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

• Market Cap: ¥241.79B
• Dividend Yield: 2.11%
• Average Volume (3M): 320.27K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.63
• Revenue Growth: 7.94%
• EPS Growth: -5.97%
• Country: JP
• Employees: 8,919
• Sector: Industrials
• Sector Strength: 88
• Industry: Railroads
• EPS (TTM): 20.20
• Shares Outstanding: 113,402,450
• 10 Day Avg. Volume: 271,320
• 30 Day Avg. Volume: 320,270
• 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: 17.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• 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. Business Overview & Revenue Model

Company Description

Nankai 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 Money

Nankai 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

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
	EBIT
33.27B	34.66B	30.82B	21.02B	12.19B	5.55B
	EBITDA
62.90B	66.05B	64.80B	48.87B	41.01B	35.26B
	Net Income Common Stockholders
22.23B	22.50B	23.93B	14.62B	4.02B	-1.86B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
25.88B	42.85B	43.29B	38.41B	36.47B	41.86B
	Total Assets
951.48B	976.88B	950.65B	935.11B	920.98B	962.23B
	Total Debt
425.05B	432.95B	430.98B	474.51B	482.49B	506.48B
	Net Debt
399.17B	390.10B	387.69B	436.11B	446.02B	464.62B
	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: 2134.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9044	66 Neutral	¥241.79B	10.74		2.11%	7.94%	-5.97%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
KELRF		$4.91B	10.23	14.35%	<0.01%	―	―
KYYHF		$4.10B	12.62	9.60%	2.81%	―	―
ODERF		$4.07B	11.87	10.86%	0.02%	―	―
TBURF		$3.45B	10.39	9.22%	0.02%	―	―
WJRYF		$10.40B	13.80	9.93%	2.92%	―	―

Nankai Electric Railway Co., Ltd. Corporate Events

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.