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

• Market Cap: ¥3.00B
• Dividend Yield: N/A
• Average Volume (3M): 93.00
• Price to Earnings (P/E): 26.0
• Beta (1Y): 0.14
• Revenue Growth: 7.40%
• EPS Growth: 24.66%
• Country: JP
• Employees: 409
• Sector: Industrials
• Sector Strength: 89
• Industry: Railroads
• EPS (TTM): -40.51
• Shares Outstanding: 1,500,000
• 10 Day Avg. Volume: 90
• 30 Day Avg. Volume: 93
• PEG Ratio: 0.10
• Price to Book (P/B): 0.60
• 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: ¥2,105.00
• Price Target Upside: 4.16% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: ¥2,032.00 ▲(0.54%Upside)

The overall stock score is influenced by moderate financial performance and mixed technical analysis, with the primary concern being the company's high P/E ratio suggesting potential overvaluation.

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

Company Description

Chichibu Railway Co., Ltd. (9012) is a Japanese company primarily engaged in the operation of railway services in the Saitama Prefecture. The company provides passenger and freight transportation services and operates a network that connects key urban and suburban areas. In addition to its core railway operations, Chichibu Railway also offers ancillary services such as real estate development, tourism, and advertising, leveraging its railway assets and locations to enhance its service offerings.

How the Company Makes Money

Chichibu Railway Co., Ltd. generates revenue through multiple streams, primarily from passenger fares and freight charges. Its railway network facilitates daily commutes and travel for both local residents and tourists, which forms a significant portion of its income. Additionally, the company capitalizes on its real estate holdings by leasing and developing properties adjacent to its railway lines. Chichibu Railway also earns money through tourism-related activities, offering special tourist trains and packages that attract visitors to the scenic areas along its routes. Furthermore, advertising on trains and stations provides an additional revenue stream, as businesses pay for exposure to the railway's passenger base. Strategic partnerships with local businesses and governmental support for regional transportation infrastructure also play a role in the company's financial performance.

Chichibu Railway Co., Ltd. Financial Statement Overview

Summary

Chichibu Railway Co., Ltd. shows moderate financial performance with improvements in revenue growth and profitability margins, indicating positive momentum. However, reliance on debt and negative free cash flow are concerns that need addressing to enhance financial stability.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.28B	4.91B	4.69B	4.35B	3.93B
Gross Profit	1.57B	1.34B	987.42M	981.00M	598.92M
EBITDA	396.38M	414.55M	-5.73B	217.55M	-473.12M
Net Income	115.59M	92.57M	-5.05B	-47.72M	-531.34M
Balance Sheet
Total Assets	16.90B	16.45B	16.95B	23.70B	23.45B
Cash, Cash Equivalents and Short-Term Investments	1.08B	981.76M	810.76M	749.34M	1.27B
Total Debt	5.53B	5.56B	5.50B	5.47B	4.50B
Total Liabilities	11.90B	11.52B	11.92B	13.67B	13.26B
Stockholders Equity	5.00B	4.92B	5.02B	10.02B	10.18B
Cash Flow
Free Cash Flow	-116.08M	-704.72M	-787.62M	-1.69B	47.41M
Operating Cash Flow	538.27M	34.28M	333.38M	-724.16M	465.41M
Investing Cash Flow	-406.07M	19.96M	-299.67M	-754.97M	-122.85M
Financing Cash Flow	-36.22M	116.76M	27.71M	959.98M	279.88M

Chichibu Railway Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2021.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9012, the sentiment is Neutral. The current price of 2021 is above the 20-day moving average (MA) of 2017.65, below the 50-day MA of 2024.18, and below the 200-day MA of 2029.47, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 50.86 is Neutral, neither overbought nor oversold. The STOCH value of 86.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
9049	79 Outperform	¥13.18B	7.59		0.30%	2.97%	-16.90%
9017	70 Outperform	¥7.96B	7.32		0.48%	2.99%	2.07%
9033	64 Neutral	¥18.89B	13.70		1.29%	10.64%	110.16%
9046	64 Neutral	¥18.69B	16.21		0.86%	-0.82%	12.28%
9052	60 Neutral	¥43.51B	14.35		2.04%	-1.86%	-2.54%
Sector *	58 Neutral	HK$14.16B	4.53	-3.01%	6.82%	3.67%	-54.16%
9012	51 Neutral	¥3.00B	25.97		―	7.40%	24.66%