Tokyu (9005) AI Stock Analysis

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Tokyu

(OTC:9005)

Rating:74Outperform

Price Target:

¥1,932.00

▲(15.55%Upside)

Tokyu is well-positioned financially with strong revenue and profit growth, though technical indicators suggest potential short-term weakness. The valuation is fair, reflecting steady investor sentiment.

Tokyu (9005) vs. iShares MSCI Japan ETF (EWJ)

Market Cap

¥1.01T

Dividend Yield1.55%

Average Volume (3M)1.31M

Price to Earnings (P/E)12.4

Beta (1Y)0.41

Revenue Growth1.65%

EPS Growth26.99%

CountryJP

Employees23,583

SectorConsumer Cyclical

Sector Strength69

IndustryDepartment Stores

Share Statistics

EPS (TTM)19.81

Shares Outstanding624,869,900

10 Day Avg. Volume1,371,850

30 Day Avg. Volume1,309,653

Financial Highlights & Ratios

PEG Ratio-4.64

Price to Book (P/B)1.15

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

¥1,932.49

Price Target Upside15.58% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Tokyu Business Overview & Revenue Model

Company DescriptionTokyu Corporation, listed as 9005 on the Tokyo Stock Exchange, is a diversified conglomerate primarily operating in Japan. The company is a leading player in the railway industry, providing extensive transportation services through its network of railways. Additionally, Tokyu is involved in real estate development, retail, and lifestyle services, including hotels and resorts, which complement its transportation business. The corporation's integrated business model fosters sustainable urban development and enhances community living standards.

How the Company Makes MoneyTokyu Corporation generates revenue through multiple channels primarily centered around its transportation and real estate sectors. The railway operations, covering a vast network in the Greater Tokyo Area, serve as a primary revenue stream through passenger fares. The company's real estate arm contributes significantly to its earnings by developing and managing commercial and residential properties in strategic locations along its railway lines, thereby increasing land and property value. Additionally, Tokyu capitalizes on its retail and lifestyle divisions, which include shopping centers, hotels, and leisure facilities, generating income through retail sales, hospitality services, and property leasing. Strategic partnerships and joint ventures in these sectors further bolster the company's profitability.

Tokyu Earnings Call Summary

Earnings Call Date:May 14, 2025

(Q2-2024)

% Change Since: -5.11%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong financial performance with significant year-on-year growth in revenue and profits. Positive results were seen across multiple segments, and the company presented an improved full-year forecast. New projects and developments are on track, and there were notable achievements in the hotel sector and ESG initiatives. However, some challenges remain, such as lower commuter usage on the Shin-Yokohama Line and risks from rising construction costs.

Q2-2024 Updates

Positive Updates

Strong Year-on-Year Growth in Q2 FY 2023

Operating revenue was JPY 483.4 billion, up JPY 48.7 billion year-on-year. Operating profit rose by JPY 23.7 billion, and profit attributable to owners of parent increased by JPY 16.5 billion.

Positive Performance Across Segments

Transportation segment saw an increase of JPY 13.7 million in operating revenue. Real Estate and Hotel and Resort segments also achieved growth, with profits up JPY 4.7 billion and JPY 4.1 billion, respectively.

Improved Full Year Forecast

Operating profit for FY 2023 is forecasted to be JPY 85 billion, up JPY 7 billion from the August forecast. Profit attributable to owners of parent is expected to be JPY 54 billion, up JPY 9 billion.

Successful New Projects and Developments

The Tokyu Kabukicho Tower saw over 3 million visitors, and the Shin-Yokohama Line reached about 70% of its passenger target. New development projects in Shibuya and other areas are progressing as planned.

Record High ADR in Hotel Sector

Percentage of foreign guests in Shibuya area hotels reached 74.5%, with ADR achieving record high levels.

Significant ESG Achievements

Achieved a 38% reduction in CO2 emissions compared to FY 2019. All Tokyu Railways lines now use 100% renewable energy.

Negative Updates

Lower Than Expected Commuter Usage on Shin-Yokohama Line

Although the new line reached 70% of its passenger target, commuter usage has not yet met expectations, requiring time for public awareness and demand generation.

