Tobu Railway Co (9001) AI Stock Analysis

• Market Cap: $507.34B
• Dividend Yield: 2.51%
• Average Volume (3M): 523.65K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.51
• Revenue Growth: 1.72%
• EPS Growth: 10.19%
• Country: JP
• Employees: 18,384
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 51.28
• Shares Outstanding: 197,266,820
• 10 Day Avg. Volume: 528,550
• 30 Day Avg. Volume: 523,646
• 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: 2.52
• Enterprise Value/Revenue: 2.03
• Enterprise Value/Gross Profit: 6.50
• Enterprise Value/Ebitda: 8.51
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ¥2,704.00 ▲(5.28% 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 demonstrates strong profitability with consistent gross profit margins and improved net profit margins, reflecting effective cost management. The balance sheet is stable with a moderate debt-to-equity ratio, though leverage levels require monitoring. Cash flow management shows resilience, but capital expenditure efficiency is a concern.

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: 2568.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 2568.5 is below the 20-day moving average (MA) of 2585.32, above the 50-day MA of 2554.57, and above the 200-day MA of 2562.59, indicating a neutral trend. The MACD of 3.07 indicates Positive momentum. The RSI at 49.36 is Neutral, neither overbought nor oversold. The STOCH value of 49.40 is Neutral, 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	78 Outperform	¥328.51B	13.59	―	1.64%	6.55%	-12.49%
9031	73 Outperform	¥218.29B	7.56	11.44%	1.72%	8.29%	24.94%
9009	72 Outperform	$625.55B	8.30	13.92%	1.54%	6.30%	-16.29%
9007	70 Outperform	$611.52B	14.04	8.51%	2.93%	-2.82%	-50.73%
9142	70 Neutral	¥633.77B	14.69	9.26%	2.66%	10.39%	32.43%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9001	62 Neutral	$507.34B	10.27	8.78%	2.51%	1.72%	10.19%

Tobu Railway Co Corporate Events

Tobu Railway Updates Shareholder Benefit Program

Tobu Railway Co., Ltd. announced a correction to its shareholder benefit program, specifically regarding the issuance of transportation tickets based on the number of shares held. The correction clarifies the criteria for receiving additional coupon-type tickets for shareholders who have held a certain number of shares for three years or longer. This adjustment aims to enhance shareholder benefits and may impact shareholder satisfaction and retention.

Tobu Railway Enhances Shareholder Benefit Program

Tobu Railway Co., Ltd. has announced an enhancement to its shareholder benefit program by revising the criteria for issuing shareholder discount tickets. The changes include the introduction of a new category for shareholders holding between 400 and 600 shares, who will now receive four discount tickets, and an expansion of benefits for long-term shareholders holding 600 or more shares for three years, who will receive additional tickets. This move aims to increase the attractiveness of the company’s shares and encourage long-term investment.

Tobu Railway to Cancel 3.9 Million Treasury Shares

Tobu Railway Co., Ltd. has announced the cancellation of 3,948,600 treasury shares, representing 1.96% of its total shares, as part of a strategic decision by the Board of Directors. This move, scheduled for November 28, 2025, is likely aimed at optimizing the company’s capital structure and enhancing shareholder value.

Tobu Railway Co. Revises Financial Forecast Upward for FY 2026

Tobu Railway Co., Ltd. has revised its financial forecast for the fiscal year ending March 31, 2026, indicating an upward adjustment in operating revenue, operating profit, ordinary profit, and profit attributable to owners of the parent. This revision reflects positive trends in the company’s travel and railway businesses, suggesting improved financial performance and potential growth opportunities.

Tobu Railway Co. Reports Mixed Financial Results for First Half of 2025

Tobu Railway Co., Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing a slight increase in operating revenue by 2.9% to ¥310,753 million. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, indicating challenges in maintaining profitability. The company’s total assets increased to ¥1,783,498 million, with a slight improvement in the equity ratio, reflecting a stable financial position. The announcement highlights the company’s efforts to manage financial performance amidst fluctuating market conditions, with implications for stakeholders regarding future profitability and dividend payments.