Entrenched Local Tram Network FranchiseHiroshima Electric Railway’s ownership and operation of the city’s tram network creates durable demand from commuters and tourists. As a core local transport provider with high barriers to entry and municipal integration, the network generates predictable fare revenue and operational scale over months.

Consistent Revenue Growth And Rising MarginsThe company has shown consistent revenue growth and improved gross margin (15.3% in 2025) and recovering net margin (4.1%). These trends indicate improving pricing power and cost control, supporting sustainable profitability beyond short-term cycles if maintained.

Manageable Leverage And Stronger Equity BaseA stable and growing equity base and a moderate debt-to-equity (~0.64) give the company financial flexibility. Manageable leverage reduces refinancing and solvency risk, enabling the firm to fund service maintenance or selective investments without severe strain in a multi-month horizon.

Bears Say

Persistent Negative Free Cash FlowNegative free cash flow signals the company’s earnings are not yet translating into cash available for reinvestment or debt reduction. Over several months this can force additional borrowing, constrain capital spending or limit the ability to smooth services and dividends, weakening financial resilience.

Low Returns On EquityRelatively low ROE indicates the business generates limited profit from shareholders’ capital. Persistently low returns constrain internal funding for growth, make capital allocation less effective, and can reduce strategic options across a 2–6 month horizon if underlying drivers aren't improved.

Negative EBIT Margins Indicate Operational StrainNegative EBIT margins point to structural operational inefficiencies or high fixed costs relative to core revenue. Even with net margin recovery, persistent pre-tax operating losses reduce buffer against demand shocks and limit ability to scale services profitably over the medium term.

9033 FAQ

What was Hiroshima Electric Railway Co., Ltd.’s price range in the past 12 months?

Hiroshima Electric Railway Co., Ltd. lowest stock price was ¥573.00 and its highest was ¥672.00 in the past 12 months.

What is Hiroshima Electric Railway Co., Ltd.’s market cap?

Hiroshima Electric Railway Co., Ltd.’s market cap is ¥19.98B.

When is Hiroshima Electric Railway Co., Ltd.’s upcoming earnings report date?

The company’s upcoming earnings report date is not yet available.

How were Hiroshima Electric Railway Co., Ltd.’s earnings last quarter?

Currently, no data Available

Is Hiroshima Electric Railway Co., Ltd. overvalued?

According to Wall Street analysts Hiroshima Electric Railway Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Hiroshima Electric Railway Co., Ltd. pay dividends?

Hiroshima Electric Railway Co., Ltd. pays a Annually dividend of ¥8 which represents an annual dividend yield of 1.33%. See more information on Hiroshima Electric Railway Co., Ltd. dividends here

What is Hiroshima Electric Railway Co., Ltd.’s EPS estimate?

Hiroshima Electric Railway Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Hiroshima Electric Railway Co., Ltd. have?

Hiroshima Electric Railway Co., Ltd. has 30,445,500 shares outstanding.

What happened to Hiroshima Electric Railway Co., Ltd.’s price movement after its last earnings report?

Currently, no data Available

Which hedge fund is a major shareholder of Hiroshima Electric Railway Co., Ltd.?

Currently, no hedge funds are holding shares in JP:9033

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Hiroshima Electric Railway Co., Ltd.

Hiroshima Electric Railway Co.,Ltd. engages in the bus and railroad businesses in Japan. It is also involved in the selling condominiums and residential land; and leasing of office buildings, shops, parking lots, etc. The company was incorporated in 1942 and is based in Hiroshima, Japan.