Challenges from Rising Construction Costs

Sharp increases in construction costs pose a risk to the profitability of development projects, although it could benefit existing leasing portfolios if competing projects are canceled or delayed.

Company Guidance

During the earnings call for Tokyu Corporation's second quarter of FY 2024, President Horie provided comprehensive guidance on financial performance and forecasts. The company reported operating revenue of JPY 483.4 billion and an operating profit of JPY 45.5 billion, with profits attributable to owners at JPY 35 billion, showing significant year-on-year increases of JPY 48.7 billion, JPY 23.7 billion, and JPY 16.5 billion, respectively. For the full year FY 2023, Tokyu Corporation forecasts operating revenue of JPY 1.0395 trillion, operating profit of JPY 85 billion, and profit attributable to owners of JPY 54 billion, reflecting an upward revision from earlier predictions. Key segments like Transportation and Real Estate saw notable improvements, with the Transportation sector alone revising its operating profit forecast up by JPY 7 billion due to increased fares and reduced power costs. The company also highlighted initiatives in urban development and sustainability, emphasizing a 38% reduction in CO2 emissions compared to FY 2019, and plans for a cyclical reinvestment strategy designed to enhance the value and competitiveness of areas along Tokyu lines. Additionally, Tokyu Corporation announced a year-end dividend of JPY 10, raising the annual dividend to JPY 17.5 per share.

Tokyu Financial Statement Overview

Summary

Tokyu exhibits strong financial health, with consistent revenue and profit growth, improved margins, and effective cash flow management. While the debt level is noteworthy, it is balanced against a strong equity base and robust cash flows.

Income Statement

Very Positive

Tokyu's income statement shows strong financial performance with consistent revenue growth and improving profit margins. The gross profit margin has been improving over the years, indicating efficient cost management. The net profit margin has also shown a positive trajectory, reflecting enhanced bottom-line profitability. Both EBIT and EBITDA margins are solid, highlighting operational efficiency. The overall revenue growth rate is robust, especially considering the recovery from previous downturns.

Balance Sheet

Positive

Tokyu maintains a solid balance sheet with a healthy equity ratio, reflecting a strong capital base. The debt-to-equity ratio is reasonable, suggesting manageable leverage levels. Return on Equity (ROE) has improved significantly, indicating effective use of shareholders' equity to generate profits. However, the company has a substantial debt load, which could pose risks if not managed carefully.

Cash Flow

Positive

Tokyu's cash flow statement is strong, with consistent operating cash flow generation. Free cash flow has shown positive growth, indicating good cash management after capital expenditures. The operating cash flow to net income ratio is solid, suggesting that reported profits are well-supported by cash flows. The company has successfully turned around its free cash flow situation over the years, reflecting improved financial health.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.05T	1.04T	931.29B	879.11B	935.93B
Gross Profit	334.43B	321.66B	262.42B	239.77B	188.49B
EBITDA	202.98B	189.54B	127.58B	115.74B	41.20B
Net Income	79.68B	63.76B	26.00B	8.78B	-56.23B
Balance Sheet
Total Assets	2.70T	2.65T	2.61T	2.48T	2.48T
Cash, Cash Equivalents and Short-Term Investments	62.13B	43.35B	69.34B	52.27B	45.96B
Total Debt	1.29T	1.26T	1.29T	1.20T	1.18T
Total Liabilities	1.83T	1.82T	1.83T	1.73T	1.72T
Stockholders Equity	827.98B	789.25B	740.62B	702.97B	702.35B
Cash Flow
Free Cash Flow	24.56B	28.47B	-56.94B	-24.82B	-27.34B
Operating Cash Flow	155.10B	145.33B	95.40B	85.58B	85.89B
Investing Cash Flow	-113.73B	-101.00B	-154.43B	-78.81B	-115.19B
Financing Cash Flow	-25.53B	-71.96B	74.61B	-1.37B	17.18B

Tokyu Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1672.00

Price Trends

50DMA

1713.73

Negative

100DMA

1726.77

Negative

200DMA

1747.38

Negative

Market Momentum

MACD

-14.45

Positive

RSI

39.32

Neutral

STOCH

26.84

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9005, the sentiment is Negative. The current price of 1672 is below the 20-day moving average (MA) of 1692.95, below the 50-day MA of 1713.73, and below the 200-day MA of 1747.38, indicating a bearish trend. The MACD of -14.45 indicates Positive momentum. The RSI at 39.32 is Neutral, neither overbought nor oversold. The STOCH value of 26.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9005.

