Nankai Electric Railway Co., Ltd. (9044) AI Stock Analysis

• Market Cap: ¥297.70B
• Dividend Yield: 1.54%
• Average Volume (3M): 336.30K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.61
• Revenue Growth: 7.02%
• EPS Growth: -11.48%
• Country: JP
• Employees: 8,919
• Sector: Industrials
• Sector Strength: 75
• Industry: Railroads
• EPS (TTM): 67.12
• Shares Outstanding: 113,402,450
• 10 Day Avg. Volume: 305,220
• 30 Day Avg. Volume: 336,300
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥2,500.00
• Price Target Upside: -4.87% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥2,732.00 ▲(3.96% Upside)

Nankai Electric Railway Co., Ltd. achieves a solid overall score driven by strong financial performance and attractive valuation. The stock shows bullish technical indicators, though the RSI suggests caution due to overbought conditions. The absence of earnings call and corporate event data limits additional insights.

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

Company Description

Nankai Electric Railway Co., Ltd. (9044) is a prominent Japanese transportation company headquartered in Osaka, Japan. Established in 1885, the company operates an extensive network of railway lines, primarily serving the Kansai region, including major urban areas such as Osaka, Wakayama, and the Kansai International Airport. In addition to its core railway operations, Nankai Electric Railway is engaged in various other businesses, including real estate, retail, and tourism, contributing to a diverse business portfolio that supports regional connectivity and urban development.

How the Company Makes Money

Nankai Electric Railway Co., Ltd. generates revenue primarily through its transportation services, which include passenger fares from its extensive railway operations. The company benefits from a high volume of daily commuters and tourists traveling within the Kansai region. Additionally, Nankai Electric Railway leverages its strategic real estate holdings by developing and leasing commercial and residential properties, adding a stable stream of income. The company also operates various retail and tourism-related businesses, including shopping centers, hotels, and leisure facilities, which complement its transportation network and provide additional revenue. Partnerships with local governments and other transport operators further enhance its service offerings and contribute to its financial performance.

Nankai Electric Railway Co., Ltd. Financial Statement Overview

Summary

The company exhibits strong profitability with improving margins and a stable financial position. However, high debt levels and cash flow volatility pose risks that need to be managed.

Income Statement

Nankai Electric Railway Co., Ltd. has demonstrated strong growth in revenue with a consistent upward trajectory over the years. The company has improved its gross profit margin from 9.97% in 2021 to 16.37% in 2025, indicating better cost management. Net profit margin has also improved significantly, reaching 8.63% in 2025 from a negative margin in 2021. The company shows healthy EBIT and EBITDA margins, reflecting operational efficiency. However, the revenue growth rate has been inconsistent, with a dip in 2020 followed by recovery. Overall, strong profitability metrics and improved margins enhance the income statement's score.

Balance Sheet

The balance sheet of Nankai Electric Railway Co., Ltd. reflects a stable financial position with a moderate debt-to-equity ratio of 1.39 in 2025, down from previous years. The return on equity for 2025 is 7.23%, which is a positive sign of profitability for investors. The equity ratio has improved over the years, reaching 31.85% in 2025, indicating a solid equity base relative to total assets. However, total debt remains high, which could pose a risk if not managed properly. Overall, the balance sheet is strong, with a good mix of equity and debt, although high leverage is a concern.

Cash Flow

Nankai Electric Railway Co., Ltd. has shown volatility in its free cash flow growth, with a significant decline in recent years. Operating cash flow remains strong, but the free cash flow to net income ratio has been inconsistent. The operating cash flow to net income ratio is robust, suggesting good cash generation relative to earnings. However, fluctuations in capital expenditure and investing cash flow have impacted free cash flow negatively. Despite strong operational cash flows, the volatility in free cash flow growth impacts the cash flow score.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	260.79B	241.59B	221.28B	201.79B	190.81B
Gross Profit	42.68B	37.89B	27.75B	18.86B	12.36B
EBITDA	66.05B	64.80B	48.87B	41.01B	35.26B
Net Income	22.50B	23.93B	14.62B	4.02B	-1.86B
Balance Sheet
Total Assets	976.88B	950.65B	935.11B	920.98B	962.23B
Cash, Cash Equivalents and Short-Term Investments	42.85B	43.29B	38.41B	36.47B	41.86B
Total Debt	432.95B	430.98B	474.51B	482.49B	506.48B
Total Liabilities	648.65B	643.55B	660.53B	660.26B	703.66B
Stockholders Equity	311.21B	292.58B	261.12B	248.00B	246.50B
Cash Flow
Free Cash Flow	7.47B	31.83B	6.14B	18.64B	-15.42B
Operating Cash Flow	43.81B	62.22B	39.09B	41.88B	21.34B
Investing Cash Flow	-39.30B	-10.53B	-26.30B	-19.67B	-33.27B
Financing Cash Flow	-4.79B	-46.83B	-11.34B	-27.03B	35.82B

