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Sotetsu Holdings, Inc.
(9003)
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Rating:58Neutral
Price Target:
¥2,528.00
▼(-5.09% Downside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by mixed fundamentals: strong profitability recovery and improved margins are offset by elevated debt and a multi-year pattern of negative/volatile free cash flow. Technically, the stock is in a weak trend (below major moving averages) with soft momentum readings. Valuation is a positive offset, supported by a low P/E and a moderate dividend yield.
Positive Factors
Diversified business model with沿線 synergies
Sotetsu’s integrated model — rail operations feeding real estate development, leasing and hotels — creates durable demand capture along its corridors. That structural synergy supports recurring lease and lodging cash flows and helps stabilize earnings across cycles versus single-line operators.
Negative Factors
Elevated leverage
High absolute debt levels and a debt-skewed capital structure limit financial flexibility and raise sensitivity to interest-rate moves. Sustained leverage constrains ability to fund new projects from internal sources, increases refinancing risk, and may pressure credit metrics during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model with沿線 synergies
Sotetsu’s integrated model — rail operations feeding real estate development, leasing and hotels — creates durable demand capture along its corridors. That structural synergy supports recurring lease and lodging cash flows and helps stabilize earnings across cycles versus single-line operators.
Read all positive factors
Sotetsu Holdings, Inc. (9003) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥242.84B
Dividend Yield2.82%
Average Volume (3M)387.41K
Price to Earnings (P/E)9.3
Beta (1Y)0.27
Revenue Growth8.74%
EPS Growth35.24%
CountryJP
Employees5,321
SectorIndustrials
Sector Strength72
IndustryGeneral Transportation
Share Statistics
EPS (TTM)197.50
Shares Outstanding98,145,490
10 Day Avg. Volume230,080
30 Day Avg. Volume387,410
Financial Highlights & Ratios
PEG Ratio0.87
Price to Book (P/B)1.38
Price to Sales (P/S)0.91
P/FCF Ratio-22.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)252.2
Revenue Forecast (FY)¥325.30B
Sotetsu Holdings, Inc. Business Overview & Revenue Model
Company Description
Sotetsu Holdings, Inc. provides transportation services in Japan. It offers railway and bus transport services. The company also operates supermarkets under the Sotetsu Rosen name, convenience and Konandai stores; and lodging-specialized hotels an...
How the Company Makes Money
Sotetsu Holdings generates earnings through multiple operating segments under its group structure. (1) Transportation (Railway): The group earns passenger revenue from fares and commuter passes on its railway lines, with demand influenced by commu...
Sotetsu Holdings, Inc. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
56
Neutral
Cash Flow
43
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 286.26B | 307.57B | 292.18B | 270.04B | 249.67B | 216.68B |
| Gross Profit | 105.97B | 114.08B | 105.55B | 91.31B | 70.76B | 53.55B |
| EBITDA | 54.57B | 64.08B | 58.58B | 51.79B | 37.03B | 28.16B |
| Net Income | 19.23B | 24.85B | 22.41B | 16.08B | 6.98B | 1.85B |
Balance Sheet | ||||||
| Total Assets | 749.05B | 813.46B | 757.26B | 715.38B | 646.95B | 623.41B |
| Cash, Cash Equivalents and Short-Term Investments | 28.78B | 41.26B | 31.58B | 27.55B | 20.16B | 22.04B |
| Total Debt | 436.67B | 457.12B | 432.92B | 416.87B | 373.32B | 366.88B |
| Total Liabilities | 567.40B | 610.14B | 575.18B | 550.65B | 501.16B | 483.70B |
| Stockholders Equity | 181.56B | 203.24B | 181.99B | 164.65B | 145.70B | 139.63B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -12.77B | -1.55B | -38.94B | 4.45B | -24.39B |
| Operating Cash Flow | 0.00 | 19.46B | 40.20B | 17.84B | 33.80B | 21.27B |
| Investing Cash Flow | 0.00 | -31.16B | -44.66B | -58.26B | -33.82B | -29.60B |
| Financing Cash Flow | 0.00 | 13.84B | 8.60B | 37.87B | -2.12B | 6.55B |
Sotetsu Holdings, Inc. Technical Analysis
Negative
2663.50
Price Trends
2494.00
Negative
2644.81
Negative
2689.93
Negative
Market Momentum
-12.52
Positive
44.39
Neutral
11.12
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9003, the sentiment is Negative. The current price of 2663.5 is above the 20-day moving average (MA) of 2567.85, above the 50-day MA of 2494.00, and below the 200-day MA of 2689.93, indicating a bearish trend. The MACD of -12.52 indicates Positive momentum. The RSI at 44.39 is Neutral, neither overbought nor oversold. The STOCH value of 11.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9003.
