tiprankstipranks
Trending News
More News >
Nankai Electric Railway Co., Ltd. (JP:9044)
:9044
Japanese Market

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

Compare
0 Followers

Top Page

JP

Nankai Electric Railway Co., Ltd.

(9044)

Rating:66Neutral
Price Target:
Nankai Electric Railway Co., Ltd. is well-positioned financially with strong profitability and a healthy balance sheet, though high debt levels are a concern. The technical analysis indicates bearish trends, suggesting caution. Valuation metrics suggest potential undervaluation, which could attract investors seeking value in the railroads industry.

Nankai Electric Railway Co., Ltd. (9044) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionNankai Electric Railway Co., Ltd. operates as a railway company in Japan. The company operates through Transportation Business, Real Estate Business, Retail Business, Leisure and Services Business, Construction Business, and Other Business. The Transportation business operates railways, tramways, buses, and ferries, as well as ocean freight, cargo transportation, and vehicle maintenance business. The Real Estate busienss leases commercial and office buildings, rental apartments, and parking lots; and sells residential land and condominiums. The Retail business manages shopping centers, convenience stores, dining and drinking establishments and retail shops. The Leisure and Services segment is involved in the management of amusement park; rental of motorboat racing facilities; and operates hotels and ryokan Japanese inns. This segment also offers travel agency and funeral services; building management and maintenance; and other services. The Construction segment involved in the construction, civil engineering, architecture, and electrical work. The company was founded in 1885 and is headquartered in Osaka, Japan.
How the Company Makes MoneyNankai Electric Railway Co., Ltd. generates revenue through multiple streams, primarily from its transportation services. The company's core revenue is derived from its extensive railway operations, which include passenger fares from daily commuters and travelers. Additionally, Nankai leverages its transportation network by offering bus services that complement its rail lines. Beyond transportation, the company capitalizes on its real estate holdings, engaging in the development and leasing of properties situated strategically near its railway stations, which enhances footfall and property value. Retail operations, including station shopping centers and convenience stores, provide supplementary income sourced from tenant leases and sales. The company also benefits from its leisure and tourism business, offering travel packages, hotel accommodations, and entertainment facilities, thereby attracting both domestic and international tourists. Strategic partnerships with local governments and businesses further bolster its revenue streams, ensuring a diversified and robust financial model.

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
82
Very Positive
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
75
Positive
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
68
Positive
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
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
244.62B260.79B241.59B221.28B201.79B190.81B
Gross Profit
40.83B42.68B37.89B27.75B18.86B12.36B
EBIT
33.27B34.66B30.82B21.02B12.19B5.55B
EBITDA
62.90B66.05B64.80B48.87B41.01B35.26B
Net Income Common Stockholders
22.23B22.50B23.93B14.62B4.02B-1.86B
Balance SheetCash, Cash Equivalents and Short-Term Investments
25.88B42.85B43.29B38.41B36.47B41.86B
Total Assets
951.48B976.88B950.65B935.11B920.98B962.23B
Total Debt
425.05B432.95B430.98B474.51B482.49B506.48B
Net Debt
399.17B390.10B387.69B436.11B446.02B464.62B
Total Liabilities
627.35B648.65B643.55B660.53B660.26B703.66B
Stockholders Equity
307.55B311.21B292.58B261.12B248.00B246.50B
Cash FlowFree Cash Flow
0.007.47B31.83B6.14B18.64B-15.42B
Operating Cash Flow
0.0043.81B62.22B39.09B41.88B21.34B
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-27.03B35.82B

Nankai Electric Railway Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2134.50
Price Trends
50DMA
2278.83
Negative
100DMA
2393.40
Negative
200DMA
2378.18
Negative
Market Momentum
MACD
-40.12
Negative
RSI
43.84
Neutral
STOCH
29.08
Neutral
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 2134.5 is below the 20-day moving average (MA) of 2167.85, below the 50-day MA of 2278.83, and below the 200-day MA of 2378.18, indicating a neutral trend. The MACD of -40.12 indicates Negative momentum. The RSI at 43.84 is Neutral, neither overbought nor oversold. The STOCH value of 29.08 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
¥241.79B10.74
2.11%7.94%-5.97%
66
Neutral
$4.51B12.295.40%3.67%4.15%-12.21%
$4.91B10.2314.35%<0.01%
$4.10B12.629.60%2.81%
$4.07B11.8710.86%0.02%
$3.45B10.399.22%0.02%
$10.40B13.809.93%2.92%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9044
Nankai Electric Railway Co., Ltd.
2,172.00
-423.30
-16.31%
KELRF
Keisei Electric Railway Co
9.63
-1.97
-16.98%
KYYHF
Kyushu Railway Company
23.10
0.00
0.00%
ODERF
Odakyu Electric Railway Co
11.80
2.08
21.40%
TBURF
Tobu Railway Co
17.74
0.76
4.48%
WJRYF
West Japan Railway Company
21.73
3.13
16.83%

Nankai Electric Railway Co., Ltd. Corporate Events

Nankai Electric Railway Issues Corrections to FY2024 Financial Results
May 14, 2025

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
Apr 30, 2025

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
Apr 30, 2025

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.

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.