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

• Market Cap: ¥18.69B
• Dividend Yield: 0.86%
• Average Volume (3M): 9.53K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.46
• Revenue Growth: -0.82%
• EPS Growth: 12.28%
• Country: JP
• Employees: 884
• Sector: Industrials
• Sector Strength: 90
• Industry: Railroads
• EPS (TTM): -9.60
• Shares Outstanding: 8,061,566
• 10 Day Avg. Volume: 8,430
• 30 Day Avg. Volume: 9,526
• PEG Ratio: 3.84
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,400.00
• Price Target Upside: 3.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: ¥2,489.00 ▲(7.05%Upside)

Kobe Electric Railway Co., Ltd. receives a moderate score of 64, driven primarily by its stable financial performance and balanced valuation. The financial stability is supported by operational efficiency and cash conversion capabilities, though revenue growth and leverage pose challenges. Technical analysis indicates some short-term weakness but a stable overall trend. Valuation metrics suggest the stock is fairly priced with limited dividend income potential.

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

Company Description

Kobe Electric Railway Co., Ltd. (9046) is a Japanese company primarily engaged in the railway transportation sector. It operates a network of railway lines connecting various regions in and around Kobe, Japan. In addition to its core railway services, the company is involved in related sectors such as real estate, retail, and leisure services aimed at enhancing the value of its transportation network.

How the Company Makes Money

Kobe Electric Railway Co., Ltd. generates its revenue primarily through passenger fares collected from its railway operations. The company also earns income from real estate activities by leasing and managing properties located along its railway lines. Retail and commercial operations contribute to its revenue streams through the leasing of commercial spaces in stations and adjacent areas. Additionally, the company engages in partnerships and collaborations with local businesses to enhance service offerings and increase foot traffic, thereby boosting its non-transportation revenue.

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. The company faces challenges in revenue growth and carries significant leverage, which could impact financial flexibility. Nevertheless, its operational efficiency and cash conversion remain strengths, providing a balanced 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	22.13B	22.31B	21.32B	20.52B	20.23B
Gross Profit	4.62B	4.48B	3.98B	3.63B	3.28B
EBITDA	4.40B	4.18B	3.72B	3.50B	3.41B
Net Income	1.15B	1.02B	676.00M	519.00M	187.00M
Balance Sheet
Total Assets	90.68B	90.45B	90.80B	92.35B	92.89B
Cash, Cash Equivalents and Short-Term Investments	1.05B	1.47B	1.44B	1.26B	1.37B
Total Debt	54.44B	54.88B	57.15B	58.84B	60.48B
Total Liabilities	67.14B	67.51B	69.56B	71.73B	72.72B
Stockholders Equity	23.54B	22.94B	21.24B	20.63B	20.17B
Cash Flow
Free Cash Flow	355.00M	1.93B	1.65B	1.08B	-652.00M
Operating Cash Flow	2.96B	3.78B	3.42B	2.81B	1.88B
Investing Cash Flow	-2.02B	-1.32B	-1.35B	-1.07B	-1.36B
Financing Cash Flow	-1.36B	-2.44B	-1.89B	-1.84B	-328.00M

Kobe Electric Railway Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2325.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 2325 is below the 20-day moving average (MA) of 2329.15, above the 50-day MA of 2306.80, and below the 200-day MA of 2373.85, indicating a neutral trend. The MACD of 7.07 indicates Positive momentum. The RSI at 50.64 is Neutral, neither overbought nor oversold. The STOCH value of 30.46 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	¥13.18B	7.59		0.30%	2.97%	-16.90%
9044	75 Outperform	¥246.72B	11.04		2.07%	7.94%	-5.97%
Sector *	67 Neutral	CHF6.70B	27.00	14.57%	2.62%	-2.23%	-29.51%
9046	64 Neutral	¥18.69B	16.13		0.86%	-0.82%	12.28%
9033	64 Neutral	¥18.89B	13.70		1.29%	10.64%	110.16%
9081	63 Neutral	¥42.89B	8.44		2.86%	0.92%	55.82%
9052	60 Neutral	¥43.51B	14.35		2.04%	-1.86%	-2.54%

Kobe Electric Railway Co., Ltd. Corporate Events

Kobe Electric Railway Affirms Independence Amid Hankyu Hanshin Holdings’ Stake

Kobe Electric Railway Co., Ltd. announced its relationship with Hankyu Hanshin Holdings, Inc., which holds 29% of its voting rights, indicating a certain level of independence despite the capital and personnel ties. The company maintains its autonomy in business operations and has minimal dependency on Hankyu Hanshin Holdings for transactions, ensuring operational independence.

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.