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

• Market Cap: ¥19.88B
• Dividend Yield: 0.81%
• Average Volume (3M): 17.79K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.38
• Revenue Growth: 1.24%
• EPS Growth: 19.78%
• Country: JP
• Employees: 884
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 38.36
• Shares Outstanding: 8,061,566
• 10 Day Avg. Volume: 19,940
• 30 Day Avg. Volume: 17,793
• PEG Ratio: 1.32
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 53.76
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ¥2,447.00 ▼(-1.13% Downside)

Kobe Electric Railway Co., Ltd. has a stable financial position with moderate profitability and cash flow generation. However, the stock is experiencing bearish technical signals, trading below key moving averages, and showing signs of being oversold. The valuation is fair, with a reasonable P/E ratio and modest dividend yield. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Operational Efficiency

Kobe Electric Railway's operational efficiency and strong cash conversion capabilities indicate a robust business model, ensuring sustainable operations and the ability to reinvest in growth opportunities over the long term.

Cash Flow Generation

Consistent cash flow generation provides Kobe Electric Railway with financial flexibility to manage debt, invest in infrastructure, and pursue strategic initiatives, supporting long-term business stability and growth.

Profitability

A stable gross profit margin reflects Kobe Electric Railway's ability to maintain cost efficiency and pricing power in the railroads industry, contributing to sustained profitability and competitive positioning.

Negative Factors

Revenue Growth Challenges

Flat revenue growth indicates challenges in expanding market reach or increasing service adoption, potentially limiting Kobe Electric Railway's ability to scale and enhance shareholder value over time.

High Leverage

Significant leverage poses financial risks, potentially constraining Kobe Electric Railway's ability to invest in growth or weather economic downturns, impacting long-term financial health and flexibility.

Inconsistent Free Cash Flow

Inconsistent free cash flow generation could lead to challenges in funding capital expenditures and strategic initiatives, affecting Kobe Electric Railway's ability to sustain growth and operational resilience.

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

Company Description

Kobe Electric Railway Co., Ltd. engages in the railway business in Japan. The company operates 22.5km Arima Line, 12.0km Mita Line, 5.5km Park City Line, 29.2km Suzurandai Line, and 0.4km Expressway Minatogawa. It is also involved real estate, childcare, health, and nursing care businesses. The company was incorporated in 1926 and is based in Kobe, Japan.

How the Company Makes Money

Kobe Electric Railway generates revenue primarily through its railway operations, which include passenger fares collected from commuters using its train services. The company also benefits from real estate development, leasing properties around its railway stations, and generating rental income. Additionally, revenue is supplemented by retail operations and tourism-related activities, particularly at stations that attract visitors. Partnerships with local businesses and tourism organizations further enhance the company's earnings potential, enabling it to diversify its income streams beyond traditional rail fare revenues.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.36B	22.13B	22.31B	21.32B	20.52B	20.23B
Gross Profit	4.80B	4.62B	4.48B	3.98B	3.63B	3.28B
EBITDA	4.54B	4.40B	4.18B	3.75B	3.65B	3.41B
Net Income	1.19B	1.15B	1.02B	676.00M	519.00M	187.00M
Balance Sheet
Total Assets	89.79B	90.68B	90.45B	90.80B	92.35B	92.89B
Cash, Cash Equivalents and Short-Term Investments	1.48B	1.05B	1.47B	1.44B	1.26B	1.37B
Total Debt	54.66B	54.44B	54.88B	57.15B	58.84B	60.48B
Total Liabilities	65.82B	67.14B	67.51B	69.56B	71.73B	72.72B
Stockholders Equity	23.96B	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: Positive
• Last Price: 2475.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9046, the sentiment is Positive. The current price of 2475 is above the 20-day moving average (MA) of 2384.05, above the 50-day MA of 2461.02, and above the 200-day MA of 2417.93, indicating a bullish trend. The MACD of -6.08 indicates Negative momentum. The RSI at 62.42 is Neutral, neither overbought nor oversold. The STOCH value of 92.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
9044	78 Outperform	¥318.59B	13.18	―	1.71%	6.55%	-12.49%
9049	71 Outperform	¥14.47B	8.01	―	0.28%	1.75%	-8.92%
9052	65 Neutral	¥46.11B	11.03	―	2.23%	4.37%	54.12%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9033	63 Neutral	¥18.28B	10.82	―	1.32%	1.70%	1841.47%
9081	62 Neutral	¥42.95B	13.64	―	2.49%	2.36%	-40.95%
9046	59 Neutral	¥19.88B	15.75	―	0.81%	1.24%	19.78%

Kobe Electric Railway Co., Ltd. Corporate Events

Kobe Electric Railway Reports Strong Financial Growth in First Half of 2025

Kobe Electric Railway Co., Ltd. reported an increase in its consolidated financial results for the six months ended September 30, 2025, with operating revenue up by 4.6% and profit attributable to owners rising by 12.5% compared to the previous year. The company’s financial position remains stable, with a slight increase in net assets and a consistent equity-to-asset ratio, indicating a solid performance in its core operations.

The most recent analyst rating on (JP:9046) stock is a Hold with a Yen2623.00 price target. To see the full list of analyst forecasts on Kobe Electric Railway Co., Ltd. stock, see the JP:9046 Stock Forecast page.