West Japan Railway Company (9021) AI Stock Analysis

• Market Cap: ¥1.54T
• Dividend Yield: 3%
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.47
• Revenue Growth: 5.48%
• EPS Growth: 33.67%
• Country: JP
• Employees: 44,366
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): N/A
• Shares Outstanding: 455,561,300
• 10 Day Avg. Volume: 1,561,430
• 30 Day Avg. Volume: 1,490,756
• PEG Ratio: 0.66
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.81
• P/FCF Ratio: -763.16
• 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: ¥3,111.18
• Price Target Upside: -5.12% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥3,788.00 ▲(15.52% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

West Japan Railway Company's overall stock score is driven by its strong financial performance and reasonable valuation. The company's financial health is improving, with significant revenue growth and profitability recovery. However, technical analysis indicates bearish momentum, which slightly offsets the positive financial outlook. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue & Margin Recovery

Sustained revenue growth and restored profitability signal a durable operational recovery. Doubling revenue over the multi-year period and improving gross/EBIT margins point to stronger demand and better cost efficiency, which supports reinvestment, stable operations and long-term cash generation.

Strong Cash Generation

Consistent operating cash flow and improved free cash flow indicate the business generates cash from core operations, enabling debt service, maintenance capex and strategic investments. This cash resilience supports long-term financial flexibility despite cyclical pressures in transportation demand.

Diversified, Location-Based Revenues

Monetizing station retail and station-area real estate complements fare income and creates recurring non-fare cash flows tied to valuable locations. This asset-backed, diversified model reduces pure fare dependence and leverages long-lived property and tenant relationships for sustained revenue.

Negative Factors

High Leverage

Elevated leverage is typical for rail operators but increases refinancing, interest and liquidity risk. High debt constrains strategic flexibility, raises the cost of capital for projects, and heightens vulnerability to revenue shocks or interest-rate moves over the medium term.

Passenger-Demand Dependence

Core earnings still hinge on commuter and tourism ridership, exposing revenue to structural shifts like remote work, demographic decline and tourism cycles. Persistent reductions in passenger volumes would materially pressure fare revenue and station commerce over several months to years.

Heavy, Variable Capital Expenditure

Rail infrastructure requires ongoing, large capex for maintenance and upgrades; fluctuations can compress free cash flow. Recurring high capex needs limit discretionary spending and could necessitate new financing, exacerbating leverage and constraining long-term return on invested capital.

West Japan Railway Company Business Overview & Revenue Model

Company Description

West Japan Railway Company provides passenger railway transport services in Japan. The company operates through Transportation Operations, Retail Business, Real Estate Business, and Other Businesses segments. It operates a route length of 4,903.1 kilometers, comprising Shinkansen route of 812.6 kilometers and conventional lines of 4,090.5 kilometers; and 1,174 stations, as well as bus and ferry services. The company also engages in the selling of goods and food services; wholesaling; and other retail businesses. It is also involved in the operation of department stores, convenience stores, restaurants, souvenir shops, shopping centers, and others; selling and leasing of real estate; hotel; credit cards and electronic money; and travel, rolling stock and equipment, electrical contracting, electrical equipment, construction, information services, advertising, and other businesses. The company was founded in 1987 and is headquartered in Osaka, Japan.

How the Company Makes Money

JR West generates revenue through several key streams. The primary source of income comes from passenger fares collected from its extensive rail services, which include both long-distance Shinkansen routes and local train services. Additionally, the company earns revenue from freight transportation services, which involve the movement of goods across its rail network. Another significant revenue stream is derived from real estate development and leasing, particularly through the management of properties around train stations, which often include shopping centers and office buildings. Furthermore, JR West has partnerships with various tourism and retail businesses, enhancing its service offerings and generating additional income through collaborative promotions and packages. Seasonal travel packages and special events also contribute to revenue during peak travel seasons.

West Japan Railway Company Financial Statement Overview

Summary

West Japan Railway Company demonstrates a strong financial rebound and operational improvements in recent years. The income statement reflects substantial revenue growth and profitability recovery. While the balance sheet shows high leverage, it also indicates strengthening equity and financial stability. Cash flow statements reveal strong operational cash flows and improving free cash flow, underscoring effective financial management. The company's financial health is on a positive trajectory, with potential risks primarily associated with its leverage.

Income Statement

West Japan Railway Company has demonstrated a strong recovery in revenue and profitability over the past few years, with a notable increase in revenue from 898.17 billion yen in 2021 to 1,707.94 billion yen in 2025. Gross profit margin has improved significantly, and EBIT margin is back to robust levels after a period of negative performance. Overall, the company shows solid revenue growth and recovery in net income, reflecting effective management and operational efficiency.

Balance Sheet

The company's debt-to-equity ratio indicates a high level of leverage, which is common in the rail industry but poses financial risks. However, the equity ratio shows a stable balance sheet structure with a consistent increase in stockholders' equity over the years, suggesting improved financial health and resilience. Return on equity has improved significantly as the company returned to profitability.

