Kanagawa Chuo Kotsu Co., Ltd. (9081) AI Stock Analysis

• Market Cap: ¥47.55B
• Dividend Yield: 2.32%
• Average Volume (3M): 11.16K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.46
• Revenue Growth: 1.10%
• EPS Growth: -29.92%
• Country: JP
• Employees: 6,542
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 124.57
• Shares Outstanding: 12,600,000
• 10 Day Avg. Volume: 20,260
• 30 Day Avg. Volume: 11,156
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥3,696.00
• Price Target Upside: -4.62% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ¥3,696.00 ▼(-4.62% Downside)

Kanagawa Chuo Kotsu Co., Ltd. shows a stable financial foundation with improving revenue trends, but challenges in cash flow management due to high capital expenditures. Technical indicators are mixed, with price trends suggesting potential bearish momentum. Valuation metrics are favorable with a reasonable P/E ratio and attractive dividend yield, contributing positively to the overall score.

Kanagawa Chuo Kotsu Co., Ltd. Business Overview & Revenue Model

Company Description

Kanagawa Chuo Kotsu Co., Ltd. engages in passenger car transportation, real estate, and car sales businesses. It is involved in land acquisition and development, residential land development, building development, leasing, and real estate brokerage activities; and food and beverage, and hotel businesses. The company was incorporated in 1921 and is based in Hiratsuka, Japan.

How the Company Makes Money

Kanagawa Chuo Kotsu Co., Ltd. generates revenue through various transportation services, predominantly from its bus and taxi operations. The company's extensive bus network, which covers urban and suburban areas, serves as a primary revenue stream by catering to daily commuters and tourists. Taxi services further augment its earnings by providing flexible and on-demand transportation options. Additionally, the company may engage in partnerships with local governments and organizations to offer specialized transit solutions, which can include contracted services or subsidies that enhance income. Alongside its core transport operations, ancillary services such as vehicle rentals, advertising, and logistics may also contribute to its financial performance.

Kanagawa Chuo Kotsu Co., Ltd. Financial Statement Overview

Summary

Kanagawa Chuo Kotsu Co., Ltd. demonstrates stable financials with improving revenues and net income. The balance sheet is solid with moderate leverage, but cash flow management is a concern due to high capital expenditures affecting free cash flow.

Income Statement

Kanagawa Chuo Kotsu Co., Ltd. has shown consistent revenue growth over the past few years, with a notable recovery from the revenue dip in 2021. The gross profit margin is stable around 18%, and the net profit margin has improved significantly from a negative in 2021 to approximately 4.3% in 2025. However, the EBIT and EBITDA margins have seen fluctuations, indicating some operational challenges. Overall, the income statement reflects a recovering profitability trajectory, albeit with some volatility in operational efficiency.

Balance Sheet

The company maintains a relatively balanced financial position with a debt-to-equity ratio hovering around 1.0, indicating a moderate leverage level typical for the industry. The equity ratio has remained stable, reflecting a solid equity base. However, the return on equity, while improved, suggests room for growth in profitability relative to equity. Stability is a strong point, but further enhancements in profitability are needed for a higher score.

Cash Flow

The cash flow analysis reveals challenges, particularly with free cash flow turning negative in recent years, driven by high capital expenditures. Although operating cash flow covers net income comfortably, the free cash flow to net income ratio indicates potential liquidity constraints. The company needs to manage its capital expenditures more effectively to improve cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	118.15B	118.15B	117.07B	103.86B	97.78B	90.91B
Gross Profit	21.66B	21.66B	21.35B	17.94B	13.88B	7.54B
EBITDA	10.75B	12.56B	10.65B	9.14B	9.81B	746.00M
Net Income	5.08B	5.08B	3.26B	1.15B	1.84B	-8.52B
Balance Sheet
Total Assets	165.44B	165.44B	159.19B	150.57B	146.91B	159.06B
Cash, Cash Equivalents and Short-Term Investments	4.27B	4.27B	3.37B	2.83B	3.60B	2.81B
Total Debt	61.88B	61.88B	56.34B	59.14B	57.68B	63.79B
Total Liabilities	102.04B	102.04B	99.92B	97.69B	93.75B	103.90B
Stockholders Equity	57.73B	57.73B	54.17B	48.23B	48.74B	50.81B
Cash Flow
Free Cash Flow	0.00	-5.04B	3.56B	-3.04B	5.27B	-6.17B
Operating Cash Flow	0.00	8.43B	9.67B	4.89B	11.75B	40.00M
Investing Cash Flow	0.00	-12.74B	-5.79B	-6.52B	-4.24B	-6.26B
Financing Cash Flow	0.00	5.41B	-3.33B	843.00M	-6.73B	6.64B

