East Japan Railway Company (9020) AI Stock Analysis

• Market Cap: $3.41T
• Dividend Yield: 1.73%
• Average Volume (3M): 2.50M
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.34
• Revenue Growth: 5.77%
• EPS Growth: 14.05%
• Country: JP
• Employees: 68,769
• Sector: Industrials
• Sector Strength: 88
• Industry: Railroads
• EPS (TTM): 6.80
• Shares Outstanding: 1,134,412,200
• 10 Day Avg. Volume: 2,509,760
• 30 Day Avg. Volume: 2,502,006
• PEG Ratio: -10.63
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -95.22
• 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: $3,699.60
• Price Target Upside: 23.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: ―

East Japan Railway Company demonstrates a robust recovery in financial performance, particularly in revenue and profitability, despite the high debt levels. Technical indicators point to a strong upward momentum, supporting a positive outlook. The valuation appears fair, offering a balanced mix of growth and income potential. The company's main challenge remains in managing its capital expenditures to maintain positive cash flows.

East Japan Railway Company Business Overview & Revenue Model

Company Description

East Japan Railway Company operates as a passenger railway company in Japan and internationally. The company operates through Transportation, Retail & Services, Real Estate & Hotels, and Others segments. It offers passenger railway, freight, bus transportation, travel agency, warehousing, financial, telecommunication, computer-related data, casualty insurance, and dry cleaning and other agency services. The company is also involved in the operation of aerial cableway and parking lot; advertising and promotion; books and magazines publication; automobile maintenance and repair; hotel and restaurant management; civil engineering and general construction; facilities construction; and electricity supply businesses. In addition, it engages in the sale of prepaid vouchers, memberships for sport and leisure facilities, including golf and tennis clubs; and oil, gas, and car accessories; travel goods, food, beverages, liquors, medicines, cosmetics, and daily necessities. Further, the company is involved in the sale, leasing, management, and brokerage of real estate properties; manufacture of transport-related machinery and equipment, as well as precision and industrial machinery and tools; production and sale of signs and information boards; and establishment and management of recreation areas, physical fitness facilities, cultural facilities, preparatory schools and other educational facilities, and movie theaters. Additionally, it engages in the production of beverages and liquors; processing and sale of marine products; manufacture and sale of aggregates, masonry materials, concrete posts, and blocks; sale of tickets for events, etc.; and photo development activities. The company operates 1,676 railway stations and 7,401.7 kilometers of railway network; 193 shopping centers; and various hotel with a total of 9,190 guest rooms. East Japan Railway Company was incorporated in 1987 and is headquartered in Tokyo, Japan.

How the Company Makes Money

JR East primarily generates revenue through its railway operations, which include passenger fares from its extensive network of urban, suburban, and Shinkansen (bullet train) lines. In addition to transportation, the company capitalizes on its real estate assets by developing and leasing properties around its stations. This includes shopping centers, office buildings, and hotels, which contribute a significant portion of its earnings. JR East also earns revenue from retail operations, with numerous stores and restaurants located within its stations, and from offering advertising space. The company's financial performance is further bolstered by strategic partnerships and collaborations in technology and infrastructure development, enhancing its service offerings and operational efficiency.

East Japan Railway Company Financial Statement Overview

Summary

The company has shown a steady recovery in revenue and profitability post-2021. The income statement reflects improved operational efficiency and cost management. However, the balance sheet shows high leverage, which could pose a risk, although there is growing equity for stability. Cash flows are improving, but negative Free Cash Flow indicates high capital expenditures that need monitoring.

Income Statement

The company has shown a steady recovery in revenue and profitability over the past few years after a dip in 2021. The Gross Profit Margin has improved, indicating better operational efficiency. Net Profit Margin has also increased, highlighting improved cost management. The Revenue Growth Rate has been positive, showing a strong recovery trajectory.

Balance Sheet

The balance sheet indicates a high level of debt, reflected in the Debt-to-Equity Ratio, which could pose a risk if not managed carefully. However, Stockholders' Equity has grown, showcasing financial stability. The Equity Ratio suggests a moderate reliance on equity financing.

