Keio (9008) AI Stock Analysis

• Market Cap: $388.45B
• Dividend Yield: 2.79%
• Average Volume (3M): 571.47K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.66
• Revenue Growth: 10.82%
• EPS Growth: 47.71%
• Country: JP
• Employees: 12,918
• Sector: Industrials
• Sector Strength: 92
• Industry: Conglomerates
• EPS (TTM): 32.33
• Shares Outstanding: 119,701,730
• 10 Day Avg. Volume: 509,110
• 30 Day Avg. Volume: 571,473
• PEG Ratio: 0.69
• Price to Book (P/B): 1.15
• 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: $4,267.03
• Price Target Upside: 22.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: ¥3,687.00 ▲(5.74%Upside)

Keio's strong financial performance underpins the stock score, with notable revenue and profit growth. However, technical analysis reflects weak market momentum and bearish signals, which impacts the overall score. The stock's valuation remains attractive with a low P/E ratio and decent dividend yield, offering a potential opportunity for value investors.

Keio Business Overview & Revenue Model

Company Description

Keio Corporation (9008) is a prominent Japanese public transport and real estate company based in Tokyo. It primarily operates railway services, providing commuter and passenger transportation across various lines, including the Keio Line, Inokashira Line, and several others. Besides its core transportation services, Keio also engages in real estate development and management, retail operations, and hospitality services, including hotels and leisure facilities, making it a diversified player in the transportation and urban development sectors.

How the Company Makes Money

Keio Corporation generates revenue through multiple streams, primarily from its railway operations, which include ticket sales and commuter passes. The company also benefits from its extensive real estate holdings by developing and leasing properties, including commercial and residential spaces. Additionally, Keio earns income from its retail operations, such as shopping centers and department stores, and hospitality services, including hotels and leisure facilities. Strategic partnerships and collaborations with other transportation and retail companies further bolster its revenue streams. The company's diversified business model allows it to capitalize on synergies between its transportation and real estate sectors, enhancing its overall profitability.

Keio Financial Statement Overview

Summary

Keio demonstrates strong revenue growth and profitability improvements, with stable financial leverage. While the income statement performance is commendable, the balance sheet shows moderate leverage risk. However, the cash flow statement highlights potential liquidity challenges, requiring attention to cash flow management practices. Overall, the company is on a positive financial trajectory but must address cash flow constraints to sustain long-term growth.

Income Statement

Keio's income statement shows a strong trajectory with a notable revenue growth of 10% TTM, driven by a significant improvement in profitability. The gross profit margin stands at 24.9% TTM, indicating efficient cost management. Additionally, the net profit margin improved to 9.6% TTM, highlighting enhanced earnings. The EBIT margin increased to 12% TTM, reflecting strong operational performance. However, the EBITDA margin at 18% TTM indicates room for further EBITDA efficiency gains.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.10, indicating moderate leverage. The return on equity (ROE) improved to 10.3% TTM, showcasing effective utilization of shareholder funds. The equity ratio of 38% TTM suggests a solid equity foundation, providing a buffer against financial instability. Despite the improvement, the company still has a relatively high debt level, which could pose a risk if not managed carefully.

Cash Flow

Keio's cash flow statement presents challenges, with free cash flow remaining at zero TTM, indicating potential liquidity constraints. The absence of operating cash flow data hampers a full assessment of cash flow efficiency. Historical data shows periods of negative free cash flow, suggesting a need for improved cash flow management. While investments in capital expenditures are evident, the lack of free cash flow growth highlights a critical area for improvement.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
449.51B	408.69B	347.13B	299.87B	315.44B	433.67B
	Gross Profit
111.79B	96.99B	70.19B	47.79B	26.68B	88.44B
	EBIT
53.92B	43.84B	21.48B	740.00M	-20.87B	36.02B
	EBITDA
81.12B	75.50B	53.05B	48.63B	17.16B	67.77B
	Net Income Common Stockholders
43.06B	29.24B	13.11B	5.58B	-27.52B	17.88B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
82.47B	73.06B	71.03B	67.40B	76.77B	41.98B
	Total Assets
1.10T	1.08T	955.23B	906.21B	912.62B	876.69B
	Total Debt
461.45B	435.35B	402.65B	375.71B	399.61B	329.50B
	Net Debt
378.98B	362.29B	331.62B	308.31B	322.84B	289.52B
	Total Liabilities
683.54B	685.46B	603.67B	563.93B	568.23B	503.24B
	Stockholders Equity
418.90B	393.18B	351.59B	342.32B	344.34B	373.17B
Cash Flow		Free Cash Flow
0.00	7.96B	-31.05B	-8.76B	-39.27B	-11.66B
	Operating Cash Flow
0.00	52.26B	25.04B	28.22B	6.90B	50.16B
	Investing Cash Flow
0.00	-42.48B	-42.05B	-14.32B	-30.82B	-50.57B
	Financing Cash Flow
0.00	-7.76B	20.63B	-23.26B	58.77B	-15.61B

