HOTEL NEWGRAND CO., LTD. (9720) AI Stock Analysis

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HOTEL NEWGRAND CO., LTD.

(TSE/TYO:9720)

Select Model

Rating:52Neutral

Price Target:JPY 6,313.00▲(1.82% Upside)

Action:reiterated

Date:11/07/26

The overall score of 52 reflects a company with a stable financial foundation but facing significant headwinds. The primary concern is declining profitability and weak technical momentum, with the stock trading below key moving averages. The solid balance sheet and reasonable valuation provide some support, but the low returns on equity and minimal dividend yield limit the stock's attractiveness. The company needs to demonstrate improved operational efficiency to reverse the negative trends.

Positive Factors

Revenue RecoveryThe return to revenue growth indicates that the hotel business has regained operating traction after earlier disruption. Continued recovery in lodging, food and beverage, and events can support better fixed-cost absorption and provide a foundation for sustained earnings improvement over the coming quarters.

Negative Factors

Margin CompressionThe sharp decline in net margin weakens confidence that recent revenue recovery will translate proportionately into earnings. Persistently lower profitability would reduce operating leverage, limit reinvestment capacity, and leave the company more exposed to cost pressure or weaker hotel demand.

HOTEL NEWGRAND CO., LTD. (9720) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 7.32B
Dividend Yield: 0.40%
Average Volume (3M): 305
Price to Earnings (P/E): 17.4
Beta (1Y): 0.14
Revenue Growth: 7.51%
EPS Growth: 26.37%
Country: Japan
Employees: 232
Sector: General
Sector Strength: 55
Industry: Travel Lodging

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 occasions...

How the Company Makes Money

The company generates revenue mainly through hotel operations. Key revenue streams typically include: (1) Room revenue: income from selling guest rooms (daily room rates), including business and leisure stays and group bookings; (2) Food and beverage...

HOTEL NEWGRAND CO., LTD. Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet is solid with low leverage (debt-to-equity 0.65) and growing equity. However, profitability is declining, with net margin falling to 3.1% and operating income decreasing. Cash flow is positive but volatile and insufficient to robustly cover debt. Overall, the company is stable but facing margin compression and low returns.

Income Statement

45Neutral

Balance Sheet

65Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	6.85B	6.53B	5.86B	5.37B	4.28B	3.20B
Gross Profit	4.75B	4.56B	4.43B	4.05B	3.15B	2.19B
EBITDA	556.59M	567.92M	647.97M	577.25M	-40.11M	1.19B
Net Income	421.45M	201.37M	303.42M	393.36M	-349.20M	1.32B
Balance Sheet
Total Assets	9.08B	8.88B	8.48B	7.96B	7.74B	8.07B
Cash, Cash Equivalents and Short-Term Investments	2.12B	2.35B	2.48B	2.42B	2.20B	2.72B
Total Debt	2.77B	2.42B	2.69B	2.34B	2.58B	2.80B
Total Liabilities	4.90B	5.15B	4.95B	4.71B	4.89B	4.88B
Stockholders Equity	4.18B	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. Technical Analysis

Technical Analysis SentimentNeutral

Last Price6200.00

Price Trends

50DMA6396.60Negative

100DMA6154.90Positive

200DMA5940.85Positive

Market Momentum

MACD-57.67Positive

RSI40.69Neutral

STOCH10.15Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9720, the sentiment is Neutral. The current price of 6200.00 is below the 20-day moving average (MA) of 6327.50, below the 50-day MA of 6396.60, and above the 200-day MA of 5940.85, indicating a neutral trend. The MACD of -57.67 indicates Positive momentum. The RSI at 40.69 is Neutral, neither overbought nor oversold. The STOCH value of 10.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9720.

HOTEL NEWGRAND CO., LTD. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:9720 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:9722	77Outperform	JPY 171.26B	13.52	―	0.49%	3.18%	32.99%
JP:4691	76Outperform	JPY 21.51B	7.72	―	2.26%	5.36%	-12.17%
JP:9713	72Outperform	JPY 13.72B	14.32	―	0.67%	8.83%	-55.17%
JP:9704	68Neutral	JPY 6.09B	-16.99	16.48%	―	-8.91%	-122.21%
JP:9708	59Neutral	JPY 107.80B	27.27	―	0.76%	10.43%	39.65%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:9720	52Neutral	JPY 7.28B	17.37	―	0.40%	7.51%	26.37%

* General Sector Average

Performance Comparison

JP:9720 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9720	HOTEL NEWGRAND CO., LTD.	6200.00	-464.66	-6.97%
JP:9704	AGORA Hospitality Group Co., Ltd.	22.00	-34.00	-60.71%
JP:4691	Washington Hotel Corp.	1773.00	342.58	23.95%
JP:9708	Imperial Hotel Ltd	916.00	-177.36	-16.22%
JP:9713	Royal Hotel, Ltd.	902.00	-16.18	-1.76%
JP:9722	Fujita Kanko Inc.	2838.00	722.40	34.15%

HOTEL NEWGRAND CO., LTD. Corporate Events

Hotel Newgrand Posts Strong Profit Gains in Q3 FY2026

Oct 8, 2026

HOTEL NEWGRAND CO., LTD., a general business company in Japan’s hospitality sector listed on the Tokyo Stock Exchange Standard market, provides hotel-related services such as accommodation and dining. The company’s operations are centered on its flag...

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: Nov 07, 2026

HOTEL NEWGRAND CO., LTD. AI Stock Analysis