Central Japan Railway Company (9022) AI Stock Analysis

• Market Cap: ¥4.36T
• Dividend Yield: 0.72%
• Average Volume (3M): 3.08M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.44
• Revenue Growth: 9.82%
• EPS Growth: 24.12%
• Country: JP
• Employees: 29,282
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 147.88
• Shares Outstanding: 1,030,000,000
• 10 Day Avg. Volume: 2,800,340
• 30 Day Avg. Volume: 3,084,046
• PEG Ratio: 0.32
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 1.53
• P/FCF Ratio: 16.33
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 507.36
• Revenue Forecast (FY): ¥1.95T

• Rating: 75 Outperform
• Price Target: ¥4,722.00 ▲(6.59% Upside)

Central Japan Railway Company has a strong financial foundation with impressive revenue growth and profitability. The technical analysis indicates mixed signals with a positive short-term trend but potential overbought conditions. The valuation is attractive with a low P/E ratio, suggesting the stock may be undervalued. The absence of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates a strong market position and effective business strategies, ensuring long-term financial health and competitiveness.

Cash Flow Management

Improved cash flow management enhances the company's ability to invest in growth opportunities and weather economic fluctuations, supporting sustainable operations.

Operational Efficiency

Strong EBIT and EBITDA margins reflect effective cost control and operational efficiency, contributing to sustained profitability and competitive advantage.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially limiting flexibility in adverse conditions and impacting long-term financial stability.

Debt Levels

Elevated debt levels may strain resources, especially if interest rates rise or revenue growth slows, affecting the company's ability to invest in future growth.

Free Cash Flow Conversion

Moderate free cash flow conversion suggests potential inefficiencies in cash generation, which could impact the company's ability to fund new projects or return capital to shareholders.

Central Japan Railway Company Business Overview & Revenue Model

Company Description

Central Japan Railway Company engages in the railway and related businesses in Japan. The company operates through Transportation, Merchandise and Other, Real Estate, and Other segments. It primarily operates Tokaido Shinkansen, a transportation artery that links metropolitan areas of Tokyo, Nagoya, and Osaka, as well as operates a network of 12 conventional lines centered on the Nagoya and Shizuoka areas. The company also provides bus, logistics, travel agency, advertising, linen supply, track maintenance, construction and construction consulting, and contracted accounting and financial services; and manufactures and maintains railway rolling stock and machinery. In addition, it is involved in the operation of a department store; wholesale and retail sales business; sale of food and beverages; leasing and sale of real estate; hotel business; and development, improvement, and maintenance of computer systems. Central Japan Railway Company was founded in 1987 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Central Japan Railway Company generates revenue primarily through passenger fares from its extensive rail services, including the high-speed Shinkansen and conventional train lines. The Tōkaidō Shinkansen is a key revenue driver due to its high ridership and premium pricing. Additional revenue streams include freight transportation services, real estate operations, and retail businesses located in and around train stations. Significant partnerships with local businesses and tourism initiatives also contribute to its earnings, as the company capitalizes on the influx of domestic and international travelers.

Central Japan Railway Company Financial Statement Overview

Summary

Central Japan Railway Company demonstrates strong financial performance with excellent revenue growth and profitability metrics. The balance sheet is stable, though high leverage is a potential concern. Cash flow improvements reflect effective management strategies, with a focus on maintaining robust operational cash generation.

Income Statement

Central Japan Railway Company has shown strong revenue growth, recovering impressively from previous declines. The gross profit margin improved significantly, indicating better cost management, while the net profit margin reflects strong profitability. The company has also exhibited robust EBIT and EBITDA margins, highlighting operational efficiency.

Balance Sheet

The balance sheet reveals a stable financial structure with a reasonable debt-to-equity ratio. The return on equity is strong due to improved net income, which enhances shareholder value. The equity ratio is solid, underscoring financial stability, although the leverage remains relatively high, which could pose risks if financial conditions change.

