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

• Market Cap: ¥256.44B
• Dividend Yield: 1.68%
• Average Volume (3M): 293.86K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.54
• Revenue Growth: 8.29%
• EPS Growth: 24.94%
• Country: JP
• Employees: 18,687
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 148.61
• Shares Outstanding: 79,360,180
• 10 Day Avg. Volume: 144,310
• 30 Day Avg. Volume: 293,860
• PEG Ratio: -0.54
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.38
• P/FCF Ratio: -2.47
• 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): 333.28
• Revenue Forecast (FY): ¥476.55B

• Rating: 73 Outperform
• Price Target: ¥3,627.00 ▲(29.72% Upside)
• Action: Upgraded Date: 11/15/25
• Date: Action: Upgraded 11/15/25

Nishi-Nippon Railroad Co. benefits from strong technical indicators and attractive valuation metrics, which are the most significant factors driving the score. Financial performance is stable but faces challenges in cash flow management and net income volatility.

Positive Factors

Revenue growth momentum

The company shows multi-year recovery with double-digit revenue growth in fundamentals and a ~7.7% year-on-year revenue rise cited in income statement notes. Sustained top-line expansion supports long-term reinvestment capacity across transport and non-transport segments.

Diversified business model

Nishi‑Nippon earns from core passenger transport plus real estate leasing, property development and life‑service businesses. This diversification smooths cyclicality, provides recurring rent cash flows and alternative earnings drivers beyond fare-dependent operations.

Manageable balance sheet

Reported moderate leverage and an improving equity ratio point to a strengthened financial position and asset base. That balance-sheet stability supports financing of capital programs and cushions operating volatility without forcing abrupt capital adjustments.

Negative Factors

Weak free cash flow conversion

Significant capex drove a sharp drop in free cash flow despite positive operating cash flow. Poor FCF conversion constrains discretionary uses like dividends, debt paydown or new investments and may require financing if capex remains elevated.

Net income volatility / ROE decline

A drop in net income and variable ROE reduce predictability of returns and impair compounding of shareholder equity. Persistent earnings volatility can hinder strategic planning and make funding internal growth or shareholder distributions less reliable over time.

Regional revenue concentration

Core operations are heavily focused on the Kyushu/Fukuoka region, concentrating passenger and property exposure to a single regional economy. That geographic concentration raises sensitivity to local demographic, economic or regulatory shocks versus a more diversified national footprint.

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

Company Description

Nishi-Nippon Railroad Co., Ltd. primarily engages in the transportation business in Japan. It offers railway, taxi, and public and tourist bus transportation services. The company is also involved in the leasing of office, commercial, and other buildings; construction and sale of condominiums, detached houses, and new town developments, as well as a range of other developments; and operation of supermarkets and liquor stores. In addition, it provides air cargo handling and customs brokerage services; manages amusement park, garden, and aquarium facilities; operates hotels; produces and sells strawberries; offers agricultural management and production technologies training; and provides IC cards. The company was founded in 1908 and is headquartered in Fukuoka, Japan.

How the Company Makes Money

Nishi-Nippon Railroad generates revenue primarily through its railway operations, which include passenger fares and freight transportation charges. The company benefits from a steady stream of income from its extensive rail network, which services urban and suburban areas, catering to daily commuters and tourists alike. Additionally, the company earns significant revenue from its real estate ventures, involving the development and leasing of properties near its train stations. Bus services also contribute to its earnings, providing integrated transport solutions. Partnerships with local governments and tourism organizations further bolster its revenue by promoting regional travel initiatives and events, enhancing overall patronage of its services.

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

Summary

Nishi-Nippon Railroad Co. has shown a stable recovery with improving revenue and operational efficiency. However, challenges in cash flow management and a decline in net income in 2025 slightly impact the overall financial performance.

Income Statement

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

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

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.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	445.49B	443.50B	411.65B	494.64B	427.16B	346.12B
Gross Profit	56.53B	57.97B	56.05B	56.18B	39.46B	20.29B
EBITDA	59.14B	53.74B	60.06B	48.37B	30.03B	10.50B
Net Income	23.59B	20.81B	24.72B	18.37B	9.87B	-12.07B
Balance Sheet
Total Assets	765.84B	782.13B	727.00B	685.79B	734.50B	707.80B
Cash, Cash Equivalents and Short-Term Investments	50.51B	51.32B	69.62B	72.80B	70.83B	51.38B
Total Debt	357.56B	366.16B	316.84B	334.87B	347.79B	345.44B
Total Liabilities	509.82B	526.08B	491.17B	483.92B	555.42B	537.86B
Stockholders Equity	247.76B	249.26B	229.30B	195.12B	173.00B	164.60B
Cash Flow
Free Cash Flow	-18.52B	-67.87B	6.17B	21.51B	4.69B	-52.78B
Operating Cash Flow	-2.54B	15.61B	62.21B	43.77B	30.59B	-9.94B
Investing Cash Flow	-15.31B	-74.55B	-42.03B	-24.60B	-10.34B	-29.25B
Financing Cash Flow	5.18B	39.23B	-25.96B	-19.16B	-1.68B	56.75B

