Kobe Electric Railway Co., Ltd. (9046) AI Stock Analysis

• Market Cap: ¥18.24B
• Dividend Yield: 0.88%
• Average Volume (3M): 18.35K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.46
• Revenue Growth: -0.82%
• EPS Growth: 12.28%
• Country: JP
• Employees: 884
• Sector: Industrials
• Sector Strength: 87
• Industry: Railroads
• EPS (TTM): -9.60
• Shares Outstanding: 8,061,566
• 10 Day Avg. Volume: 9,280
• 30 Day Avg. Volume: 18,346
• PEG Ratio: 1.24
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.41
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: ¥2,400.00 ▲(5.73%Upside)

Kobe Electric Railway Co., Ltd. receives a moderate overall stock score, driven by its stable financial performance and reasonable valuation metrics. The technical analysis indicates some bearish trends, impacting the overall score. The lack of significant earnings call data and corporate events means these areas did not influence the score.

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

Company Description

Kobe Electric Railway Co., Ltd. (9046) is a Japanese transportation company primarily engaged in the operation of railway services. The company provides regional rail transport services in the Hyogo Prefecture, connecting cities such as Kobe, Sanda, and Arima. In addition to its core railway operations, the company is involved in real estate and other transportation-related businesses, contributing to the development of local communities and infrastructure.

How the Company Makes Money

Kobe Electric Railway Co., Ltd. generates revenue through several key streams. The primary source of income is from passenger fares collected from its railway services, which cater to daily commuters, tourists, and local residents. The company also benefits from its real estate operations, including leasing and management of properties located near its railway lines, which enhances the value of its transportation network. Additionally, the company may engage in partnerships or collaborations with local businesses and authorities to develop infrastructure projects, further diversifying its revenue sources. Other income streams can include retail and advertising opportunities within station premises, contributing to its overall earnings.

Kobe Electric Railway Co., Ltd. Financial Statement Overview

Summary

Kobe Electric Railway Co., Ltd. exhibits a stable financial position with moderate profitability and cash flow generation. While the company faces challenges in revenue growth and carries significant leverage, its operational efficiency and cash conversion capabilities offer strengths that balance its financial outlook.

Income Statement

Kobe Electric Railway Co., Ltd. demonstrates moderate profitability with a consistent gross profit margin averaging around 20% over the years, which is healthy for the railroads industry. The company has also shown positive EBIT and EBITDA margins, indicating efficiency in operations. However, revenue growth has been relatively flat, with some fluctuations, suggesting challenges in expanding the top line significantly.

Balance Sheet

The company maintains a high debt-to-equity ratio, reflecting significant leverage, which could pose financial risks. However, the equity ratio shows that a fair portion of the company's assets is financed by equity. The return on equity has been positive but modest, indicating some profitability but also room for improvement in generating returns for shareholders.

Cash Flow

Kobe Electric Railway Co., Ltd. has shown stable operating cash flows and positive free cash flow generation in recent years, despite negative free cash flow in some past periods. The operating cash flow to net income ratio is strong, suggesting good cash conversion capabilities. However, free cash flow growth has been inconsistent, highlighting potential volatility in cash generation.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
22.39B	22.13B	22.31B	21.32B	20.52B	20.23B
	Gross Profit
4.70B	4.62B	4.48B	3.98B	3.63B	3.28B
	EBIT
2.08B	2.01B	1.86B	1.39B	1.06B	698.00M
	EBITDA
4.22B	4.40B	4.18B	3.72B	3.50B	3.41B
	Net Income Common Stockholders
1.10B	1.15B	1.02B	676.00M	519.00M	187.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.67B	1.05B	1.47B	1.44B	1.26B	1.37B
	Total Assets
89.21B	90.68B	90.45B	90.80B	92.35B	92.89B
	Total Debt
54.11B	54.44B	54.88B	57.15B	58.84B	60.48B
	Net Debt
52.44B	53.38B	53.41B	55.71B	57.58B	59.10B
	Total Liabilities
65.09B	67.14B	67.51B	69.56B	71.73B	72.72B
	Stockholders Equity
24.12B	23.54B	22.94B	21.24B	20.63B	20.17B
Cash Flow		Free Cash Flow
0.00	355.00M	1.93B	1.65B	1.08B	-652.00M
	Operating Cash Flow
0.00	2.96B	3.78B	3.42B	2.81B	1.88B
	Investing Cash Flow
0.00	-2.02B	-1.32B	-1.35B	-1.07B	-1.36B
	Financing Cash Flow
0.00	-1.36B	-2.44B	-1.89B	-1.84B	-328.00M

Kobe Electric Railway Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2270.00
• 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:9046, the sentiment is Negative. The current price of 2270 is above the 20-day moving average (MA) of 2261.25, below the 50-day MA of 2335.28, and below the 200-day MA of 2406.48, indicating a neutral trend. The MACD of -19.14 indicates Negative momentum. The RSI at 43.96 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9046.

Kobe Electric Railway Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9049	79 Outperform	¥13.72B	7.90		0.29%	2.97%	-16.90%
9052	70 Neutral	¥44.24B	14.60		2.01%	-1.86%	-2.54%
9081	67 Neutral	¥44.30B	8.68		2.77%	0.92%	55.82%
9044	66 Neutral	¥245.53B	10.97		2.08%	7.94%	-5.97%
Sector *	66 Neutral	$4.47B	12.22	5.40%	3.65%	4.14%	-12.00%
9033	64 Neutral	¥18.31B	13.28		1.33%	10.64%	110.18%
9046	61 Neutral	¥18.24B	15.82		0.88%	-0.82%	12.28%

Kobe Electric Railway Co., Ltd. Corporate Events

Kobe Electric Railway Revises FY2026 Financial Targets Upward

Kobe Electric Railway Co., Ltd. has revised its consolidated numerical targets for FY2026, raising its operating profit target to ¥2.3 billion and profit target to ¥1 billion, reflecting strong performance expectations in its transportation and real estate businesses. The revisions are part of the company’s efforts to achieve its long-term management vision, ‘Shintetsu Group Mirai Vision 2030,’ while maintaining its basic policy and business strategy.

Kobe Electric Railway Reports Stable Financial Performance and Increased Dividends

Kobe Electric Railway Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight decrease in operating revenue by 0.8% to ¥22,131 million. Despite this, the company achieved increases in operating profit by 7.9% and ordinary profit by 17.0%, indicating improved operational efficiency. The profit attributable to owners of the parent rose by 12.3%, reflecting strong financial management. The company also announced a significant increase in annual dividends per share from ¥10.00 to ¥20.00, which signals confidence in its financial stability and commitment to shareholder returns. Looking forward, Kobe Electric Railway anticipates a 2.9% increase in operating revenue for the fiscal year ending March 31, 2026, with continued growth in operating profit.

Kobe Electric Railway Reports Extraordinary Income and Losses with No Financial Impact

Kobe Electric Railway Co., Ltd. announced the recording of extraordinary income and losses for the fiscal year ending March 2025. The company received a contribution of ¥612 million for a railway safety improvement project, which was recorded as both extraordinary income and loss, resulting in no impact on the consolidated financial results.