Sotetsu Holdings, Inc. (JP:9003)
:9003
Want to see JP:9003 full AI Analyst Report?
Top Page
Sotetsu Holdings, Inc.
(9003)
Select Model
Select Model
Rating:57Neutral
Price Target:
¥2,454.00
▼(-12.92% Downside)
Action:Downgraded
Date:04/30/26
The score is driven primarily by mixed fundamentals: strong profitability recovery is offset by elevated leverage and consistently weak free cash flow. Technical indicators add pressure due to a clear downtrend, while the low P/E and dividend yield provide valuation support.
Positive Factors
Improved Profitability & Scale
Sotetsu has meaningfully rebuilt scale and profitability since FY2021: revenue grew to 307.6B and net income recovered to 24.8B, with expanded margins. That sustained operating leverage supports longer-term cash flow potential if demand remains stable.
Negative Factors
Elevated Leverage
High and rising debt relative to equity leaves Sotetsu sensitive to higher funding costs and reduces strategic flexibility. With leverage around 2.4x equity, interest burdens and refinancing risk could constrain capital allocation to growth or dividends across a 2–6 month horizon if rates or liquidity tighten.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Profitability & Scale
Sotetsu has meaningfully rebuilt scale and profitability since FY2021: revenue grew to 307.6B and net income recovered to 24.8B, with expanded margins. That sustained operating leverage supports longer-term cash flow potential if demand remains stable.
Read all positive factors
Sotetsu Holdings, Inc. (9003) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥239.66B
Dividend Yield2.3%
Average Volume (3M)387.41K
Price to Earnings (P/E)9.4
Beta (1Y)0.33
Revenue Growth5.27%
EPS Growth13.09%
CountryJP
Employees5,075
SectorIndustrials
Sector Strength72
IndustryConglomerates
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)262.3
Revenue Forecast (FY)¥304.20B
Sotetsu Holdings, Inc. Business Overview & Revenue Model
Company Description
Sotetsu Holdings, Inc. is a prominent Japanese conglomerate with core operations centered on an extensive transportation network, providing both railway and bus services. The company also maintains a significant retail presence through its superma...
How the Company Makes Money
Sotetsu Holdings makes money through multiple operating segments under its holding-company structure. (1) Transportation (railway) revenue is primarily generated from passenger fares and commuter traffic on Sotetsu’s rail lines, with earnings infl...
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
2818.00
Price Trends
2663.28
Negative
2751.87
Negative
2697.17
Negative
Market Momentum
-54.21
Negative
39.61
Neutral
60.74
Neutral
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 2818 is above the 20-day moving average (MA) of 2435.35, above the 50-day MA of 2663.28, and above the 200-day MA of 2697.17, indicating a neutral trend. The MACD of -54.21 indicates Negative momentum. The RSI at 39.61 is Neutral, neither overbought nor oversold. The STOCH value of 60.74 is Neutral, 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 | ¥643.59B | 11.93 | 8.64% | 1.82% | 0.49% | 15.11% | |
65 Neutral | ¥351.60B | 15.27 | ― | 2.26% | 0.12% | -39.06% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ¥1.04T | 13.01 | 6.64% | 2.07% | 8.73% | 17.30% | |
58 Neutral | ¥423.37B | 9.78 | 9.06% | 2.62% | 9.72% | 3.53% | |
57 Neutral | ¥239.66B | 9.40 | ― | 2.30% | 5.27% | 13.09% | |
44 Neutral | ¥769.48B | 19.44 | ― | 1.05% | -43.04% | -83.91% |
* Industrials Sector Average
JP:9003
Sotetsu Holdings, Inc.
2,446.00
283.86
13.13%
JP:9042
Hankyu Hanshin Holdings
4,347.00
517.92
13.53%
JP:9041
Kintetsu Group Holdings Co
3,384.00
762.50
29.09%
JP:9008
Keio
730.50
40.86
5.92%
JP:9024
Seibu Holdings, Inc.
2,986.50
-1,494.41
-33.35%
JP:9048
Nagoya Railroad Co., Ltd.
1,788.00
219.79
14.02%
Sotetsu Holdings, Inc. Corporate Events
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...
Sotetsu Holdings Hikes Year-End Dividend, Lifts Annual Payout to 70 Yen
Apr 28, 2026
Sotetsu Holdings, Inc. has approved a year-end dividend of 40 yen per share for the fiscal year ended March 31, 2026, raising the payout by 5 yen compared with its most recent forecast and the previous fiscal year. The total dividend for the year ...
Sotetsu Holdings Lifts FY2026 Profit but Sees Earnings Dip Ahead on Rising Costs
Apr 28, 2026
Sotetsu Holdings reported consolidated operating revenue of 307.5 billion yen for the fiscal year ended March 31, 2026, up 5.3% year on year, with operating profit rising 2.7% to 38.8 billion yen and profit attributable to owners of parent jumping...
Sotetsu Holdings Lifts FY2026 Profit and Dividend, Sees Profit Dip in FY2027 Outlook
Apr 28, 2026
Sotetsu Holdings reported consolidated operating revenues of ¥307.6 billion for the fiscal year ended March 31, 2026, up 5.3% year on year, with operating profit rising 2.7% to ¥38.8 billion and profit attributable to owners of parent cl...
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.