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

• Market Cap: ¥165.00B
• Dividend Yield: 2.02%
• Average Volume (3M): 169.72K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.47
• Revenue Growth: 7.74%
• EPS Growth: -14.83%
• Country: JP
• Employees: 18,687
• Sector: Industrials
• Sector Strength: 87
• Industry: Railroads
• EPS (TTM): 60.06
• Shares Outstanding: 79,360,180
• 10 Day Avg. Volume: 244,080
• 30 Day Avg. Volume: 169,716
• PEG Ratio: 0.12
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.76
• 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: ¥2,499.59
• Price Target Upside: 20.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: ¥2,308.00 ▲(11.42%Upside)

Nishi-Nippon Railroad Co.'s stock score is primarily influenced by stable financial performance and attractive valuation. While the company shows strong operational efficiency and a promising valuation with a low P/E ratio, challenges in cash flow management and bearish technical signals moderately impact the overall score.

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

Company Description

Nishi-Nippon Railroad Co., Ltd. (9031) is a diversified Japanese company primarily engaged in the transportation sector. Founded in 1908 and headquartered in Fukuoka, Japan, the company operates a comprehensive network of railways, buses, and other transportation services. Besides transportation, Nishi-Nippon Railroad Co., Ltd. is involved in a variety of business sectors including real estate, logistics, and retail. The company is known for its integrated approach, leveraging its transportation network to support its real estate developments, shopping centers, and various service offerings.

How the Company Makes Money

Nishi-Nippon Railroad Co., Ltd. generates revenue through multiple streams, with its primary income derived from its transportation services, including railway and bus operations. The company earns substantial revenue through passenger fares and freight services. In addition to its core transportation business, Nishi-Nippon Railroad Co., Ltd. has a significant real estate division, which develops and manages properties, including residential and commercial buildings, shopping centers, and office spaces. This division contributes to the company's earnings through property sales, rental income, and management fees. The company also capitalizes on its retail segment by operating department stores and various retail outlets. Furthermore, Nishi-Nippon Railroad Co., Ltd. benefits from strategic partnerships and investments within its logistics and tourism sectors, enhancing its service offerings and expanding its business reach.

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

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
424.63B	443.50B	411.65B	494.64B	427.16B	346.12B
	Gross Profit
59.67B	57.97B	56.05B	56.18B	39.46B	20.29B
	EBIT
29.01B	26.66B	25.88B	26.15B	10.45B	-9.50B
	EBITDA
54.08B	53.74B	60.06B	44.68B	30.03B	10.50B
	Net Income Common Stockholders
24.23B	20.81B	24.72B	18.37B	9.87B	-12.07B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
50.98B	51.32B	69.62B	72.80B	70.83B	51.38B
	Total Assets
763.40B	782.13B	727.00B	685.79B	734.50B	707.80B
	Total Debt
349.29B	366.16B	316.84B	334.87B	347.79B	345.44B
	Net Debt
298.31B	314.84B	247.21B	262.08B	276.96B	294.06B
	Total Liabilities
518.46B	526.08B	491.17B	483.92B	555.42B	537.86B
	Stockholders Equity
238.21B	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: Negative
• Last Price: 2071.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9031, the sentiment is Negative. The current price of 2071.5 is below the 20-day moving average (MA) of 2139.40, below the 50-day MA of 2149.37, and below the 200-day MA of 2206.85, indicating a bearish trend. The MACD of -21.51 indicates Positive momentum. The RSI at 33.89 is Neutral, neither overbought nor oversold. The STOCH value of 7.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
9052	70 Neutral	¥44.20B	14.58		2.02%	-1.86%	-2.54%
9081	67 Neutral	¥44.42B	8.74		2.76%	0.92%	55.82%
9044	66 Neutral	¥246.04B	10.93		2.08%	7.94%	-5.97%
Sector *	66 Neutral	$4.51B	12.22	5.40%	3.63%	4.14%	-12.01%
9033	64 Neutral	¥18.31B	13.28		1.33%	10.64%	110.18%
9031	63 Neutral	¥165.00B	7.83	8.65%	2.02%	7.74%	-14.83%
9046	61 Neutral	¥18.29B	15.82		0.88%	-0.82%	12.28%

Nishi-Nippon Railroad Co., Ltd. Corporate Events

Nishi-Nippon Railroad Reports No Treasury Stock Repurchase

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

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

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

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

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

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.

Nishi-Nippon Railroad to Merge with Nishitetsu Kanko Bus

Nishi-Nippon Railroad Co., Ltd. has announced its decision to absorb its wholly owned subsidiary, Nishitetsu Kanko Bus Co., Ltd., through a merger effective April 1, 2026. This strategic move aims to enhance safety and operational flexibility in response to increasing tourism demand, with Nishitetsu Bus Kitakyushu Co., Ltd. taking over operations in the Kitakyushu area. The merger, which will not impact the company’s financial results significantly, is part of a broader effort to streamline operations and improve service delivery.