Keio (9008) AI Stock Analysis

• Market Cap: ¥454.71B
• Dividend Yield: 2.62%
• Average Volume (3M): 373.06K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.64
• Revenue Growth: 6.97%
• EPS Growth: 8.61%
• Country: JP
• Employees: 12,918
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 82.40
• Shares Outstanding: 119,701,730
• 10 Day Avg. Volume: 430,420
• 30 Day Avg. Volume: 373,056
• PEG Ratio: 0.23
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 1.02
• P/FCF Ratio: -22.76
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥4,476.00 ▲(11.76% Upside)

Keio's strong financial performance and attractive valuation are key strengths, positioning it well in the conglomerates industry. However, technical indicators suggest caution due to overbought conditions, and high leverage requires careful management to mitigate financial risks.

Positive Factors

Revenue Growth

Keio's consistent revenue growth indicates a strong market position and effective business strategy, essential for long-term success.

Profit Margins

Improving profit margins reflect operational efficiency and effective cost management, supporting sustainable profitability.

Market Position

Keio's strategic position in the transportation sector ensures steady demand, underpinning its revenue stability and growth potential.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially impacting the company's ability to invest in growth and weather economic downturns.

Cash Flow Volatility

Volatile cash flow may hinder Keio's ability to fund operations and investments, posing a risk to long-term financial health.

Capital Management

Inefficient capital management could limit Keio's strategic flexibility and ability to capitalize on growth opportunities.

Keio Business Overview & Revenue Model

Company Description

Keio Corporation (9008) is a leading Japanese transportation and real estate company primarily engaged in the operation of a railway network in the Greater Tokyo area. Founded in 1906, Keio operates commuter rail services, providing critical transportation links for daily commuters. In addition to its transportation services, the company has diversified into real estate development, retail, and leisure services, managing shopping centers, hotels, and other facilities along its railway lines.

How the Company Makes Money

Keio Corporation generates revenue primarily through its railway operations, which include passenger fares from its extensive train services. This segment is bolstered by the high demand for commuter travel in the Tokyo metropolitan area. Additionally, the company earns significant income from real estate activities, including leasing and managing properties developed along its railway lines, which attract shoppers and visitors. Retail operations within its station complexes, as well as revenues from hotels and leisure facilities, contribute further to its earnings. Strategic partnerships with various businesses, such as retail brands and hospitality services, also enhance its profitability by driving foot traffic and customer engagement in its properties.

Keio Financial Statement Overview

Summary

Keio exhibits a strong financial position with impressive revenue and profit growth, reflecting operational excellence. The balance sheet is solid but high leverage warrants attention. Cash flow management needs improvement to stabilize free cash flow and ensure sustainable growth.

Income Statement

Keio has demonstrated strong revenue growth with a consistent upward trajectory since 2021. The gross profit margin and net profit margin have improved significantly over the years, showcasing enhanced profitability. The EBIT and EBITDA margins have also shown positive trends, reflecting operational efficiency. This impressive performance is indicative of a robust income statement position in the conglomerates industry.

Balance Sheet

The company's debt-to-equity ratio is relatively high, indicating significant leverage, which could pose a risk if not managed properly. However, the return on equity (ROE) has improved, suggesting efficient use of shareholders' funds. The equity ratio indicates a stable financial structure, with a substantial portion of assets funded by equity. Overall, the balance sheet is strong but requires careful monitoring of leverage levels.

