Chichibu Railway Co., Ltd. (9012) AI Stock Analysis

• Market Cap: ¥3.10B
• Dividend Yield: N/A
• Average Volume (3M): 423.00
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.16
• Revenue Growth: 9.04%
• EPS Growth: N/A
• Country: JP
• Employees: 409
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 107.70
• Shares Outstanding: 1,500,000
• 10 Day Avg. Volume: 520
• 30 Day Avg. Volume: 423
• PEG Ratio: 1.05
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.57
• P/FCF Ratio: -25.91
• 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: 54 Neutral
• Price Target: ¥2,082.00 ▲(2.66% Upside)

Chichibu Railway Co., Ltd. shows moderate financial performance with positive revenue growth but faces challenges with debt reliance and negative cash flow. Technical indicators suggest stability but no strong momentum. The stock appears overvalued with no dividend yield, impacting its attractiveness.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates a positive trajectory, suggesting successful strategies in expanding its market reach and enhancing its service offerings.

Profitability Margins

Improved net profit margins reflect enhanced operational efficiency, which can lead to better financial health and shareholder returns over time.

Cash Generation

A strong operating cash flow relative to net income suggests robust cash generation, which is crucial for sustaining operations and funding growth initiatives.

Negative Factors

Debt Reliance

High reliance on debt can pose financial risks, especially if interest rates rise or if the company faces downturns, potentially impacting long-term stability.

Negative Free Cash Flow

Persistent negative free cash flow indicates ongoing cash constraints, which could limit the company's ability to invest in growth or weather economic challenges.

Low Operating Efficiency

Low operating margins suggest potential inefficiencies or high costs, which could hinder profitability and competitiveness in the long term.

Chichibu Railway Co., Ltd. Business Overview & Revenue Model

Company Description

Chichibu Railway Co., Ltd. (9012) is a Japanese railway company that operates primarily in the Saitama Prefecture, specializing in local and regional rail transport services. The company provides passenger transportation through its train services, which connect key areas within Chichibu City and surrounding regions. In addition to its rail operations, Chichibu Railway also engages in various other sectors, including tourism and real estate, offering services that enhance the travel experience and promote local attractions.

How the Company Makes Money

Chichibu Railway generates revenue primarily through ticket sales from its passenger train services. The company operates several train lines that cater to daily commuters and tourists, contributing significantly to its earnings. Additional revenue streams include leasing of properties and land associated with its rail networks, as well as sales from ancillary services such as travel packages, merchandise, and promotional events that highlight local attractions. Collaborations with tourism agencies and local businesses also play a vital role in enhancing its revenue, as these partnerships can drive higher passenger numbers and promote regional tourism.

Chichibu Railway Co., Ltd. Financial Statement Overview

Summary

Chichibu Railway Co., Ltd. shows moderate financial performance with notable revenue growth and improved profitability margins. However, reliance on debt and negative free cash flow are significant concerns.

Income Statement

Chichibu Railway Co., Ltd. shows a moderate performance on the income statement. The gross profit margin for 2025 is 29.83%, which indicates reasonable profitability from operations. The net profit margin increased to 2.19% in 2025 from 1.88% in 2024, reflecting improved efficiency. Revenue growth was notable at 7.39% from 2024 to 2025, indicating a positive trajectory. However, EBIT and EBITDA margins are relatively low at 5.78% and 7.51%, respectively, which suggests potential issues with operating efficiency or cost management.

Balance Sheet

The balance sheet of Chichibu Railway Co., Ltd. shows a stable but cautious outlook. The debt-to-equity ratio for 2025 is 1.10, indicating reliance on debt financing, which could pose risks if not managed carefully. Return on equity improved to 2.31% in 2025, up from 1.88% in 2024, showing better returns to shareholders. However, the equity ratio decreased to 29.62% in 2025 from 29.89% in 2024, suggesting a slight increase in leverage.

Cash Flow

Cash flow analysis for Chichibu Railway Co., Ltd. reveals some challenges. The free cash flow remained negative at -116.08 million yen in 2025, though an improvement from -704.72 million yen in 2024, indicating better cash management but still a concern. The operating cash flow to net income ratio improved significantly to 4.66 in 2025, suggesting robust cash generation compared to net income. However, the free cash flow to net income ratio remains negative, highlighting ongoing cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.31B	5.28B	4.91B	4.69B	4.35B	3.93B
Gross Profit	1.56B	1.57B	1.34B	987.42M	981.00M	598.92M
EBITDA	418.79M	396.38M	414.55M	-5.73B	217.55M	-473.12M
Net Income	110.80M	115.59M	92.57M	-5.05B	-47.72M	-531.34M
Balance Sheet
Total Assets	16.42B	16.90B	16.45B	16.95B	23.70B	23.45B
Cash, Cash Equivalents and Short-Term Investments	892.82M	1.08B	981.76M	810.76M	749.34M	1.27B
Total Debt	5.55B	5.53B	5.56B	5.50B	5.47B	4.50B
Total Liabilities	11.35B	11.90B	11.52B	11.92B	13.67B	13.26B
Stockholders Equity	5.08B	5.00B	4.92B	5.02B	10.02B	10.18B
Cash Flow
Free Cash Flow	0.00	-116.08M	-704.72M	-787.62M	-1.69B	47.41M
Operating Cash Flow	0.00	538.27M	34.28M	333.38M	-724.16M	465.41M
Investing Cash Flow	0.00	-406.07M	19.96M	-299.67M	-754.97M	-122.85M
Financing Cash Flow	0.00	-36.22M	116.76M	27.71M	959.98M	279.88M

Chichibu Railway Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2028.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9012, the sentiment is Positive. The current price of 2028 is below the 20-day moving average (MA) of 2065.65, below the 50-day MA of 2053.20, and below the 200-day MA of 2035.32, indicating a bullish trend. The MACD of 6.82 indicates Negative momentum. The RSI at 52.71 is Neutral, neither overbought nor oversold. The STOCH value of 58.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9012.

Chichibu Railway Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9017	72 Outperform	¥8.04B	7.10	―	0.48%	3.15%	4.75%
9049	71 Outperform	¥14.47B	8.01	―	0.28%	1.75%	-8.92%
9052	65 Neutral	¥46.11B	11.03	―	2.23%	4.37%	54.12%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9033	63 Neutral	¥18.28B	10.82	―	1.32%	1.70%	1841.47%
9046	59 Neutral	¥19.88B	15.75	―	0.81%	1.24%	19.78%
9012	54 Neutral	¥3.10B	9.44	―	―	9.04%	―