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West Japan Railway Company (JP:9021)
:9021

West Japan Railway Company (9021) AI Stock Analysis

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West Japan Railway Company

(OTC:9021)

Rating:70Neutral
Price Target:
¥3,429.00
▲(7.76%Upside)
West Japan Railway Company's stock achieves a strong score due to robust financial performance, characterized by revenue growth and profitability recovery. The technical indicators support a bullish trend, and the valuation metrics suggest the stock is fairly priced with a decent dividend yield. The absence of earnings call and corporate events data slightly limits the analysis but does not significantly hinder the positive outlook.

West Japan Railway Company (9021) vs. iShares MSCI Japan ETF (EWJ)

West Japan Railway Company Business Overview & Revenue Model

Company DescriptionWest 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 MoneyWest Japan Railway Company generates revenue through several key streams. Primarily, it earns income from its railway operations, which include passenger fares from Shinkansen, limited express, and local train services. The company also benefits from non-railway businesses, including retail operations through shopping centers and convenience stores located in and around its stations. Additionally, JR West engages in real estate development and management, deriving income from leasing properties and developing real estate projects. The company further diversifies its revenue sources through its hospitality segment, which includes hotels and travel services. Strategic partnerships with other transportation and retail companies, along with investments in technology and infrastructure, contribute to its profitability and long-term growth.

West Japan Railway Company Financial Statement Overview

Summary
West Japan Railway Company demonstrates strong financial rebound with substantial revenue growth and profitability recovery. Despite high leverage, the balance sheet indicates strengthening equity and financial stability. Cash flows are positive, with strong operational cash flows and improving free cash flow.
Income Statement
78
Positive
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
65
Positive
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
72
Positive
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
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
1.69T1.71T1.64T1.40T1.03T898.17B
Gross Profit
417.85B418.18B395.45B268.70B43.25B-77.42B
EBIT
182.65B180.16B179.75B83.97B-119.09B-245.54B
EBITDA
335.92B342.11B328.60B245.33B77.94B-79.59B
Net Income Common Stockholders
103.52B113.96B98.76B88.53B-113.20B-233.21B
Balance SheetCash, Cash Equivalents and Short-Term Investments
126.06B125.62B233.47B290.17B319.92B210.31B
Total Assets
3.65T3.75T3.78T3.74T3.70T3.48T
Total Debt
1.41T1.44T1.48T1.57T1.64T1.48T
Net Debt
1.29T1.32T1.24T1.28T1.32T1.27T
Total Liabilities
2.40T2.47T2.55T2.59T2.63T2.52T
Stockholders Equity
1.13T1.16T1.11T1.03T968.94B852.91B
Cash FlowFree Cash Flow
0.00-1.81B68.96B27.95B-326.95B-345.34B
Operating Cash Flow
0.00281.43B318.31B273.96B-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-88.77B384.69B446.75B

West Japan Railway Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3182.00
Price Trends
50DMA
3064.97
Positive
100DMA
2961.65
Positive
200DMA
2831.50
Positive
Market Momentum
MACD
20.85
Negative
RSI
63.97
Neutral
STOCH
88.45
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9021, the sentiment is Positive. The current price of 3182 is above the 20-day moving average (MA) of 3129.70, above the 50-day MA of 3064.97, and above the 200-day MA of 2831.50, indicating a bullish trend. The MACD of 20.85 indicates Negative momentum. The RSI at 63.97 is Neutral, neither overbought nor oversold. The STOCH value of 88.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9021.