Cash Flow

Cash flows have recovered notably, with Operating Cash Flow increasing. The Free Cash Flow has been volatile but shows signs of improvement. The Operating Cash Flow to Net Income Ratio indicates good cash generation relative to net income, although Free Cash Flow remains negative, indicating high capital expenditures.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
2.89T	2.73T	2.41T	1.98T	1.76T
	Gross Profit
1.03T	964.48B	717.71B	382.90B	39.94B
	EBIT
376.79B	345.16B	140.63B	-153.94B	-520.36B
	EBITDA
790.98B	747.54B	592.66B	285.58B	-242.93B
	Net Income Common Stockholders
224.28B	196.45B	99.23B	-94.95B	-577.90B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
233.67B	281.00B	215.19B	171.29B	198.27B
	Total Assets
10.17T	9.77T	9.35T	9.09T	8.92T
	Total Debt
4.44T	4.56T	4.46T	4.05T	3.61T
	Net Debt
4.21T	4.28T	4.24T	3.88T	3.41T
	Total Liabilities
7.30T	7.03T	6.85T	6.67T	6.36T
	Stockholders Equity
2.86T	2.72T	2.47T	2.39T	2.54T
Cash Flow		Free Cash Flow
-38.68B	-26.81B	26.17B	-392.55B	-955.45B
	Operating Cash Flow
732.25B	688.10B	581.75B	190.51B	-189.97B
	Investing Cash Flow
-783.42B	-690.62B	-565.51B	-526.36B	-749.40B
	Financing Cash Flow
3.66B	66.10B	26.83B	304.64B	983.38B

East Japan Railway Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3007.00
• 50DMA: Negative
• 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:9020, the sentiment is Positive. The current price of 3007 is below the 20-day moving average (MA) of 3042.05, below the 50-day MA of 3080.50, and above the 200-day MA of 2898.10, indicating a neutral trend. The MACD of -29.29 indicates Positive momentum. The RSI at 42.50 is Neutral, neither overbought nor oversold. The STOCH value of 57.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9020.

East Japan Railway Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9020	72 Outperform	$3.41T	15.20	7.93%	1.73%	5.77%	14.05%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
CJPRF		$21.16B	7.53	10.31%	<0.01%	―	―
KELRF		$4.91B	10.23	14.35%	<0.01%	―	―
KYYHF		$4.10B	12.62	9.60%	2.81%	―	―
ODERF		$4.07B	11.87	10.86%	0.02%	―	―
WJRYF		$10.40B	13.80	9.93%	2.92%	―	―

East Japan Railway Company Corporate Events

East Japan Railway Company Announces Executive Leadership Changes

East Japan Railway Company announced changes in its executive leadership, with new appointments for Representative Directors due to the expiration of current terms. Atsuko Itoh and Hirohiko Ikeda will assume roles as Executive Vice Presidents, while Katsumi Ise will retire to become President of TOTETSU KOGYO CO., LTD. These changes are expected to be confirmed at the upcoming General Meeting of Shareholders, reflecting a strategic shift in leadership to continue the company’s growth and operational efficiency.

The most recent analyst rating on (JP:9020) stock is a Buy with a Yen4000.00 price target. To see the full list of analyst forecasts on East Japan Railway Company stock, see the JP:9020 Stock Forecast page.

JR East Announces Dividend Increase to Enhance Shareholder Returns

JR East has announced an increase in dividend payments from retained earnings, with a record date of March 31, 2025. This decision reflects the company’s strategy to enhance shareholder returns, aiming for a total return ratio of 40% and a dividend payout ratio of 30% over the medium to long term, in line with its ‘Move Up’ 2027 management vision.

East Japan Railway Company Reports Strong Fiscal 2025 Results

East Japan Railway Company reported its financial results for Fiscal 2025, showing a 5.8% increase in operating revenues to 2,887,553 million yen and a 14.2% rise in profit attributable to owners of the parent. The company also conducted a 3 for 1 share split on April 1, 2024, which impacted the earnings per share calculations. The financial results indicate a strong performance with improvements in operating income and ordinary income, reflecting the company’s solid market positioning. Additionally, JR East’s forecast for Fiscal 2026 suggests continued growth in operating revenues and profit, although at a slower pace compared to the previous year.