Cash Flow

The operating cash flow has been consistently positive, indicating strong cash generation capabilities. There is a notable improvement in free cash flow, despite fluctuations in capital expenditures. The company has managed to turn around its free cash flow position, although high debt levels continue to require careful management of financing activities.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.73T	1.71T	1.64T	1.40T	1.03T	898.17B
Gross Profit	428.31B	418.18B	395.45B	268.70B	43.25B	-77.42B
EBITDA	356.54B	353.35B	328.61B	253.34B	76.75B	-80.78B
Net Income	124.53B	113.96B	98.76B	88.53B	-113.20B	-233.21B
Balance Sheet
Total Assets	3.69T	3.75T	3.78T	3.74T	3.70T	3.48T
Cash, Cash Equivalents and Short-Term Investments	94.19B	125.62B	233.47B	290.17B	319.92B	210.31B
Total Debt	1.53T	1.44T	1.48T	1.57T	1.64T	1.48T
Total Liabilities	2.41T	2.47T	2.55T	2.59T	2.63T	2.52T
Stockholders Equity	1.16T	1.16T	1.11T	1.03T	968.94B	852.91B
Cash Flow
Free Cash Flow	0.00	-1.81B	68.96B	27.95B	-326.95B	-345.34B
Operating Cash Flow	0.00	281.43B	318.31B	273.96B	-86.47B	-103.30B
Investing Cash Flow	0.00	-263.11B	-243.65B	-214.90B	-188.71B	-211.69B
Financing Cash Flow	0.00	-126.17B	-131.62B	-88.77B	384.69B	446.75B

West Japan Railway Company Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3279.00
• 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:9021, the sentiment is Neutral. The current price of 3279 is below the 20-day moving average (MA) of 3312.10, above the 50-day MA of 3195.00, and above the 200-day MA of 3194.28, indicating a neutral trend. The MACD of 48.69 indicates Positive momentum. The RSI at 48.84 is Neutral, neither overbought nor oversold. The STOCH value of 20.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9021.

West Japan Railway Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9022	80 Outperform	¥4.57T	8.37	11.08%	0.74%	9.82%	24.12%
9020	74 Outperform	¥4.34T	19.09	7.85%	1.69%	4.61%	5.75%
9007	70 Outperform	¥643.54B	14.32	8.51%	2.96%	-2.82%	-50.73%
9142	70 Neutral	¥613.54B	13.02	9.26%	2.68%	10.39%	32.43%
9021	66 Neutral	¥1.54T	12.97	11.29%	3.00%	5.48%	33.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9001	62 Neutral	¥604.88B	10.63	8.78%	2.49%	1.72%	10.19%

West Japan Railway Company Corporate Events

JR West Updates FY2026.3 Q3 Results and Medium-Term Plan Progress

The company’s FY2026.3 third-quarter materials outline financial results, updated earnings forecasts, and a progress report on its Medium-Term Management Plan 2025, indicating continued emphasis on operational performance tracking and strategic execution. The presentation also highlights rapid changes in the management environment and the company’s policy responses, suggesting JR West is actively adjusting its strategy and operations to evolving market conditions to sustain growth and reinforce its competitive position through 2025 and beyond.

The most recent analyst rating on (JP:9021) stock is a Hold with a Yen3300.00 price target. To see the full list of analyst forecasts on West Japan Railway Company stock, see the JP:9021 Stock Forecast page.

West Japan Railway Extends Profit Streak to Fifth Term on Expo-Driven Demand and Record Revenues

West Japan Railway Company reported strong consolidated results for the nine months ended December 31, 2025, with operating revenues, operating income, recurring income, and profit attributable to owners of the parent all rising year on year, marking a fifth consecutive period of revenue and income growth and record highs across all key profit measures. Growth was driven by higher mobility and retail revenues supported by the Osaka–Kansai Expo and robust inbound tourism, as well as solid performance in the real estate segment where new urban projects and hotel and shopping center operations boosted earnings, while the travel and regional solutions segment saw higher overall revenue but lower income due to a sharp sales decline in the tourism business; the company kept its full-year earnings and annual dividend forecasts unchanged, signaling confidence in demand resilience even after the Expo’s conclusion and stability in shareholder returns.

The most recent analyst rating on (JP:9021) stock is a Hold with a Yen3300.00 price target. To see the full list of analyst forecasts on West Japan Railway Company stock, see the JP:9021 Stock Forecast page.

JR West Lifts Nine-Month Profit, Keeps FY2026 Outlook and Dividend Targets Intact

West Japan Railway Company reported solid growth for the nine months ended December 31, 2025, with operating revenues up 7.5% year on year to ¥1.34 trillion and income attributable to owners of parent rising 5.5% to ¥121.0 billion. Operating and recurring income both increased by double digits, reflecting continued recovery in its transportation and related businesses, while total assets and net assets also edged higher and the equity ratio remained stable at around 31%. The company maintained its full-year forecast for fiscal 2026, targeting a 7.5% rise in operating revenues and a 4.0% increase in net income, and kept its dividend outlook unchanged at a total of ¥90.50 per share, signaling confidence in earnings visibility and shareholder returns. During the period JR West also adjusted its consolidation scope, adding two new subsidiaries and removing four hotel entities, indicating an ongoing reorganization of its hotel and accommodation operations that may streamline the portfolio and sharpen the group’s focus within its non-rail businesses.

The most recent analyst rating on (JP:9021) stock is a Hold with a Yen3300.00 price target. To see the full list of analyst forecasts on West Japan Railway Company stock, see the JP:9021 Stock Forecast page.