Odakyu Electric Railway Co (9007) AI Stock Analysis

• Market Cap: $583.25B
• Dividend Yield: 3.05%
• Average Volume (3M): 975.27K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.54
• Revenue Growth: -1.80%
• EPS Growth: -56.03%
• Country: JP
• Employees: 11,661
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 40.37
• Shares Outstanding: 368,497,740
• 10 Day Avg. Volume: 760,150
• 30 Day Avg. Volume: 975,270
• PEG Ratio: -0.29
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 1.23
• P/FCF Ratio: -9.96
• Enterprise Value/Market Cap: 1.99
• Enterprise Value/Revenue: 2.70
• Enterprise Value/Gross Profit: 8.73
• Enterprise Value/Ebitda: 7.81
• 1Y Price Target: $1,957.49
• Price Target Upside: 18.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥1,794.00 ▲(8.69% Upside)

Odakyu Electric Railway's overall stock score is driven by its strong financial recovery and reasonable valuation. However, high leverage and challenges in free cash flow management are significant risks. Technical indicators suggest a neutral trend, with no strong momentum signals.

Odakyu Electric Railway Co Business Overview & Revenue Model

Company Description

Odakyu Electric Railway Co., Ltd., together with its subsidiaries, engages in the transportation, real estate, merchandising, and other businesses in Japan. The company offers transportation services through railroads, buses, and tourism-related vehicles; and real estate sales and leasing services. It also operates department stores, supermarkets, and other various stores; and operates hotels and restaurants. The company was founded in 1923 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Odakyu Electric Railway generates revenue primarily through its railway operations, which include passenger fares from its extensive train services. Additionally, the company earns income from its real estate ventures, including the leasing and development of commercial properties, as well as retail operations in shopping centers. The tourism sector also contributes significantly, with revenues from hotel services and leisure facilities. Key partnerships with local businesses and participation in regional development initiatives further bolster its revenue streams, allowing for diversified income sources beyond just transportation.

Odakyu Electric Railway Co Financial Statement Overview

Summary

Odakyu Electric Railway demonstrates strong recovery in revenue and profitability metrics post-pandemic with solid income statement performance. However, high leverage and cash flow challenges, particularly with free cash flow, are notable concerns.

Income Statement

Odakyu Electric Railway has shown a consistent recovery in its income statement metrics over the years. The gross profit margin for the latest year is approximately 29.78%, while the net profit margin stands at 12.29%, indicating solid profitability. Revenue growth rate from 2024 to 2025 is 3.14%, reflective of stable growth. EBIT and EBITDA margins at 12.16% and 28.66% respectively, suggest efficient operations. However, the company experienced a significant dip in net income and EBITDA during the pandemic years, which has rebounded well in recent periods.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 1.28, which indicates substantial leverage. Return on Equity (ROE) is 10.86%, showing decent profitability relative to shareholder equity. The equity ratio stands at 36.79%, suggesting a moderate capital structure with a reliance on both equity and liabilities. The high debt levels pose a risk, but the company has managed it well with improving equity and asset base.

Cash Flow

Odakyu's cash flow statement reflects challenges in generating free cash flow, with a negative free cash flow growth rate from 2024 to 2025. The operating cash flow to net income ratio is 1.08, showing effective conversion of net income into operating cash flow. However, the free cash flow to net income ratio is negative, highlighting capital expenditure challenges. The company needs to focus on improving free cash flow to strengthen its financial position.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	428.67B	422.70B	409.84B	395.16B	358.75B	385.98B
Gross Profit	132.83B	125.88B	128.41B	108.22B	84.86B	57.05B
EBITDA	148.51B	121.13B	151.93B	74.74B	77.71B	15.72B
Net Income	93.90B	51.96B	81.52B	40.74B	12.12B	-39.80B
Balance Sheet
Total Assets	1.31T	1.30T	1.30T	1.28T	1.29T	1.33T
Cash, Cash Equivalents and Short-Term Investments	47.82B	35.03B	60.66B	67.60B	21.98B	49.40B
Total Debt	626.68B	610.60B	628.69B	648.78B	691.66B	705.34B
Total Liabilities	835.03B	820.73B	841.46B	891.49B	935.97B	974.54B
Stockholders Equity	471.71B	478.28B	459.25B	387.38B	346.86B	349.88B
Cash Flow
Free Cash Flow	0.00	-52.25B	11.29B	14.90B	-24.86B	-33.48B
Operating Cash Flow	0.00	55.88B	71.63B	62.93B	48.62B	27.18B
Investing Cash Flow	0.00	-74.50B	23.43B	34.71B	-45.52B	-43.58B
Financing Cash Flow	0.00	-7.04B	-102.08B	-51.06B	-30.57B	37.21B

