Hiroshima Electric Railway Co., Ltd. (9033) AI Stock Analysis

• Market Cap: ¥19.65B
• Dividend Yield: 1.25%
• Average Volume (3M): 18.32K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.12
• Revenue Growth: 6.14%
• EPS Growth: 191.46%
• Country: JP
• Employees: 2,180
• Sector: Industrials
• Sector Strength: 76
• Industry: Railroads
• EPS (TTM): 4.06
• Shares Outstanding: 30,445,500
• 10 Day Avg. Volume: 18,120
• 30 Day Avg. Volume: 18,316
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥732.00
• Price Target Upside: 13.84% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 70 Neutral
• Price Target: ¥732.00 ▲(13.84% Upside)

Hiroshima Electric Railway Co., Ltd. exhibits strong technical momentum with the stock trading above major moving averages, although overbought indicators suggest caution. Financially, the company shows revenue growth and improved margins, but cash flow issues remain. The valuation appears fair with a reasonable P/E ratio and moderate dividend yield. These factors collectively position the stock as a moderately attractive investment with potential for further improvement, contingent on addressing cash flow challenges.

Hiroshima Electric Railway Co., Ltd. Business Overview & Revenue Model

Company Description

Hiroshima Electric Railway Co., Ltd. is a Japan-based company primarily engaged in public transportation, real estate, and leisure services. Founded in 1910 and headquartered in Hiroshima, Japan, the company operates a network of tramways and bus services, providing essential urban transit solutions. Additionally, Hiroshima Electric Railway diversifies its operations through real estate development and management, as well as leisure facilities, contributing to a balanced portfolio of offerings.

How the Company Makes Money

Hiroshima Electric Railway Co., Ltd. generates revenue through several key streams. The primary source of income is its transportation services, which include tram and bus operations throughout Hiroshima Prefecture. Passenger fares and related services constitute a significant portion of the company’s earnings. Additionally, the company leverages its real estate assets, earning revenue from property leasing, sales, and management services. Hiroshima Electric Railway also capitalizes on its leisure services, including the management of recreational facilities and related activities. Strategic partnerships with local government and businesses, as well as a focus on maintaining and improving infrastructure, further enhance its revenue potential.

Hiroshima Electric Railway Co., Ltd. Financial Statement Overview

Summary

The company shows positive revenue growth and improved gross and net profit margins, indicating recovering profitability. The balance sheet is stable with moderate leverage, but low returns on equity. Cash flow challenges persist, with negative free cash flow being a concern. Overall, there is potential for further improvement, though cash flow management remains a key area to address.

Income Statement

The company has demonstrated consistent revenue growth, with a notable increase from 2024 to 2025. Gross profit margins have improved, reaching 15.3% in 2025. However, the company has struggled with negative EBIT margins, indicating challenges in operational efficiency. The net profit margin improved to 4.1% in 2025, showing some profitability recovery.

Balance Sheet

The balance sheet shows a stable equity position with a consistent increase in stockholders' equity over the years. The debt-to-equity ratio is manageable, though slightly elevated at 0.64 in 2025, indicating moderate leverage. The equity ratio has improved slightly, reflecting a stable financial structure. However, the return on equity remains relatively low, suggesting limited returns on equity investment.

Cash Flow

The company has faced challenges in generating positive free cash flow, with negative figures observed in recent years. The operating cash flow to net income ratio has improved, indicating better cash conversion from profits. However, the free cash flow to net income ratio is negative, highlighting issues in capital expenditure management and cash profitability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	33.53B	33.71B	30.47B	27.45B	27.39B	25.41B
Gross Profit	4.80B	5.17B	5.01B	2.55B	1.39B	381.00M
EBITDA	2.79B	4.12B	3.62B	3.89B	1.78B	398.00M
Net Income	274.00M	1.38B	656.00M	943.00M	-1.05B	-3.29B
Balance Sheet
Total Assets	95.10B	104.08B	98.40B	94.11B	92.50B	92.12B
Cash, Cash Equivalents and Short-Term Investments	3.50B	4.05B	3.97B	4.45B	5.29B	5.29B
Total Debt	27.36B	26.78B	25.72B	27.69B	26.69B	21.90B
Total Liabilities	53.74B	61.32B	56.79B	54.89B	53.81B	52.74B
Stockholders Equity	40.35B	41.72B	40.65B	38.36B	37.81B	38.39B
Cash Flow
Free Cash Flow	0.00	-2.27B	1.12B	-4.58B	-5.01B	-2.66B
Operating Cash Flow	0.00	5.08B	5.53B	449.00M	-1.12B	2.89B
Investing Cash Flow	0.00	-5.57B	-3.65B	-2.15B	-3.56B	-2.94B
Financing Cash Flow	0.00	604.00M	-2.36B	894.00M	4.66B	1.25B

Hiroshima Electric Railway Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 643.00
• 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:9033, the sentiment is Positive. The current price of 643 is below the 20-day moving average (MA) of 646.75, above the 50-day MA of 630.58, and above the 200-day MA of 618.85, indicating a neutral trend. The MACD of 3.19 indicates Positive momentum. The RSI at 52.15 is Neutral, neither overbought nor oversold. The STOCH value of 54.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9033.

Hiroshima Electric Railway Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9044	74 Outperform	¥292.88B	12.73		1.55%	7.02%	-11.48%
9049	70 Outperform	¥13.52B	7.55		0.29%	1.27%	-6.53%
9033	70 Neutral	¥19.65B	13.13		1.25%	6.14%	191.46%
9052	68 Neutral	¥46.53B	12.37		1.68%	2.43%	34.21%
9046	67 Neutral	¥19.72B	16.70		0.81%	-0.12%	10.36%
Sector *	64 Neutral	$10.95B	16.37	8.81%	1.96%	2.68%	-15.33%
9081	60 Neutral	¥44.55B	13.13		2.47%	1.10%	-29.92%