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

• Market Cap: ¥226.88B
• Dividend Yield: 1.68%
• Average Volume (3M): 293.86K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.48
• Revenue Growth: 8.29%
• EPS Growth: 24.94%
• Country: JP
• Employees: 18,687
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 132.41
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥3,246.00 ▲(16.09% Upside)

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

Consistent revenue growth

Revenue growth near 8% and an improving operational efficiency trend signal durable demand for transport and related services. Over 2–6 months this supports stable cash generation, incremental reinvestment capacity, and underpinning for margin maintenance despite cyclical headwinds.

Diversified business mix

A multi-segment model combining rail operations with real estate and bus/leisure businesses reduces reliance on any single revenue stream. Station-area property income and integrated transport services provide recurring, less cyclical cash flows and cross-selling advantages that bolster resilience over time.

Manageable leverage and stronger equity ratio

An improved equity ratio and moderate leverage provide financial flexibility for necessary capex and refinancing. This balance-sheet strength supports long-term investment in network upkeep and development while reducing solvency risk across multi-quarter horizons.

Negative Factors

Free cash flow decline

A marked drop in free cash flow from elevated capex weakens the company’s ability to self-fund growth, service discretionary returns, or build liquidity buffers. Persistent FCF pressure over several quarters can constrain strategic flexibility and increase reliance on external financing.

Net income decline and ROE variability

Falling net income and volatile ROE signal earnings instability that can hinder long-term return expectations and capital allocation decisions. Persistent profit volatility complicates funding of dividends and reduces predictability of internal investment returns across planning horizons.

Regional concentration risk

Heavy exposure to a single prefecture makes revenues and ridership sensitive to local economic cycles, demographics, and policy changes. Geographic concentration limits diversification of demand drivers and can amplify downside from regional shocks over multiple quarters.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Positive
• RSI: Neutral
• STOCH: Neutral

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 2846.47, above the 50-day MA of 2703.45, and above the 200-day MA of 2296.05, indicating a bullish trend. The MACD of 52.81 indicates Positive momentum. The RSI at 61.20 is Neutral, neither overbought nor oversold. The STOCH value of 77.89 is Neutral, 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	¥341.76B	14.14	―	1.61%	6.55%	-12.49%
9031	73 Outperform	¥226.88B	7.86	11.44%	1.68%	8.29%	24.94%
9052	65 Neutral	¥46.42B	11.10	―	2.17%	4.37%	54.12%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9033	63 Neutral	¥18.89B	11.18	―	1.33%	1.70%	1841.47%
9081	62 Neutral	¥47.25B	15.00	―	2.58%	2.36%	-40.95%
9046	59 Neutral	¥20.61B	16.33	―	0.81%	1.24%	19.78%

Nishi-Nippon Railroad Co., Ltd. Corporate Events

Nishi-Nippon Railroad Reports Strong Interim Profits and Revised Financial Outlook

Nishi-Nippon Railroad Co., Ltd. reported a significant increase in interim profit attributable to owners of the parent, rising by 78.6% compared to the previous year. The company also revised its dividend forecast and financial outlook for the fiscal year ending March 31, 2026, indicating a positive trajectory in its financial performance.

The most recent analyst rating on (JP:9031) stock is a Buy with a Yen2798.00 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 Strong Interim Profit Growth and Dividend Increase

Nishi-Nippon Railroad Co., Ltd. reported a significant increase in its interim profit attributable to owners of the parent, which rose by 78.6% year-on-year for the six months ended September 30, 2025. The company also announced a revision in its dividend forecast, reflecting a positive outlook for the fiscal year ending March 31, 2026, with an expected increase in annual dividends.

The most recent analyst rating on (JP:9031) stock is a Hold with a Yen2375.00 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 Exceeds Interim Profit Forecasts Despite Revenue Shortfall

Nishi-Nippon Railroad Co., Ltd. reported a difference between its earnings forecast and actual results for the first half of the fiscal year ending March 31, 2026. While operating revenue fell short due to delayed sales in the Housing business, operating income and interim profit exceeded forecasts due to lower personnel expenses and increased gains from investment securities. This indicates a positive adjustment in the company’s financial performance, potentially strengthening its market position and benefiting stakeholders.

The most recent analyst rating on (JP:9031) stock is a Hold with a Yen2375.00 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 Increased Dividend for Fiscal Year 2026

Nishi-Nippon Railroad Co., Ltd. announced an increase in its interim dividend per share from 20.00 yen to 25.00 yen, reflecting a commitment to stable shareholder returns. The revised forecast for the year-end dividend is also set at 25.00 yen per share, resulting in an annual dividend of 50.00 yen for the fiscal year ending March 31, 2026. This decision is based on the company’s strong financial performance and outlook, aiming to strengthen its financial position while rewarding shareholders.

The most recent analyst rating on (JP:9031) stock is a Hold with a Yen2375.00 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 Merger with Subsidiary

Nishi-Nippon Railroad Co., Ltd. has announced the conclusion of a merger agreement with its wholly owned subsidiary, Nishitetsu Kanko Bus Co., Ltd., effective April 1, 2026. This merger, being an absorption-type, will have minimal impact on the company’s consolidated financial results as Nishitetsu Kanko Bus will be dissolved.

The most recent analyst rating on (JP:9031) stock is a Hold with a Yen2375.00 price target. To see the full list of analyst forecasts on Nishi-Nippon Railroad Co., Ltd. stock, see the JP:9031 Stock Forecast page.