East Japan Railway Company (9020) AI Stock Analysis

• Market Cap: $4.16T
• Dividend Yield: 1.73%
• Average Volume (3M): 2.14M
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.27
• Revenue Growth: 4.61%
• EPS Growth: 5.75%
• Country: JP
• Employees: 68,769
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 69.56
• Shares Outstanding: 1,134,412,200
• 10 Day Avg. Volume: 1,934,080
• 30 Day Avg. Volume: 2,139,663
• PEG Ratio: 1.06
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 1.16
• P/FCF Ratio: -86.32
• Enterprise Value/Market Cap: 1.99
• Enterprise Value/Revenue: 2.84
• Enterprise Value/Gross Profit: 7.97
• Enterprise Value/Ebitda: 10.29
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥4,566.00 ▲(16.45% Upside)

The overall stock score of 74 reflects strong technical momentum and a solid financial recovery, despite the high leverage. The valuation is moderate, suggesting the stock is fairly priced. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a robust recovery and expanding market presence, which supports long-term financial stability.

Diversified Revenue Streams

Diversification into non-rail businesses enhances revenue stability and reduces dependency on rail operations, supporting long-term growth.

Improved Profit Margins

Enhanced profit margins reflect operational efficiency and effective cost management, contributing to sustainable profitability.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Negative Free Cash Flow

Negative free cash flow suggests high capital expenditures, which may limit cash available for other strategic investments or debt reduction.

Equity Financing Reliance

Reliance on equity financing may dilute shareholder value and indicate challenges in accessing other forms of capital, affecting long-term financial strategy.

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 passenger fares from its extensive rail services, which include urban commuter trains, regional services, and the Shinkansen. The company also earns income from freight transport, which involves the transportation of goods across its rail network. Additionally, JR East has diversified its revenue streams by investing in non-rail businesses such as real estate development around railway stations, retail operations in stations, and tourism services. Strategic partnerships and collaborations with other companies in the transportation and tourism sectors further boost its earnings, allowing for integrated travel solutions and enhanced customer offerings.

East Japan Railway Company Financial Statement Overview

Summary

East Japan Railway Company has shown a strong recovery in revenue and profitability post-2021. Despite high leverage, the balance sheet reflects growing equity, providing some financial cushion. Cash flows have improved, but the company needs to manage capital expenditures to ensure sustainable financial health.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.92T	2.89T	2.73T	2.41T	1.98T	1.76T
Gross Profit	1.04T	1.03T	964.48B	717.71B	382.90B	39.94B
EBITDA	804.92B	790.98B	747.54B	592.66B	285.58B	-242.93B
Net Income	229.68B	224.28B	196.45B	99.23B	-94.95B	-577.90B
Balance Sheet
Total Assets	10.10T	10.17T	9.77T	9.35T	9.09T	8.92T
Cash, Cash Equivalents and Short-Term Investments	184.76B	233.67B	281.00B	215.19B	171.29B	198.27B
Total Debt	4.94T	4.44T	4.56T	4.46T	4.05T	3.61T
Total Liabilities	7.18T	7.30T	7.03T	6.85T	6.67T	6.36T
Stockholders Equity	2.90T	2.86T	2.72T	2.47T	2.39T	2.54T
Cash Flow
Free Cash Flow	0.00	-38.68B	-26.81B	26.17B	-392.55B	-955.45B
Operating Cash Flow	0.00	732.25B	688.10B	581.75B	190.51B	-189.97B
Investing Cash Flow	0.00	-783.42B	-690.62B	-565.51B	-526.36B	-749.40B
Financing Cash Flow	0.00	3.66B	66.10B	26.83B	304.64B	983.38B

East Japan Railway Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3921.00
• 50DMA: Positive
• 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 3921 is below the 20-day moving average (MA) of 3925.35, above the 50-day MA of 3767.94, and above the 200-day MA of 3330.63, indicating a neutral trend. The MACD of 50.91 indicates Positive momentum. The RSI at 52.96 is Neutral, neither overbought nor oversold. The STOCH value of 44.56 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
9022	75 Outperform	$4.21T	8.02	11.08%	0.71%	9.82%	24.12%
9020	74 Outperform	$4.16T	17.92	7.85%	1.73%	4.61%	5.75%
9009	72 Outperform	$634.18B	8.41	13.92%	1.54%	6.30%	-16.29%
9007	70 Outperform	$584.50B	13.92	8.51%	2.99%	-2.82%	-50.73%
9142	70 Neutral	$604.89B	12.54	9.26%	2.71%	10.39%	32.43%
9021	66 Neutral	$1.44T	11.23	11.29%	3.02%	5.48%	33.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

East Japan Railway Company Corporate Events

East Japan Railway Company Announces Strategic Real Estate Business Succession

East Japan Railway Company announced a business succession through a simplified absorption-type company split, transferring its land development and sales business to its wholly-owned subsidiary, JR East Real Estate Co., Ltd. This move aims to enhance the growth of the Group by accelerating the liquidation of real estate for growth investment, particularly in the real estate sales sector, thereby strengthening the company’s strategic positioning in the real estate market.

East Japan Railway Company Corrects Financial Presentation and Advances Sustainable Transport Initiatives

East Japan Railway Company announced corrections to its FY2026.3 Second Quarter Financial Results presentation materials, specifically regarding the Yonesaka Line’s position on the route map. The company is actively working on developing sustainable transportation systems in collaboration with local communities, focusing on rationalizing facilities and improving operational efficiency. This involves discussions on shifting certain railway segments to automobile-based transportation and exploring alternative solutions to address local transportation needs.

JR East Reports Positive Revenue Growth Amidst Mixed Financial Results

JR East reported its consolidated financial results for the six-month period ending September 30, 2025, showing a 4.9% increase in operating revenues compared to the previous year. Despite a slight decline in operating and ordinary income, the company saw a 5.3% rise in profit attributable to owners of the parent, indicating a positive financial trajectory. The company also revised its dividend forecast, reflecting an optimistic outlook for fiscal 2026.

East Japan Railway Company Increases Dividend and Revises Forecasts

East Japan Railway Company announced an increase in dividend payments from retained earnings and revised its business forecasts for the fiscal year ending March 31, 2026. The company expects higher operating revenues and profits due to increased passenger revenues, leading to a revised dividend payout of ¥35 per share, up from the previously forecasted ¥31, aligning with their strategy to gradually raise the dividend payout ratio to 40% by 2028.