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

• Market Cap: ¥15.88B
• Dividend Yield: 1.96%
• Average Volume (3M): 8.40K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.55
• 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: ¥5,448.00 ▼(-1.30% Downside)
• 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

Strong cash generation

Operating cash flow that is over four times net income and nearly 49% FCF growth show durable internal cash generation. That persistent cash flow supports reinvestment, debt reduction, dividend capacity and resilience through cycles, strengthening long-term financial flexibility.

Conservative balance sheet

A roughly 60% equity ratio and low leverage reduce refinancing and solvency risk, providing structural stability. This capital structure gives management optionality to fund capex, absorb demand shocks or pursue strategic investments without heavy reliance on external debt.

Steady revenue and solid gross margin

Consistent ~6% revenue growth paired with an 11%+ gross margin points to durable demand and acceptable pricing power in its core petroleum and industrial transport services. This steady top-line and margin base supports predictable operating cash flows over time.

Negative Factors

Declining EBIT margin

A fall in EBIT margin suggests rising operating costs or margin pressure in core logistics operations. If this trend continues, operating profitability and cash generation could be eroded, limiting reinvestment capacity and making earnings more sensitive to volume or fuel cost swings.

Modest return on equity

An ROE below 5% indicates limited efficiency in converting equity into profits. Over the medium term this can constrain shareholder value creation versus peers, reduce attractiveness to equity investors, and signal room for improvement in asset utilization or margin expansion.

Rising capital expenditure risk

Higher capex noted alongside strong cash flows raises the risk that future free cash generation could be compressed. Sustained elevated investment needs may pressure liquidity, require additional financing or reduce funds available for dividends and strategic flexibility.

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	35.22B	34.26B	32.34B
Gross Profit	4.50B	4.18B	3.89B	3.87B	3.59B	3.50B
EBITDA	5.66B	5.34B	5.28B	5.26B	5.41B	5.40B
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	35.40B
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	7.48B	6.92B	7.03B
Total Liabilities	15.79B	17.33B	16.08B	14.21B	14.24B	14.70B
Stockholders Equity	25.67B	25.95B	25.01B	22.59B	21.41B	20.69B
Cash Flow
Free Cash Flow	0.00	3.62B	2.44B	3.62B	2.38B	2.62B
Operating Cash Flow	0.00	5.11B	4.98B	4.71B	4.67B	5.06B
Investing Cash Flow	0.00	-2.61B	-3.13B	-1.05B	-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: Negative
• 200DMA: Positive
• MACD: Positive
• 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 5173.00, above the 50-day MA of 5333.60, and above the 200-day MA of 4164.45, indicating a neutral trend. The MACD of -53.72 indicates Positive momentum. The RSI at 36.51 is Neutral, neither overbought nor oversold. The STOCH value of 22.71 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	¥15.88B	8.84	―	1.96%	5.60%	13.64%
9031	73 Outperform	¥236.11B	4.69	12.70%	1.68%	8.29%	24.94%
9017	72 Outperform	¥7.78B	7.03	―	0.47%	3.15%	4.75%
9044	72 Outperform	¥340.40B	9.85	―	1.61%	6.55%	-12.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7677	61 Neutral	¥7.30B	8.56	―	0.89%	14.92%	-140.85%
9081	59 Neutral	¥43.26B	9.60	―	2.58%	2.36%	-40.95%