Nagoya Railroad Co., Ltd. (9048) AI Stock Analysis

• Market Cap: ¥318.57B
• Dividend Yield: 2.31%
• Average Volume (3M): 927.80K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.37
• Revenue Growth: 6.13%
• EPS Growth: -23.73%
• Country: JP
• Employees: 28,412
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 23.07
• Shares Outstanding: 196,700,680
• 10 Day Avg. Volume: 441,610
• 30 Day Avg. Volume: 927,800
• PEG Ratio: 0.17
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.50
• P/FCF Ratio: -6.27
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥1,846.00 ▲(13.95% Upside)

Nagoya Railroad Co., Ltd. scores well on valuation due to its low P/E ratio and attractive dividend yield, suggesting it may be undervalued. However, technical analysis indicates bearish momentum, and financial performance highlights concerns over rising debt and negative free cash flow. These factors contribute to a moderate overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a robust market position and effective business strategies, enhancing long-term financial stability.

Profitability Improvement

Improved profitability through efficient cost management strengthens the company's financial health and supports sustainable growth.

Operating Cash Flow

Strong operating cash flow suggests the company is effectively converting profits into cash, supporting ongoing operations and investments.

Negative Factors

Rising Debt Levels

Rising debt can strain financial resources and limit flexibility, potentially impacting long-term financial stability and growth.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues, limiting the company's ability to invest in growth opportunities without external funding.

EBIT Margin Fluctuations

Fluctuating EBIT margins may signal operational inefficiencies, affecting profitability and potentially hindering consistent financial performance.

Nagoya Railroad Co., Ltd. Business Overview & Revenue Model

Company Description

Nagoya Railroad Co., Ltd., together with its subsidiaries, engages in the railroad business in Japan. It operates through Traffic, Transport, Real Estate, Leisure and Services, Distribution, and Aviation Services segments. The Traffic segment engages in the railroads, buses, and taxis related businesses. The Transport provides trucking and maritime transportation related services. The Real Estate segment develops and leases real estate properties; and offers building maintenance services. The Leisure and Services segment operates hotels and restaurants; and provides tourist facilities and travel related services. The Distribution segment engages in the operation of a department store; and distribution of other merchandise. The Aviation Services segment offers general aviation and flight catering related services. The company is also involved in the equipment maintenance, information processing, insurance agency, and other businesses. It operates the 437 kilometers of railroad network and 7.2 kilometers of tramway network that connects Aichi and Gifu prefectures. Nagoya Railroad Co., Ltd. was founded in 1894 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Nagoya Railroad generates revenue primarily through its passenger train services, which account for a significant portion of its earnings. The company operates multiple train lines, including urban and suburban services, catering to daily commuters and long-distance travelers. Additional revenue streams include freight transportation, where it moves goods across its rail network, and real estate activities, such as leasing and developing commercial properties near its train stations. The company also benefits from retail operations, including shops and restaurants located within its stations. Strategic partnerships with local governments and businesses enhance its tourism offerings, further contributing to its revenue. Seasonal events and promotions aimed at attracting visitors to the region also play a role in boosting earnings.

Nagoya Railroad Co., Ltd. Financial Statement Overview

Summary

Nagoya Railroad Co., Ltd. demonstrates solid financial performance with consistent revenue growth and improved profitability. However, the increase in debt levels and negative free cash flow due to high capital expenditures are potential concerns.

Income Statement

Nagoya Railroad Co., Ltd. has shown strong revenue growth with a positive trend over the past few years, notably from 490.9 billion JPY to 690.7 billion JPY. The gross profit margin improved significantly, indicating efficient cost management. The net profit margin has improved, reflecting better profitability. However, the EBIT margin has seen fluctuations, which suggests occasional operational challenges.

Balance Sheet

The company maintains a stable balance sheet with a moderate debt-to-equity ratio, although the increase in total debt over the years could pose potential risks. The equity ratio remains healthy, indicating solid shareholder equity relative to total assets. Return on equity has improved, showing effective use of shareholder funds, but the rising debt levels warrant careful monitoring.

