West Japan Railway Company (9021) AI Stock Analysis

• Market Cap: $1.39T
• Dividend Yield: 3.02%
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): 10.9
• 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): 82.73
• 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: 2.23
• Enterprise Value/Revenue: 1.79
• Enterprise Value/Gross Profit: 7.24
• Enterprise Value/Ebitda: 8.70
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥3,422.00 ▲(12.31% Upside)

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 Growth

The significant revenue growth indicates strong demand for JR West's services and effective expansion strategies, enhancing long-term market position.

Cash Generation

Consistent positive cash flow highlights JR West's ability to generate sufficient cash to fund operations and investments, supporting sustainable growth.

Profitability Recovery

Improved profitability margins reflect efficient cost management and operational effectiveness, strengthening JR West's financial resilience.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially limiting JR West's flexibility to invest in growth opportunities or navigate economic downturns.

Debt Management

Managing high debt levels demands strategic financial planning, which could constrain JR West's ability to allocate resources towards expansion and innovation.

Industry Risks

The rail industry's inherent high leverage amplifies financial risks, potentially impacting JR West's long-term stability and investment capacity.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Negative
• Last Price: 3047.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 3047 is below the 20-day moving average (MA) of 3084.15, below the 50-day MA of 3122.12, and below the 200-day MA of 3134.08, indicating a bearish trend. The MACD of -18.71 indicates Negative momentum. The RSI at 46.12 is Neutral, neither overbought nor oversold. The STOCH value of 59.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	75 Outperform	¥4.36T	8.30	11.08%	0.72%	9.82%	24.12%
9020	74 Outperform	¥4.68T	20.20	7.85%	1.67%	4.61%	5.75%
9009	72 Outperform	$625.55B	8.30	13.92%	1.54%	6.30%	-16.29%
9007	70 Outperform	$611.52B	14.04	8.51%	2.93%	-2.82%	-50.73%
9142	70 Neutral	¥633.77B	14.69	9.26%	2.66%	10.39%	32.43%
9021	66 Neutral	$1.39T	10.88	11.29%	3.02%	5.48%	33.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

West Japan Railway Company Corporate Events

West Japan Railway Company Revises FY2026.3 2Q Financial Forecast

West Japan Railway Company announced a correction to its FY2026.3 2Q financial results, specifically revising the forecast for its shopping center business operating income. The correction reflects an increase in the forecasted full-year operating income from ¥12.0 billion to ¥12.5 billion, indicating a positive outlook for the segment. The company’s shopping center and hotel businesses have shown significant year-on-year income growth, driven by increased demand and strategic location advantages, which could enhance its market position and stakeholder confidence.

JR-West Announces Interim Dividends and Revised Forecast for FY2026

West Japan Railway Company announced a resolution to distribute capital surplus as interim dividends and revised its dividends forecast for the fiscal year ending March 31, 2026. The company increased its interim dividend per share from ¥43.00 to ¥45.00 and revised the year-end dividend forecast to ¥45.50 per share, reflecting a commitment to stable shareholder returns and aligning with its medium-term management plan.

West Japan Railway Company Revises Financial Forecasts Upward for FY 2026

West Japan Railway Company has revised its full-year financial forecasts for the fiscal year ending March 31, 2026, showing slight increases in operating revenues, operating income, recurring income, and income attributable to owners of the parent. The upward revision is attributed to favorable trends in city development projects and increased demand related to the Osaka–Kansai Expo, indicating a positive impact on the company’s financial performance.

West Japan Railway Company Reports Revenue Growth and Dividend Increase

West Japan Railway Company reported significant revenue and income growth driven by city development projects and the Osaka–Kansai Expo. Despite increased costs from previous fiscal year projects, the company achieved its first income increase in two years and revised its earnings forecast upwards. The mobility and retail segments benefited from rising demand, while the real estate segment saw growth due to strong performance in hotels and shopping centers. The company completed a ¥50 billion treasury stock buyback and increased its annual dividend, reflecting confidence in its financial outlook.

West Japan Railway Company Reports Strong Financial Growth and Strategic Changes

West Japan Railway Company reported a notable increase in its financial performance for the six months ending September 30, 2025, with operating revenues rising by 7.4% and income attributable to owners of the parent increasing by 24.4% compared to the previous year. The company also revised its dividend forecast upwards and made significant changes in its scope of consolidation, including the inclusion of JR-West Via Inn Co., Ltd. and the exclusion of three hotel companies, which could impact its future operations and stakeholder interests.

West Japan Railway Completes Share Acquisition and Cancellation

West Japan Railway Company has completed the acquisition of its own shares, as resolved in a Board of Directors meeting held in May 2025. The company acquired a total of 15,448,500 shares at an aggregate price of ¥49,999,966,200, with the acquisition period spanning from May 7 to September 19, 2025. Additionally, the company has finalized the cancellation of these treasury shares, which constitutes 3.3% of the outstanding shares, effective September 30, 2025. This strategic move is expected to impact the company’s share structure and potentially enhance shareholder value.