Tobu Railway Co (9001) AI Stock Analysis

• Market Cap: $506.95B
• Dividend Yield: 2.42%
• Average Volume (3M): 622.87K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.51
• Revenue Growth: 0.26%
• EPS Growth: 11.28%
• Country: JP
• Employees: 18,384
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 70.40
• Shares Outstanding: 201,215,420
• 10 Day Avg. Volume: 607,470
• 30 Day Avg. Volume: 622,873
• PEG Ratio: 1.18
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.82
• P/FCF Ratio: -24.87
• Enterprise Value/Market Cap: 2.48
• Enterprise Value/Revenue: 2.00
• Enterprise Value/Gross Profit: 6.40
• Enterprise Value/Ebitda: 8.39
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: ¥2,704.00 ▲(8.88% Upside)

Tobu Railway Co's overall stock score is driven by its strong financial performance and attractive valuation, despite weak technical indicators. The company's profitability and stable balance sheet are significant strengths, while bearish market momentum presents a risk. The low P/E ratio and reasonable dividend yield enhance its appeal, but careful monitoring of leverage and capital expenditures is advised.

Tobu Railway Co Business Overview & Revenue Model

Company Description

Tobu 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 Money

Tobu Railway generates revenue primarily through its transportation services, which include fare collections from passengers using its extensive railway network. This accounts for a significant portion of its income. Additionally, the company earns revenue from real estate developments, where it develops and leases commercial properties, residential buildings, and retail spaces near its stations, capitalizing on the high foot traffic generated by its train operations. Tobu also benefits from tourism-related activities, as it operates attractions and services in conjunction with its transport offerings, drawing visitors to various destinations. Furthermore, strategic partnerships with local businesses and tourism agencies provide additional revenue streams through promotional activities and bundled service packages, enhancing overall earnings.

Tobu Railway Co Financial Statement Overview

Summary

Tobu Railway Co shows strong profitability with consistent gross profit margins and improved net profit margins. The balance sheet is stable but requires monitoring of leverage levels. Cash flow management is resilient, though capital expenditure efficiency needs improvement.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	630.16B	631.46B	635.96B	614.75B	506.02B	496.33B
Gross Profit	196.62B	197.69B	194.47B	173.79B	137.44B	99.75B
EBITDA	150.16B	135.72B	126.80B	104.55B	85.68B	41.61B
Net Income	50.13B	51.03B	48.16B	29.18B	13.45B	-24.96B
Balance Sheet
Total Assets	1.75T	1.75T	1.70T	1.74T	1.69T	1.68T
Cash, Cash Equivalents and Short-Term Investments	34.78B	35.11B	31.45B	69.25B	46.07B	45.13B
Total Debt	792.93B	779.05B	747.74B	792.18B	803.17B	829.59B
Total Liabilities	1.18T	1.19T	1.16T	1.26T	1.23T	1.23T
Stockholders Equity	559.30B	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: 2483.50
• 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 2483.5 is below the 20-day moving average (MA) of 2549.50, below the 50-day MA of 2631.61, and below the 200-day MA of 2559.17, indicating a bearish trend. The MACD of -33.42 indicates Positive momentum. The RSI at 31.29 is Neutral, neither overbought nor oversold. The STOCH value of 7.82 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
9044	―	¥315.59B	13.49	―	1.71%	6.55%	-12.49%
9009	―	$669.97B	9.27	13.92%	1.55%	6.30%	-16.29%
9142	―	$602.41B	12.48	11.09%	2.79%	9.64%	52.99%
9007	―	$583.25B	13.66	8.68%	3.07%	-1.80%	-56.03%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9031	―	€184.71B	7.70	10.30%	1.79%	6.97%	25.75%
9001	―	$506.95B	10.07	9.28%	2.42%	0.26%	11.28%

Tobu Railway Co Corporate Events

Tobu Railway Issues ¥10 Billion in Unsecured Bonds to Strengthen Financial Position

Tobu Railway Co., Ltd. has announced the issuance of its 136th series of unsecured bonds, totaling ¥10 billion, with a five-year maturity and an interest rate of 1.433% per annum. This strategic move is expected to bolster the company’s financial position, potentially enhancing its operational capabilities and market competitiveness, while offering investment opportunities to stakeholders.

The most recent analyst rating on (JP:9001) stock is a Buy with a Yen2897.00 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. Reports Stable Financial Performance Amid Slight Revenue Dip

Tobu Railway Co. reported a slight decline in operating revenue for the three months ended June 30, 2025, with a 0.9% decrease compared to the previous year. Despite this, the company maintained a stable financial position with a slight increase in net assets and equity ratio. The forecast for the fiscal year ending March 31, 2026, indicates a modest growth in operating revenue and profit attributable to owners, reflecting the company’s resilience and strategic focus on sustaining its market position.

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 Completes Treasury Share Acquisition

Tobu Railway Co., Ltd. announced the completion of its acquisition of 1,411,000 treasury shares, amounting to approximately ¥3.53 billion, as part of a resolution to acquire up to 5 million shares. This strategic move is expected to enhance shareholder value and optimize capital structure, reflecting the company’s commitment to efficient financial management.

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.