East Japan Railway Company (9020) AI Stock Analysis

• Market Cap: $4.04T
• Dividend Yield: 1.45%
• Average Volume (3M): 2.28M
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.34
• Revenue Growth: 4.63%
• EPS Growth: 2.03%
• Country: JP
• Employees: 68,769
• Sector: Industrials
• Sector Strength: 78
• Industry: Railroads
• EPS (TTM): 69.56
• Shares Outstanding: 1,134,412,200
• 10 Day Avg. Volume: 2,886,910
• 30 Day Avg. Volume: 2,275,940
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.05
• Enterprise Value/Revenue: 2.87
• Enterprise Value/Gross Profit: 8.03
• Enterprise Value/Ebitda: 10.47
• 1Y Price Target: $3,849.56
• Price Target Upside: 7.44% 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 generates revenue primarily through its railway operations, which constitute the largest portion of its income. This includes passenger fares from its extensive network of train services, ranging from local commutes to high-speed Shinkansen travel. The company capitalizes on its massive passenger base by engaging in complementary businesses such as station retail and advertising, where it rents retail space at its stations and sells advertising rights, respectively. Real estate development around its stations also contributes significantly to its earnings, as JR East develops and leases commercial properties. Additionally, the company has a presence in the hospitality sector, operating hotels that cater to travelers. Strategic partnerships with other companies and government entities also play a role in facilitating infrastructure development and expanding service offerings, further bolstering its revenue streams.

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	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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
EBITDA	790.98B	747.54B	592.66B	285.58B	-242.93B
Net Income	224.28B	196.45B	99.23B	-94.95B	-577.90B
Balance Sheet
Total Assets	10.17T	9.77T	9.35T	9.09T	8.92T
Cash, Cash Equivalents and Short-Term Investments	233.67B	281.00B	215.19B	171.29B	198.27B
Total Debt	4.44T	4.56T	4.46T	4.05T	3.61T
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: 3583.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 3583 is above the 20-day moving average (MA) of 3340.20, above the 50-day MA of 3197.92, and above the 200-day MA of 2988.99, indicating a bullish trend. The MACD of 109.63 indicates Negative momentum. The RSI at 76.69 is Negative, neither overbought nor oversold. The STOCH value of 91.51 is Negative, 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	$4.04T	17.57	8.29%	1.45%	4.63%	2.03%
Sector *	58 Neutral	HK$13.99B	4.55	-2.78%	5.71%	2.20%	-57.37%
CJPRF	―	$25.99B	6.84	10.95%	0.89%	―	―
KELRF	―	$4.50B	8.49	14.30%	1.58%	―	―
KYYHF	―	$4.30B	11.01	11.09%	―	―	―
ODERF	―	$4.15B	14.13	8.68%	2.43%	―	―
WJRYF	―	$10.93B	13.04	11.32%	2.43%	―	―

East Japan Railway Company Corporate Events

East Japan Railway Company Announces Fare Revision Approval

East Japan Railway Company has received approval for its first fare revision since its establishment, set to take effect in March 2026. This change aims to address the evolving demands of the railway business, adapting to shifts in customer lifestyles and economic conditions such as price increases and workforce challenges. The fare adjustments will impact single travel tickets and commuter passes, with varying revision rates for different commuter categories. The company anticipates this will support the sustainability of its operations, with revenue and cost projections indicating a gradual improvement in financial balance over the coming years. The fare revision aligns with the company’s long-term management vision, with no additional impact on its business outlook.

East Japan Railway Completes Strategic Share Repurchase

East Japan Railway Company has completed a share repurchase of 2,404,700 shares, representing 0.21% of its total issued shares, for approximately 7.74 billion yen. This move is part of a strategy to support an upcoming employee stock compensation plan and to maintain a flexible capital policy, potentially enhancing employee benefits and optimizing capital management.

East Japan Railway Company Announces Strategic Share Repurchase Plan

East Japan Railway Company announced a share repurchase plan to support its employee stock compensation initiative and enhance its capital policy flexibility. The company plans to repurchase up to 2,404,700 shares, representing 0.21% of its total issued shares, at a maximum aggregate price of 7.74 billion yen through the Tokyo Stock Exchange’s Off-Auction Treasury Stock Repurchase Trading System.

East Japan Railway Company Reports Revenue Growth in FY2026.3 Q1

East Japan Railway Company reported increased revenues and profits for the first quarter of FY2026.3, driven by higher railway usage and sales at EKINAKA stores. Despite a decrease in operating income due to lower real estate sales profits, the company saw gains from investments in securities. All business segments reported revenue growth, although income in some areas declined due to rising non-personnel expenses and decreased overseas railway business profits.

JR East Reports First Quarter Fiscal 2026 Financial Results

East Japan Railway Company reported its consolidated financial results for the first quarter of fiscal 2026, showing a 4.2% increase in operating revenues compared to the previous year, reaching 715,349 million yen. Despite the revenue growth, the company experienced a decline in operating and ordinary income by 4.8% and 7.0%, respectively, while profit attributable to owners of the parent increased by 7.4%. The company maintained a stable financial position with a slight increase in net assets and equity ratio. No significant changes were made to the dividend forecasts or earnings projections for fiscal 2026, indicating a steady outlook for the remainder of the year.

East Japan Railway Company Unveils ‘To the Next Stage’ Vision for 2034

East Japan Railway Company has announced a new Group Management Vision called ‘To the Next Stage’ 2034, aiming to address current challenges such as demographic changes and lifestyle shifts post-COVID-19. The company plans to update its KPIs to ensure sustainable growth and enhance its market position by focusing on integration and collaboration across its business segments.

East Japan Railway Forms Expert Committee to Enhance Governance

East Japan Railway Company has announced the establishment of an expert committee to address recent governance issues that have affected stakeholder trust. The committee, comprising external experts and internal members, will evaluate the company’s internal controls and governance practices, aiming to implement improvements and restore trust in its operations.