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

• Market Cap: ¥4.65B
• Dividend Yield: 1.75%
• Average Volume (3M): 5.46K
• Price to Earnings (P/E): 46.0
• Beta (1Y): 0.54
• Revenue Growth: 0.65%
• EPS Growth: 4.36%
• Country: JP
• Employees: 377
• Sector: Industrials
• Sector Strength: 91
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.27
• Shares Outstanding: 5,749,000
• 10 Day Avg. Volume: 3,730
• 30 Day Avg. Volume: 5,456
• PEG Ratio: -0.77
• Price to Book (P/B): 0.23
• 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: ¥948.00
• Price Target Upside: 10.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ¥948.00 ▲(10.36%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. Business Overview & Revenue Model

Company Description

Tohbu Network Co., Ltd. (9036) is a Japan-based company primarily engaged in the transportation sector. It operates in various segments including passenger transportation, freight transportation, and other related services. The company is involved in the provision of railway and bus services, offering efficient and reliable transit solutions to its customers across the regions it serves.

How the Company Makes Money

Tohbu Network Co., Ltd. generates revenue primarily through its transportation services. The company's key revenue streams include passenger fares from its railway and bus operations, freight charges for transporting goods, and ancillary services related to transportation such as advertising and leasing of real estate associated with its transit infrastructure. Additionally, partnerships with local government and private entities for integrated transportation solutions and development projects contribute to its earnings.

Tohbu Network Co., Ltd. Financial Statement Overview

Summary

Tohbu Network Co., Ltd. shows financial stability with a strong equity position and low leverage. However, challenges exist with a negative net income and zero operating cash flow in the TTM, indicating potential operational issues.

Income Statement

The company's income statement shows mixed results. The TTM revenue is stable compared to the previous year, but net income has turned negative, resulting in a net loss. The gross profit margin remains relatively strong, indicating efficient direct cost management. However, the negative net profit margin in the TTM suggests challenges in controlling overall expenses or unusual charges impacting profitability. The company demonstrates a consistent revenue growth trend over the years, though profitability fluctuations are a concern.

Balance Sheet

The balance sheet is robust, with a strong equity base. The debt-to-equity ratio is low, indicating low financial leverage and a solid financial position, reducing financial risk. The equity ratio is high, reflecting financial stability and an ability to withstand economic fluctuations. However, the TTM results show a decrease in gross profit, which could indicate potential operational challenges.

Cash Flow

Cash flow analysis indicates some concerns. The operating cash flow is zero in the TTM, suggesting issues with cash generation from operations. While historical free cash flow has been positive, the lack of cash flow information in the TTM indicates potential short-term liquidity challenges. While the balance sheet is strong, operational cash flow consistency needs improvement.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	10.32B	10.30B	9.87B	8.84B	8.55B	12.60B
Gross Profit	994.12M	1.03B	1.02B	841.67M	1.09B	1.06B
EBITDA	695.48M	1.02B	1.17B	968.92M	1.19B	1.14B
Net Income	-123.54M	78.91M	414.13M	273.48M	413.20M	440.85M
Balance Sheet
Total Assets	24.64B	24.50B	23.46B	22.34B	22.12B	21.84B
Cash, Cash Equivalents and Short-Term Investments	4.31B	4.59B	3.79B	3.87B	3.36B	16.56M
Total Debt	770.00M	814.90M	776.51M	468.95M	505.13M	540.52M
Total Liabilities	4.34B	4.23B	4.09B	3.53B	3.41B	3.70B
Stockholders Equity	20.21B	20.18B	19.29B	18.81B	18.70B	18.14B
Cash Flow
Free Cash Flow	0.00	378.63M	379.58M	566.21M	-628.78M	-1.20B
Operating Cash Flow	0.00	957.04M	741.14M	1.07B	791.58M	1.00B
Investing Cash Flow	0.00	-476.65M	-740.71M	-400.81M	-1.34B	-2.25B
Financing Cash Flow	0.00	313.87M	-225.38M	-159.21M	-117.15M	-145.53M

Tohbu Network Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 859.00
• 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:9036, the sentiment is Neutral. The current price of 859 is below the 20-day moving average (MA) of 860.70, above the 50-day MA of 854.92, and above the 200-day MA of 834.64, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 48.21 is Neutral, neither overbought nor oversold. The STOCH value of 60.61 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
9051	80 Outperform	¥6.27B	11.99		1.23%	7.30%	32.45%
9306	80 Outperform	¥10.81B	8.13		3.73%	4.70%	8.98%
9366	73 Outperform	¥4.61B	9.74		3.79%	3.73%	-18.84%
9036	70 Outperform	¥4.65B	46.02		1.75%	0.65%	4.36%
9355	70 Neutral	¥4.87B	8.80		0.55%	3.30%	54.50%
Sector *	58 Neutral	HK$14.16B	4.43	-3.01%	7.12%	3.67%	-54.16%
9326	52 Neutral	¥3.96B	―		2.60%	20.63%	-2022.64%