Sotetsu Holdings, Inc. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ¥677.25B | 12.65 | 9.33% | 1.70% | 1.93% | 22.25% | |
65 Neutral | ¥365.57B | 15.76 | ― | 2.26% | -1.89% | -15.16% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ¥1.08T | 13.38 | 7.27% | 2.01% | 6.77% | 21.90% | |
58 Neutral | ¥242.84B | 9.31 | ― | 2.63% | 8.74% | 35.24% | |
58 Neutral | ¥436.30B | 10.39 | 9.84% | 2.62% | 9.62% | 9.03% | |
44 Neutral | ¥832.48B | 19.53 | ― | 1.05% | -41.04% | -82.38% |
* Industrials Sector Average
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Sotetsu Holdings, Inc. Corporate Events
Sotetsu Holdings Delivers Strong Q1 but Sees Profit Squeeze Ahead
Jul 30, 2026
Sotetsu Holdings reported a solid start to the fiscal year ending March 2027, with first-quarter operating revenue rising 4.9% to 78.7 billion yen and operating profit up 7.5% to 11.9 billion yen, lifting profit attributable to owners of the paren...
Sotetsu Holdings Delivers Profit Growth But Guides for Softer Full-Year Margins
Jul 30, 2026
Sotetsu Holdings reported consolidated operating revenues of ¥78.8 billion for the three months ended June 30, 2026, a 4.9% year-on-year increase, with operating profit rising 7.5% to ¥11.9 billion and profit attributable to owners of pa...
Sotetsu Holdings Completes Restricted Stock Treasury Share Disposal
Jul 24, 2026
Sotetsu Holdings, Inc. has completed payment procedures for the disposal of 25,105 treasury shares as restricted stock compensation, following a June 26, 2026 board resolution. The shares, valued at 2,413.5 yen each for a total of about 60.6 milli...
Sotetsu Holdings Sets Terms for ¥10 Billion Unsecured Bond Issue
Jul 17, 2026
Sotetsu Holdings, Inc. has set the terms for its 47th unsecured bond issuance, a ¥10 billion, 10-year instrument carrying a fixed annual interest rate of 3.224 percent and offered to the general public without collateral but with a negative p...
Sotetsu Holdings to Grant Restricted Stock to Directors and Executives
Jun 26, 2026
Sotetsu Holdings has approved the disposal of 25,105 treasury shares as restricted stock compensation for four directors and 13 executive officers, with a total value of about ¥60.6 million. The move follows shareholder approval of a new stoc...
Sotetsu Ends Marubeni Partnership as Supermarket Overhaul Concludes
Jun 26, 2026
Sotetsu Holdings and its supermarket subsidiary SOTETSU ROSEN have decided to dissolve a long-standing business partnership with general trading house Marubeni Corporation, ending a collaboration that began in 2008 to improve ROSEN’s perform...
Sotetsu Holdings to Introduce Restricted Stock Plan for Directors
May 21, 2026
Sotetsu Holdings has resolved at its board meeting to introduce a new restricted stock compensation plan for internal directors, subject to shareholder approval at the June 26, 2026 annual general meeting. The scheme is designed to more closely al...
Sotetsu Holdings to Raise Director Pay Cap and Tie More Compensation to Performance
May 21, 2026
Sotetsu Holdings, Inc. has approved a revision of its directors’ remuneration plan, shifting from a structure focused largely on fixed pay to one that places greater emphasis on performance-linked compensation. The change reflects the growin...
Sotetsu Holdings Announces Wide-Ranging Executive and Governance Reshuffle
May 21, 2026
Sotetsu Holdings announced a broad reshuffle of its governance and management structure, including the nomination of Nissay Insurance Agency Corporation president Junjiro Tabata as an outside Audit Supervisory Board member and the planned retirem...
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.