Sotetsu Holdings, Inc. (9003) AI Stock Analysis

• Market Cap: ¥223.83B
• Dividend Yield: 2.63%
• Average Volume (3M): 236.30K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.45
• Revenue Growth: 8.20%
• EPS Growth: 39.32%
• Country: JP
• Employees: 5,075
• Sector: Industrials
• Sector Strength: 86
• Industry: Conglomerates
• EPS (TTM): -6.50
• Shares Outstanding: 98,145,490
• 10 Day Avg. Volume: 214,600
• 30 Day Avg. Volume: 236,296
• PEG Ratio: 0.71
• Price to Book (P/B): 1.24
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥2,454.00 ▲(7.42%Upside)

The overall stock score reflects the company's solid financial performance and attractive valuation. Despite high leverage and cash flow volatility, the stable technical indicators and undervalued stock price contribute positively. The absence of significant earnings call data and corporate events does not affect the score.

Sotetsu Holdings, Inc. Business Overview & Revenue Model

Company Description

Sotetsu Holdings, Inc. (9003) is a Japanese company primarily engaged in the transportation sector, with its core operations centered around railway services. The company operates the Sotetsu Railway Line, serving the Kanagawa Prefecture and offering passenger railway transportation. Beyond its transportation services, Sotetsu Holdings has diversified interests in real estate, retail, and hospitality, leveraging its extensive railway network to enhance and support its subsidiary businesses.

How the Company Makes Money

Sotetsu Holdings, Inc. generates revenue primarily through its railway operations, which include passenger fares and related services. The company benefits from a stable customer base due to the necessity of commuter travel within its service areas. Additionally, Sotetsu Holdings capitalizes on its real estate assets by developing and leasing properties near its railway lines, creating synergies between its transportation and real estate businesses. The company also earns income from its retail and hospitality ventures, which are strategically located to capture the foot traffic generated by its railway operations. These diversified revenue streams are bolstered by strategic partnerships and investments that enhance operational efficiency and expand its market reach.

Sotetsu Holdings, Inc. Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	301.47B	270.04B	249.67B	216.68B	221.14B	265.10B
Gross Profit	111.47B	94.58B	73.83B	56.13B	51.89B	92.19B
EBITDA	50.23B	51.79B	36.81B	25.84B	11.85B	46.71B
Net Income	25.18B	16.08B	6.98B	1.85B	-13.06B	14.63B
Balance Sheet
Total Assets	727.60B	715.38B	646.95B	623.41B	619.41B	620.93B
Cash, Cash Equivalents and Short-Term Investments	22.70B	27.55B	20.16B	22.04B	23.68B	24.14B
Total Debt	421.86B	416.87B	373.32B	366.88B	358.88B	340.78B
Total Liabilities	546.37B	550.65B	501.16B	483.71B	480.10B	468.90B
Stockholders Equity	181.16B	164.65B	145.69B	139.63B	139.23B	151.94B
Cash Flow
Free Cash Flow	0.00	-37.71B	4.39B	-23.32B	-42.58B	-6.25B
Operating Cash Flow	0.00	20.55B	36.35B	23.75B	11.84B	34.32B
Investing Cash Flow	0.00	-58.04B	-33.57B	-29.42B	-24.75B	-28.65B
Financing Cash Flow	0.00	34.92B	-4.92B	3.89B	12.53B	-9.44B

Sotetsu Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2284.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9003, the sentiment is Positive. The current price of 2284.5 is above the 20-day moving average (MA) of 2228.73, above the 50-day MA of 2200.23, and below the 200-day MA of 2313.16, indicating a neutral trend. The MACD of 22.25 indicates Negative momentum. The RSI at 68.70 is Neutral, neither overbought nor oversold. The STOCH value of 81.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9003.

Sotetsu Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9003	73 Outperform	¥223.83B	9.98		2.63%	8.20%	39.32%
Sector *	71 Outperform	¥253.62B	13.00	8.49%	3.09%	6.31%	12.77%
9010	68 Neutral	¥108.00B	21.14		1.43%	3.02%	11.73%
9048	65 Neutral	¥320.24B	8.48		2.30%	14.91%	54.74%
9045	64 Neutral	$301.55B	11.15	9.19%	1.34%	3.77%	15.05%
9008	63 Neutral	¥390.26B	9.74	10.45%	2.90%	10.82%	47.20%
9041	61 Neutral	$526.53B	11.27	8.66%	1.81%	6.89%	-2.82%

Sotetsu Holdings, Inc. Corporate Events

Sotetsu Holdings Completes Treasury Share Repurchase

Sotetsu Holdings, Inc. has completed the repurchase of 407,400 common shares at a total cost of 889,354,950 yen, as part of a resolution to acquire up to 2 million shares. This strategic move, executed through the Tokyo Stock Exchange, aims to optimize the company’s capital structure and potentially enhance shareholder value.

Sotetsu Holdings Proposes Amendments to Articles of Incorporation

Sotetsu Holdings, Inc. announced a proposal to amend its Articles of Incorporation, which will be presented at the upcoming General Meeting of Shareholders. The amendment aims to update the company’s corporate objectives to better align with its current business operations and clarify its enterprise content, potentially impacting its strategic direction and stakeholder interests.

Sotetsu Holdings Announces Executive Leadership Changes

Sotetsu Holdings, Inc. announced significant changes in its executive leadership, including the appointment of Takamasa Kato as the new Representative Director and President. These changes align with the company’s Seventh Medium-Term Management Plan, aiming to enhance growth and prepare for major developments such as the remodeling of Yokohama Station’s west exit. The restructuring reflects Sotetsu’s strategy to strengthen its group management system and pursue its long-term growth roadmap.

Sotetsu Holdings Clarifies Executive Personnel Report

Sotetsu Holdings Inc. addressed a report in the Kanagawa Shimbun regarding its executive personnel, clarifying that the information was not officially announced by the company. The Board of Directors is set to deliberate on executive personnel decisions, and the company plans to disclose outcomes promptly, highlighting its commitment to transparency.

Sotetsu Holdings Unveils Seventh Medium-Term Management Plan

Sotetsu Holdings, Inc. has announced its Seventh Medium-Term Management Plan for FY2025 to FY2027, focusing on sustainable growth through the expansion of business areas and strengthening its real estate and overseas operations. The plan aims to balance the development of a preferred railway line with business diversification, emphasizing structural reforms, sustainability, and leveraging management resources to enhance earning power and prepare for large-scale investments.

Sotetsu Holdings Increases Year-End Dividend Amid Strong Performance

Sotetsu Holdings, Inc. announced an increase in its year-end dividend for the fiscal year ended March 31, 2025, raising it to 35.00 yen per share, up from the previous forecast of 30.00 yen. This decision reflects the company’s policy to distribute profits according to business performance, enhancing internal reserves while considering the business environment and capital investment plans.

Sotetsu Holdings Reports Robust Financial Growth for FY 2025

Sotetsu Holdings, Inc. reported a strong financial performance for the fiscal year ended March 31, 2025, with a notable increase in operating revenues and profits. The company saw a 39.3% rise in profit attributable to owners, reflecting robust operational efficiency and strategic growth initiatives. The announcement highlights the company’s solid financial footing and its commitment to enhancing shareholder value through increased dividends and strategic treasury share purchases.