Kyushu Railway Company (9142) AI Stock Analysis

• Market Cap: $592.65B
• Dividend Yield: 2.46%
• Average Volume (3M): 465.91K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.26
• Revenue Growth: 8.09%
• EPS Growth: 14.04%
• Country: JP
• Employees: 14,677
• Sector: Industrials
• Sector Strength: 90
• Industry: Railroads
• EPS (TTM): 40.15
• Shares Outstanding: 157,301,600
• 10 Day Avg. Volume: 411,220
• 30 Day Avg. Volume: 465,906
• PEG Ratio: 0.11
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.85
• 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: $5,300.60
• Price Target Upside: 41.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ¥4,092.00 ▲(8.92%Upside)

The most significant factor is the company's strong financial performance, driven by consistent revenue growth and profitability management. Technical analysis indicates a neutral to bearish trend, which slightly impacts the score. Valuation metrics are favorable, with a moderate P/E ratio and a decent dividend yield, offering value to investors. Overall, Kyushu Railway Company is on a positive financial trajectory, though with some room for improvement in market momentum.

Kyushu Railway Company Business Overview & Revenue Model

Company Description

Kyushu Railway Company, commonly referred to as JR Kyushu, is a prominent rail transport operator in Japan, primarily serving the Kyushu region. It is one of the constituent companies of the Japan Railways Group (JR Group) that came into existence after the privatization of the Japanese National Railways. Beyond its core rail operations, JR Kyushu is involved in a diverse range of sectors including real estate, retail, hospitality, and construction, making it a multifaceted conglomerate in the region.

How the Company Makes Money

Kyushu Railway Company generates revenue through several key streams. The primary source is its railway operations, which include passenger services across its extensive network in Kyushu. Ticket sales, including commuter passes and long-distance travel fares, contribute significantly to its income. Additionally, JR Kyushu capitalizes on its real estate holdings by developing and leasing commercial and residential properties, often situated near its railway stations, thereby enhancing accessibility and attracting tenants. The company also operates retail outlets and hotels, providing shopping and accommodation services that cater to both commuters and tourists. Other ventures include its involvement in construction projects, both rail-related and general infrastructure, which further diversifies its revenue streams. Strategic partnerships and collaborations, especially those that enhance connectivity and tourism in the Kyushu region, also play a crucial role in driving the company's growth and profitability.

Kyushu Railway Company Financial Statement Overview

Summary

Kyushu Railway Company demonstrates strong financial performance with consistent revenue growth and effective profitability management. The balance sheet is stable, though high leverage poses some risk. Despite healthy operating cash flows, negative free cash flow indicates a need for improved capital expenditure management.

Income Statement

Kyushu Railway Company has shown a consistent revenue growth trend with a notable increase from 2024 to 2025. Gross and net profit margins remain strong, indicating efficient cost management. The EBIT and EBITDA margins reflect operational efficiency improvements, enhancing profitability. However, the margins have room for improvement to reach industry-leading levels.

Balance Sheet

The company's balance sheet indicates a stable financial position with a moderate debt-to-equity ratio. The return on equity is healthy, showing effective use of shareholders' equity to generate profits. The equity ratio signifies a solid capital structure, though high leverage compared to industry norms presents some risk.

Cash Flow

Operating cash flows are robust, supporting the company's ability to cover its net income. However, the free cash flow remains negative due to substantial capital expenditures, which may constrain liquidity. Improvements in free cash flow are necessary to enhance financial flexibility and reduce reliance on external financing.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
449.39B	454.39B	420.40B	383.24B	329.53B	293.91B
	Gross Profit
182.74B	189.38B	165.30B	137.99B	96.96B	68.88B
	EBIT
53.61B	58.98B	47.09B	34.32B	3.94B	-22.87B
	EBITDA
76.40B	97.84B	85.00B	73.82B	37.17B	8.84B
	Net Income Common Stockholders
35.12B	43.66B	38.45B	31.17B	13.25B	-18.98B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
80.09B	46.08B	62.26B	52.30B	78.74B	65.02B
	Total Assets
1.13T	1.14T	1.09T	996.70B	951.98B	891.38B
	Total Debt
426.38B	423.32B	400.30B	362.06B	334.77B	262.46B
	Net Debt
382.31B	388.26B	366.36B	324.78B	295.06B	239.54B
	Total Liabilities
673.52B	681.89B	646.88B	589.85B	562.96B	495.97B
	Stockholders Equity
450.68B	456.51B	441.43B	406.05B	388.33B	390.19B
Cash Flow		Free Cash Flow
-20.99B	-16.25B	-44.62B	-42.71B	-45.02B	-105.57B
	Operating Cash Flow
19.46B	96.67B	89.03B	62.08B	56.46B	-10.36B
	Investing Cash Flow
-37.51B	-107.41B	-111.89B	-97.58B	-95.73B	-53.91B
	Financing Cash Flow
18.22B	-6.93B	32.25B	8.96B	52.54B	105.87B

