Keisei Electric Railway Co (9009) AI Stock Analysis

• Market Cap: $756.29B
• Dividend Yield: 0.84%
• Average Volume (3M): 1.95M
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.81
• Revenue Growth: 7.90%
• EPS Growth: 186.89%
• Country: JP
• Employees: 12,283
• Sector: Industrials
• Sector Strength: 80
• Industry: Railroads
• EPS (TTM): 19.10
• Shares Outstanding: 517,233,600
• 10 Day Avg. Volume: 1,435,480
• 30 Day Avg. Volume: 1,946,823
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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: $1,520.53
• Price Target Upside: -3.58% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

Keisei Electric Railway Co shows strong financial performance with improved profitability and a solid equity base. However, challenges in cash flow management and technical indicators suggest potential caution. The valuation appears attractive with a low P/E ratio, indicating potential undervaluation. Overall, the stock presents a mixed picture with significant strengths in financial performance but technical and cash flow concerns that may impact future growth.

Keisei Electric Railway Co Business Overview & Revenue Model

Company Description

Keisei Electric Railway Co., Ltd. provides public transportation services in Japan. The company offers railway transportation services between Narita airport and downtown Tokyo, as well as onward to Haneda airport. It also operates buses; and provides taxi services. In addition, the company engages in store, department store, shopping center, and garden plant wholesale businesses. Further, it is involved in the sale of condominium; and real estate leasing, restaurants, movies, hotels, advertising agencies, travel agencies, and other businesses. Additionally, the company builds and maintains various facilities, including residential buildings; and engages in the rail car maintenance, insurance agency, and driving school businesses. It operates 620 train cars covering 152.3 kilometers and 69 stations. The company was incorporated in 1909 and is headquartered in Ichikawa, Japan.

How the Company Makes Money

Keisei Electric Railway Co. generates revenue through several key streams. The primary source of income is its railway operations, where it charges passengers for transportation services across its extensive network connecting Tokyo with key destinations like Narita International Airport. In addition to passenger fares, the company earns money through real estate activities, which include leasing and developing properties around its railway stations to capitalize on high foot traffic areas. Retail operations, including shops and kiosks within stations, contribute to its revenue, alongside its leisure business, which encompasses activities such as tourism and hospitality. Strategic partnerships with other transportation and logistics companies further enhance its revenue potential by expanding service offerings and improving operational efficiency.

Keisei Electric Railway Co Financial Statement Overview

Summary

Keisei Electric Railway Co demonstrates robust financial performance with strong profitability and a solid equity base. While profitability metrics have improved significantly, especially in the latest TTM period, cash flow management remains a challenge. The balance sheet indicates a stable financial position, although increasing liabilities require careful attention. Overall, the company shows potential for sustained growth if cash flow issues are addressed.

Income Statement

Keisei Electric Railway Co shows strong financial performance in the TTM period with significant growth in net income and revenue compared to previous years. The gross profit margin and net profit margin have improved notably. The EBIT and EBITDA margins are healthy, indicating efficient cost management and operational profitability. However, the revenue growth rate has been inconsistent over the years, with fluctuations observed in previous years.

Balance Sheet

The company's balance sheet reflects a stable financial position with a good equity ratio, indicating a solid equity base. The debt-to-equity ratio is moderate, suggesting a balanced approach to leveraging. Return on equity has improved significantly in the latest period, highlighting increased profitability relative to the equity base. However, total liabilities have increased over time, which could pose future risks if not managed effectively.

Cash Flow

Cash flow analysis reveals challenges with operating and free cash flows in the TTM period. The free cash flow growth rate has been volatile, with no free cash flow reported in the most recent period. The operating cash flow to net income ratio and free cash flow to net income ratio are unavailable for the latest period, suggesting a need for better cash flow management. Historical data shows inconsistencies in cash flow generation, which could impact long-term sustainability.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
296.51B	252.34B	214.16B	207.76B	274.80B
	Gross Profit
74.72B	54.16B	33.12B	18.66B	67.65B
	EBIT
25.24B	10.23B	-5.20B	-18.06B	28.32B
	EBITDA
157.85B	41.85B	29.97B	359.00M	57.41B
	Net Income Common Stockholders
87.66B	26.93B	-4.44B	-30.29B	30.11B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
82.46B	34.61B	25.51B	29.13B	27.08B
	Total Assets
1.06T	965.57B	900.35B	900.70B	905.72B
	Total Debt
364.69B	359.82B	339.65B	327.59B	293.91B
	Net Debt
282.24B	325.21B	314.13B	298.45B	266.83B
	Total Liabilities
595.05B	554.63B	512.64B	504.65B	477.05B
	Stockholders Equity
451.62B	394.91B	369.76B	378.64B	411.03B
Cash Flow		Free Cash Flow
5.51B	14.41B	-9.40B	-24.07B	4.18B
	Operating Cash Flow
60.05B	47.24B	28.83B	9.28B	51.49B
	Investing Cash Flow
28.14B	-29.50B	-33.76B	-28.68B	-48.08B
	Financing Cash Flow
-40.26B	-20.92B	1.24B	21.50B	-4.41B

Keisei Electric Railway Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1577.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9009, the sentiment is Positive. The current price of 1577 is above the 20-day moving average (MA) of 1434.92, above the 50-day MA of 1437.07, and above the 200-day MA of 1427.51, indicating a bullish trend. The MACD of 29.23 indicates Negative momentum. The RSI at 68.01 is Neutral, neither overbought nor oversold. The STOCH value of 81.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9009.

Keisei Electric Railway Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9009	67 Neutral	$756.29B	6.54	14.35%	0.84%	7.90%	186.89%
Sector *	64 Neutral	$4.24B	11.64	5.23%	249.83%	4.07%	-10.54%

Keisei Electric Railway Co Corporate Events

Keisei Electric Railway Addresses Shareholder Dispute and Plans Future Strategy

Keisei Electric Railway Co. is addressing a disagreement with shareholder Palliser Capital Master Fund Ltd. regarding the nomination of outside directors. Despite Palliser’s claims of non-cooperation, Keisei asserts that it has consistently requested candidate information to evaluate nominations properly. The company remains committed to engaging with shareholders and is planning to conduct interviews with Palliser’s recommended candidates to enhance long-term corporate value. Additionally, Keisei is set to announce its medium-term management plan, the ‘D2 Plan,’ on May 21, 2025.