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

HOTEL NEWGRAND CO., LTD.

(TSE/TYO:9720)

Select Model

Rating:58.75Neutral

Price Target:JPY 6,670.00▲(3.25% Upside)

Action:reiterated

Date:08/06/26

The overall score of 58.8 reflects a moderately positive outlook. The company's strong balance sheet and bullish technical trend are key strengths, offset by declining profitability and a relatively high valuation. The absence of recent earnings call data or corporate events does not alter the assessment.

Positive Factors

Revenue Recovery and GrowthRevenue 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 CompressionThe 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.

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

Market Cap: JPY 7.63B
Dividend Yield: 0.39%
Average Volume (3M): 327
Price to Earnings (P/E): 18.1
Beta (1Y): 0.12
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

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HOTEL NEWGRAND CO., LTD. Financial Statement Overview

Summary

The income statement shows declining profitability (net margin 3.1%) despite revenue growth, while the balance sheet remains solid with low debt (D/E 0.65) and growing equity. Cash flow improved but is volatile. Overall financial health is fair.

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. 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 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%
JP:9720	59Neutral	JPY 7.63B	18.10	―	0.39%	7.51%	26.37%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* 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.	6460.00	-214.62	-3.22%
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%

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 profit...

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 06, 2026

HOTEL NEWGRAND CO., LTD. AI Stock Analysis