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

• Market Cap: ¥250.34B
• Dividend Yield: 2.04%
• Average Volume (3M): 270.34K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.63
• Revenue Growth: 7.94%
• EPS Growth: -5.97%
• Country: JP
• Employees: 8,919
• Sector: Industrials
• Sector Strength: 89
• Industry: Railroads
• EPS (TTM): 20.20
• Shares Outstanding: 113,402,450
• 10 Day Avg. Volume: 232,170
• 30 Day Avg. Volume: 270,340
• PEG Ratio: 0.09
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 53.97
• 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: 13.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥2,401.00 ▲(8.89%Upside)

Nankai Electric Railway Co., Ltd. has a strong financial performance with robust profitability and an attractive valuation. However, technical indicators suggest caution due to bearish momentum. Management of high debt levels and improving cash flow stability are crucial for future growth.

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

Nankai Electric Railway Co., Ltd. exhibits strong profitability and operational efficiency, as evidenced by improved gross and net profit margins. While the balance sheet is stable with a good equity mix, the high level of debt is a concern. Cash flow shows volatility, impacting financial flexibility.

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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	244.62B	260.79B	241.59B	221.28B	201.79B	190.81B
Gross Profit	40.83B	42.68B	37.89B	27.75B	18.86B	12.36B
EBITDA	62.90B	66.05B	64.80B	48.87B	41.01B	35.26B
Net Income	22.23B	22.50B	23.93B	14.62B	4.02B	-1.86B
Balance Sheet
Total Assets	951.48B	976.88B	950.65B	935.11B	920.98B	962.23B
Cash, Cash Equivalents and Short-Term Investments	25.88B	42.85B	43.29B	38.41B	36.47B	41.86B
Total Debt	425.05B	432.95B	430.98B	474.51B	482.49B	506.48B
Total Liabilities	627.35B	648.65B	643.55B	660.53B	660.26B	703.66B
Stockholders Equity	307.55B	311.21B	292.58B	261.12B	248.00B	246.50B
Cash Flow
Free Cash Flow	0.00	7.47B	31.83B	6.14B	18.64B	-15.42B
Operating Cash Flow	0.00	43.81B	62.22B	39.09B	41.88B	21.34B
Investing Cash Flow	0.00	-39.30B	-10.53B	-26.30B	-19.67B	-33.27B
Financing Cash Flow	0.00	-4.79B	-46.83B	-11.34B	-27.03B	35.82B

Nankai Electric Railway Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2205.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9044, the sentiment is Neutral. The current price of 2205 is above the 20-day moving average (MA) of 2168.22, above the 50-day MA of 2187.50, and below the 200-day MA of 2363.07, indicating a neutral trend. The MACD of 1.84 indicates Negative momentum. The RSI at 59.23 is Neutral, neither overbought nor oversold. The STOCH value of 92.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	71 Outperform	¥250.34B	11.04		2.04%	7.94%	-5.97%
9009	71 Outperform	$656.26B	9.01	14.35%	0.77%	7.69%	-18.20%
9007	71 Outperform	¥599.71B	11.22	10.86%	2.98%	3.14%	-35.02%
Sector *	71 Outperform	¥255.13B	13.43	8.49%	3.04%	6.31%	12.97%
9001	70 Outperform	$506.45B	9.88	9.28%	2.17%	-0.71%	8.75%
9021	70 Neutral	$1.54T	13.60	9.93%	2.27%	4.46%	18.26%
9142	68 Neutral	¥580.08B	13.23	9.60%	2.50%	8.09%	14.00%

Nankai Electric Railway Co., Ltd. Corporate Events

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.

Nankai Electric Railway Expands into Real Estate Sector

Nankai Electric Railway Co., Ltd. has announced amendments to its Articles of Incorporation to include provisions for its future development in the real estate business. This move, which will be proposed at the upcoming Annual General Meeting of Shareholders, signals the company’s strategic shift towards investment in real estate and related financial activities, potentially impacting its market positioning and stakeholder interests.

Nankai Electric Railway Reports Strong Fiscal Year Results

Nankai Electric Railway Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a notable increase in operating revenue and profit attributable to owners of the parent. The company announced a dividend payout, reflecting a stable financial position and commitment to shareholder returns.