Odakyu Electric Railway Co (9007) AI Stock Analysis

• Market Cap: ¥605.61B
• Dividend Yield: 2.95%
• Average Volume (3M): 975.27K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.51
• Revenue Growth: -2.82%
• EPS Growth: -50.73%
• Country: JP
• Employees: 11,661
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 26.46
• 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: 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥1,953.00 ▲(15.39% Upside)

Odakyu Electric Railway's stock is supported by strong technical indicators and reasonable valuation. The company's financial performance shows recovery and growth, but high leverage and free cash flow challenges are risks. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Diversification

Odakyu's diversified revenue streams across transportation, real estate, retail, and tourism reduce dependency on any single sector, enhancing resilience against industry-specific downturns.

Profitability Recovery

Post-pandemic recovery in revenue and profitability, along with improving margins, indicates a return to efficient operations and a solid foundation for future growth.

Operational Efficiency

High EBIT and EBITDA margins suggest efficient operations, enabling the company to maintain profitability and competitiveness in its industry.

Negative Factors

High Leverage

Substantial leverage with a high debt-to-equity ratio poses financial risks, potentially limiting the company's ability to invest in growth opportunities or weather economic downturns.

Free Cash Flow Challenges

Challenges in generating free cash flow could constrain the company's ability to fund operations and investments, impacting long-term financial health and strategic flexibility.

Earnings Volatility

Earnings volatility, as seen during the pandemic, highlights potential vulnerability to external shocks, which could affect investor confidence and strategic planning.

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 shows a strong recovery in revenue and profitability post-pandemic, with solid income statement metrics. However, high leverage and challenges in free cash flow management pose risks. Overall, the company is on a stable growth trajectory but needs to manage debt levels and improve free cash flow.

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	411.37B	422.70B	409.84B	395.16B	358.75B	385.98B
Gross Profit	119.09B	125.88B	128.41B	108.22B	84.86B	57.05B
EBITDA	65.40B	121.13B	151.93B	74.74B	77.71B	15.72B
Net Income	40.77B	51.96B	81.52B	40.74B	12.12B	-39.80B
Balance Sheet
Total Assets	1.30T	1.30T	1.30T	1.28T	1.29T	1.33T
Cash, Cash Equivalents and Short-Term Investments	38.48B	35.03B	60.66B	67.60B	21.98B	49.40B
Total Debt	614.61B	610.60B	628.69B	648.78B	691.66B	705.34B
Total Liabilities	816.29B	820.73B	841.46B	891.49B	935.97B	974.54B
Stockholders Equity	480.75B	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: 1692.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1692.5 is below the 20-day moving average (MA) of 1710.45, above the 50-day MA of 1665.87, and above the 200-day MA of 1613.47, indicating a neutral trend. The MACD of 3.74 indicates Positive momentum. The RSI at 49.95 is Neutral, neither overbought nor oversold. The STOCH value of 23.19 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	78 Outperform	¥323.86B	13.40	―	1.66%	6.55%	-12.49%
9009	72 Outperform	$629.10B	8.35	13.92%	1.53%	6.30%	-16.29%
9007	70 Outperform	¥605.61B	13.91	8.51%	2.95%	-2.82%	-50.73%
9142	70 Neutral	¥618.17B	14.33	9.26%	2.72%	10.39%	32.43%
9021	66 Neutral	$1.39T	10.88	11.29%	3.02%	5.48%	33.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9001	62 Neutral	¥501.95B	10.16	8.78%	2.54%	1.72%	10.19%

Odakyu Electric Railway Co Corporate Events

Odakyu Electric Railway Co. Reports Mixed Operational Results Amid Strategic Changes

Odakyu Electric Railway Co. reported a slight increase in passenger numbers and transportation revenue for the fiscal year, with a notable rise in non-commuter segments. However, the department store sales showed a decline, while hotel occupancy rates varied across different properties. The company is undergoing changes in its accounting standards and has closed the Hakone Highland Hotel for renovations, indicating a focus on improving infrastructure and services.

Odakyu Electric Railway Co. Reports Mixed Operational Performance for September 2025

Odakyu Electric Railway Co. reported preliminary figures for its operations in September 2025, highlighting a slight increase in passenger numbers and transportation revenue compared to the previous year. However, the department store sales showed a decline, while hotel occupancy rates varied, with some hotels experiencing significant changes due to renovations and other factors. These figures indicate a mixed performance across different segments, reflecting ongoing challenges and opportunities in the company’s operations.

Odakyu Electric Railway Co. Reports Decline in Semi-Annual Financial Results

Odakyu Electric Railway Co. reported a decline in its consolidated financial results for the six months ending September 30, 2025, with operating revenues and profits showing a decrease compared to the previous year. Despite a slight increase in operating revenues forecasted for the fiscal year ending March 31, 2026, the company anticipates a significant drop in profit attributable to owners, indicating potential challenges in maintaining profitability.