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Air Water (4088) AI Stock Analysis

JP:4088

Air Water

(TSE/TYO:4088)

Select Model
Rating:58Neutral
Price Target:JPY 2,992.00â–²(4.00% Upside)
Action:reiterated
Date:08/02/26

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.

Positive Factors
Diversified business modelAir Water’s exposure across industrial gases, energy, manufacturing, logistics and related services provides several revenue channels. This breadth can reduce reliance on one customer group or end market and supports resilience as demand conditions vary across its operating businesses.
Negative Factors
Recent revenue and earnings contractionThe latest decline in revenue and net income shows that Air Water’s broad operating base has not fully insulated results from weaker demand, costs, pricing or mix. A thin net margin leaves less room for operating setbacks and makes restoring sustainable growth important over coming quarters.

Air Water (4088) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%40%50%JP:4088+33.49%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
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

67Positive

Balance Sheet

58Neutral

Cash Flow

63Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2025Mar 2024Mar 2023
Income Statement
Total Revenue1.08T1.01T1.02T1.08T1.00T888.67B
Gross Profit236.41B223.76B203.61B214.00B184.71B184.95B
EBITDA115.39B123.70B117.57B128.14B108.84B109.89B
Net Income47.46B39.93B44.36B49.08B40.14B43.22B
Balance Sheet
Total Assets1.22T1.22T1.22T1.25T1.09T1.02T
Cash, Cash Equivalents and Short-Term Investments60.46B87.14B64.97B70.61B65.94B59.55B
Total Debt429.69B515.67B442.98B441.63B390.22B373.74B
Total Liabilities692.13B805.32B714.21B713.29B645.16B602.17B
Stockholders Equity513.66B390.23B488.56B517.14B430.23B395.13B
Cash Flow
Free Cash Flow14.76B34.30B16.16B25.76B-7.60B26.60B
Operating Cash Flow87.81B107.58B79.63B93.24B56.95B71.57B
Investing Cash Flow-65.99B-88.61B-97.97B-62.17B-71.14B-53.15B
Financing Cash Flow-25.23B-5.71B14.72B-27.34B19.26B-6.62B

Air Water Technical Analysis

Technical Analysis SentimentPositive
Last Price2877.00

Price Trends

50DMA2790.06Positive
100DMA2687.92Positive
200DMA2461.86Positive

Market Momentum

MACD-4.25Negative
RSI59.22Neutral
STOCH95.26Negative

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

UnderperformOutperform
Sector (61)

Financial Indicators

JP:4088 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4118JP:411878OutperformJPY 375.35B10.687.27%2.97%3.53%63.85%
JP:4403JP:440375OutperformJPY 632.84B16.1913.70%2.50%13.23%20.02%
JP:5201JP:520162NeutralJPY 1.15T12.666.13%3.87%5.67%164.07%
Sector *61Neutral$10.43B7.12-0.05%2.87%2.86%-36.73%
JP:4183JP:418360NeutralJPY 773.65B11.697.58%3.60%-3.47%348.74%
JP:4088JP:408858NeutralJPY 650.68B-11.03-13.33%1.30%6.84%-259.70%
JP:4182JP:418250NeutralJPY 690.98B-22.68-4.71%2.96%2.69%-173.16%

* Basic Materials Sector Average

Performance Comparison

0%25%50%75%100%JP:4088JP:5201JP:4118JP:4182JP:4183JP:4403Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:4088 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4088Air Water 2877.00759.1935.85%
JP:5201AGC 5420.00765.2816.44%
JP:4118Kaneka Corporation6231.002115.4951.40%
JP:4182Mitsubishi Gas Chemical Company 3543.00763.3827.46%
JP:4183Mitsui Chemicals 2086.00329.5118.76%
JP:4403NOF Corporation2799.00119.044.44%

Air Water Corporate Events

Air Water Revises Management Reform Plan and Reports Progress to TSE

Oct 28, 2026

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

Oct 8, 2026

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

Oct 8, 2026

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

Sep 24, 2026

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

Sep 17, 2026

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

Aug 31, 2026

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

Aug 17, 2026

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

Aug 17, 2026

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

Aug 17, 2026

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&#8...

Air Water Delays Q1 FY2027 Financial Results Disclosure to Complete Group-Wide Checks

Aug 12, 2026

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

Aug 7, 2026

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

Aug 3, 2026

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

Aug 3, 2026

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

Jul 31, 2026

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

Jul 31, 2026

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

Jul 31, 2026

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

Jul 31, 2026

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

Jul 31, 2026

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

Jul 31, 2026

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

Jul 31, 2026

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

Jul 31, 2026

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

Jul 31, 2026

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

Jul 31, 2026

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

Jul 31, 2026

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

Jul 31, 2026

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

Jul 31, 2026

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

Jul 31, 2026

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...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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