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Nagoya Railroad Co., Ltd. (JP:9048)
:9048
Japanese Market

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

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JP

Nagoya Railroad Co., Ltd.

(9048)

Rating:65Neutral
Price Target:
¥1,751.00
▲(7.52%Upside)
Nagoya Railroad Co., Ltd. receives a score of 65, driven primarily by solid financial performance and attractive valuation metrics. However, the stock's downward technical momentum and increasing debt levels require careful consideration. The absence of earnings call and corporate event data did not impact the score.

Nagoya Railroad Co., Ltd. (9048) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionNagoya 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 MoneyNagoya Railroad Co., Ltd. generates revenue through multiple streams, with its core income derived from its extensive railway network, which serves millions of passengers annually. The company also earns from its bus and taxi services, providing integrated transportation solutions. Beyond transportation, Meitetsu capitalizes on its real estate holdings, developing and leasing commercial and residential properties. Furthermore, the company engages in tourism and leisure activities, including hotels and travel agencies, which contribute to its earnings. Strategic partnerships and investments in affiliated companies bolster its financial performance, allowing for a diversified and resilient revenue model.

Nagoya Railroad Co., Ltd. Financial Statement Overview

Summary
Nagoya Railroad Co., Ltd. demonstrates solid financial performance with strong revenue growth and improved profitability. The balance sheet is stable but shows increasing debt levels, which pose potential risks. Cash flow management needs attention due to negative free cash flow driven by high capital expenditures.
Income Statement
78
Positive
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
72
Positive
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
66
Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue665.43B690.72B601.12B551.50B490.92B481.64B
Gross Profit103.60B104.19B88.88B73.25B48.79B30.38B
EBITDA92.49B96.86B76.81B61.39B41.85B20.41B
Net Income35.81B37.73B24.40B18.85B9.37B-28.77B
Balance Sheet
Total Assets1.38T1.45T1.30T1.23T1.19T1.19T
Cash, Cash Equivalents and Short-Term Investments55.10B58.64B60.39B55.29B50.93B54.02B
Total Debt541.81B585.51B499.54B476.07B468.57B463.49B
Total Liabilities890.25B950.59B839.67B802.29B775.77B783.62B
Stockholders Equity466.07B461.71B437.96B404.43B383.32B372.01B
Cash Flow
Free Cash Flow0.00-54.63B-30.46B-17.47B-24.67B-42.41B
Operating Cash Flow0.0078.73B55.53B61.22B39.32B19.68B
Investing Cash Flow0.00-138.13B-68.43B-59.37B-39.03B-44.23B
Financing Cash Flow0.0055.85B18.03B2.61B-3.34B49.41B

Nagoya Railroad Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1628.50
Price Trends
50DMA
1652.14
Negative
100DMA
1698.99
Negative
200DMA
1690.18
Negative
Market Momentum
MACD
-6.52
Negative
RSI
50.98
Neutral
STOCH
63.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9048, the sentiment is Neutral. The current price of 1628.5 is above the 20-day moving average (MA) of 1616.20, below the 50-day MA of 1652.14, and below the 200-day MA of 1690.18, indicating a neutral trend. The MACD of -6.52 indicates Negative momentum. The RSI at 50.98 is Neutral, neither overbought nor oversold. The STOCH value of 63.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9048.

Nagoya Railroad Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
¥320.24B8.48
2.30%14.91%54.74%
58
Neutral
$1.34B4.24-2.93%7.38%3.67%-51.13%
$6.37B14.416.56%0.01%
$3.64B11.938.66%1.74%
$2.70B10.2510.45%0.02%
73
Outperform
¥223.83B9.98
2.63%8.20%39.32%
68
Neutral
¥108.00B21.14
1.43%3.02%11.73%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9048
Nagoya Railroad Co., Ltd.
1,628.50
-85.15
-4.97%
HYUHF
Hankyu Hanshin Holdings
26.64
0.47
1.80%
KINUF
Kintetsu Group Holdings Co
19.22
-1.81
-8.61%
KTERF
Keio
23.78
1.54
6.92%
JP:9003
Sotetsu Holdings, Inc.
2,284.50
-5.69
-0.25%
JP:9010
Fuji Kyuko Co., Ltd.
2,034.00
-926.88
-31.30%

Nagoya Railroad Co., Ltd. Corporate Events

Nagoya Railroad Adjusts Convertible Bond Conversion Prices Following Dividend Approval
Jun 26, 2025

Nagoya Railroad Co., Ltd. announced an adjustment to the conversion prices of its euro-yen denominated zero coupon convertible bonds due in 2033 and 2034. This adjustment follows the approval of a year-end dividend at the company’s 161st Ordinary Shareholders Meeting, impacting the conversion price in accordance with the bond agreements.

The most recent analyst rating on (JP:9048) stock is a Hold with a Yen1750.00 price target. To see the full list of analyst forecasts on Nagoya Railroad Co., Ltd. stock, see the JP:9048 Stock Forecast page.

Nagoya Railroad Co. Announces Major Redevelopment and Renovation Projects
May 26, 2025

Nagoya Railroad Co., Ltd. has announced a joint venture agreement with several partners to commercialize the Nagoya Station District Redevelopment Project. This initiative includes the renovation of Meitetsu Nagoya Station and investment in a bus terminal, aiming to enhance commercial facilities, offices, and transportation infrastructure, potentially strengthening the company’s industry position and benefiting stakeholders.

Nagoya Railroad Co. Announces Increased Year-End Dividend
May 8, 2025

Nagoya Railroad Co., Ltd. announced a decision to increase its year-end dividend for the fiscal year ending March 31, 2025, from the previously forecasted 37.50 yen to 38.50 yen per share. This decision reflects the company’s commitment to stable management and dividends, considering recent performance trends and financial position.

Nagoya Railroad Co., Ltd. Reports Increased Revenue and Income for FY2024
May 8, 2025

Nagoya Railroad Co., Ltd. reported an increase in operating revenues and income for the fiscal year ended March 31, 2025, primarily driven by growth in the real estate and traffic sectors. The company also benefited from business integration efforts, resulting in improved ordinary and net income, despite rising outsourcing and personnel expenses. The addition of new subsidiaries and affiliates further strengthened its market position.

Nagoya Railroad Co., Ltd. Reports Strong Financial Growth for Fiscal Year 2025
May 8, 2025

Nagoya Railroad Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing significant growth in operating revenues and profits compared to the previous year. The company’s comprehensive income decreased by 12.2%, but equity in earnings of affiliates increased substantially. The financial results indicate a strong performance with improved shareholder equity and a positive outlook for future dividends.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 27, 2025