Kanagawa Chuo Kotsu Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3875.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9081, the sentiment is Positive. The current price of 3875 is above the 20-day moving average (MA) of 3714.25, above the 50-day MA of 3656.70, and above the 200-day MA of 3686.66, indicating a bullish trend. The MACD of 34.68 indicates Negative momentum. The RSI at 60.86 is Neutral, neither overbought nor oversold. The STOCH value of 81.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9081.

Kanagawa Chuo Kotsu Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9017	72 Outperform	8.03B	7.14	5.71%	0.48%	3.28%	15.18%
9049	70 Outperform	13.58B	7.59	13.97%	0.29%	1.27%	-6.53%
9033	70 Neutral	19.59B	13.23	3.31%	1.24%	6.14%	191.46%
9052	68 Neutral	47.73B	12.69	5.26%	1.63%	2.43%	34.21%
9046	67 Neutral	21.03B	17.53	4.89%	0.76%	-0.12%	10.36%
9081	60 Neutral	¥47.55B	13.85		2.32%	1.10%	-29.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Kanagawa Chuo Kotsu Co., Ltd. Corporate Events

Kanagawa Chuo Kotsu Reports Extraordinary Income from Subsidiary Merger

Kanagawa Chuo Kotsu Co., Ltd. has reported an extraordinary income gain due to the extinguishment of tie-in shares following the absorption-type merger of its wholly-owned subsidiaries, Kanagawa Chuo Kotsu East Co., Ltd. and Kanagawa Chuo Kotsu West Co., Ltd. This merger, effective April 1, 2025, resulted in a recorded gain of 1,460 million yen in the non-consolidated financial results for the quarter ended June 30, 2025. However, this gain does not affect the company’s consolidated financial results.

Kanagawa Chuo Kotsu Reports Mixed Financial Results for Q2 2025

Kanagawa Chuo Kotsu Co., Ltd. reported its consolidated financial results for the three months ended June 30, 2025, showing a 7.2% increase in net sales compared to the previous year. However, the company experienced a significant decline in profits, with operating profit down by 3.8%, ordinary profit by 8.0%, and profit attributable to owners of the parent dropping by 51.9%. Despite the increase in sales, the company’s profitability has been challenged, impacting its financial performance and potentially affecting stakeholder confidence.

Kanagawa Chuo Kotsu Co., Ltd. Reports Fiscal Year 2025 Financial Results

Kanagawa Chuo Kotsu Co., Ltd. reported a slight increase in net sales for the fiscal year ending March 31, 2025, driven by fare revisions in its passenger automobile business. Despite a decrease in operating profit due to increased personnel expenses and capital investments, the company saw a significant rise in profit attributable to owners, reflecting a recovery from previous fiscal impairments and a strategic focus on improving financial results post-COVID-19.

Kanagawa Chuo Kotsu Co., Ltd. Announces Executive Changes

Kanagawa Chuo Kotsu Co., Ltd. announced a change in its executive structure, with the appointment of Ayako Kino as a new outside director and the retirement of Yasunori Hori. These changes, effective June 27, 2025, are part of the company’s strategic adjustments to enhance its governance and operational oversight, potentially impacting its market positioning and stakeholder relations.

Kanagawa Chuo Kotsu’s Strategic Position within Odakyu Electric Railway Group

Kanagawa Chuo Kotsu Co., Ltd. announced its position within the Odakyu Electric Railway Group, highlighting its autonomy despite being an affiliate. The collaboration with Odakyu Electric Railway is seen as synergistic, enhancing both bus and rail transport operations. The company maintains a modest contribution to the overall sales of the Odakyu Electric Railway Group, ensuring a level of independence in its business activities.