Keio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3487.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9008, the sentiment is Negative. The current price of 3487 is below the 20-day moving average (MA) of 3540.90, below the 50-day MA of 3733.43, and below the 200-day MA of 3696.18, indicating a bearish trend. The MACD of -95.39 indicates Negative momentum. The RSI at 29.68 is Positive, neither overbought nor oversold. The STOCH value of 13.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9008.

Keio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9024	80 Outperform	¥1.10T	4.43		0.96%	88.68%	901.94%
9010	68 Neutral	¥108.22B	21.19		1.42%	3.02%	11.73%
Sector *	66 Neutral	$4.50B	12.28	5.32%	248.52%	4.13%	-12.36%
9048	65 Neutral	¥318.37B	8.43		2.38%	14.91%	54.78%
9045	64 Neutral	$333.24B	11.59	9.19%	1.22%	3.77%	15.59%
9008	63 Neutral	$388.45B	9.70	10.45%	2.79%	10.82%	47.71%
9041	61 Neutral	$516.26B	11.05	8.66%	1.75%	6.89%	-2.82%

Keio Corporate Events

Keio Corporation Unveils ‘HIRAKU2030’ Medium-Term Management Plan

Keio Corporation has announced its Medium-Term Management Plan, ‘HIRAKU2030,’ which aims to enhance corporate value and urban development through large-scale projects and digital transformation initiatives. The plan focuses on improving asset efficiency, shareholder returns, and sustainability management, positioning FY2030 as a key milestone for future growth and establishing Keio as a top brand in trust.

The most recent analyst rating on (JP:9008) stock is a Buy with a Yen4700.00 price target. To see the full list of analyst forecasts on Keio stock, see the JP:9008 Stock Forecast page.

Keio Corporation Unveils ‘HIRAKU 2030’ Management Plan

Keio Corporation has announced the establishment of its Medium-Term Management Plan, ‘HIRAKU 2030,’ which will guide the company’s strategic initiatives from fiscal year 2025 through 2030. This plan is expected to significantly impact Keio’s operations and industry positioning by outlining the company’s future growth and development strategies, although specific implications for stakeholders are not detailed in the release.

The most recent analyst rating on (JP:9008) stock is a Buy with a Yen4700.00 price target. To see the full list of analyst forecasts on Keio stock, see the JP:9008 Stock Forecast page.

Keio Corporation Announces Key Officer Personnel Changes

Keio Corporation announced a series of officer personnel changes, which were internally approved at the Board of Directors meeting. These changes, set to be officially decided at the upcoming Annual General Meeting, include new director appointments and retirements, potentially impacting the company’s strategic direction and operational management.

The most recent analyst rating on (JP:9008) stock is a Buy with a Yen4700.00 price target. To see the full list of analyst forecasts on Keio stock, see the JP:9008 Stock Forecast page.

Keio Corporation Abolishes Takeover Defense Measures

Keio Corporation has decided to discontinue its takeover defense measures, which were initially introduced to protect corporate value and shareholder interests. This decision, made at the Board of Directors meeting, reflects a shift in strategy as the company adapts to changing business environments and shareholder opinions, potentially impacting its future acquisition strategies and corporate governance.

The most recent analyst rating on (JP:9008) stock is a Buy with a Yen4700.00 price target. To see the full list of analyst forecasts on Keio stock, see the JP:9008 Stock Forecast page.

Keio Corporation Reports Strong 2025 Financial Results Amid Forecasted Challenges

Keio Corporation reported a significant increase in its consolidated financial results for the fiscal year ending March 31, 2025, with operating revenues rising by 10.8% and profit attributable to owners of the parent increasing by 46.6%. Despite a positive performance in 2025, the company forecasts a decline in profits for the fiscal year ending March 31, 2026, indicating potential challenges ahead in maintaining its growth trajectory.

Keio Corporation Revises Shinjuku Station Development Plan

Keio Corporation has announced a revision to its Shinjuku Station Southwest Exit Area Development Plan, initially set from FY2023 to FY2028, now extended to an unspecified date. This change is due to delays in commencing construction in the southern area of the project, though the company anticipates minimal impact on its financial results for the fiscal year ending March 31, 2025.