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Nishi-Nippon Railroad Co., Ltd. (JP:9031)
:9031
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Nishi-Nippon Railroad Co., Ltd. (9031) AI Stock Analysis

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JP:9031

Nishi-Nippon Railroad Co., Ltd.

(Frankfurt:9031)

Rating:66Neutral
Price Target:
¥2,250.00
▲(0.51% Upside)
Nishi-Nippon Railroad Co.'s stock score reflects a stable financial performance with challenges in cash flow management, a neutral technical outlook, and an attractive valuation. The absence of notable earnings call insights or corporate events keeps the focus on these core elements.

Nishi-Nippon Railroad Co., Ltd. (9031) vs. iShares MSCI Japan ETF (EWJ)

Nishi-Nippon Railroad Co., Ltd. Business Overview & Revenue Model

Company DescriptionNishi-Nippon Railroad Co., Ltd. (9031) is a diversified transportation and real estate company based in Japan. It operates through various segments, including transportation, real estate, leisure services, and other related businesses. The company's core services include managing a network of railways and bus lines, as well as engaging in real estate development and sales, hotel operations, and providing travel and leisure services.
How the Company Makes MoneyNishi-Nippon Railroad Co., Ltd. generates revenue primarily through its transportation services, which include railway and bus operations, providing critical public transit solutions in the regions it serves. Additionally, the company earns substantial income from its real estate segment, which involves the development, leasing, and sale of residential, commercial, and retail properties. The leisure services segment contributes to the company's earnings through hotel management, travel agency operations, and various recreational facilities. The diversification into these sectors allows the company to maintain a stable revenue stream, supported by strategic partnerships and regional demand for its services.

Nishi-Nippon Railroad Co., Ltd. Financial Statement Overview

Summary
Nishi-Nippon Railroad Co. has shown a stable recovery post-2021 with an improving revenue trajectory and operational efficiency, as reflected in stable EBIT and EBITDA margins. However, challenges in net income and free cash flow management in 2025 raise concerns about sustained financial health.
Income Statement
62
Positive
Nishi-Nippon Railroad Co. has shown a consistent recovery and growth trajectory post-2021, with improving gross profit margins and net profit margins. The revenue growth rate between 2024 and 2025 was approximately 7.72%, indicating a positive trend in revenue generation. However, the company faced a decline in net income in 2025 compared to 2024, which slightly impacts the overall profitability assessment. The EBIT and EBITDA margins remain stable, reflecting operational efficiency.
Balance Sheet
68
Positive
The company maintains a manageable debt-to-equity ratio, reflecting moderate leverage. The equity ratio has improved over the years, indicating a strengthened financial position. Return on equity, however, showed variability, with a decrease in 2025 due to lower net income. The balance sheet demonstrates overall stability with a favorable equity position and asset base.
Cash Flow
55
Neutral
Nishi-Nippon Railroad Co. faced significant challenges in cash flow management in 2025, with a substantial decline in free cash flow due to increased capital expenditures. However, the operating cash flow remains positive, indicating the company’s capability to generate cash from operations. The free cash flow to net income ratio is concerning, reflecting challenges in converting income into free cash flow.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue443.50B411.65B494.64B427.16B346.12B
Gross Profit57.97B56.05B56.18B39.46B20.29B
EBITDA53.74B60.06B44.68B30.03B10.50B
Net Income20.81B24.72B18.37B9.87B-12.07B
Balance Sheet
Total Assets782.13B727.00B685.79B734.50B707.80B
Cash, Cash Equivalents and Short-Term Investments51.32B69.62B72.80B70.83B51.38B
Total Debt366.16B316.84B334.87B347.79B345.44B
Total Liabilities526.08B491.17B483.92B555.42B537.86B
Stockholders Equity249.26B229.30B195.12B173.00B164.60B
Cash Flow
Free Cash Flow-67.87B6.17B21.51B4.69B-52.78B
Operating Cash Flow15.61B62.21B43.77B30.59B-9.94B
Investing Cash Flow-74.55B-42.03B-24.60B-10.34B-29.25B
Financing Cash Flow39.23B-25.96B-19.16B-1.68B56.75B

Nishi-Nippon Railroad Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2238.50
Price Trends
50DMA
2082.78
Positive
100DMA
2124.93
Positive
200DMA
2161.23
Positive
Market Momentum
MACD
44.80
Negative
RSI
79.76
Negative
STOCH
92.51
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9031, the sentiment is Positive. The current price of 2238.5 is above the 20-day moving average (MA) of 2115.35, above the 50-day MA of 2082.78, and above the 200-day MA of 2161.23, indicating a bullish trend. The MACD of 44.80 indicates Negative momentum. The RSI at 79.76 is Negative, neither overbought nor oversold. The STOCH value of 92.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9031.

