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

• Market Cap: ¥18.52B
• Dividend Yield: 1.33%
• Average Volume (3M): 19.75K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.15
• Revenue Growth: 6.14%
• EPS Growth: 191.46%
• Country: JP
• Employees: 2,180
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 4.06
• Shares Outstanding: 30,445,500
• 10 Day Avg. Volume: 18,420
• 30 Day Avg. Volume: 19,746
• PEG Ratio: 0.12
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.55
• P/FCF Ratio: -8.12
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: ¥668.00 ▲(9.69% Upside)

The overall stock score of 63 reflects a company with improving financial performance and reasonable valuation. The technical analysis indicates mixed signals, with short-term bearish momentum but potential for a rebound. The absence of earnings call data and corporate events means these factors do not influence the score.

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

Company Description

Hiroshima Electric Railway Co., Ltd. (9033) is a prominent transportation company based in Japan, primarily engaged in operating electric tram services in Hiroshima City. Established in the early 20th century, the company also provides bus services and develops real estate, contributing to urban transportation infrastructure. Its core offerings include a network of tram lines that facilitate daily commuting and tourism, alongside services that enhance the connectivity of the Hiroshima metropolitan area.

How the Company Makes Money

Hiroshima Electric Railway Co., Ltd. generates revenue primarily through fare collection from its tram and bus services, which cater to both local commuters and tourists. The company operates a varied fare system, including single rides, daily passes, and tourist packages, which contribute significantly to its income. In addition to transportation fares, the company earns revenue from real estate activities, including leasing properties and commercial spaces along its transit routes. Strategic partnerships with local businesses and tourism agencies further enhance its revenue streams, as they often collaborate on promotional initiatives that attract more riders. Government subsidies and grants for public transportation also play a role in supporting the company's financial stability.

Hiroshima Electric Railway Co., Ltd. Financial Statement Overview

Summary

Hiroshima Electric Railway Co., Ltd. has shown positive revenue growth and improved gross and net profit margins, indicating recovering profitability. The balance sheet reflects a stable equity position but with moderate leverage and low returns on equity. Cash flow challenges persist, with negative free cash flow being a concern. Overall, the company is on a positive trajectory with 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.60B	33.71B	30.47B	27.45B	27.39B	25.41B
Gross Profit	5.29B	5.17B	5.01B	2.55B	1.39B	381.00M
EBITDA	4.39B	4.12B	3.62B	3.89B	1.86B	471.00M
Net Income	1.48B	1.38B	656.00M	943.00M	-1.05B	-3.29B
Balance Sheet
Total Assets	97.78B	104.08B	98.40B	94.11B	92.50B	92.12B
Cash, Cash Equivalents and Short-Term Investments	2.63B	4.05B	3.97B	4.45B	5.29B	5.29B
Total Debt	25.64B	26.78B	25.72B	27.69B	26.69B	21.90B
Total Liabilities	55.15B	61.32B	56.79B	54.89B	53.81B	52.74B
Stockholders Equity	41.56B	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: Negative
• Last Price: 609.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 609 is below the 20-day moving average (MA) of 610.20, below the 50-day MA of 629.74, and below the 200-day MA of 615.74, indicating a bearish trend. The MACD of -6.69 indicates Negative momentum. The RSI at 42.54 is Neutral, neither overbought nor oversold. The STOCH value of 27.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	―	¥315.59B	13.49	―	1.71%	6.55%	-12.49%
9049	―	¥14.15B	7.91	―	0.28%	1.27%	-6.53%
9052	―	¥44.51B	11.83	―	2.00%	2.43%	34.21%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9033	―	¥18.52B	12.51	―	1.33%	6.14%	191.46%
9081	―	¥43.81B	12.76	―	2.49%	2.36%	-40.95%
9046	―	¥18.74B	14.85	―	0.81%	1.24%	19.78%