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

• Market Cap: €174.30B
• Dividend Yield: 1.89%
• Average Volume (3M): 293.86K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.47
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥2,798.00 ▲(2.01% 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.

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 gross profit margins and revenue growth. 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: 2743.00
• 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 2743 is above the 20-day moving average (MA) of 2359.95, above the 50-day MA of 2332.19, and above the 200-day MA of 2181.13, indicating a bullish trend. The MACD of 85.14 indicates Negative momentum. The RSI at 75.48 is Negative, neither overbought nor oversold. The STOCH value of 94.94 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	¥318.59B	13.18	―	1.71%	6.55%	-12.49%
9031	73 Outperform	€174.30B	7.27	11.44%	1.89%	8.29%	24.94%
9052	65 Neutral	¥46.11B	11.03	―	2.23%	4.37%	54.12%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9033	63 Neutral	¥18.28B	10.82	―	1.32%	1.70%	1841.47%
9081	62 Neutral	¥42.95B	13.64	―	2.49%	2.36%	-40.95%
9046	59 Neutral	¥19.51B	15.46	―	0.81%	1.24%	19.78%

Nishi-Nippon Railroad Co., Ltd. Corporate Events

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.

Nishi-Nippon Railroad Completes Treasury Stock Repurchase

Nishi-Nippon Railroad Co., Ltd. has completed its treasury stock repurchase program, acquiring 164,500 shares at a cost of 361,578,550 yen. This move, executed through market purchases on the Tokyo Stock Exchange, is part of a broader strategy approved by the Board of Directors to repurchase up to 2 million shares, enhancing shareholder value and optimizing capital structure.

The most recent analyst rating on (JP:9031) stock is a Hold with a Yen2353.00 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 Mixed Financial Results for Q1 2025

Nishi-Nippon Railroad Co., Ltd. reported a 2% increase in operating revenue for the three months ended June 30, 2025, compared to the same period in 2024. Despite this, the company experienced a significant decline in operating and ordinary income, though profit attributable to owners of the parent surged by 75.2%. The company’s financial forecast for the fiscal year ending March 31, 2026, anticipates a 6% increase in operating revenue, but a decrease in operating and ordinary income, with a slight increase in profit attributable to owners. The dividend forecast remains unchanged, indicating stable shareholder returns.

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.