Nishi-Nippon Railroad Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥278.89B11.93
1.59%7.02%-11.48%
70
Neutral
¥19.43B14.10
1.21%10.64%110.16%
68
Neutral
¥45.02B11.97
1.73%-1.86%-2.54%
67
Neutral
¥19.64B16.36
0.81%-0.12%10.36%
66
Neutral
€174.18B8.2710.30%1.79%7.74%-14.84%
62
Neutral
C$7.33B1.8010.22%2.39%10.50%-5.58%
60
Neutral
¥45.41B13.22
2.41%1.10%-29.92%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9031
Nishi-Nippon Railroad Co., Ltd.
2,238.50
15.06
0.68%
JP:9033
Hiroshima Electric Railway Co., Ltd.
648.00
-62.12
-8.75%
JP:9044
Nankai Electric Railway Co., Ltd.
2,518.00
234.26
10.26%
JP:9046
Kobe Electric Railway Co., Ltd.
2,480.00
-103.84
-4.02%
JP:9052
Sanyo Electric Railway Co., Ltd.
2,027.00
82.58
4.25%
JP:9081
Kanagawa Chuo Kotsu Co., Ltd.
3,780.00
760.28
25.18%

Nishi-Nippon Railroad Co., Ltd. Corporate Events

Nishi-Nippon Railroad Reports on Treasury Stock Repurchase Progress
Aug 1, 2025

Nishi-Nippon Railroad Co., Ltd. announced the status of its treasury stock repurchase program, revealing that no shares were repurchased in July 2025. Despite the lack of repurchase in July, the company has repurchased a total of 1,835,500 shares at a cost of 3.7 billion yen since the board’s resolution in May 2025, which allows for up to 2 million shares to be repurchased by November 2025.

The most recent analyst rating on (JP:9031) stock is a Hold with a Yen2650.00 price target. To see the full list of analyst forecasts on Nishi-Nippon Railroad Co., Ltd. stock, see the JP:9031 Stock Forecast page.

Nishi-Nippon Railroad Completes Treasury Stock Repurchase
Jul 1, 2025

Nishi-Nippon Railroad Co., Ltd. announced the completion of a treasury stock repurchase, acquiring 1,835,500 shares at a total cost of 3,696,697,000 yen. This move is part of a broader strategy approved by the Board to repurchase up to 2 million shares, potentially impacting shareholder value and market perception.

The most recent analyst rating on (JP:9031) stock is a Hold with a Yen2650.00 price target. To see the full list of analyst forecasts on Nishi-Nippon Railroad Co., Ltd. stock, see the JP:9031 Stock Forecast page.

Nishi-Nippon Railroad Appoints New Independent Committee Member
Jun 30, 2025

Nishi-Nippon Railroad Co., Ltd. announced a change in its Independent Committee Members under its policy against large-scale acquisitions of company shares. Osamu Nagata, with a distinguished career at Toyota, has been appointed as a new Independent Committee Member, effective June 27, 2025, following the retirement of Madoka Kitamura.

The most recent analyst rating on (JP:9031) stock is a Hold with a Yen2650.00 price target. To see the full list of analyst forecasts on Nishi-Nippon Railroad Co., Ltd. stock, see the JP:9031 Stock Forecast page.

Nishi-Nippon Railroad Completes Significant Share Repurchase
Jun 20, 2025

Nishi-Nippon Railroad Co., Ltd. has repurchased 1,835,500 shares of its common stock at a total acquisition cost of 3.7 billion yen through the Tokyo Stock Exchange’s off-auction own share repurchase trading system. This move aligns with the company’s strategic plan to repurchase up to 2 million shares, as resolved by its Board of Directors, potentially impacting shareholder value and market perception.

The most recent analyst rating on (JP:9031) stock is a Hold with a Yen2650.00 price target. To see the full list of analyst forecasts on Nishi-Nippon Railroad Co., Ltd. stock, see the JP:9031 Stock Forecast page.

