Japan Oil Transportation Co., Ltd. (9074) AI Stock Analysis

• Market Cap: ¥16.97B
• Dividend Yield: 1.96%
• Average Volume (3M): 8.40K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.54
• Revenue Growth: 5.60%
• EPS Growth: 13.64%
• Country: JP
• Employees: 1,571
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 156.07
• Shares Outstanding: 3,322,935
• 10 Day Avg. Volume: 11,920
• 30 Day Avg. Volume: 8,403
• PEG Ratio: 0.84
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 2.76
• 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: 77 Outperform
• Price Target: ¥5,823.00 ▲(5.49% Upside)
• Action: Reiterated Date: 01/16/26
• Date: Action: Reiterated 01/16/26

The score is primarily supported by strong financial performance—especially robust cash generation and steady growth—alongside a clear positive price trend above major moving averages. Valuation is reasonable (P/E 12.61) with a modest dividend yield, while the main near-term risk is technical overbought conditions (RSI 72).

Positive Factors

Cash Generation

Strong operating cash conversion (OCF ~4.05x net income) and near-50% free cash flow growth demonstrate durable internal funding. This reduces reliance on external capital, supports dividends, capex and deleveraging, and gives the company sustainable financial flexibility across cycles.

Balance Sheet Strength

A conservative capital structure (equity ratio ~60%, D/E ~0.34) lowers refinancing and solvency risk, preserving capacity to invest or absorb shocks. This structural strength supports creditworthiness and long-term operational stability in a cyclical logistics business.

Steady Revenue & Margins

Consistent mid-single-digit revenue growth alongside stable gross and net margins reflects steady demand for core transport services. Predictable top-line growth and margin durability underpin long-term EBITDA generation and support reinvestment and strategic planning.

Negative Factors

Moderate ROE

ROE below 5% indicates limited capital efficiency versus peers, constraining the company's ability to compound shareholder value. Unless asset productivity or margin expansion improves, returns may remain modest and limit long-term shareholder upside.

EBIT Margin Compression

A decline in EBIT margin suggests rising operating costs or pricing pressure in core logistics. Persistent margin erosion would reduce free cash flow sustainability and limit capacity for reinvestment or distribution, weakening profitability over the medium term.

Concentration in Petroleum Logistics

Heavy reliance on petroleum product transport exposes the company to structural risks from the energy transition, regulatory tightening and fuel-demand volatility. Long-term shifts away from fossil fuels or stricter rules could shrink addressable market and force costly diversification.

Japan Oil Transportation Co., Ltd. Business Overview & Revenue Model

Company Description

Japan Oil Transportation Co., Ltd. primarily engages in the transportation of fuel oils, liquefied natural gas (LNG) and other high-pressure gases, chemical products, and perishable foods in Japan. Its activities include the railroad tank car and truck transportation of petroleum products, including gasoline, kerosene, etc.; and rail container, truck, and composite integrated transportation of LNG, etc., as well as petrochemical products. The company also leases various containers; and rents and leases railroad-use containers, such as insulated and refrigerated containers, as well as engages in the solar power business. It operates approximately 1,207 oil tanker railroad cars and other vehicles; 83 LNG containers; 8,765 chemical product containers; and 7,392 insulated/refrigerated containers. The company was founded in 1946 and is headquartered in Tokyo, Japan.

How the Company Makes Money

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Japan Oil Transportation Co., Ltd. Financial Statement Overview

Summary

Overall fundamentals are strong: steady revenue growth (6.02%) and solid profitability (gross margin 11.26%, net margin 3.40%). Cash generation is a key positive with operating cash flow far exceeding net income (4.05x) and strong free cash flow growth (48.79%). Main offsets are slightly weaker EBIT margin (down to 4.19%) and only moderate ROE (4.86%).

Income Statement

The income statement shows strong financial performance with a consistent increase in revenue over the years, reflecting a revenue growth rate of 6.02% in the latest year. The gross profit margin is solid at 11.26%, and the net profit margin stands at 3.40%, indicating good profitability. However, there is a slight decrease in EBIT margin to 4.19% from 4.46%, which may suggest rising operational costs.

Balance Sheet

The balance sheet displays a healthy financial structure with an equity ratio of 59.96%, indicating a strong reliance on equity financing. The debt-to-equity ratio is moderate at 0.34, showcasing manageable leverage. Return on equity is reasonable at 4.86%, but there is room for improvement in generating returns from equity.

Cash Flow

Cash flow analysis reveals robust operating cash flows with a strong operating cash flow to net income ratio of 4.05. Free cash flow growth is impressive at 48.79%, showing effective cash management. Despite solid cash flows, there is a noticeable increase in capital expenditure, which warrants monitoring for future impacts on liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	37.59B	37.09B	34.98B	35.13B	34.26B	32.34B
Gross Profit	4.50B	4.18B	3.89B	3.87B	3.59B	3.50B
EBITDA	5.92B	5.76B	5.58B	5.59B	5.68B	5.57B
Net Income	1.32B	1.26B	1.15B	1.23B	1.09B	915.00M
Balance Sheet
Total Assets	41.46B	43.28B	41.09B	36.80B	35.65B	35.42B
Cash, Cash Equivalents and Short-Term Investments	6.59B	7.42B	6.51B	6.46B	4.83B	4.08B
Total Debt	8.18B	8.73B	7.50B	6.73B	6.92B	7.29B
Total Liabilities	15.79B	17.33B	16.08B	14.21B	14.24B	14.72B
Stockholders Equity	25.67B	25.95B	25.01B	22.59B	21.41B	20.70B
Cash Flow
Free Cash Flow	0.00	3.62B	2.44B	3.58B	2.38B	2.62B
Operating Cash Flow	0.00	5.11B	4.98B	4.67B	4.67B	5.06B
Investing Cash Flow	0.00	-2.61B	-3.13B	-1.01B	-2.25B	-2.42B
Financing Cash Flow	0.00	-2.60B	-1.82B	-2.05B	-1.67B	-1.10B

Japan Oil Transportation Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5520.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9074, the sentiment is Negative. The current price of 5520 is above the 20-day moving average (MA) of 5161.50, above the 50-day MA of 5349.20, and above the 200-day MA of 4099.78, indicating a neutral trend. The MACD of -44.93 indicates Negative momentum. The RSI at 45.92 is Neutral, neither overbought nor oversold. The STOCH value of 45.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9074.

Japan Oil Transportation Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9074	77 Outperform	¥16.97B	8.84	―	1.96%	5.60%	13.64%
9017	72 Outperform	¥8.03B	7.03	―	0.47%	3.15%	4.75%
9049	71 Outperform	¥14.77B	7.70	―	0.26%	1.75%	-8.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9033	63 Neutral	¥19.68B	-109.80	―	1.33%	1.70%	1841.47%
9046	59 Neutral	¥20.37B	9.88	―	0.81%	1.24%	19.78%
9012	54 Neutral	¥3.14B	14.00	―	―	9.04%	―