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Tobu Railway Co Ltd (JP:9001)
:9001

Tobu Railway Co (9001) AI Stock Analysis

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JP

Tobu Railway Co

(OTC:9001)

Rating:70Outperform
Price Target:
¥2,877.00
▲(14.92%Upside)
Tobu Railway Co's strong financial performance underscores its robust profitability and revenue growth, although attention to leverage is necessary. Valuation metrics suggest potential undervaluation, enhancing its attractiveness. Technical indicators show a neutral trend with potential for upward momentum.

Tobu Railway Co (9001) vs. iShares MSCI Japan ETF (EWJ)

Tobu Railway Co Business Overview & Revenue Model

Company DescriptionTobu Railway Co., Ltd. operates a private rail system in the Kanto region. The company offer services, such as sightseeing; operates amusement parks and tourism business. It also manages the Courtyard by Marriott, Tokyo Ginza hotel, and the Tobu Hotel Levant Tokyo in the center of Tokyo. In addition, it operates Tobu department stores in Ikebukuro, Funabashi, Utsunomiya, Ohtawara, and Tochigi, as well as a chain of supermarkets. Tobu Railway Co., Ltd. was incorporated in 1896 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyTobu Railway Co. generates revenue through multiple streams, with the primary source being its transportation services. This includes income from passenger fares on its railway network, which serves millions of commuters and tourists annually. Additionally, the company earns significant revenue from real estate developments and asset management, leveraging land and properties it owns near its rail lines to develop residential, commercial, and retail spaces. Tobu Railway also benefits from its involvement in the tourism sector, operating attractions and hotels that cater to visitors traveling via its rail network. Partnerships with local governments and businesses further enhance its service offerings and contribute to its financial performance. The integration of these various business segments allows Tobu Railway to maintain a stable and diversified income stream.

Tobu Railway Co Financial Statement Overview

Summary
Tobu Railway Co shows strong profitability with consistent revenue growth, solid EBIT and EBITDA margins, and improved cost management. The balance sheet is stable but requires monitoring of leverage levels. Cash flow is resilient but needs better management of capital expenditures.
Income Statement
76
Positive
Tobu Railway Co has demonstrated strong profitability with a consistent gross profit margin above 30% over the years. The net profit margin saw a recovery from a negative value in 2021 to positive in subsequent years, indicating improved cost management and profitability. The revenue growth rate has been stable, albeit with some fluctuations, highlighting resilience in a challenging economic climate. The EBIT and EBITDA margins have improved significantly, reflecting operational efficiency and effective cost control measures.
Balance Sheet
68
Positive
The company's balance sheet reveals a moderate debt-to-equity ratio, which suggests a balanced capital structure. The return on equity has improved, indicating better utilization of shareholder funds. However, the equity ratio is lower, suggesting a higher reliance on debt financing. The overall stability is supported by a solid asset base, but there is a need to monitor the leverage levels closely to mitigate potential risks.
Cash Flow
65
Positive
Cash flow analysis shows a volatile free cash flow with significant fluctuations over the years. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. However, the free cash flow to net income ratio has varied, reflecting challenges in managing capital expenditures efficiently. Overall, while the company maintains a healthy operating cash flow, the investment and financing activities require careful management to ensure long-term sustainability.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue627.72B631.46B635.96B614.75B506.02B496.33B
Gross Profit195.34B197.69B194.47B173.79B137.44B99.75B
EBITDA112.40B135.72B126.80B104.55B85.68B41.61B
Net Income49.08B51.03B48.16B29.18B13.45B-24.96B
Balance Sheet
Total Assets1.76T1.75T1.70T1.74T1.69T1.68T
Cash, Cash Equivalents and Short-Term Investments45.80B35.11B31.45B69.25B46.07B45.13B
Total Debt794.38B779.05B747.74B792.18B803.17B829.59B
Total Liabilities1.20T1.19T1.16T1.26T1.23T1.23T
Stockholders Equity550.26B554.51B535.69B474.75B452.56B444.95B
Cash Flow
Free Cash Flow0.00-20.81B8.76B43.85B12.87B-41.15B
Operating Cash Flow0.0090.07B91.69B101.11B66.85B39.50B
Investing Cash Flow0.00-86.78B-61.63B-52.71B-30.96B-66.28B
Financing Cash Flow0.00321.00M-67.92B-25.29B-35.01B40.36B

Tobu Railway Co Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2503.50
Price Trends
50DMA
2540.81
Negative
100DMA
2569.40
Negative
200DMA
2544.37
Negative
Market Momentum
MACD
-12.17
Negative
RSI
52.53
Neutral
STOCH
73.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9001, the sentiment is Neutral. The current price of 2503.5 is above the 20-day moving average (MA) of 2474.82, below the 50-day MA of 2540.81, and below the 200-day MA of 2544.37, indicating a neutral trend. The MACD of -12.17 indicates Negative momentum. The RSI at 52.53 is Neutral, neither overbought nor oversold. The STOCH value of 73.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9001.

