Odakyu Electric Railway Co (9007) AI Stock Analysis

• Market Cap: $579.85B
• Dividend Yield: 3.08%
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.64
• Revenue Growth: 3.14%
• EPS Growth: -35.02%
• Country: JP
• Employees: 11,661
• Sector: Industrials
• Sector Strength: 90
• Industry: Railroads
• EPS (TTM): 24.85
• Shares Outstanding: 368,497,740
• 10 Day Avg. Volume: 843,900
• 30 Day Avg. Volume: 1,062,706
• PEG Ratio: -0.25
• Price to Book (P/B): 1.18
• 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: $1,749.59
• Price Target Upside: 8.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: ¥1,740.00 ▲(8.04%Upside)

Odakyu Electric Railway's overall score reflects strong valuation metrics, indicating potential undervaluation in the market. The financial performance shows a notable recovery, but high leverage and cash flow challenges pose risks. Technical indicators suggest a stable upward trend. The absence of earnings call and corporate events data did not impact the score.

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 Co. generates revenue through multiple streams, with the primary source being its passenger rail services. The company earns money by selling tickets and passes to commuters and tourists traveling on its network. Additionally, Odakyu capitalizes on its real estate assets by developing and managing commercial and residential properties near its rail lines, which enhances land value and attracts more passengers. The company also operates retail outlets and department stores in and around its stations, earning revenue from retail sales and leasing space to other businesses. Furthermore, Odakyu's hospitality ventures, including hotels and resorts, particularly in tourist areas like Hakone, contribute to its earnings. Strategic partnerships with local governments and businesses further support its integrated service model, enhancing revenue potential across its diverse operations.

Odakyu Electric Railway Co Financial Statement Overview

Summary

Odakyu Electric Railway shows a strong recovery in revenue and profitability post-pandemic with solid profit margins. However, high leverage indicated by a debt-to-equity ratio of 1.28 and challenges in free cash flow generation are 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	422.70B	409.84B	395.16B	358.75B	385.98B
Gross Profit	125.88B	128.41B	108.22B	84.86B	57.05B
EBITDA	121.13B	151.93B	74.74B	55.80B	15.72B
Net Income	51.96B	81.52B	40.74B	12.12B	-39.80B
Balance Sheet
Total Assets	1.30T	1.30T	1.28T	1.29T	1.33T
Cash, Cash Equivalents and Short-Term Investments	35.03B	60.66B	67.60B	21.98B	49.40B
Total Debt	610.60B	628.69B	648.78B	691.66B	705.34B
Total Liabilities	820.73B	841.46B	891.49B	935.97B	974.54B
Stockholders Equity	478.28B	459.25B	387.38B	346.86B	349.88B
Cash Flow
Free Cash Flow	-52.25B	11.29B	14.90B	-24.86B	-33.48B
Operating Cash Flow	55.88B	71.63B	62.93B	48.62B	27.18B
Investing Cash Flow	-74.50B	23.43B	34.71B	-45.52B	-43.58B
Financing Cash Flow	-7.04B	-102.08B	-51.06B	-30.57B	37.21B

Odakyu Electric Railway Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1610.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9007, the sentiment is Neutral. The current price of 1610.5 is below the 20-day moving average (MA) of 1667.58, below the 50-day MA of 1633.93, and above the 200-day MA of 1546.41, indicating a neutral trend. The MACD of -3.74 indicates Positive momentum. The RSI at 36.11 is Neutral, neither overbought nor oversold. The STOCH value of 6.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
9007	71 Outperform	$579.85B	10.92	10.86%	3.08%	3.14%	-35.02%
Sector *	67 Neutral	€8.10B	20.81	6.46%	2.90%	1.89%	-38.99%
KELRF	―	$4.22B	9.08	14.35%	2.38%	―	―
KYYHF	―	$3.85B	12.62	9.60%	2.55%	―	―
TBURF	―	$3.34B	10.13	9.28%	0.02%	―	―
WJRYF	―	$10.10B	14.93	9.93%	2.84%	―	―
9044	75 Outperform	¥246.72B	11.04		2.07%	7.94%	-5.97%

Odakyu Electric Railway Co Corporate Events

Odakyu Electric Railway Reports Mixed Performance in Latest Update

Odakyu Electric Railway Co. reported a mixed performance in its latest operational update. The company saw a slight increase in passenger numbers and transportation revenue, indicating a steady demand for its railway services. However, the department store segment experienced a decline in sales, particularly at the Shinjuku Store, which could signal challenges in the retail environment. The hotel occupancy rates showed improvement, suggesting a recovery in the hospitality sector, although the Hakone Highland Hotel remains closed for renovations.

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 Announces Increased Dividend Payout

Odakyu Electric Railway Co., Ltd. announced a dividend payment of 25 yen per share for the fiscal year ended March 2025, as part of its shareholder return plan under the Medium-Term Management Plan. This marks an increase from the previous year’s dividend, aligning with the company’s policy to maintain a 30% shareholders’ equity ratio and a target consolidated payout ratio of at least 40% from FY2023 to FY2026.

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 Reports Modest Growth in Transport and Hospitality Sectors

Odakyu Electric Railway Co. reported a modest increase in passenger numbers and transportation revenue for commuters and non-commuters, with a slight overall growth of 1.4% in passengers carried and 0.7% in revenue. The department store segment showed mixed results, with a slight decline in total sales, while the hotel segment experienced significant improvements in occupancy rates, indicating a positive trend in hospitality operations.

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 Reports Growth in Passenger Numbers and Revenue

Odakyu Electric Railway Co., Ltd. reported an increase in passenger numbers and transportation revenue for the fiscal year, reflecting a recovery in commuter and non-commuter travel. The company also noted changes in department store sales and hotel occupancy rates, with a shift in fiscal year-end for its department store operations from February to March starting FY2024.

The most recent analyst rating on (JP:9007) stock is a Hold with a Yen1650.00 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 Increases Year-End Dividend Forecast

Odakyu Electric Railway Co., Ltd. has revised its year-end dividend forecast for the fiscal year ended March 2025, increasing it from 30 yen to 40 yen per share. This decision is part of the company’s Medium-Term Management Plan aimed at enhancing shareholder returns and improving financial metrics such as ROE and ROA, with a target to reduce the shareholders’ equity ratio to 30% by FY2030.

The most recent analyst rating on (JP:9007) stock is a Hold with a Yen1650.00 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 Reports Mixed Financial Results and Dividend Increase

Odakyu Electric Railway Co. reported a modest increase in operating revenue and profit for the fiscal year ending March 31, 2025, despite a significant drop in profit attributable to owners of the parent. The company also announced an increase in annual dividends per share, reflecting a commitment to returning value to shareholders. However, the forecast for the next fiscal year indicates a slight growth in operating revenue and profit, with a notable decrease in profit attributable to owners of the parent, suggesting potential challenges ahead.

The most recent analyst rating on (JP:9007) stock is a Hold with a Yen1650.00 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 Unveils Medium-Term Management Plan

Odakyu Electric Railway Co., Ltd. has announced a new Medium-Term Management Plan for FY2025–FY2026, focusing on becoming a community-based value creation company. The plan includes active investment in growth areas, strengthening shareholder returns, and enhancing human capital to achieve sustainable growth and improve corporate value.

The most recent analyst rating on (JP:9007) stock is a Hold with a Yen1650.00 price target. To see the full list of analyst forecasts on Odakyu Electric Railway Co stock, see the JP:9007 Stock Forecast page.