Water Sets Management Reform Agenda to Restore Trust and Boost Growth
Air Water Inc. has outlined a new Direction of Management Reform as a strategic policy to enhance corporate value following the discovery of inappropriate accounting practices. The initiative is positioned as a concrete manifestation of its company-w...
Air Water Corrects FY2025 Full-Year Results Presentation
Air Water Inc. has announced corrections to its FY2025 full-year financial results presentation materials, originally released on July 31, 2026. The company said that errors and inaccuracies were identified in the disclosed materials and has moved to...
Air Water Overhauls Board Structure to Strengthen Governance After Accounting Issues
Air Water Inc. will transition from a company with an Audit & Supervisory Board to a company with an Audit and Supervisory Committee, effective after shareholder approval at an extraordinary general meeting on September 22, 2026. The move is inte...
Air Water to Shift to Audit and Supervisory Committee Structure in Governance Overhaul
Air Water Inc. plans to amend its Articles of Incorporation to transition from a company with an Audit & Supervisory Board to a company with an Audit and Supervisory Committee, subject to shareholder approval at an extraordinary general meeting o...
Air Water Sets Governance and Board Agenda for Extraordinary Shareholders Meeting
Air Water Inc. has set the agenda for an extraordinary general meeting of shareholders to be held on September 22, 2026, following an earlier decision to fix July 1, 2026 as the record date for voting rights. The meeting will report on the company...
Air Water Delays Q1 FY2027 Financial Results Disclosure to Complete Group-Wide Checks
Air Water Inc. has announced that it will not be able to disclose its financial results summary for the first quarter of the fiscal year ending March 31, 2027, within the usual 45-day period after quarter-end. The delay stems from extended work on it...
Air Water Completes Treasury Share Disposal for Restricted Stock Compensation
Air Water Inc. has completed the payment procedures for the disposal of treasury shares under its restricted stock compensation plan, following a resolution approved by its Board of Directors on July 9, 2026. The move reflects the company’s ong...
Air Water Deepens Financial Restatements With Added Corrections to Past Results
Air Water has issued an additional disclosure correcting previously announced amendments to its past securities reports and financial results, after omitting some quarterly data from fiscal 2024 in its July 31 notice. The company revised revenue, pro...
Air Water files governance improvement plan after TSE sanction
Air Water has submitted an Improvement Plan and Status Report to the Tokyo Stock Exchange after being designated a security on alert and penalized for a listing agreement violation. The company apologized to shareholders and investors, signaling that...
Air Water Details Governance Reforms and Outlook Alongside FY2025 Results
Air Water Inc. has released explanatory materials on its fiscal year 2025 full-year financial results, outlining the impact of previously identified inappropriate accounting on performance and the scope of its voluntary investigation. The company det...
Air Water Flags Material Internal Control Weaknesses and Launches Governance Overhaul
Air Water Inc. has disclosed material weaknesses in its internal control over financial reporting at the parent company and certain consolidated subsidiaries. The issues span entity-level controls, business processes and financial closing procedures,...
Air Water Hit With Qualified Audit Opinion After Accounting Irregularities Probe
Air Water Inc. disclosed that its auditor, KPMG AZSA LLC, issued a qualified opinion on the company’s consolidated financial statements for the fiscal year ended March 31, 2026. The qualification stems from extensive inappropriate accounting pr...
Air Water Files Delayed Annual Report and Releases Postponed Earnings Summaries
Air Water Inc. announced that it has completed the filing of its Annual Securities Report for the 26th fiscal year, covering the period ended March 31, 2026, with the Director-General of the Kanto Local Finance Bureau. This filing follows an approved...
Air Water Revises Q1 FY2026 Figures but Confirms Dividend Outlook
Air Water Inc., a major Japanese industrial group based in Osaka, reported consolidated revenue of ¥239.7 billion for the three months ended June 30, 2025, up 2.1% year on year, with operating profit rising 23.7% and profit attributable to owner...
Air Water Corrects Q3 FY2025 Results While Maintaining Dividend Outlook
Air Water Inc. has issued corrections to its previously disclosed consolidated financial results for the third quarter of the fiscal year ending March 31, 2025. The company stated that numerous numerical items in the February 7, 2025 release have bee...
Air Water Corrects IFRS First-Quarter Results for FY2025
Air Water Inc. has announced partial corrections to its previously disclosed consolidated financial results for the first quarter of the fiscal year ending March 31, 2025. The revisions involve numerical data in the IFRS-based statements released on...
Air Water Moves to Restore Credibility After Delayed 2026 Earnings Disclosure
Air Water Inc. has disclosed its consolidated financial results for the third quarter and full fiscal year ended March 31, 2026 later than standard market practice, exceeding 45 days after quarter-end and 50 days after year-end. The company publicly...
Air Water Posts Deeper-Than-Expected Loss on Stricter Accounting and Impairments
Air Water Inc. reported consolidated results for the fiscal year ended March 31, 2026 that fell significantly short of its February 2026 forecast, with revenue declining to ¥1,066.8 billion and a shift to a substantial net loss, including a shar...
Air Water Swings to FY2025 Loss but Targets Rebound Amid Portfolio Shift
Air Water Inc. reported FY2025 revenue of ¥1.07 trillion, up 5.3% from the previous year, but swung to an operating loss of ¥37.2 billion and a net loss attributable to owners of ¥63.9 billion. The downturn erased prior profitability,...
Air Water Swings to Loss Despite Higher Sales, Keeps Dividend as Outlook Darkens
Air Water reported consolidated revenue of ¥769.6 billion for the nine months ended December 31, 2025, up 3.5% year on year, but operating profit dropped 52.6% to ¥23.8 billion and profit attributable to owners of the parent swung to a loss...
Air Water Restates Multiple Years of Accounts After Inventory Accounting Probe
Air Water Inc. has filed correction reports for multiple prior-year securities filings and amended financial results summaries after uncovering inappropriate inventory accounting at a consolidated subsidiary. The company launched a Special Investigat...
Air Water Overhauls Governance After Accounting Scandal
Air Water Inc. has resolved to overhaul its governance framework by shifting from a Company with an Audit & Supervisory Board to a Company with an Audit and Supervisory Committee, pending shareholder approval of articles of incorporation changes...
Air Water to Shift FY2026 Reporting and Governance Changes to Extraordinary Shareholders Meeting
Air Water’s board has decided not to hold the previously planned continued session of its 26th Annual General Meeting, where shareholders were to receive formal reports on the business results and consolidated and non‑consolidated financi...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Aug 02, 2026