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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.

(9031)

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Neutral 58 (OpenAI - 5.2)
Rating:58Neutral
Price Target:
¥3,207.00
▲(14.70% Upside)
Action:Downgraded
Date:05/18/26
The score is driven primarily by mixed fundamentals: improved profitability and a gradually strengthening balance sheet are offset by weak and volatile free cash flow. Technical indicators are bearish (below key moving averages with negative MACD), while the low P/E and dividend yield provide strong valuation support.
Positive Factors
Improving profitability
The firm returned to solid profitability with margin expansion, signaling structurally better operating performance. Sustained higher margins improve internal funding for maintenance and development, support ROE recovery, and increase resilience to demand swings over a multi-quarter horizon.
Negative Factors
Weak free cash flow
FCF weakness despite earnings gains indicates poor cash conversion from operations and heavy capex or working-capital swings. Persistent near-zero or negative FCF constrains reinvestment, dividends, or debt paydown, forcing reliance on external financing and reducing strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability
The firm returned to solid profitability with margin expansion, signaling structurally better operating performance. Sustained higher margins improve internal funding for maintenance and development, support ROE recovery, and increase resilience to demand swings over a multi-quarter horizon.
Read all positive factors

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

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

Company Description
Nishi-Nippon Railroad Co., Ltd. operates primarily as a transportation and diversified services company within Japan. Its core offerings include rail networks, taxi services, and public and tourist bus transportation. The company maintains a subst...
How the Company Makes Money
The company earns revenue through multiple operating segments. (1) Transportation: It collects passenger fares from its railway lines and bus operations, along with related transport income such as commuter pass sales and other mobility-service re...

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

Summary
Profitability has improved materially versus earlier years (return to solid profits and higher net margin in 2026), and leverage is trending better. However, cash flow is the major weakness: free cash flow was near breakeven to slightly negative in 2026 and deeply negative in 2025, indicating weak cash conversion despite earnings and reducing financial flexibility.
Income Statement
74
Positive
Balance Sheet
60
Neutral
Cash Flow
42
Neutral
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue474.16B443.50B411.65B494.64B427.16B
Gross Profit62.91B55.61B53.68B53.59B36.76B
EBITDA73.53B53.74B60.05B48.37B38.20B
Net Income32.16B20.81B24.72B18.37B9.87B
Balance Sheet
Total Assets820.85B782.13B727.00B685.79B734.50B
Cash, Cash Equivalents and Short-Term Investments46.87B51.32B69.62B72.80B70.83B
Total Debt362.99B366.16B316.84B334.87B347.79B
Total Liabilities527.80B526.08B491.16B483.91B555.41B
Stockholders Equity284.09B249.26B229.30B195.12B173.00B
Cash Flow
Free Cash Flow-63.00M-67.87B6.17B21.51B4.69B
Operating Cash Flow38.61B15.61B62.21B43.77B30.59B
Investing Cash Flow-30.15B-74.55B-42.03B-24.60B-10.34B
Financing Cash Flow-13.51B39.23B-25.96B-19.16B-1.68B

Nishi-Nippon Railroad Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2796.00
Price Trends
50DMA
2945.16
Positive
100DMA
2962.71
Positive
200DMA
2844.26
Positive
Market Momentum
MACD
11.28
Positive
RSI
46.36
Neutral
STOCH
13.93
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9031, the sentiment is Neutral. The current price of 2796 is below the 20-day moving average (MA) of 3084.00, below the 50-day MA of 2945.16, and below the 200-day MA of 2844.26, indicating a neutral trend. The MACD of 11.28 indicates Positive momentum. The RSI at 46.36 is Neutral, neither overbought nor oversold. The STOCH value of 13.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9031.

Nishi-Nippon Railroad Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
¥578.51B10.239.47%2.26%13.35%
67
Neutral
¥534.76B11.629.54%3.08%8.75%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
¥311.16B12.211.61%3.35%12.80%
60
Neutral
¥43.26B12.282.17%5.52%-6.89%
58
Neutral
¥235.95B6.5812.18%1.68%10.01%48.37%
58
Neutral
¥610.80B16.507.55%3.17%2.63%-13.44%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9031
Nishi-Nippon Railroad Co., Ltd.
2,993.00
919.24
44.33%
JP:9142
Kyushu Railway Company
3,462.00
-407.72
-10.54%
JP:9007
Odakyu Electric Railway Co
1,707.00
28.19
1.68%
JP:9001
Tobu Railway Co
2,950.50
424.81
16.82%
JP:9044
Nankai Electric Railway Co., Ltd.
2,872.00
371.71
14.87%
JP:9052
Sanyo Electric Railway Co., Ltd.
1,947.00
-59.93
-2.99%

Nishi-Nippon Railroad Co., Ltd. Corporate Events

Nishi-Nippon Railroad Delivers Profit Surge and Dividend Hike, Flags Earnings Normalization
May 21, 2026
Nishi-Nippon Railroad reported solid results for the fiscal year ended March 31, 2026, with operating revenue up 6.9% to ¥474.2 billion and profit attributable to owners of parent jumping 54.5% to ¥32.2 billion, helped by stronger ordina...
Nishi-Nippon Railroad Moves to Broaden Business Scope With Articles Amendment
May 21, 2026
Nishi-Nippon Railroad’s board has approved a proposal to partially amend its Articles of Incorporation, to be put to shareholders at the 186th Annual General Meeting scheduled for June 26, 2026. The revision broadens the stated corporate pur...
Nishi-Nippon Railroad Expands Stock-Based Pay to Align Executives With Shareholders
May 21, 2026
Nishi-Nippon Railroad has approved a revision of its executive compensation framework that increases the role of stock-based pay for directors and titled executive officers residing in Japan. The company will abolish its medium-term performance-li...
Nishi-Nippon Railroad Boosts Dividend as Profit Jumps, Warns of Lower Earnings Ahead
May 14, 2026
Nishi-Nippon Railroad reported solid earnings growth for the fiscal year ended March 31, 2026, with operating revenue up 6.9% to ¥474.2 billion and profit attributable to owners of parent surging 54.5% to ¥32.2 billion, while return on e...
Nishi-Nippon Railroad Plans Sharp Hike in Year-End Dividend
May 14, 2026
Nishi-Nippon Railroad has proposed a significant increase in its year-end dividend for the fiscal year ended March 31, 2026, raising the planned payout from 25 yen to 45 yen per share, with total dividends rising to about 3.4 billion yen. The move...
Nishi-Nippon Railroad Revamps Independent Committee for Takeover Defense
May 14, 2026
Nishi-Nippon Railroad Co., Ltd. has adjusted the composition of its Independent Committee, which oversees responses to large-scale share acquisitions and takeover bids, after determining that existing member and outside director Kyoko Matsuoka no ...
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: May 18, 2026