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

• Market Cap: ¥45.90B
• Dividend Yield: 2.54%
• Average Volume (3M): 22.89K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.45
• Revenue Growth: 2.36%
• EPS Growth: -40.95%
• Country: JP
• Employees: 6,542
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 95.57
• Shares Outstanding: 12,600,000
• 10 Day Avg. Volume: 6,790
• 30 Day Avg. Volume: 22,886
• PEG Ratio: 0.16
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.38
• P/FCF Ratio: -8.98
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ¥3,784.00 ▲(1.18% Upside)

Kanagawa Chuo Kotsu Co., Ltd. has a stable financial base with improving revenue and net income trends, though cash flow management needs improvement. Technical indicators suggest bearish momentum, but the stock is fairly valued with an attractive dividend yield. The absence of significant earnings call insights or corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective service offerings, supporting long-term business expansion.

Stable Financial Base

A stable financial base with manageable leverage enhances the company's resilience and ability to invest in growth opportunities.

Improved Net Profit Margin

Improved net profit margins reflect better cost management and operational efficiency, contributing to sustainable profitability.

Negative Factors

Cash Flow Management

Negative free cash flow due to high capital expenditures may strain liquidity, requiring improved cash management for financial stability.

Operational Efficiency Challenges

Fluctuating margins suggest operational inefficiencies, which could hinder profitability and require strategic improvements.

Liquidity Constraints

Potential liquidity constraints could limit the company's ability to fund operations and growth, necessitating better capital allocation.

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 generates revenue primarily through the operation of its bus services, which includes fare collections from passengers using its extensive public transport network. Additional income is derived from charter services for private events, corporate clients, and tourism companies, providing group transportation solutions. The company may also benefit from partnerships with local government and tourism boards for subsidized services and promotional travel packages. Furthermore, ancillary services such as advertising on buses and at bus stops contribute to its revenue streams, bolstering its financial performance.

Kanagawa Chuo Kotsu Co., Ltd. Financial Statement Overview

Summary

Kanagawa Chuo Kotsu Co., Ltd. shows a stable financial foundation with improving revenue and net income trends. The balance sheet is robust with manageable leverage levels. However, cash flow management remains a concern due to high capital expenditures affecting free cash flow. The company needs to enhance operational efficiency and cash management for stronger financial performance.

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	120.28B	118.15B	117.07B	103.86B	97.78B	90.91B
Gross Profit	21.72B	21.66B	21.35B	17.94B	13.88B	7.54B
EBITDA	12.22B	12.56B	10.65B	9.14B	9.81B	746.00M
Net Income	3.44B	5.08B	3.26B	1.15B	1.84B	-8.52B
Balance Sheet
Total Assets	165.24B	165.44B	159.19B	150.57B	146.91B	159.06B
Cash, Cash Equivalents and Short-Term Investments	3.15B	4.27B	3.37B	2.83B	3.60B	2.81B
Total Debt	56.87B	61.88B	56.34B	59.14B	57.68B	63.79B
Total Liabilities	100.22B	102.04B	99.92B	97.69B	93.75B	103.90B
Stockholders Equity	59.27B	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: 3740.00
• 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 3740 is above the 20-day moving average (MA) of 3660.25, above the 50-day MA of 3602.70, and above the 200-day MA of 3625.25, indicating a bullish trend. The MACD of 44.15 indicates Negative momentum. The RSI at 62.69 is Neutral, neither overbought nor oversold. The STOCH value of 84.08 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	¥8.10B	7.14	―	0.47%	3.15%	4.75%
9049	71 Outperform	¥15.11B	8.36	―	0.26%	1.75%	-8.92%
9052	65 Neutral	¥45.33B	10.84	―	2.21%	4.37%	54.12%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9033	63 Neutral	¥18.31B	10.84	―	1.33%	1.70%	1841.47%
9081	62 Neutral	¥45.90B	14.57	―	2.54%	2.36%	-40.95%
9046	59 Neutral	¥19.67B	15.59	―	0.82%	1.24%	19.78%

Kanagawa Chuo Kotsu Co., Ltd. Corporate Events

Kanagawa Chuo Kotsu Adjusts Financial Results Due to New Tax Standards

Kanagawa Chuo Kotsu Co., Ltd. announced corrections to its consolidated financial results for the fiscal year ended March 31, 2025. The adjustments were necessary due to the implementation of a new accounting standard for taxes, which affected the calculation of year-on-year percentage changes. The corrected results show a significant change in comprehensive income for the fiscal year ended March 31, 2024, reflecting a 964.1% increase compared to the previous year.

Kanagawa Chuo Kotsu Reports Mixed Financial Results with Positive Outlook

Kanagawa Chuo Kotsu Co., Ltd. reported a 7.0% increase in net sales for the six months ending September 30, 2025, driven by strong vehicle sales. However, operating profit decreased by 7.0% due to higher depreciation and employee compensation costs. The company anticipates continued growth in revenue and profits for the fiscal year ending March 31, 2026, with an upward revision in financial forecasts, while maintaining its dividend forecast.

Kanagawa Chuo Kotsu Revises Financial Forecast Upwards

Kanagawa Chuo Kotsu Co., Ltd. has revised its financial forecast for the six months ending September 30, 2025, showing an increase in net sales and profits due to strong performance in new vehicle sales and maintenance services. This upward revision highlights the company’s robust market positioning and operational efficiency, particularly in managing fuel costs, which could positively impact stakeholders.