Nishi-Nippon Railroad Announces Share Repurchase Plan
Jun 19, 2025

Nishi-Nippon Railroad Co., Ltd. has announced a resolution by its Board of Directors to repurchase up to 2 million shares of its common stock, representing 2.57% of its outstanding shares, through the Tokyo Stock Exchange’s Off-Auction Own Share Repurchase Trading System (ToSTNeT-3). This strategic move is part of the company’s broader plan to manage its capital structure effectively, potentially enhancing shareholder value and signaling confidence in its financial health.

The most recent analyst rating on (JP:9031) stock is a Hold with a Yen2650.00 price target. To see the full list of analyst forecasts on Nishi-Nippon Railroad Co., Ltd. stock, see the JP:9031 Stock Forecast page.

Nishi-Nippon Railroad Reports No Treasury Stock Repurchase
Jun 2, 2025

Nishi-Nippon Railroad Co., Ltd. announced that no shares were repurchased during the specified period from May 12, 2025, to May 31, 2025, despite a resolution allowing for the repurchase of up to 2 million shares. This lack of activity in the treasury stock repurchase could impact the company’s financial strategy and market perception.

The most recent analyst rating on (JP:9031) stock is a Hold with a Yen2650.00 price target. To see the full list of analyst forecasts on Nishi-Nippon Railroad Co., Ltd. stock, see the JP:9031 Stock Forecast page.

Nishi-Nippon Railroad Reports Increased Revenue but Declining Profit for FY 2025
May 16, 2025

Nishi-Nippon Railroad Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 7.7% increase in operating revenue to 443,495 million yen. Despite this growth, profit attributable to owners of the parent decreased by 15.8% to 20,810 million yen. The company experienced a significant drop in cash flows from operating activities, which fell to 15,611 million yen from 62,213 million yen the previous year. This financial performance indicates challenges in maintaining profitability despite revenue growth, impacting its financial stability and potentially affecting stakeholder confidence.

The most recent analyst rating on (JP:9031) stock is a Hold with a Yen2650.00 price target. To see the full list of analyst forecasts on Nishi-Nippon Railroad Co., Ltd. stock, see the JP:9031 Stock Forecast page.

Nishi-Nippon Railroad Finalizes Subsidiary Merger Agreement
May 16, 2025

Nishi-Nippon Railroad Co., Ltd. has concluded a merger agreement to absorb its wholly owned subsidiaries, Nishitetsu Bus Munakata Co., Ltd. and Nishitetsu Bus Futsukaichi Co., Ltd., with the merger set to be effective on October 1, 2025. This strategic move is expected to have an immaterial impact on the company’s consolidated financial results, as it involves subsidiaries already under its ownership, streamlining operations without significant financial disruption.

The most recent analyst rating on (JP:9031) stock is a Hold with a Yen2650.00 price target. To see the full list of analyst forecasts on Nishi-Nippon Railroad Co., Ltd. stock, see the JP:9031 Stock Forecast page.

Nishi-Nippon Railroad Announces Treasury Stock Repurchase Plan
May 9, 2025

Nishi-Nippon Railroad Co., Ltd. has announced a plan to repurchase up to 2 million of its common shares, representing 2.57% of its outstanding shares, with a total acquisition cost of up to 5.3 billion yen. This strategic move is aimed at implementing a flexible capital policy, utilizing funds from the sale of cross-shareholdings to adapt to changes in the business environment, potentially impacting the company’s market positioning and shareholder value.

Nishi-Nippon Railroad Revises Fukuoka Project Budget
May 9, 2025

Nishi-Nippon Railroad Co., Ltd. has announced a revision in the acquisition cost for the Fukuoka Building Block project, increasing the budget from approximately 85 billion yen to 94.5 billion yen due to rising material and labor costs and enhancements to the building’s quality. This adjustment has been factored into the company’s financial guidance for the fiscal year ending March 31, 2026, indicating a strategic move to maintain the project’s value and quality amidst economic fluctuations.

Nishi-Nippon Railroad Reports Mixed Financial Results for FY 2025
May 9, 2025

Nishi-Nippon Railroad Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 7.7% increase in operating revenue to 443,495 million yen. Despite this growth, the company experienced a 15.8% decline in profit attributable to owners of the parent, amounting to 20,810 million yen. The financial position showed an increase in total assets and net assets, with a slight improvement in the equity ratio. The company also announced a stable annual dividend of 40 yen per share, maintaining its payout ratio. These results indicate a mixed performance with growth in revenue but challenges in profitability, impacting the company’s financial stability and shareholder returns.

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: Jul 24, 2025