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HOTEL NEWGRAND CO., LTD.
(9720)
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Rating:64Neutral
Price Target:
¥6,837.00
▲(11.53% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by improving but still mixed financial performance: profitability is positive and leverage has improved, but margin compression and volatile/low-quality free cash flow reduce confidence in earnings durability. Technicals are a clear positive with strong trend and momentum, though overbought signals add near-term risk. Valuation is neutral-to-slightly weak given a ~20.5 P/E and low dividend yield.
Positive Factors
Revenue Recovery and Growth
Revenue recovery and 9.1% growth indicate that core hotel demand and brand-led operations have regained scale after the downturn. Sustained top-line expansion can improve fixed-cost absorption and provide a foundation for earnings growth over the next several quarters.
Negative Factors
Margin Compression
The sharp decline in net margin shows that revenue growth is not fully translating into earnings. Persistent cost pressure or weaker operating leverage could limit profit expansion and reduce the durability of the company’s recovery even if demand continues to grow.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery and Growth
Revenue recovery and 9.1% growth indicate that core hotel demand and brand-led operations have regained scale after the downturn. Sustained top-line expansion can improve fixed-cost absorption and provide a foundation for earnings growth over the next several quarters.
Read all positive factors
HOTEL NEWGRAND CO., LTD. (9720) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥7.55B
Dividend Yield0.39%
Average Volume (3M)826.00
Price to Earnings (P/E)20.7
Beta (1Y)0.09
Revenue Growth9.07%
EPS Growth27.21%
CountryJP
Employees232
SectorGeneral
Sector StrengthN/A
IndustryTravel Lodging
Share Statistics
EPS (TTM)308.56
Shares Outstanding1,181,448
10 Day Avg. Volume1,830
30 Day Avg. Volume826
Financial Highlights & Ratios
PEG Ratio-1.12
Price to Book (P/B)2.05
Price to Sales (P/S)1.17
P/FCF Ratio39.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
HOTEL NEWGRAND CO., LTD. Business Overview & Revenue Model
Company Description
HOTEL NEWGRAND Co., Ltd. engages in the management hotels and restaurants. It operates through the Hotel and Real Estate Leasing segments. The Hotel segment offers hotel accommodation and food catering services, banquet planning for special occasi...
How the Company Makes Money
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HOTEL NEWGRAND CO., LTD. Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
63
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.79B | 6.53B | 5.86B | 5.37B | 4.28B | 3.20B |
| Gross Profit | 4.81B | 4.56B | 4.43B | 4.05B | 3.15B | 2.19B |
| EBITDA | 475.36M | 567.92M | 647.97M | 577.25M | -40.11M | 1.19B |
| Net Income | 364.29M | 201.37M | 303.42M | 393.36M | -349.20M | 1.32B |
Balance Sheet | ||||||
| Total Assets | 8.98B | 8.88B | 8.48B | 7.96B | 7.74B | 8.07B |
| Cash, Cash Equivalents and Short-Term Investments | 2.08B | 2.35B | 2.48B | 2.42B | 2.20B | 2.72B |
| Total Debt | 2.37B | 2.42B | 2.69B | 2.34B | 2.58B | 2.80B |
| Total Liabilities | 4.73B | 5.15B | 4.95B | 4.71B | 4.89B | 4.88B |
| Stockholders Equity | 4.24B | 3.72B | 3.54B | 3.25B | 2.85B | 3.20B |
Cash Flow | ||||||
| Free Cash Flow | 21.50M | 192.09M | -581.18M | 445.28M | -291.57M | -66.94M |
| Operating Cash Flow | 331.15M | 682.43M | 390.54M | 609.28M | 2.77M | -35.22M |
| Investing Cash Flow | -314.51M | -505.39M | -656.73M | -141.25M | -294.34M | 2.97B |
| Financing Cash Flow | -199.88M | -304.43M | 319.10M | -249.07M | -224.45M | -754.27M |
HOTEL NEWGRAND CO., LTD. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | ¥165.78B | 12.78 | ― | 0.30% | 3.14% | 32.58% | |
66 Neutral | ¥28.33B | 10.09 | ― | 1.91% | 7.62% | 3.59% | |
64 Neutral | ¥7.55B | 20.71 | ― | 0.41% | 9.07% | 27.21% | |
60 Neutral | ¥13.81B | 14.35 | ― | 0.55% | 8.83% | -55.17% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | ¥7.36B | 8.56 | 22.38% | ― | -2.23% | 264.68% | |
47 Neutral | ¥118.25B | 31.48 | ― | 0.49% | 8.75% | 37.71% |
* General Sector Average
JP:9720
HOTEL NEWGRAND CO., LTD.
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HOTEL NEWGRAND CO., LTD. Corporate Events
Hotel New Grand Lifts Earnings and Strengthens Balance Sheet but Keeps Interim Dividend at Zero
Jul 10, 2026
Hotel New Grand Co., Ltd. reported solid results for the second quarter of its fiscal year ending November 2026, with net sales rising 8.0% year-on-year to ¥3,552 million and operating profit climbing 23.9% to ¥396 million. Ordinary prof...
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.