East Japan Railway (EJPRY) AI Stock Analysis

• Market Cap: $23.97B
• Dividend Yield: 1.13%
• Average Volume (3M): 3.93K
• Price to Earnings (P/E): 16.3
• Beta (1Y): -0.02
• Revenue Growth: 0.43%
• EPS Growth: 191.17%
• Country: US
• Employees: 68,769
• Sector: Industrials
• Sector Strength: 89
• Industry: Railroads
• EPS (TTM): N/A
• Shares Outstanding: 2,268,824,500
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 3,927
• PEG Ratio: -10.31
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -92.33
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: $11.50 ▲(8.49%Upside)

East Japan Railway's financial performance is a strong positive factor, with significant post-pandemic recovery and profitability improvements leading the score. While valuation metrics suggest the stock is fairly priced, the technical analysis indicates mixed momentum. Given these factors, the overall stock score reflects a stable but cautious investment opportunity.

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

JR East primarily generates revenue through its transportation services, focusing on passenger rail operations, which constitute the bulk of its income. The company also earns significant revenue from its non-transportation businesses, including retail operations in station buildings, shopping centers, and convenience stores. Moreover, JR East capitalizes on its vast real estate holdings by developing properties near its stations, which may include commercial complexes, offices, and residential buildings. Additionally, the company has a hospitality arm that runs hotels, further diversifying its revenue streams. Strategic partnerships and collaborations with other businesses in sectors like technology and tourism also contribute to JR East's earnings, enhancing its service offerings and market reach.

East Japan Railway Financial Statement Overview

Summary

East Japan Railway has shown considerable improvement in its financial metrics, particularly in income statement performance with increasing profitability and revenue growth. The balance sheet is moderate with manageable debt levels, and cash flow shows strong operational cash generation despite ongoing capital investments.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.89T	2.73T	2.41T	1.98T	1.76T
Gross Profit	1.03T	964.48B	636.22B	299.43B	-40.26B
EBITDA	778.32B	748.45B	541.16B	274.28B	-120.36B
Net Income	224.28B	196.45B	99.23B	-94.95B	-577.90B
Balance Sheet
Total Assets	10.17T	9.77T	9.41T	9.16T	8.98T
Cash, Cash Equivalents and Short-Term Investments	233.67B	281.00B	215.19B	171.29B	198.27B
Total Debt	4.65T	4.56T	4.79T	4.72T	4.37T
Total Liabilities	7.30T	7.03T	6.91T	6.74T	6.42T
Stockholders Equity	2.86T	2.72T	2.47T	2.39T	2.54T
Cash Flow
Free Cash Flow	-38.68B	-26.81B	26.17B	-392.55B	-955.45B
Operating Cash Flow	732.25B	688.10B	581.75B	190.51B	-189.97B
Investing Cash Flow	-783.42B	-690.62B	-565.51B	-526.36B	-749.40B
Financing Cash Flow	3.66B	66.10B	26.83B	304.64B	983.38B

East Japan Railway Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 10.60
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EJPRY, the sentiment is Neutral. The current price of 10.6 is below the 20-day moving average (MA) of 10.74, below the 50-day MA of 10.66, and above the 200-day MA of 9.93, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 46.20 is Neutral, neither overbought nor oversold. The STOCH value of 7.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EJPRY.

East Japan Railway Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSC	80 Outperform	$62.37B	18.89	24.52%	2.44%	0.70%	135.08%
GATX	76 Outperform	$5.50B	19.51	11.64%	1.92%	12.07%	11.93%
CSX	75 Outperform	$64.60B	20.49	26.13%	1.80%	-2.39%	-7.80%
EJPRY	70 Outperform	$23.97B	16.29	7.93%	1.13%	0.43%	191.17%
UNP	70 Outperform	$134.35B	20.26	42.47%	2.96%	0.63%	5.93%
ODFL	68 Neutral	$34.25B	30.39	26.59%	0.83%	-2.63%	-6.12%
Sector *	58 Neutral	HK$14.28B	4.63	-3.01%	7.26%	3.67%	-54.16%