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

• Market Cap: ¥328.51B
• Dividend Yield: 1.64%
• Average Volume (3M): 585.52K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.57
• Revenue Growth: 6.55%
• EPS Growth: -12.49%
• Country: JP
• Employees: 8,919
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 58.43
• Shares Outstanding: 113,402,450
• 10 Day Avg. Volume: 438,500
• 30 Day Avg. Volume: 585,523
• PEG Ratio: -2.07
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 1.06
• P/FCF Ratio: 37.15
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥3,200.00 ▲(10.34% Upside)

Nankai Electric Railway Co., Ltd. benefits from strong technical indicators and solid financial performance, though high debt and cash flow volatility are concerns. Valuation is reasonable, supporting a positive outlook.

Positive Factors

Revenue Growth

Despite past inconsistencies, the recent recovery in revenue growth suggests a strengthening market position and potential for sustained expansion.

Improved Margins

Improved margins indicate better cost management and operational efficiency, enhancing the company's profitability and competitive edge.

Equity Ratio Improvement

A higher equity ratio strengthens the financial base, providing stability and reducing risk from high leverage, supporting long-term growth.

Negative Factors

High Debt Levels

High debt levels can strain financial flexibility and increase vulnerability to economic downturns, impacting long-term financial health.

Cash Flow Volatility

Inconsistent cash flow growth can hinder investment capability and limit the ability to fund operations and expansion sustainably.

Earnings Decline

A decline in earnings per share growth indicates challenges in maintaining profitability, potentially affecting investor confidence and 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 primarily engaged in the operation of rail services in the Kansai region, particularly connecting Osaka with the southern areas including Wakayama and Koyasan. The company operates a network of passenger trains, including limited express and local services, and also engages in associated businesses such as real estate, retail, and tourism, enhancing its position in the transportation sector.

How the Company Makes Money

Nankai Electric Railway Co., Ltd. generates revenue through multiple key streams. Primarily, the company earns income from passenger fares on its extensive rail network, which serves both daily commuters and tourists. Additionally, Nankai benefits from ancillary revenues generated through its real estate developments and properties, including station facilities and commercial spaces. The company also capitalizes on tourism-related services, such as travel packages and partnerships with local attractions, which promote visits to the areas served by its trains. Moreover, Nankai Electric Railway engages in various collaborations with other transportation providers and local businesses, enhancing its service offerings and contributing to its overall financial performance.

Nankai Electric Railway Co., Ltd. Financial Statement Overview

Summary

Nankai Electric Railway Co., Ltd. shows strong profitability and operational efficiency with improved margins. However, high debt levels and cash flow volatility pose risks.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	263.78B	260.79B	241.59B	221.28B	201.79B	190.81B
Gross Profit	44.50B	42.68B	37.89B	27.75B	18.86B	12.36B
EBITDA	66.76B	66.05B	64.80B	50.72B	41.01B	32.66B
Net Income	23.38B	22.50B	23.93B	14.62B	4.02B	-1.86B
Balance Sheet
Total Assets	991.86B	976.88B	950.65B	935.11B	920.98B	962.23B
Cash, Cash Equivalents and Short-Term Investments	43.22B	42.85B	43.29B	38.41B	36.47B	41.86B
Total Debt	448.96B	432.95B	430.98B	474.51B	482.49B	506.48B
Total Liabilities	657.37B	648.65B	643.55B	660.53B	660.26B	703.66B
Stockholders Equity	317.20B	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: Positive
• Last Price: 2900.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 2900 is above the 20-day moving average (MA) of 2861.60, above the 50-day MA of 2826.32, and above the 200-day MA of 2494.08, indicating a bullish trend. The MACD of 11.99 indicates Negative momentum. The RSI at 57.41 is Neutral, neither overbought nor oversold. The STOCH value of 79.24 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	78 Outperform	¥328.51B	13.59	―	1.64%	6.55%	-12.49%
9009	72 Outperform	¥625.55B	8.30	13.92%	1.54%	6.30%	-16.29%
9007	70 Outperform	¥611.52B	14.04	8.51%	2.93%	-2.82%	-50.73%
9142	70 Neutral	¥633.77B	14.69	9.26%	2.66%	10.39%	32.43%
9021	66 Neutral	¥1.39T	10.88	11.29%	3.02%	5.48%	33.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9001	62 Neutral	¥507.34B	10.27	8.78%	2.51%	1.72%	10.19%

Nankai Electric Railway Co., Ltd. Corporate Events

Nankai Electric Railway Executes Treasury Share Buyback

Nankai Electric Railway Co., Ltd. has announced the purchase of 387,700 shares of its own common stock, amounting to a total purchase price of 1,076,985,090 yen, executed on the Tokyo Stock Exchange between October 1 and October 31, 2025. This move is part of a broader plan authorized by the Board of Directors to repurchase up to 6,000,000 shares, reflecting the company’s strategy to enhance shareholder value and optimize capital structure.

Nankai Electric Railway Enhances Stock Compensation Plan

Nankai Electric Railway Co., Ltd. has announced a revision and continuation of its stock compensation plan for its directors and executive officers. This plan, initially adopted in 2019, will now include additional funding to acquire more company shares, enhancing the compensation structure for eligible officers. This move is expected to strengthen the company’s governance and align the interests of its management with those of shareholders, potentially impacting its market position positively.

Nankai Electric Railway Issues Corrections to Financial Results

Nankai Electric Railway Co., Ltd. has issued corrections to their previously released financial results for the first quarter of the fiscal year ending March 31, 2026. The corrections were necessary due to inaccuracies discovered in the initial publication, and the revised materials are now available on the company’s website.

Nankai Electric Railway Reports Increased Revenue and Income for H1 2025

Nankai Electric Railway Co., Ltd. announced its consolidated financial results for the six months ended September 30, 2025, revealing a slight increase in operating revenue and a notable rise in operating income. The company has revised its forecast for the fiscal year ending March 31, 2026, reflecting adjustments due to finalized provisional accounting treatments related to business combinations, which may impact its financial performance and stakeholder expectations.

Nankai Electric Railway Executes Treasury Share Buyback

Nankai Electric Railway Co., Ltd. announced the purchase of 269,300 treasury shares for a total of 733,519,446 yen through market purchases on the Tokyo Stock Exchange. This move is part of a larger plan approved by the Board of Directors to buy back up to 6,000,000 shares, which represents 5.29% of the total issued shares, at a maximum cost of 12,000,000,000 yen. As of September 30, 2025, the company has purchased a cumulative total of 3,824,600 shares for 8,803,140,190 yen. This strategic buyback is likely aimed at enhancing shareholder value and optimizing the capital structure.