Tohbu Network Co., Ltd. (9036) AI Stock Analysis

• Market Cap: ¥5.21B
• Dividend Yield: 1.59%
• Average Volume (3M): 5.92K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.52
• Revenue Growth: -2.16%
• EPS Growth: N/A
• Country: JP
• Employees: 377
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): 23.61
• Shares Outstanding: 5,749,000
• 10 Day Avg. Volume: 4,490
• 30 Day Avg. Volume: 5,923
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥948.00
• Price Target Upside: -1.35% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ¥948.00 ▼(-1.35% Downside)

The overall stock score for Tohbu Network Co., Ltd. is driven primarily by its strong financial performance, characterized by solid revenue growth, stable margins, and a robust balance sheet. Technical analysis also supports a favorable outlook with positive momentum indicators. However, the high valuation presents a potential risk, as reflected in the elevated P/E ratio, which may limit upside potential. The dividend yield is modest, providing limited income for investors. The absence of earnings call data and corporate events did not impact the overall assessment.

Tohbu Network Co., Ltd. Business Overview & Revenue Model

Company Description

Tohbu Network Co., Ltd. (9036) is a Japanese company primarily engaged in providing transportation services. The company operates in the transportation sector, focusing on regional railway services, bus operations, and real estate management. Tohbu Network Co., Ltd. also provides various ancillary services related to its transportation infrastructure, enhancing its operational efficiency and customer experience.

How the Company Makes Money

Tohbu Network Co., Ltd. generates revenue through multiple streams, predominantly from its railway and bus transportation services. The company earns money by selling tickets to passengers using its train and bus networks for commuting and travel purposes. Additionally, Tohbu Network Co., Ltd. leverages its real estate holdings, developing and leasing properties, which adds a significant income stream. The company may also engage in partnerships with local governments and private enterprises to enhance its service offerings and expand its customer base, contributing further to its revenue.

Tohbu Network Co., Ltd. Financial Statement Overview

Summary

Tohbu Network Co., Ltd. demonstrates robust financial performance with strong revenue growth and stable profitability margins. The balance sheet is sound with low leverage and a high equity ratio, indicative of financial resilience. Cash flow management shows effective operational cash generation, though free cash flow variability presents an area for improvement.

Income Statement

Tohbu Network Co., Ltd. shows strong revenue growth over the years with a consistent increase from ¥8.8 billion in 2022 to ¥10.3 billion in 2025. The gross profit margin and net profit margin remained stable, with a slight decrease in gross profit margins in recent years. The EBIT margin has fluctuated, reflecting some volatility in operational efficiency, but EBITDA margins indicate solid underlying earnings potential.

Balance Sheet

The company maintains a strong equity position, with a high equity ratio indicating financial stability. Debt-to-equity ratio is low, reflecting prudent leverage management. Return on equity (ROE) has been solid, although it has decreased slightly, suggesting a need to enhance profitability relative to equity.

Cash Flow

Operating cash flow has been generally strong, supporting the company's operations. However, free cash flow growth has been inconsistent, impacted by capital expenditures. The ratio of operating cash flow to net income suggests good cash conversion, but fluctuating free cash flow indicates potential capital allocation challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.37B	10.37B	10.30B	9.87B	8.84B	8.55B
Gross Profit	992.80M	912.07M	1.03B	1.02B	841.67M	1.09B
EBITDA	1.10B	1.06B	1.02B	1.17B	968.92M	1.19B
Net Income	105.36M	105.65M	78.91M	414.13M	273.48M	413.20M
Balance Sheet
Total Assets	24.68B	24.68B	24.50B	23.46B	22.34B	22.12B
Cash, Cash Equivalents and Short-Term Investments	4.47B	4.47B	4.59B	3.79B	3.87B	3.36B
Total Debt	745.28M	745.28M	814.90M	776.51M	468.95M	505.13M
Total Liabilities	4.37B	4.37B	4.23B	4.09B	3.53B	3.41B
Stockholders Equity	20.21B	20.21B	20.18B	19.29B	18.81B	18.70B
Cash Flow
Free Cash Flow	0.00	487.98M	378.63M	379.58M	566.21M	-628.78M
Operating Cash Flow	0.00	737.70M	957.04M	741.14M	1.07B	791.58M
Investing Cash Flow	0.00	-588.91M	-476.65M	-740.71M	-400.81M	-1.34B
Financing Cash Flow	0.00	-267.81M	313.87M	-225.38M	-159.21M	-117.15M

Tohbu Network Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 961.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9036, the sentiment is Neutral. The current price of 961 is above the 20-day moving average (MA) of 919.99, above the 50-day MA of 902.38, and above the 200-day MA of 850.81, indicating a neutral trend. The MACD of 10.02 indicates Negative momentum. The RSI at 49.40 is Neutral, neither overbought nor oversold. The STOCH value of 60.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9036.

Tohbu Network Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9306	80 Outperform	¥12.80B	8.47	5.61%	3.24%	4.56%	30.80%
9051	73 Outperform	¥7.34B	16.46	8.58%	1.06%	5.99%	-7.07%
9366	73 Outperform	¥4.98B	12.96	4.01%	3.55%	5.48%	-29.33%
9355	71 Outperform	¥5.00B	9.04	2.93%	1.64%	3.00%	86.86%
9036	70 Outperform	¥5.21B	17.47	―	1.59%	-2.16%	―
9326	57 Neutral	¥5.26B	-5.45	-40.55%	2.05%	20.63%	-2022.64%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%