Cash Flow

Keio's cash flow performance presents a mixed picture. The operating cash flow to net income ratio indicates good cash generation relative to profitability. However, the free cash flow has been volatile, with substantial negative values in recent years due to high capital expenditures. The free cash flow to net income ratio highlights a need for better capital management to ensure long-term liquidity and financial health.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	461.93B	452.92B	408.69B	347.13B	299.87B	315.44B
Gross Profit	114.34B	112.98B	96.99B	70.19B	47.79B	26.68B
EBITDA	88.43B	89.31B	75.50B	53.05B	48.63B	17.16B
Net Income	40.29B	42.86B	29.24B	13.11B	5.58B	-27.52B
Balance Sheet
Total Assets	1.10T	1.12T	1.08T	955.23B	906.21B	912.62B
Cash, Cash Equivalents and Short-Term Investments	37.18B	48.25B	73.06B	71.03B	67.40B	76.77B
Total Debt	457.00B	446.94B	435.35B	402.65B	375.71B	399.61B
Total Liabilities	677.68B	707.83B	685.46B	603.67B	563.93B	568.23B
Stockholders Equity	422.10B	414.64B	393.18B	351.59B	342.32B	344.34B
Cash Flow
Free Cash Flow	0.00	-20.27B	7.96B	-31.05B	-8.76B	-39.27B
Operating Cash Flow	0.00	28.61B	52.26B	25.04B	28.22B	6.90B
Investing Cash Flow	0.00	-38.11B	-42.48B	-42.05B	-14.32B	-30.82B
Financing Cash Flow	0.00	-15.36B	-7.76B	20.63B	-23.26B	58.77B

Keio Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4005.00
• 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:9008, the sentiment is Positive. The current price of 4005 is below the 20-day moving average (MA) of 4006.70, above the 50-day MA of 3872.18, and above the 200-day MA of 3712.13, indicating a bullish trend. The MACD of 35.84 indicates Positive momentum. The RSI at 55.83 is Neutral, neither overbought nor oversold. The STOCH value of 37.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9008.

Keio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9008	72 Outperform	¥454.71B	12.15	9.06%	2.62%	6.97%	8.61%
9045	68 Neutral	¥339.87B	12.13	8.87%	1.19%	-8.30%	14.55%
9024	67 Neutral	¥1.18T	5.67	―	1.05%	85.03%	198.15%
9048	66 Neutral	¥327.32B	11.91	―	2.26%	6.13%	-23.73%
9041	64 Neutral	¥580.64B	11.94	8.64%	1.82%	3.90%	5.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9010	60 Neutral	¥110.13B	20.84	―	1.40%	4.80%	30.05%

Keio Corporate Events

Keio Corporation Announces Stock Split and Amendments

Keio Corporation has announced a stock split, amending its Articles of Incorporation and altering its shareholder benefit program. The stock split aims to attract more individual investors by reducing the investment cost per share, increasing the total number of issued shares from 119,701,730 to 598,508,650. This strategic move is expected to broaden Keio’s shareholder base and potentially enhance market liquidity.

Keio Corporation Announces Treasury Share Acquisition Plan

Keio Corporation has announced its decision to acquire up to 3.4 million of its own common shares, representing 2.9% of its total issued shares, with a maximum acquisition amount of 10 billion yen. This move, scheduled between November 18, 2025, and March 31, 2026, aims to enhance shareholder returns and improve capital efficiency, with the acquired shares planned for cancellation to optimize the company’s capital structure.

Keio Corporation Revises Earnings Forecasts and Dividends Upward

Keio Corporation announced an upward revision of its full-year earnings forecasts and dividends, reflecting better-than-expected profits in the first half of the fiscal year. The company has increased its operating profit, ordinary profit, and profit attributable to owners of the parent, while maintaining the forecast for operating revenues. Additionally, Keio has revised its dividends from surplus and year-end dividends, indicating a positive outlook for stakeholders.

Keio Corporation Reports Q2 FY2025 Financial Results with Revenue Growth and Dividend Increase

Keio Corporation reported a 16.4 billion yen increase in operating revenues for the second quarter of FY2025, driven by growth in real estate sales, construction, and railway passenger numbers. Despite a slight decrease in operating profit and profit attributable to owners, the company has revised its full-year earnings forecast upwards, reflecting stronger-than-expected performance across most segments. Additionally, Keio has increased its annual dividend forecast to 110.0 yen per share.

Keio Corporation Reports Increased Revenue but Declining Profits in H1 2025

Keio Corporation reported its consolidated financial results for the six months ended September 30, 2025, showing a 7.7% increase in operating revenue to ¥230,688 million. Despite this, the company experienced a decline in profits, with operating profit and ordinary profit decreasing by 0.8% and 1.7% respectively, and profit attributable to owners of the parent dropping by 13.5%. The company also announced a revision to its cash dividend forecast, increasing the annual dividend per share to ¥110.00. These financial results and strategic dividend adjustments indicate Keio’s efforts to maintain shareholder value amidst fluctuating profit margins.