Nankai Electric Railway Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2628.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9044, the sentiment is Positive. The current price of 2628 is above the 20-day moving average (MA) of 2512.80, above the 50-day MA of 2317.56, and above the 200-day MA of 2377.26, indicating a bullish trend. The MACD of 88.37 indicates Positive momentum. The RSI at 70.07 is Negative, neither overbought nor oversold. The STOCH value of 79.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9044.

Nankai Electric Railway Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9044	74 Outperform	¥297.70B	12.60		1.54%	7.02%	-11.48%
Sector *	64 Neutral	$10.93B	16.10	8.86%	2.03%	2.57%	-16.44%
KELRF	―	$4.80B	8.49	14.30%	1.58%	―	―
KYYHF	―	$4.28B	11.01	11.09%	―	―	―
ODERF	―	$4.19B	14.13	8.68%	2.43%	―	―
TBURF	―	$3.64B	10.88	9.28%	2.43%	―	―
WJRYF	―	$10.64B	12.70	11.32%	2.56%	―	―

Nankai Electric Railway Co., Ltd. Corporate Events

Nankai Electric Railway Executes Treasury Share Buyback

Nankai Electric Railway Co., Ltd. has announced the purchase of 3,165,700 shares of its common stock for a total of 7,075,339,500 yen. This move is part of a broader plan authorized by the Board of Directors to repurchase up to 6,000,000 shares, equivalent to 5.29% of the total issued shares, by January 30, 2026. The purchase aims to enhance shareholder value and optimize the company’s capital structure.

The most recent analyst rating on (JP:9044) stock is a Buy with a Yen2900.00 price target. To see the full list of analyst forecasts on Nankai Electric Railway Co., Ltd. stock, see the JP:9044 Stock Forecast page.

Nankai Electric Railway Executes Strategic Treasury Share Purchase

Nankai Electric Railway Co., Ltd. has executed a purchase of 3,165,700 treasury shares for approximately 7.08 billion yen, as part of its strategy to enhance corporate value and manage financial pressures. This move aligns with the company’s medium-term plan to focus on core businesses and strategic investments, while addressing macroeconomic challenges such as a weaker yen and rising interest rates.

The most recent analyst rating on (JP:9044) stock is a Buy with a Yen2900.00 price target. To see the full list of analyst forecasts on Nankai Electric Railway Co., Ltd. stock, see the JP:9044 Stock Forecast page.

Nankai Electric Railway Announces Treasury Share Buyback

Nankai Electric Railway Co., Ltd. has announced a resolution to purchase up to 3.5 million of its own shares through the Tokyo Stock Exchange’s Off-Auction Own Share Repurchase Trading System. This move, with a maximum purchase price of 7.82 billion yen, is part of a broader strategy to enhance shareholder value and optimize capital structure, potentially impacting market perceptions and investor relations.

The most recent analyst rating on (JP:9044) stock is a Buy with a Yen2900.00 price target. To see the full list of analyst forecasts on Nankai Electric Railway Co., Ltd. stock, see the JP:9044 Stock Forecast page.

Nankai Electric Railway Announces Strategic Treasury Share Purchase

Nankai Electric Railway Co., Ltd. has announced a decision to purchase up to 6 million of its own shares, equivalent to 5.29% of issued shares, as part of a strategy to enhance corporate value and manage the cost of capital amid a challenging macroeconomic environment. This move aligns with the company’s medium-term management plan to accelerate growth through strategic investments while also revising its approach to cross-shareholdings, aiming to improve shareholder benefits and market communication.

