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

• Market Cap: ¥323.29B
• Dividend Yield: 2.28%
• Average Volume (3M): 514.31K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.41
• Revenue Growth: 14.91%
• EPS Growth: 54.74%
• Country: JP
• Employees: 28,412
• Sector: Industrials
• Sector Strength: 93
• Industry: Conglomerates
• EPS (TTM): 24.51
• Shares Outstanding: 196,700,680
• 10 Day Avg. Volume: 466,950
• 30 Day Avg. Volume: 514,306
• PEG Ratio: 1.60
• Price to Book (P/B): 0.78
• 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: ¥1,750.00
• Price Target Upside: 6.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥1,840.00 ▲(11.92%Upside)

Nagoya Railroad Co., Ltd.'s strong financial performance, characterized by consistent revenue growth and improved profitability, is the primary driver of its stock score. The attractive valuation with a low P/E ratio and solid dividend yield further supports the stock's appeal. However, the necessity to manage increasing debt levels and negative free cash flow are notable risks that temper the overall score.

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

Company Description

Nagoya Railroad Co., Ltd. (9048), commonly known as Meitetsu, is a Japanese transportation company headquartered in Nagoya, Aichi Prefecture. It operates an extensive network of passenger railways primarily in the Chubu region, providing vital commuter services in and around Nagoya. In addition to its rail operations, the company is involved in various business segments, including bus transportation, real estate, and leisure services, contributing to its diverse portfolio.

How the Company Makes Money

Nagoya Railroad Co., Ltd. generates revenue through multiple streams primarily centered around its transportation services. The core source of income is passenger fares from its railway and bus operations, catering to daily commuters and travelers in the Chubu region. Additionally, revenue is supplemented by its real estate division, which involves the development and management of properties, including commercial facilities and residential buildings located near its transit lines. The company also earns income from its leisure and tourism-related businesses, which include hotels, amusement parks, and travel services. Strategic partnerships and collaborations with local governments and other corporations further enhance its revenue-generating capabilities by expanding service offerings and improving infrastructure.

Nagoya Railroad Co., Ltd. Financial Statement Overview

Summary

Nagoya Railroad Co., Ltd. demonstrates solid financial performance with consistent revenue growth and improved profitability. The balance sheet is stable, but rising debt levels are a concern. Cash flow management needs attention due to high capital expenditures affecting free cash flow.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	690.72B	601.12B	551.50B	490.92B	481.64B
Gross Profit	104.19B	88.88B	73.25B	48.79B	30.38B
EBITDA	96.86B	76.81B	61.39B	41.85B	20.41B
Net Income	37.73B	24.40B	18.85B	9.37B	-28.77B
Balance Sheet
Total Assets	1.45T	1.30T	1.23T	1.19T	1.19T
Cash, Cash Equivalents and Short-Term Investments	58.64B	60.39B	55.29B	50.93B	54.02B
Total Debt	585.51B	499.54B	476.07B	468.57B	463.49B
Total Liabilities	950.59B	839.67B	802.29B	775.77B	783.62B
Stockholders Equity	461.71B	437.96B	404.43B	383.32B	372.01B
Cash Flow
Free Cash Flow	-54.63B	-30.46B	-17.47B	-24.67B	-42.41B
Operating Cash Flow	78.73B	55.53B	61.22B	39.32B	19.68B
Investing Cash Flow	-138.13B	-68.43B	-59.37B	-39.03B	-44.23B
Financing Cash Flow	55.85B	18.03B	2.61B	-3.34B	49.41B

Nagoya Railroad Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1644.00
• 50DMA: Positive
• 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 Positive. The current price of 1644 is above the 20-day moving average (MA) of 1636.55, above the 50-day MA of 1628.53, and below the 200-day MA of 1686.53, indicating a neutral trend. The MACD of 3.12 indicates Negative momentum. The RSI at 53.86 is Neutral, neither overbought nor oversold. The STOCH value of 56.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
9048	74 Outperform	¥323.29B	8.56		2.28%	14.91%	54.74%
9003	73 Outperform	¥229.27B	10.23		2.33%	8.20%	39.32%
Sector *	71 Outperform	¥269.20B	13.89	8.47%	2.88%	6.35%	13.11%
9041	71 Outperform	$539.08B	11.49	8.66%	1.76%	6.89%	-2.82%
9042	70 Outperform	$928.28B	13.75	6.56%	1.55%	10.95%	-0.10%
9008	70 Outperform	¥395.93B	9.88	10.45%	2.87%	10.82%	47.20%
9010	66 Neutral	¥109.65B	21.47		1.40%	3.02%	11.73%

Nagoya Railroad Co., Ltd. Corporate Events

Nagoya Railroad Adjusts Convertible Bond Conversion Prices Following Dividend Approval

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

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

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

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

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.