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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

(9021)

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Neutral 66 (OpenAI - 5.2)
Rating:66Neutral
Price Target:
¥3,126.00
▲(5.08% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by improving financial performance (post-downturn revenue/profit recovery and stronger operating cash flow), tempered by leverage and uneven free cash flow typical of capital-intensive railroads. Valuation is a clear positive (low P/E and solid dividend yield), while technical signals are mixed and do not materially add momentum support.
Positive Factors
Revenue Recovery and Growth
The sustained recovery in revenue indicates restored passenger demand and stronger utilization of JR West’s transport and station-based commercial network, supporting a larger earnings base over the next several quarters.
Negative Factors
Elevated Leverage
JR West remains an asset-heavy and substantially leveraged business. Although leverage has improved, the debt burden reduces financial flexibility and could constrain investment or resilience if transport demand weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery and Growth
The sustained recovery in revenue indicates restored passenger demand and stronger utilization of JR West’s transport and station-based commercial network, supporting a larger earnings base over the next several quarters.
Read all positive factors

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

West Japan Railway Company Business Overview & Revenue Model

Company Description
Based in Osaka, Japan, West Japan Railway Company, founded in 1987, primarily delivers passenger rail transportation services across the country. The company's operations span several key divisions: Transportation Operations, Retail Business, Real...
How the Company Makes Money
JR West makes money primarily by charging fares for passenger transportation services. A major revenue stream is rail operations, including (1) Shinkansen services (notably the Sanyo Shinkansen) and (2) conventional railway services (urban commute...

West Japan Railway Company Financial Statement Overview

Summary
Strong recovery in revenue and profitability (2026 operating margin ~10.7%, net margin ~6.9%) and improved operating cash flow. Offsetting factors are an asset-heavy, still-levered balance sheet (debt ~1.28x equity) and uneven/low free-cash-flow conversion (2026 FCF ~22% of net income), limiting flexibility in weaker cycles.
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
61
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue1.84T1.85T1.71T1.64T1.40T1.03T
Gross Profit456.49B462.32B404.90B384.14B257.30B30.21B
EBITDA368.12B378.52B353.35B328.61B253.34B77.94B
Net Income117.70B127.50B113.96B98.76B88.53B-113.20B
Balance Sheet
Total Assets3.90T3.99T3.75T3.78T3.74T3.70T
Cash, Cash Equivalents and Short-Term Investments199.91B235.21B125.62B233.47B290.17B319.92B
Total Debt1.65T1.54T1.57T1.60T1.70T1.77T
Total Liabilities2.55T2.65T2.47T2.55T2.59T2.63T
Stockholders Equity1.22T1.21T1.16T1.11T1.03T968.94B
Cash Flow
Free Cash Flow0.0078.50B-1.81B68.96B27.95B-326.95B
Operating Cash Flow0.00361.63B281.43B318.31B273.96B-86.47B
Investing Cash Flow0.00-253.69B-263.11B-243.65B-214.90B-188.71B
Financing Cash Flow0.0075.00M-126.17B-131.62B-88.77B384.69B

West Japan Railway Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥3.76T6.8711.27%0.80%7.78%16.25%
69
Neutral
¥590.96B10.569.47%2.26%5.23%13.35%
66
Neutral
¥1.35T11.4410.79%3.28%6.41%-2.64%
65
Neutral
¥543.10B12.089.54%3.08%8.75%-6.80%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
60
Neutral
¥635.13B17.477.55%3.17%2.63%-13.44%
57
Neutral
¥4.00T16.848.29%2.04%7.74%3.47%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9021
West Japan Railway Company
2,959.50
-271.36
-8.40%
JP:9022
Central Japan Railway Company
3,936.00
18.71
0.48%
JP:9020
East Japan Railway Company
3,539.00
17.55
0.50%
JP:9142
Kyushu Railway Company
3,516.00
-446.94
-11.28%
JP:9007
Odakyu Electric Railway Co
1,775.00
101.53
6.07%
JP:9001
Tobu Railway Co
3,014.00
397.02
15.17%

West Japan Railway Company Corporate Events

JR West Holds Forecasts Steady Despite First Profit Decline in Six Years
Aug 5, 2026
West Japan Railway reported its first revenue and profit decline in six years for the quarter ended June 30, 2026, as the boost from last year’s Osaka–Kansai Expo and large condominium sales fell away and human resource costs rose. Des...
JR West Q1 Profit Declines But Full-Year Guidance and Dividend Plan Held Steady
Aug 5, 2026
West Japan Railway Company reported first-quarter operating revenues of ¥424.4 billion, down 0.6% year on year, with operating income falling 11.7% to ¥56.0 billion and net income attributable to owners of the parent dropping 20.1% to &#...
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: Aug 06, 2026