Cash Flow

Cash flow analysis shows a significant improvement in free cash flow, indicating better cash management and operational efficiency. The operating cash flow to net income ratio suggests that the company generates sufficient cash from its operations. However, the free cash flow to net income ratio is moderate, implying room for improvement in converting income into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.87T	1.83T	1.71T	1.40T	935.14B	823.52B
Gross Profit	942.63B	902.95B	798.10B	552.44B	161.56B	-20.24B
EBITDA	951.28B	932.93B	840.83B	604.86B	219.32B	10.01B
Net Income	483.85B	458.42B	384.41B	219.42B	-51.93B	-201.55B
Balance Sheet
Total Assets	10.27T	10.32T	9.94T	9.51T	9.45T	9.60T
Cash, Cash Equivalents and Short-Term Investments	1.37T	1.55T	2.31T	2.44T	2.47T	2.81T
Total Debt	4.82T	4.81T	4.88T	4.98T	4.97T	4.97T
Total Liabilities	5.49T	5.66T	5.72T	5.71T	5.84T	5.91T
Stockholders Equity	4.72T	4.60T	4.17T	3.76T	3.56T	3.64T
Cash Flow
Free Cash Flow	0.00	171.99B	281.61B	59.51B	-378.81B	-639.54B
Operating Cash Flow	0.00	624.55B	672.88B	486.71B	71.75B	-169.35B
Investing Cash Flow	0.00	-956.04B	-436.56B	-175.04B	-153.05B	-134.72B
Financing Cash Flow	0.00	-95.53B	-125.13B	-220.60B	-19.18B	262.64B

Central Japan Railway Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4430.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9022, the sentiment is Positive. The current price of 4430 is above the 20-day moving average (MA) of 4300.75, above the 50-day MA of 4203.86, and above the 200-day MA of 3555.20, indicating a bullish trend. The MACD of 89.56 indicates Negative momentum. The RSI at 57.94 is Neutral, neither overbought nor oversold. The STOCH value of 83.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9022.

Central 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%

Central Japan Railway Company Corporate Events

Central Japan Railway Company Announces Share Repurchase

Central Japan Railway Company announced the repurchase of over 3 million shares of its common stock, amounting to approximately 12.3 billion yen, conducted through market purchases on the Tokyo Stock Exchange in November 2025. This move is part of a broader strategy approved by the Board of Directors to repurchase up to 48 million shares, reflecting 4.95% of the total issued shares, with a maximum expenditure of 110 billion yen, aimed at enhancing shareholder value.

Central Japan Railway’s Strategic Share Repurchase

Central Japan Railway Company has repurchased 3,451,700 shares of its common stock for a total of 14.49 billion yen during October 2025. This move is part of a broader plan authorized by the Board of Directors to repurchase up to 48 million shares, representing 4.95% of the company’s issued shares, by February 2026, potentially impacting shareholder value and market positioning.

Central Japan Railway Faces Cost Surge in Chuo Shinkansen Project

Central Japan Railway Company announced a significant increase in the total construction costs for the Chuo Shinkansen section between Shinagawa and Nagoya, now expected to reach 11 trillion yen. This increase is attributed to price surges and challenging construction work, prompting the company to secure additional financing while maintaining sound management and stable dividends. The company plans to continue cost reduction efforts and may adjust railway fares to manage inflationary impacts.

Central Japan Railway Expands Share Repurchase and Cancellation Plan

Central Japan Railway Company has announced an increase in the limit for the repurchase of its own shares and the cancellation of treasury shares. This decision aims to enhance shareholder returns and improve capital efficiency, reflecting the company’s financial performance for the six months ended September 30, 2025.

Central Japan Railway Company Reports Strong Financial Growth and Plans Share Repurchase

Central Japan Railway Company reported significant financial growth for the six months ending September 30, 2025, with comprehensive income increasing by 49.7% compared to the previous year. The company plans to enhance shareholder returns by increasing the limit for the repurchase of its own shares and canceling treasury shares, reflecting its strong financial performance and commitment to improving capital efficiency.

Nippon Sharyo Announces Subsidiary Dissolution and Revised Financial Forecast

Nippon Sharyo, Ltd., a subsidiary of Central Japan Railway Company, announced the dissolution of its overseas subsidiary, Nippon Sharyo Manufacturing, LLC, in Illinois, USA, expected to be completed by March 2026. The dissolution and improved financial performance have led to a revised forecast for the fiscal year ending March 31, 2026, with expected increases in net sales, operating profit, and profit attributable to owners, indicating a positive outlook for the company’s financial health.

Central Japan Railway Company Announces Share Repurchase

Central Japan Railway Company announced the repurchase of 2,327,600 shares of its common stock for approximately 9.6 billion yen, conducted through market purchases on the Tokyo Stock Exchange in September 2025. This move is part of a larger repurchase plan authorized in April 2025, aiming to buy back up to 45 million shares by February 2026, reflecting the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Central Japan Railway Faces Antimonopoly Investigation

Central Japan Railway Company and its subsidiary, JR Central Consultants, are under scrutiny by the Japan Fair Trade Commission for alleged violations of the Antimonopoly Act related to railway overpass inspections. The company has received a notice of hearing and is considering its response, while JR Central Consultants plans to record a provision for loss, although the overall impact on the company’s business performance is expected to be minor.