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

• Market Cap: ¥18.98B
• Dividend Yield: 1.28%
• Average Volume (3M): 9.90K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.14
• Revenue Growth: 10.64%
• EPS Growth: 110.16%
• Country: JP
• Employees: 2,180
• Sector: Industrials
• Sector Strength: 89
• Industry: Railroads
• EPS (TTM): 59.87
• Shares Outstanding: 30,445,500
• 10 Day Avg. Volume: 13,610
• 30 Day Avg. Volume: 9,900
• PEG Ratio: -0.14
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.41
• 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: ¥646.00
• Price Target Upside: 3.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ¥646.00 ▲(3.69%Upside)

The overall stock score is primarily influenced by the company's financial performance, which shows potential for improvement despite cash flow challenges. Technical analysis indicates neutral to slightly bearish trends. Valuation is reasonable with a fair P/E ratio and moderate dividend yield. The absence of earnings call data and corporate events means these factors do not impact the score. The company is on a positive trajectory, with key areas such as cash flow management needing attention.

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

Company Description

Hiroshima Electric Railway Co., Ltd. (9033) is a prominent transportation company based in Hiroshima, Japan, primarily engaged in the operation of tram and bus services. Established in 1912, the company plays a crucial role in the public transportation infrastructure of the region, providing reliable and efficient transit solutions. The company also extends its operations into related sectors such as real estate, retail, and tourism, leveraging its transportation network to enhance regional connectivity and economic activity.

How the Company Makes Money

Hiroshima Electric Railway Co., Ltd. generates revenue primarily through its public transportation services, which consist mainly of tram and bus operations. Fares collected from passengers using these services form the core revenue stream. Additionally, the company earns money through its real estate ventures, including leasing and managing properties located in proximity to its transportation lines. Hiroshima Electric Railway also capitalizes on retail opportunities and tourism services, offering travel packages and promoting regional attractions, which contribute to its earnings. Strategic partnerships with local governments and businesses help to further bolster its financial performance by facilitating infrastructure improvements and collaborative projects.

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: 623.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 623 is above the 20-day moving average (MA) of 614.55, above the 50-day MA of 608.20, and below the 200-day MA of 627.14, indicating a neutral trend. The MACD of 4.95 indicates Negative momentum. The RSI at 63.42 is Neutral, neither overbought nor oversold. The STOCH value of 71.68 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
9049	79 Outperform	¥13.26B	7.62		0.30%	2.97%	-16.90%
9044	71 Outperform	¥250.34B	11.04		2.04%	7.94%	-5.97%
9046	65 Neutral	¥18.76B	16.27		0.86%	-0.82%	12.28%
9033	64 Neutral	¥18.98B	13.72		1.28%	10.64%	110.16%
9081	63 Neutral	¥43.20B	8.39		2.84%	0.92%	55.82%
9052	60 Neutral	¥44.04B	14.41		2.02%	-1.86%	-2.54%
Sector *	58 Neutral	HK$14.03B	4.45	-3.01%	7.32%	3.67%	-54.16%