Nishi-Nippon Railroad Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2796.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 2796 is below the 20-day moving average (MA) of 3090.45, below the 50-day MA of 2951.34, and above the 200-day MA of 2432.24, indicating a bullish trend. The MACD of 90.88 indicates Negative momentum. The RSI at 73.36 is Negative, neither overbought nor oversold. The STOCH value of 85.56 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9044	78 Outperform	¥352.97B	14.09	―	1.61%	6.55%	-12.49%
9031	73 Outperform	¥256.44B	7.64	11.44%	1.68%	8.29%	24.94%
9007	70 Outperform	¥645.51B	14.27	8.51%	2.96%	-2.82%	-50.73%
9142	70 Neutral	¥607.36B	12.99	9.26%	2.68%	10.39%	32.43%
9052	65 Neutral	¥45.82B	11.36	―	2.17%	4.37%	54.12%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9001	62 Neutral	¥617.43B	10.84	8.78%	2.49%	1.72%	10.19%

Nishi-Nippon Railroad Co., Ltd. Corporate Events

Nishi-Nippon Railroad to Absorb Engineering Subsidiary to Bolster Rail Safety

Nishi-Nippon Railroad will merge its wholly owned subsidiary Nishitetsu Engineering into the parent company via an absorption-type merger effective April 1, 2027, dissolving the engineering unit without issuing new shares or offering consideration. The move is designed to secure railroad engineers more stably, ensure smooth succession of technical expertise, and strengthen safety in the maintenance of vehicles, tracks, and electrical facilities, with the company stating that organizational details such as its name, capital and fiscal year will remain unchanged and the impact on consolidated financial results will be immaterial.

Board approval and execution of the merger agreement are scheduled for December 2026, using a simplified and short-form process that does not require shareholder meetings at either company, reflecting the wholly owned status of Nishitetsu Engineering. By internalizing and integrating engineering functions that have supported its rail network, Nishi-Nippon Railroad aims to reinforce operational safety and technical capabilities in its core transportation business while streamlining its group structure without significant financial disruption for investors and other stakeholders.

The most recent analyst rating on (JP:9031) stock is a Buy with a Yen3576.00 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 Lifts Profit Outlook on Strong Nine-Month Earnings

Nishi-Nippon Railroad reported strong consolidated results for the nine months ended December 31, 2025, with operating revenue up 8.5% year on year to ¥343.6 billion and profit attributable to owners of parent surging 71.9% to ¥27.8 billion, supported by higher ordinary income and improved comprehensive income. The company’s financial position also strengthened, with total assets rising to ¥795.3 billion, shareholders’ equity and the equity ratio improving, and the full-year forecast revised to call for 6.6% revenue growth and a 49% jump in net profit, alongside a planned dividend increase to a total of ¥50 per share, reflecting growing returns to shareholders and the impact of adding six new consolidated subsidiaries including Hinomaru Holdings.

The most recent analyst rating on (JP:9031) stock is a Buy with a Yen3576.00 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 Lifts Profit 72% and Raises Full-Year Outlook

Nishi-Nippon Railroad Co., Ltd. reported consolidated operating revenue of ¥343.6 billion for the nine months ended December 31, 2025, up 8.5% year on year, with operating income rising 5.9% to ¥22.7 billion and ordinary income jumping 29.3% to ¥29.0 billion. Profit attributable to owners of parent surged 71.9% to ¥27.8 billion, lifting basic earnings per share to ¥364.86 and strengthening the equity ratio to 33.7% as total assets and shareholders’ equity both increased.

The company maintained its dividend plan, having already paid an interim dividend of ¥25 per share and forecasting a full-year payout of ¥50, signaling confidence in earnings quality and cash flow. It also revised its full-year forecast upward, now expecting ¥472.7 billion in operating revenue and a 49% rise in full-year profit attributable to owners of parent to ¥31.0 billion, while expanding its consolidation scope by adding six new subsidiaries including Hinomaru Holdings Co., Ltd., a move that underscores growth ambitions and portfolio expansion.

The most recent analyst rating on (JP:9031) stock is a Buy with a Yen3275.00 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 Revamps Executive Lineup Ahead of Fiscal Year

Nishi-Nippon Railroad Co., Ltd. has announced a reshuffle of its executive team, with the Board of Directors approving several new Executive Officer appointments effective April 1, 2026. The company stated that no changes are planned for its Directors at the Annual General Meeting of Shareholders scheduled for late June 2026.

The promotion of internal leaders, including heads of audit, overseas development, community development, and bus transportation planning, reflects a broad refresh of operational leadership. At the same time, several senior and executive officers will retire or transition to new roles within group companies, signaling a generational shift aimed at strengthening governance and aligning management with key growth areas across transportation, tourism, and group operations.

The most recent analyst rating on (JP:9031) stock is a Buy with a Yen3275.00 price target. To see the full list of analyst forecasts on Nishi-Nippon Railroad Co., Ltd. stock, see the JP:9031 Stock Forecast page.