East Japan Railway (EJPRY) AI Stock Analysis

• Market Cap: $29.71B
• Dividend Yield: 1.3%
• Average Volume (3M): 2.86K
• Price to Earnings (P/E): 19.0
• Beta (1Y): -0.15
• Revenue Growth: 5.37%
• EPS Growth: 36.61%
• Country: US
• Employees: 68,769
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 0.21
• Shares Outstanding: 2,268,824,500
• 10 Day Avg. Volume: 3,266
• 30 Day Avg. Volume: 2,857
• PEG Ratio: 1.06
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 1.16
• P/FCF Ratio: -86.47
• Enterprise Value/Market Cap: 266.73
• Enterprise Value/Revenue: 2.72
• Enterprise Value/Gross Profit: 7.62
• Enterprise Value/Ebitda: 10.24
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $13.50 ▲(2.51% Upside)

East Japan Railway's overall stock score is driven by strong financial performance, particularly in revenue growth and profitability post-pandemic. Technical analysis presents a mixed picture with neutral momentum indicators. Valuation is fair, with a reasonable P/E ratio and modest dividend yield. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Profitability Improvements

Improved profitability margins suggest enhanced operational efficiency and cost management, contributing to sustainable earnings growth.

Cash Generation

Strong cash generation relative to net income indicates robust liquidity, providing flexibility for investments and debt management.

Negative Factors

High Debt Levels

High debt levels can strain financial resources and limit strategic options, posing a risk to long-term financial health.

Free Cash Flow Deficit

Negative free cash flow indicates ongoing capital expenditures, which may pressure financial flexibility if not offset by revenue growth.

Moderate Financial Health

Moderate financial health suggests potential vulnerabilities in economic downturns, requiring careful management of resources.

East Japan Railway Business Overview & Revenue Model

Company Description

East Japan Railway Company operates as a passenger railway company in Japan and internationally. The company operates through Transportation, Retail & Services, Real Estate & Hotels, and Others segments. It offers passenger railway, freight, bus transportation, travel agency, warehousing, financial, telecommunication, computer-related data, casualty insurance, and dry cleaning and other agency services. The company is also involved in the operation of aerial cableway and parking lot; advertising and promotion; books and magazines publication; automobile maintenance and repair; hotel and restaurant management; civil engineering and general construction; facilities construction; and electricity supply businesses. In addition, it engages in the sale of prepaid vouchers, memberships for sport and leisure facilities, including golf and tennis clubs; and oil, gas, and car accessories; travel goods, food, beverages, liquors, medicines, cosmetics, and daily necessities. Further, the company is involved in the sale, leasing, management, and brokerage of real estate properties; manufacture of transport-related machinery and equipment, as well as precision and industrial machinery and tools; production and sale of signs and information boards; and establishment and management of recreation areas, physical fitness facilities, cultural facilities, preparatory schools and other educational facilities, and movie theaters. Additionally, it engages in the production of beverages and liquors; processing and sale of marine products; manufacture and sale of aggregates, masonry materials, concrete posts, and blocks; sale of tickets for events, etc.; and photo development activities. The company operates 1,676 railway stations and 7,401.7 kilometers of railway network; 193 shopping centers; and various hotel with a total of 9,190 guest rooms. East Japan Railway Company was incorporated in 1987 and is headquartered in Tokyo, Japan.

How the Company Makes Money

EJPRY generates revenue primarily through its transportation services, which include ticket sales from its extensive railway network. The company also earns income from ancillary services such as advertising, retail operations in train stations, and real estate development. Key revenue streams include fare collection from passengers, freight services, and commercial activities within its properties. Significant partnerships with local businesses and tourism organizations further bolster its earnings by promoting travel packages and special events, thereby attracting more customers to its services.

East Japan Railway Financial Statement Overview

Summary

East Japan Railway shows strong revenue growth and profitability improvements post-pandemic. The income statement is robust, but the balance sheet indicates moderate financial health with manageable debt levels. Cash flow metrics are improving, though free cash flow generation needs enhancement.

Income Statement

East Japan Railway has demonstrated significant improvement in its income statement metrics over the past years. The Gross Profit Margin stands at 35.76% TTM, reflecting strong cost management. The Net Profit Margin has improved to 7.77% TTM, indicating profitability recovery post-pandemic impacts. Revenue growth is robust at 5.76% annually, with EBIT and EBITDA margins at 13.05% and 26.95% TTM respectively, showcasing efficient operational performance.

Balance Sheet

The company's balance sheet indicates a moderate financial position. The Debt-to-Equity Ratio is 1.63, suggesting a balanced approach to leveraging. Return on Equity (ROE) is healthy at 7.84% TTM, reflecting effective use of shareholders' equity. The Equity Ratio is 28.10%, indicating a reasonable proportion of equity financing. However, the high total debt level remains a potential risk.

Cash Flow

Cash flow analysis shows East Japan Railway has improved its liquidity position. Operating Cash Flow to Net Income Ratio is 3.26, indicating strong cash generation relative to net income. Free Cash Flow growth is positive, although still negative at -38.68 billion, suggesting ongoing capital investments. The Free Cash Flow to Net Income Ratio is -0.17, reflecting the need for further improvements in free cash flow generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.92T	2.89T	2.73T	2.41T	1.98T	1.76T
Gross Profit	1.04T	1.03T	964.48B	636.22B	299.43B	-40.26B
EBITDA	773.85B	778.32B	748.45B	541.16B	249.97B	-120.36B
Net Income	229.68B	224.28B	196.45B	99.23B	-94.95B	-577.90B
Balance Sheet
Total Assets	10.10T	10.17T	9.77T	9.41T	9.16T	8.98T
Cash, Cash Equivalents and Short-Term Investments	184.76B	233.67B	281.00B	215.19B	171.29B	198.27B
Total Debt	4.63T	4.65T	4.56T	4.46T	4.05T	3.61T
Total Liabilities	7.18T	7.30T	7.03T	6.91T	6.74T	6.42T
Stockholders Equity	2.90T	2.86T	2.72T	2.47T	2.39T	2.54T
Cash Flow
Free Cash Flow	0.00	-38.68B	-26.81B	26.17B	-392.55B	-955.45B
Operating Cash Flow	0.00	732.25B	688.10B	581.75B	190.51B	-189.97B
Investing Cash Flow	0.00	-783.42B	-690.62B	-565.51B	-526.36B	-749.40B
Financing Cash Flow	0.00	3.66B	66.10B	26.83B	304.64B	983.38B

East Japan Railway Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EJPRY, the sentiment is Positive. The current price of 13.17 is above the 20-day moving average (MA) of 13.10, above the 50-day MA of 12.68, and above the 200-day MA of 11.61, indicating a bullish trend. The MACD of 0.16 indicates Positive momentum. The RSI at 53.85 is Neutral, neither overbought nor oversold. The STOCH value of 63.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EJPRY.

East Japan Railway Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSX	78 Outperform	$65.77B	22.88	22.60%	1.42%	-3.80%	-17.32%
AER	77 Outperform	$25.98B	6.68	21.71%	0.74%	2.90%	67.73%
NSC	75 Outperform	$70.90B	21.91	20.46%	1.85%	0.48%	22.88%
UNP	72 Outperform	$136.34B	19.39	41.62%	2.32%	1.06%	8.21%
EJPRY	71 Outperform	$29.71B	18.99	8.29%	1.30%	5.37%	36.61%
LUV	66 Neutral	$22.20B	67.85	4.22%	1.73%	0.65%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%