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Tohbu Network Co., Ltd. (JP:9036)
:9036
Japanese Market
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Tohbu Network Co., Ltd. (9036) AI Stock Analysis

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JP:9036

Tohbu Network Co., Ltd.

(9036)

Rating:70Outperform
Price Target:
¥948.00
▲(5.10% Upside)
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. (9036) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionTohbu 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 MoneyTohbu 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
75
Positive
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
80
Positive
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
70
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue10.37B10.30B9.87B8.84B8.55B
Gross Profit912.07M1.03B1.02B841.67M1.09B
EBITDA1.06B1.02B1.17B968.92M1.19B
Net Income105.65M78.91M414.13M273.48M413.20M
Balance Sheet
Total Assets24.68B24.50B23.46B22.34B22.12B
Cash, Cash Equivalents and Short-Term Investments4.47B4.59B3.79B3.87B3.36B
Total Debt745.28M814.90M776.51M468.95M505.13M
Total Liabilities4.37B4.23B4.09B3.53B3.41B
Stockholders Equity20.21B20.18B19.29B18.81B18.70B
Cash Flow
Free Cash Flow487.98M378.63M379.58M566.21M-628.78M
Operating Cash Flow737.70M957.04M741.14M1.07B791.58M
Investing Cash Flow-588.91M-476.65M-740.71M-400.81M-1.34B
Financing Cash Flow-267.81M313.87M-225.38M-159.21M-117.15M

Tohbu Network Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price902.00
Price Trends
50DMA
869.88
Positive
100DMA
854.15
Positive
200DMA
839.56
Positive
Market Momentum
MACD
10.52
Negative
RSI
67.72
Neutral
STOCH
72.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9036, the sentiment is Positive. The current price of 902 is above the 20-day moving average (MA) of 879.35, above the 50-day MA of 869.88, and above the 200-day MA of 839.56, indicating a bullish trend. The MACD of 10.52 indicates Negative momentum. The RSI at 67.72 is Neutral, neither overbought nor oversold. The STOCH value of 72.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9036.

Tohbu Network Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥6.40B12.23
1.21%7.30%32.45%
80
Outperform
¥11.06B8.33
3.49%4.70%8.98%
73
Outperform
¥4.66B9.86
3.75%3.73%-18.84%
71
Outperform
¥257.35B14.368.48%2.83%6.31%12.01%
71
Outperform
¥4.82B8.90
0.55%3.30%54.50%
70
Outperform
¥4.90B48.43
1.66%0.65%4.36%
46
Neutral
¥3.72B
2.77%20.63%-2022.64%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9036
Tohbu Network Co., Ltd.
902.00
138.51
18.14%
JP:9051
Senkon Logistics Co., Ltd
1,251.00
422.54
51.00%
JP:9306
Toyo Logistics Co., Ltd.
1,645.00
419.82
34.27%
JP:9326
Kantsu Co., Ltd.
363.00
-33.51
-8.45%
JP:9355
Rinko Corporation
1,786.00
142.24
8.65%
JP:9366
Sanritsu Corporation
833.00
143.11
20.74%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 27, 2025