ANA Holdings: Cost Pressure And Subdued Trading Multiple Do Not Appeal

2025-05-08 13:47:33 ET

Summary

• ANA Holdings' revenues increased by 10%, but rising costs led to a 5% drop in operating income and a decline in margins.
• Higher maintenance, labor costs, and inflationary pressures are outpacing revenue growth, resulting in a 4.9% decrease in EBITDA.
• Despite strong unit revenues, cost inflation and market conditions justify downgrading ANA Holdings to a hold with a $4.05 price target.
• The market's reluctance to value ANA Holdings against its median multiples supports the downgrade due to lack of compelling upside.

ANA Holdings ( OTCPK:ALNPY , OTCPK:ALNPF ) provided its full year earnings on April 30. The stock price has increased 2.7% since my last report published in February, which is in line with the underlying listing in Japan....

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