West Japan Railway Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Neutral
$1.49T13.149.93%2.58%4.46%18.61%
66
Neutral
$4.49B12.345.40%248.65%4.13%-12.33%
$21.21B7.5310.31%0.89%
$23.45B16.057.93%1.90%
$4.87B10.2314.35%1.09%
$4.07B12.629.60%2.81%
$4.04B11.8710.86%2.27%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9021
West Japan Railway Company
3,182.00
146.01
4.81%
CJPRF
Central Japan Railway Company
23.00
1.16
5.31%
EJPRF
East Japan Railway Company
20.90
4.00
23.67%
KELRF
Keisei Electric Railway Co
9.74
-1.64
-14.41%
KYYHF
Kyushu Railway Company
23.10
0.00
0.00%
ODERF
Odakyu Electric Railway Co
11.48
1.77
18.23%

West Japan Railway Company Corporate Events

West Japan Railway Company Announces Share Buyback
Jun 4, 2025

West Japan Railway Company has announced the acquisition of its own shares, purchasing 5,940,600 shares for approximately ¥18.67 billion in May 2025. This move is part of a broader plan approved by the Board of Directors to acquire up to 20 million shares, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:9021) stock is a Hold with a Yen3080.00 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 to Acquire and Cancel Shares for Capital Efficiency
May 2, 2025

West Japan Railway Company announced its decision to acquire and subsequently cancel up to 20 million of its own shares, aiming to enhance shareholder returns and improve capital efficiency. This strategic move, involving an acquisition budget of up to ¥50 billion, is set to occur between May and September 2025, with the cancellation planned for the end of September, potentially impacting the company’s stock value and market perception.

JR-West Announces Increased Year-End Dividend
May 2, 2025

West Japan Railway Company announced a resolution to distribute capital surplus, with a planned year-end dividend of ¥47.50 per share for the fiscal year ended March 31, 2025. This decision aligns with the company’s medium-term management plan to maintain a payout ratio of at least 35%, reflecting an increase from the previously forecasted dividend, and underscores its commitment to delivering stable shareholder returns.

West Japan Railway Company Reports Revenue Growth and Strategic Expansion
May 2, 2025

West Japan Railway Company reported an increase in revenue and income for the fiscal year ended March 31, 2025, driven by the extension of the Hokuriku Shinkansen to Tsuruga and a rise in inbound demand. The company forecasts continued growth in FY2026.3, with plans to exceed its operating income target due to the Osaka Kansai Expo and other strategic projects. Shareholder returns are set to increase with higher dividends and a share buyback program.

West Japan Railway Company Reports FY2025.3 Financial Results with Revenue Growth
May 2, 2025

West Japan Railway Company reported its FY2025.3 consolidated financial results, showing a 4.5% increase in operating revenues to ¥1,707,944 million and a 15.4% rise in income attributable to owners of the parent. Despite a slight decrease in recurring income, the company maintained a stable financial position with a slight improvement in equity ratio. The company also completed a 2-for-1 stock split, impacting per-share calculations. The dividend per share for FY2025.3 was reduced compared to the previous year, reflecting a cautious approach in shareholder returns. The company forecasts continued growth in operating revenues and income for FY2026.3, indicating a positive outlook for the upcoming fiscal year.

West Japan Railway Announces Leadership Change to Drive Growth
Mar 26, 2025

West Japan Railway Company announced a change in leadership, with Shoji Kurasaka set to replace Kazuaki Hasegawa as President. This leadership transition aims to strengthen the company’s management structure and support the implementation of its medium-term management plans, ensuring sustainable growth and increased corporate value.

West Japan Railway Company Strengthens Corporate Governance for Sustainable Growth
Mar 18, 2025

West Japan Railway Company has outlined its corporate governance strategy, emphasizing safety, corporate social responsibility, and sustainable development. The company aims to improve transparency, soundness, and efficiency in its operations, striving for long-term growth and strengthening relationships with stakeholders, including shareholders and business partners.

JR-West Group Unveils Strategic Initiatives in 2024 Integrated Report
Mar 17, 2025

The JR-West Group Integrated Report 2024 outlines the company’s strategic initiatives aimed at value creation and future growth. The report highlights key strategies such as improving railway safety, revitalizing core businesses, and expanding digital and real estate services. Additionally, the company emphasizes its commitment to sustainability, community coexistence, and capturing inbound tourism demand, which are crucial for its long-term vision and stakeholder engagement.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.