Tobu Railway Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$497.35B9.839.28%2.21%-0.71%8.75%
58
Neutral
HK$13.89B4.44-3.01%7.32%3.67%-54.16%
$4.50B9.6214.35%<0.01%
$3.97B12.629.60%2.51%
$4.08B12.1310.86%0.01%
DENNR
€933.22M7.178.65%2.21%
71
Outperform
¥247.74B11.01
2.06%7.94%-5.97%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9001
Tobu Railway Co
2,532.00
-92.10
-3.51%
KELRF
Keisei Electric Railway Co
8.83
-2.10
-19.21%
KYYHF
Kyushu Railway Company
23.10
0.00
0.00%
ODERF
Odakyu Electric Railway Co
11.92
2.38
24.95%
DE:NNR
Nishi-Nippon Railroad Co., Ltd.
11.70
-1.95
-14.29%
JP:9044
Nankai Electric Railway Co., Ltd.
2,210.00
-428.69
-16.25%

Tobu Railway Co Corporate Events

Tobu Railway Acquires Over 1.2 Million Treasury Shares
Jul 2, 2025

Tobu Railway Co., Ltd. has announced the acquisition of 1,258,400 treasury shares, amounting to approximately ¥3.13 billion, through market purchases on the Tokyo Stock Exchange. This acquisition is part of a broader plan approved by the Board of Directors to acquire up to 5 million shares, reflecting the company’s strategic move to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (JP:9001) stock is a Hold with a Yen2900.00 price target. To see the full list of analyst forecasts on Tobu Railway Co stock, see the JP:9001 Stock Forecast page.

Tobu Railway Co. Acquires Treasury Shares to Optimize Capital Structure
Jun 3, 2025

Tobu Railway Co., Ltd. announced the acquisition of 1,279,200 of its common shares at a total cost of ¥3,336,117,650 through market purchases on the Tokyo Stock Exchange. This move is part of a broader plan approved by the Board of Directors to acquire up to 5,000,000 shares, reflecting the company’s strategic initiative to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (JP:9001) stock is a Hold with a Yen2900.00 price target. To see the full list of analyst forecasts on Tobu Railway Co stock, see the JP:9001 Stock Forecast page.

Tobu Railway Announces Increased Year-End Dividend
May 16, 2025

Tobu Railway Co., Ltd. announced a resolution to pay dividends of surplus with a record date of March 31, 2025, pending approval at the upcoming Annual General Meeting. The company plans to distribute a year-end dividend of 32.50 yen per share, reflecting an increase from the previous fiscal year, as part of its strategy to enhance long-term management stability and improve business performance.

The most recent analyst rating on (JP:9001) stock is a Hold with a Yen2900.00 price target. To see the full list of analyst forecasts on Tobu Railway Co stock, see the JP:9001 Stock Forecast page.

Tobu Railway Announces Treasury Share Acquisition Plan
Apr 30, 2025

Tobu Railway Co., Ltd. has announced its decision to acquire up to 5,000,000 of its own shares, representing 2.50% of its total shares, as part of a strategy to enhance shareholder returns and improve capital efficiency. This move is aimed at executing a flexible capital policy in response to changing business environments, with the acquisition set to occur between May 1, 2025, and August 31, 2025, through market purchases on the Tokyo Stock Exchange.

Tobu Railway Co. to Enhance Corporate Value with Strategic Management Initiatives
Apr 30, 2025

Tobu Railway Co., Ltd. announced a strategic initiative to enhance its corporate value by implementing management practices that are more conscious of the cost of capital and stock price. This decision, made at a recent Board of Directors meeting, aims to strengthen the company’s market position and potentially improve returns for stakeholders.

Tobu Railway Co. Revises Long-Term Profit Targets Amid Strong Performance
Apr 30, 2025

Tobu Railway Co., Ltd. has revised its Long-Term Management Vision, increasing its target operating profit to ¥100.0 billion by the mid-2030s, up from the previous target of ¥80.0 billion by FY2033. This revision is driven by strong earnings performance, robust tourism demand, and progress in large-scale projects, including a new two-way service between the TOBU SKYTREE Line and Tokyo Metro Yurakucho Line, positioning the company for further growth despite challenges such as rising costs and labor shortages.

Tobu Railway Co. Increases Year-End Dividend Forecast
Apr 30, 2025

Tobu Railway Co., Ltd. announced a revision to its year-end dividend forecast, increasing the dividend by ¥5 to ¥32.50 per share. This decision reflects the company’s strategic initiatives to boost earnings and strengthen its management base, aligning with its long-term vision of evolving society and areas along its railway lines.

Tobu Railway Co. Reports Stable Financial Results for FY2025
Apr 30, 2025

Tobu Railway Co. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight decrease in operating revenue by 0.7% to ¥631,461 million, while operating profit increased by 1.0% to ¥74,604 million. The company also announced an increase in annual dividends, reflecting a stable financial position with a net asset increase to ¥560,753 million, indicating a positive outlook for stakeholders.

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: May 15, 2025