Cash Flow

Nagoya Railroad's cash flow statement shows growth in operating cash flow, which is a positive indicator of core business strength. However, free cash flow has been negative, primarily due to high capital expenditures, which could pressure liquidity. The operating cash flow to net income ratio is robust, suggesting efficient cash conversion from profits, yet the free cash flow to net income ratio indicates potential cash flow constraints.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	693.06B	690.72B	601.12B	551.50B	490.92B	481.64B
Gross Profit	102.29B	104.19B	88.88B	73.25B	48.79B	30.38B
EBITDA	90.65B	96.86B	76.81B	70.11B	57.92B	20.41B
Net Income	33.98B	37.73B	24.40B	18.85B	9.37B	-28.77B
Balance Sheet
Total Assets	1.48T	1.45T	1.30T	1.23T	1.19T	1.19T
Cash, Cash Equivalents and Short-Term Investments	41.04B	58.64B	60.39B	55.29B	50.93B	54.02B
Total Debt	631.74B	585.51B	499.54B	476.07B	468.57B	463.49B
Total Liabilities	986.88B	950.59B	839.67B	802.29B	775.77B	783.62B
Stockholders Equity	461.05B	461.71B	437.96B	404.43B	383.32B	372.01B
Cash Flow
Free Cash Flow	0.00	-54.63B	-30.46B	-17.47B	-24.67B	-42.41B
Operating Cash Flow	0.00	78.73B	55.53B	61.22B	39.32B	19.68B
Investing Cash Flow	0.00	-138.13B	-68.43B	-59.37B	-39.03B	-44.23B
Financing Cash Flow	0.00	55.85B	18.03B	2.61B	-3.34B	49.41B

Nagoya Railroad Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1620.00
• 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:9048, the sentiment is Negative. The current price of 1620 is above the 20-day moving average (MA) of 1615.53, below the 50-day MA of 1656.97, and below the 200-day MA of 1685.45, indicating a bearish trend. The MACD of -10.71 indicates Negative momentum. The RSI at 42.21 is Neutral, neither overbought nor oversold. The STOCH value of 59.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9048.

Nagoya Railroad Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9008	72 Outperform	¥458.90B	12.26	9.06%	2.59%	6.97%	8.61%
9003	72 Outperform	¥273.46B	13.56	―	2.33%	-1.88%	-9.94%
9042	70 Outperform	¥943.39B	13.41	6.64%	2.02%	11.89%	-3.98%
9048	66 Neutral	¥318.57B	11.60	―	2.31%	6.13%	-23.73%
9041	64 Neutral	¥561.62B	11.55	8.64%	1.86%	3.90%	5.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9010	60 Neutral	¥106.04B	20.07	―	1.45%	4.80%	30.05%

Nagoya Railroad Co., Ltd. Corporate Events

Nagoya Railroad Records Extraordinary Income from Share Exchange

Nagoya Railroad Co., Ltd. announced the recording of extraordinary income due to a gain on share exchange of affiliated companies, specifically from the share transfer of CHUKYO TV Broadcasting Co., Ltd. This financial maneuver resulted in extraordinary income of 9,843 million yen in non-consolidated and 5,470 million yen in consolidated financial results for the six-month period ended September 30, 2025, impacting the company’s financial standing positively.

Nagoya Railroad Reports Mixed Financial Results Amid Revenue Growth

Nagoya Railroad Co., Ltd. reported an increase in operating revenues for the six-month period ending September 30, 2025, driven by the consolidation of the Miyagi Transportation Group and a rise in railroad passengers. However, the company faced declines in operating, ordinary, and net income due to increased personnel expenses, depreciation, and the absence of previous one-off gains, affecting its overall financial performance.

Nagoya Railroad Reports Decline in Profits Despite Revenue Growth

Nagoya Railroad Co., Ltd. reported a slight increase in operating revenues for the six-month period ending September 30, 2025, but experienced significant declines in operating income, ordinary income, and profit attributable to owners of the parent compared to the previous year. The company has revised its financial forecasts for the fiscal year ending March 31, 2026, indicating a cautious outlook with expected declines in operating and ordinary income, as well as profit attributable to owners of the parent, reflecting potential challenges in maintaining profitability.