Tobu Railway Co (9001) AI Stock Analysis

• Market Cap: ¥504.45B
• Dividend Yield: 2.25%
• Average Volume (3M): 508.30K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.59
• Revenue Growth: -0.71%
• EPS Growth: 8.85%
• Country: JP
• Employees: 18,384
• Sector: Industrials
• Sector Strength: 90
• Industry: Railroads
• EPS (TTM): 47.81
• Shares Outstanding: 201,215,420
• 10 Day Avg. Volume: 530,130
• 30 Day Avg. Volume: 508,300
• PEG Ratio: 1.93
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,900.70
• Price Target Upside: 16.40% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ¥2,877.00 ▲(15.45%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 Business Overview & Revenue Model

Company Description

Tobu Railway Co., Ltd. is a leading private railway company in Japan, primarily operating in the Kanto region. The company is a part of the larger Tobu Group, which encompasses a diverse range of services, including transportation, retail, real estate, and tourism. Tobu Railway is best known for its extensive railway network, which provides commuter and tourist rail services, connecting major urban centers with suburban areas and popular tourist destinations. The company is committed to enhancing its transportation services while also expanding into various related sectors to support its core operations.

How the Company Makes Money

Tobu 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 a robust financial position with a strong income statement and solid profitability. The balance sheet is stable but with moderate leverage levels that need monitoring. Cash flow management is resilient but requires enhanced capital expenditure efficiency.

Income Statement

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

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

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.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
627.72B	631.46B	635.96B	614.75B	506.02B	496.33B
	Gross Profit
195.34B	197.69B	194.47B	173.79B	137.44B	99.75B
	EBIT
73.07B	74.61B	73.88B	56.69B	24.73B	-13.58B
	EBITDA
112.40B	135.72B	126.80B	104.55B	85.68B	41.61B
	Net Income Common Stockholders
49.08B	51.03B	48.16B	29.18B	13.45B	-24.96B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
38.05B	35.11B	31.45B	69.25B	46.07B	45.13B
	Total Assets
1.72T	1.75T	1.70T	1.74T	1.69T	1.68T
	Total Debt
753.88B	779.05B	747.74B	792.18B	803.17B	829.59B
	Net Debt
715.83B	743.94B	716.29B	722.92B	757.11B	784.45B
	Total Liabilities
1.20T	1.19T	1.16T	1.26T	1.23T	1.23T
	Stockholders Equity
516.95B	554.51B	535.69B	474.75B	452.56B	444.95B
Cash Flow		Free Cash Flow
0.00	-20.81B	8.76B	43.85B	12.87B	-41.15B
	Operating Cash Flow
0.00	90.07B	91.69B	101.11B	66.85B	39.50B
	Investing Cash Flow
0.00	-86.78B	-61.63B	-52.71B	-30.96B	-66.28B
	Financing Cash Flow
0.00	321.00M	-67.92B	-25.29B	-35.01B	40.36B

Tobu Railway Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2492.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9001, the sentiment is Negative. The current price of 2492 is below the 20-day moving average (MA) of 2558.33, below the 50-day MA of 2581.51, and below the 200-day MA of 2541.37, indicating a bearish trend. The MACD of -29.44 indicates Positive momentum. The RSI at 36.48 is Neutral, neither overbought nor oversold. The STOCH value of 12.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9001.

Tobu Railway Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9142	76 Outperform	¥596.89B	13.62	9.60%	2.81%	8.09%	14.04%
9009	71 Outperform	$724.05B	9.94	14.35%	1.07%	7.69%	-18.20%
9007	71 Outperform	$592.55B	11.23	10.86%	2.26%	3.14%	-34.88%
9001	70 Outperform	¥504.45B	9.97	9.22%	2.25%	-0.71%	8.85%
9044	66 Neutral	¥243.21B	10.81		1.86%	7.94%	-5.97%
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%
9031	63 Neutral	¥167.56B	7.95	8.65%	1.90%	7.74%	-14.83%

Tobu Railway Co Corporate Events

Tobu Railway Co. Acquires Treasury Shares to Optimize Capital Structure

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

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

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

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

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

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

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.