The most recent analyst rating on (JP:9044) stock is a Buy with a Yen2900.00 price target. To see the full list of analyst forecasts on Nankai Electric Railway Co., Ltd. stock, see the JP:9044 Stock Forecast page.

Nankai Electric Railway Revises Financial and Dividend Forecasts Upward

Nankai Electric Railway Co., Ltd. has revised its financial and dividend forecasts for the fiscal year ending March 31, 2026, due to stronger-than-expected performance in its railway and bus businesses, boosted by inbound tourism and EXPO 2025. The company anticipates increased operating revenue and profit, leading to a higher annual dividend forecast of 50 yen per share, reflecting its commitment to shareholder returns.

The most recent analyst rating on (JP:9044) stock is a Buy with a Yen2900.00 price target. To see the full list of analyst forecasts on Nankai Electric Railway Co., Ltd. stock, see the JP:9044 Stock Forecast page.

Nankai Electric Railway’s Q1 FY2025 Financial Results Overview

Nankai Electric Railway Co., Ltd. released its financial results for the first quarter of FY2025, highlighting performance metrics and segment results. The announcement provides insights into the company’s financial health and forecasts, which are crucial for stakeholders to assess its market positioning and future growth potential.

The most recent analyst rating on (JP:9044) stock is a Buy with a Yen2900.00 price target. To see the full list of analyst forecasts on Nankai Electric Railway Co., Ltd. stock, see the JP:9044 Stock Forecast page.

Nankai Electric Railway Reports Q1 2025 Financial Results and Revises Forecasts

Nankai Electric Railway Co., Ltd. announced its consolidated financial results for the three months ended June 30, 2025, highlighting a year-on-year increase in operating revenue and income. The company also revised its forecasts for the fiscal year ending March 31, 2026, reflecting changes in its financial outlook and the acquisition of treasury shares, which may impact earnings per share.

The most recent analyst rating on (JP:9044) stock is a Buy with a Yen2900.00 price target. To see the full list of analyst forecasts on Nankai Electric Railway Co., Ltd. stock, see the JP:9044 Stock Forecast page.

Nankai Electric Railway Records Extraordinary Income from Subsidiary Merger

Nankai Electric Railway Co., Ltd. announced the recording of extraordinary income due to a gain on extinguishment of tie-in shares following the absorption-type merger of its wholly owned subsidiary, Semboku Rapid Railway Co., Ltd., effective April 1, 2025. This financial maneuver will impact the company’s non-consolidated financial results for the quarter ending June 30, 2025, with a gain of 18,154 million yen, although it will not affect the consolidated financial results for the fiscal year ending March 31, 2026.

The most recent analyst rating on (JP:9044) stock is a Buy with a Yen2900.00 price target. To see the full list of analyst forecasts on Nankai Electric Railway Co., Ltd. stock, see the JP:9044 Stock Forecast page.

Nankai Electric Railway Secures Loan Agreement for Financial Stability

Nankai Electric Railway Co., Ltd. has entered into a monetary loan agreement with financial covenants to secure funds for bond redemption and working capital. The agreement involves a principal debt of ¥35,000 million with a repayment period extending to 2035, and it is expected to have a minor impact on the company’s financial results for the fiscal year ending March 2026.

The most recent analyst rating on (JP:9044) stock is a Buy with a Yen2900.00 price target. To see the full list of analyst forecasts on Nankai Electric Railway Co., Ltd. stock, see the JP:9044 Stock Forecast page.

Nankai Electric Railway Issues Corrections to FY2024 Financial Results

Nankai Electric Railway Co., Ltd. has issued corrections to its financial results supplementary materials for the fiscal year ending March 31, 2025, due to previously identified inaccuracies. This announcement may impact stakeholders’ understanding of the company’s financial performance, highlighting the importance of accurate financial reporting.

The most recent analyst rating on (JP:9044) stock is a Buy with a Yen2900.00 price target. To see the full list of analyst forecasts on Nankai Electric Railway Co., Ltd. stock, see the JP:9044 Stock Forecast page.