Tokyu Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9005	74 Outperform	¥1.01T	12.40	9.70%	1.55%	1.65%	26.99%
3086	74 Outperform	$530.15B	12.79	10.25%	2.17%	8.72%	19.26%
8233	73 Outperform	$337.73B	10.35	7.14%	2.28%	2.11%	-4.24%
8242	72 Outperform	€239.76B	6.65	11.92%	2.06%	3.71%	64.27%
3099	68 Neutral	¥795.14B	15.29	8.71%	2.75%	3.56%	-2.54%
Sector *	62 Neutral	$16.95B	10.84	-7.26%	3.05%	1.71%	-25.14%
8267	61 Neutral	$4.26T	139.16	2.60%	0.77%	6.08%	-35.70%

* Consumer Cyclical Sector Average

Performance Comparison

JP:9005

Tokyu

1,672.00

-92.37

-5.24%

JP:8242

H2O Retailing Corporation

1,965.50

-697.30

-26.19%

JP:3099

Isetan Mitsukoshi Holdings

2,178.00

-1,018.14

-31.86%

JP:8267

AEON Co

4,673.00

1,374.56

41.67%

JP:8233

Takashimaya Company

1,141.00

-305.85

-21.14%

JP:3086

J FRONT RETAILING Co

2,024.50

110.55

5.78%

Tokyu Corporate Events

Tokyu Corporation Adjusts Convertible Bond Conversion Prices Following Dividend Approval

Jun 27, 2025

Tokyu Corporation has announced an adjustment to the conversion price of its Zero Coupon Convertible Bonds due in 2028 and 2030, effective from April 1, 2025. This adjustment follows the payment of an extraordinary dividend, approved at the company’s general meeting, which impacts the conversion terms of the bonds, potentially affecting stakeholders’ investment strategies.

The most recent analyst rating on (JP:9005) stock is a Buy with a Yen2000.00 price target. To see the full list of analyst forecasts on Tokyu stock, see the JP:9005 Stock Forecast page.

Tokyu Corporation Reports Increased Profits and Dividends for FY 2025

May 30, 2025

Tokyu Corporation reported a steady increase in its financial performance for the fiscal year ending March 31, 2025, with operating revenue rising by 1.7% and operating profit by 9.0% compared to the previous year. The company also announced an increase in annual dividends, reflecting its strong financial position and commitment to returning value to shareholders.

The most recent analyst rating on (JP:9005) stock is a Buy with a Yen2000.00 price target. To see the full list of analyst forecasts on Tokyu stock, see the JP:9005 Stock Forecast page.

Tokyu Corporation Increases Year-End Dividend for Fiscal Year 2025

May 14, 2025

Tokyu Corporation announced an increase in its year-end dividend for the fiscal year ending March 31, 2025, raising it to 13.00 yen per share, up from the previous forecast of 12.00 yen. This decision aligns with the company’s policy of maintaining a 30% dividend payout ratio over the medium to long term and reflects its commitment to providing stable and increasing dividends based on its operating results.

The most recent analyst rating on (JP:9005) stock is a Buy with a Yen2000.00 price target. To see the full list of analyst forecasts on Tokyu stock, see the JP:9005 Stock Forecast page.

Tokyu Corporation Reports Strong Financial Performance for FY 2025

May 14, 2025

Tokyu Corporation reported a year-on-year increase in its financial performance for the fiscal year ending March 31, 2025, with operating revenue rising by 1.7% and profit attributable to owners of the parent increasing by 24.6%. The company also announced an increase in annual dividends per share, reflecting its improved financial health and commitment to returning value to shareholders.

The most recent analyst rating on (JP:9005) stock is a Buy with a Yen2000.00 price target. To see the full list of analyst forecasts on Tokyu stock, see the JP:9005 Stock Forecast page.

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.Date of analysis: Jun 13, 2025