Odakyu Electric Railway Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1650.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9007, the sentiment is Positive. The current price of 1650.5 is above the 20-day moving average (MA) of 1640.50, below the 50-day MA of 1677.07, and above the 200-day MA of 1567.23, indicating a neutral trend. The MACD of -10.10 indicates Negative momentum. The RSI at 47.30 is Neutral, neither overbought nor oversold. The STOCH value of 79.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9007.

Odakyu Electric Railway Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9044	―	¥315.59B	13.49	―	1.65%	7.02%	-11.48%
9009	―	$669.97B	9.27	14.30%	1.44%	5.92%	-21.51%
9142	―	$602.41B	12.48	11.09%	2.74%	9.64%	52.99%
9007	―	$583.25B	13.66	8.68%	3.05%	-1.80%	-56.03%
9021	―	$1.46T	12.07	11.32%	2.62%	3.82%	24.30%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9001	―	$506.95B	10.07	9.28%	2.34%	0.26%	11.28%

Odakyu Electric Railway Co Corporate Events

Odakyu Electric Railway Co. Reports Mixed Results for FY2025 First Half

Odakyu Electric Railway Co. reported a modest increase in passenger numbers and revenue for the first half of FY2025, with a notable rise in non-commuter traffic. However, its department store sales showed a decline, particularly in the Shinjuku and Fujisawa stores. The hotel segment experienced mixed occupancy rates, with some properties showing improvements while others declined. The Hakone Highland Hotel remains closed for renovations, impacting overall hotel performance.

The most recent analyst rating on (JP:9007) stock is a Hold with a Yen1712.00 price target. To see the full list of analyst forecasts on Odakyu Electric Railway Co stock, see the JP:9007 Stock Forecast page.

Odakyu Electric Railway Co. Reports Decline in Q1 Earnings

Odakyu Electric Railway Co., Ltd. is a prominent Japanese company operating in the transportation sector, primarily known for its railway services, alongside real estate and life services businesses.

Odakyu Electric Railway Reports Decline in Q1 2025 Financial Results

Odakyu Electric Railway Co., Ltd. reported a decline in its consolidated financial results for the three months ended June 30, 2025, with operating revenues and profits showing a year-on-year decrease. The company has outlined its financial forecast for the fiscal year ending March 31, 2026, expecting slight growth in operating revenues and profits, but a significant drop in profit attributable to owners of the parent, indicating challenges in maintaining profitability.

The most recent analyst rating on (JP:9007) stock is a Hold with a Yen1600.00 price target. To see the full list of analyst forecasts on Odakyu Electric Railway Co stock, see the JP:9007 Stock Forecast page.

Odakyu Electric Railway Secures ¥56.7 Billion Loan with Financial Covenants

Odakyu Electric Railway Co., Ltd. has entered into a monetary loan agreement with various financial institutions, including regional and foreign banks, to secure business funds amounting to ¥56,700 million. The agreement includes financial covenants requiring a credit rating of BBB- or higher, and the impact on the company’s consolidated financial results is expected to be minor.

The most recent analyst rating on (JP:9007) stock is a Hold with a Yen1600.00 price target. To see the full list of analyst forecasts on Odakyu Electric Railway Co stock, see the JP:9007 Stock Forecast page.