West Japan Railway Company (9021) AI Stock Analysis

• Market Cap: ¥1.54T
• Dividend Yield: 2.27%
• Average Volume (3M): 1.54M
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.58
• Revenue Growth: 4.46%
• EPS Growth: 18.26%
• Country: JP
• Employees: 44,366
• Sector: Industrials
• Sector Strength: 89
• Industry: Railroads
• EPS (TTM): -0.76
• Shares Outstanding: 471,009,800
• 10 Day Avg. Volume: 1,377,000
• 30 Day Avg. Volume: 1,538,830
• PEG Ratio: -0.09
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 47.58
• 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: ¥3,535.37
• Price Target Upside: 8.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Neutral
• Price Target: ¥3,429.00 ▲(4.80%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 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

West 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

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	1.69T	1.71T	1.64T	1.40T	1.03T	898.17B
Gross Profit	417.85B	418.18B	395.45B	268.70B	43.25B	-77.42B
EBITDA	335.92B	342.11B	328.60B	245.33B	77.94B	-79.59B
Net Income	103.52B	113.96B	98.76B	88.53B	-113.20B	-233.21B
Balance Sheet
Total Assets	3.65T	3.75T	3.78T	3.74T	3.70T	3.48T
Cash, Cash Equivalents and Short-Term Investments	126.06B	125.62B	233.47B	290.17B	319.92B	210.31B
Total Debt	1.41T	1.44T	1.48T	1.57T	1.64T	1.48T
Total Liabilities	2.40T	2.47T	2.55T	2.59T	2.63T	2.52T
Stockholders Equity	1.13T	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: Positive
• Last Price: 3272.00
• 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 Positive. The current price of 3272 is above the 20-day moving average (MA) of 3246.00, above the 50-day MA of 3175.04, and above the 200-day MA of 2894.12, indicating a bullish trend. The MACD of 31.04 indicates Positive momentum. The RSI at 60.52 is Neutral, neither overbought nor oversold. The STOCH value of 29.55 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9021	70 Neutral	¥1.54T	13.60	9.93%	2.27%	4.46%	18.26%
Sector *	66 Neutral	€9.23B	16.27	3.99%	3.37%	2.85%	-16.23%
CJPRF		$22.02B	7.53	10.31%	<0.01%	―	―
EJPRF		$24.48B	16.57	7.93%	2.10%	―	―
KELRF		$4.50B	9.62	14.35%	<0.01%	―	―
KYYHF		$3.98B	12.62	9.60%	2.52%	―	―
ODERF		$4.11B	12.08	10.86%	0.01%	―	―

West Japan Railway Company Corporate Events

West Japan Railway Company Announces Share Buyback Progress

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

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

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

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

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

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.