ABHOTEL Co., Ltd. (6565) AI Stock Analysis

ABHOTEL Co., Ltd.

(TSE/TYO:6565)

Select Model

Rating:80Outperform

Price Target:JPY 1,475.00▲(14.34% Upside)

Action:reiterated

Date:08/09/26

ABHOTEL Co., Ltd. earns a strong overall score driven primarily by excellent financial fundamentals and a highly attractive valuation. Consistent revenue growth, widening profit margins, and successful deleveraging combined with a P/E of just 6.26 present a compelling value case. However, this is partially offset by weak technical momentum, as the stock is currently trading below all major moving averages despite flashing oversold signals.

Positive Factors

Revenue GrowthSustained multi-year revenue growth more than doubling from 2021 to 2026 indicates successful market recovery and scale expansion. Durable top-line growth supports reinvestment in properties and brand, reducing dependence on any single asset and improving long-term resilience to cyclicality.

Negative Factors

Free Cash Flow VolatilityVolatile free cash flow, including a negative year, signals uneven cash generation from operations after investments. This irregularity can constrain capital allocation, force reliance on financing in weak years, and increases execution risk for expansion or debt paydown when cash timing misaligns with obligations.

ABHOTEL Co., Ltd. (6565) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 19.68B
Dividend Yield: 1.86%
Average Volume (3M): 5,568
Price to Earnings (P/E): 6.3
Beta (1Y): 0.45
Revenue Growth: 9.97%
EPS Growth: 11.42%
Country: Japan
Employees: 60
Sector: General
Sector Strength: 55
Industry: Travel Lodging

ABHOTEL Co., Ltd. Business Overview & Revenue Model

Company Description

Abhotel Co., Ltd., founded in 2014 with its headquarters in Anjo, Japan, specializes in operating hotels throughout Japan.

How the Company Makes Money

ABHOTEL makes money primarily by operating hotels and collecting revenue from guests. The main revenue stream is room revenue (charges for nightly stays), which varies with occupancy rates, average daily room rates, seasonal demand, and location mix...

ABHOTEL Co., Ltd. Financial Statement Overview

Summary

Outstanding financial health marked by stellar revenue growth, expanding profit margins to 25.6%, aggressive debt reduction, and robust operating cash flows.

Income Statement

92Very Positive

Balance Sheet

94Very Positive

Cash Flow

88Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	11.11B	12.29B	10.68B	9.95B	8.80B	6.35B
Gross Profit	4.92B	5.63B	4.62B	4.20B	3.49B	1.36B
EBITDA	5.13B	5.81B	4.84B	4.44B	3.71B	1.74B
Net Income	2.71B	3.14B	2.54B	2.31B	1.81B	567.68M
Balance Sheet
Total Assets	26.45B	29.33B	26.49B	23.06B	21.61B	20.44B
Cash, Cash Equivalents and Short-Term Investments	6.19B	8.01B	5.92B	5.59B	4.78B	3.28B
Total Debt	10.58B	10.14B	10.58B	9.52B	10.22B	11.47B
Total Liabilities	13.26B	13.72B	13.74B	12.63B	13.32B	13.90B
Stockholders Equity	13.19B	15.61B	12.75B	10.43B	8.29B	6.54B
Cash Flow
Free Cash Flow	0	2.94B	-524.97M	1.58B	2.62B	1.55B
Operating Cash Flow	0	4.53B	3.28B	2.84B	3.00B	2.06B
Investing Cash Flow	0	-2.01B	-3.78B	-1.16B	-194.43M	-516.12M
Financing Cash Flow	0	-730.99M	836.12M	-872.61M	-1.30B	-1.24B

ABHOTEL Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6565 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6565	80Outperform	JPY 18.29B	6.26	―	1.86%	9.97%	11.42%
JP:9722	77Outperform	JPY 181.23B	13.96	―	0.47%	3.14%	32.58%
JP:9713	72Outperform	JPY 13.75B	14.29	―	0.67%	8.83%	-55.17%
JP:4691	63Neutral	JPY 21.63B	7.81	―	2.23%	7.62%	3.59%
JP:9708	61Neutral	JPY 106.97B	26.82	―	0.78%	10.43%	39.65%
JP:9704	59Neutral	JPY 5.59B	6.28	16.48%	―	-2.23%	264.68%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:6565 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6565	ABHOTEL Co., Ltd.	1290.00	-420.94	-24.60%
JP:9704	AGORA Hospitality Group Co., Ltd.	22.00	-35.00	-61.40%
JP:4691	Washington Hotel Corp.	1794.00	327.63	22.34%
JP:9708	Imperial Hotel Ltd	901.00	-195.34	-17.82%
JP:9713	Royal Hotel, Ltd.	900.00	-78.86	-8.06%
JP:9722	Fujita Kanko Inc.	2980.00	810.56	37.36%

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 09, 2026

ABHOTEL Co., Ltd. AI Stock Analysis