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West Japan Railway Company (JP:9021)
:9021
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West Japan Railway Company (9021) AI Stock Analysis

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JP:9021

West Japan Railway Company

(OTC:9021)

Rating:70Neutral
Price Target:
¥3,429.00
▲(0.85%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 MoneyJR West primarily generates revenue through its passenger rail services, which include fares from regional trains, long-distance services, and the Shinkansen. A significant portion of its income is derived from the high-speed rail network, which attracts both domestic and international travelers. Additionally, JR West capitalizes on its real estate holdings, developing and leasing properties around its stations. This includes shopping centers, office buildings, and residential projects that benefit from the high foot traffic associated with railway stations. The company also earns through its retail operations, operating convenience stores, kiosks, and restaurants within station premises. Furthermore, JR West engages in strategic partnerships and collaborations to enhance its service offerings and expand its market reach, contributing to its overall revenue.

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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.71T1.64T1.40T1.03T898.17B
Gross Profit418.18B395.45B268.70B43.25B-77.42B
EBITDA342.11B328.60B245.33B77.94B-79.59B
Net Income113.96B98.76B88.53B-113.20B-233.21B
Balance Sheet
Total Assets3.75T3.78T3.74T3.70T3.48T
Cash, Cash Equivalents and Short-Term Investments125.62B233.47B290.17B319.92B210.31B
Total Debt1.44T1.48T1.57T1.64T1.48T
Total Liabilities2.47T2.55T2.59T2.63T2.52T
Stockholders Equity1.16T1.11T1.03T968.94B852.91B
Cash Flow
Free Cash Flow-1.81B68.96B27.95B-326.95B-345.34B
Operating Cash Flow281.43B318.31B273.96B-86.47B-103.30B
Investing Cash Flow-263.11B-243.65B-214.90B-188.71B-211.69B
Financing Cash Flow-126.17B-131.62B-88.77B384.69B446.75B

West Japan Railway Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3400.00
Price Trends
50DMA
3215.30
Positive
100DMA
3124.07
Positive
200DMA
2937.68
Positive
Market Momentum
MACD
26.95
Negative
RSI
69.83
Neutral
STOCH
95.92
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 3400 is above the 20-day moving average (MA) of 3259.10, above the 50-day MA of 3215.30, and above the 200-day MA of 2937.68, indicating a bullish trend. The MACD of 26.95 indicates Negative momentum. The RSI at 69.83 is Neutral, neither overbought nor oversold. The STOCH value of 95.92 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Neutral
$1.60T14.169.93%2.26%4.46%18.26%
64
Neutral
$10.62B16.567.13%2.15%2.87%-30.79%
$24.02B6.8410.95%0.45%
$25.67B16.528.29%1.79%
$4.39B8.4914.30%1.58%
$3.95B12.629.60%2.50%
$4.07B11.5010.86%0.95%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9021
West Japan Railway Company
3,400.00
1,057.95
45.17%
CJPRF
Central Japan Railway Company
22.56
1.49
7.07%
EJPRF
East Japan Railway Company
22.55
5.31
30.80%
KELRF
Keisei Electric Railway Co
8.03
-1.68
-17.30%
KYYHF
Kyushu Railway Company
23.10
0.00
0.00%
ODERF
Odakyu Electric Railway Co
11.13
1.64
17.28%

West Japan Railway Company Corporate Events

West Japan Railway Company Announces Share Buyback Progress
Jul 4, 2025

West Japan Railway Company announced the acquisition of its own shares as part of a strategic decision made by its Board of Directors. In June 2025, the company acquired 2,839,800 shares at an aggregate price of ¥8,931,642,700, as part of a larger plan to acquire up to 20 million shares by September 2025, potentially impacting its market positioning and shareholder value.

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 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.

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.Date of analysis: May 27, 2025