Kyushu Railway Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3757.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9142, the sentiment is Negative. The current price of 3757 is below the 20-day moving average (MA) of 3835.75, below the 50-day MA of 3762.02, and below the 200-day MA of 3805.63, indicating a bearish trend. The MACD of -4.87 indicates Positive momentum. The RSI at 41.66 is Neutral, neither overbought nor oversold. The STOCH value of 19.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9142.

Kyushu Railway Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9022	77 Outperform	$3.05T	6.65	10.31%	<0.01%	7.10%	19.25%
9020	72 Outperform	¥3.40T	15.16	7.93%	2.17%	5.77%	14.05%
9007	71 Outperform	$602.57B	11.42	10.86%	2.97%	3.14%	-34.88%
9001	70 Outperform	¥501.05B	9.90	9.22%	2.19%	-0.71%	8.85%
9021	70 Neutral	$1.49T	13.15	9.93%	2.92%	4.46%	18.61%
9142	68 Neutral	$592.65B	13.52	9.60%	2.46%	8.09%	14.04%
Sector *	66 Neutral	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%

Kyushu Railway Company Corporate Events

Kyushu Railway Company Finalizes Stock Acquisition Terms for Share Buyback

Kyushu Railway Company has finalized the terms for issuing its 1st Series of Stock Acquisition Rights through a third-party allotment, as part of an Accelerated Share Repurchase (ASR) program. This move, resolved at a recent Board of Directors meeting, aims to repurchase the company’s own shares, potentially impacting its share value and market positioning.

Kyushu Railway Completes Share Repurchase to Enhance Capital Efficiency

Kyushu Railway Company has completed the repurchase of 2,592,000 of its own shares, representing 1.66% of the total outstanding shares, through Off-Auction Own Share Repurchase Trading (ToSTNeT-3) on the Tokyo Stock Exchange. This move aligns with the company’s medium-term business plan to enhance capital efficiency and reduce capital costs, reflecting its commitment to providing stable shareholder returns.

Kyushu Railway Company Initiates Strategic Share Buyback

Kyushu Railway Company announced a strategic move to repurchase its own shares through an Accelerated Share Repurchase (ASR) program, aiming to enhance capital efficiency and reduce capital costs. This decision aligns with the company’s shareholder return policy under its Medium-Term Business Plan 2022–2024, which emphasizes stable returns and flexible share repurchases. The ASR, facilitated by Goldman Sachs, ensures the acquisition of shares equivalent to 10 billion yen, potentially improving the supply-demand balance for the company’s shares.

Kyushu Railway Company Announces Changes in Corporate Leadership

Kyushu Railway Company announced changes in its corporate officers, including a new candidate for director and the resignation of a current director. These changes are part of the company’s strategy to advance its Medium-Term Business Plan for 2025–2027, aiming to strengthen its management structure and enhance operational efficiency.

Kyushu Railway Company Announces Dividend from Surplus

Kyushu Railway Company has announced a resolution to issue dividends from surplus, with a record date of March 31, 2025, and a year-end dividend set at ¥51.50 per share. This decision aligns with the company’s policy of maintaining a consolidated dividend payout ratio of 35% and reflects its commitment to returning profits to shareholders.

Kyushu Railway Company Reports Strong Financial Growth and Positive Outlook

Kyushu Railway Company reported an increase in its consolidated financial results for the year ended March 31, 2025, with operating revenues rising by 8.1% and net income attributable to owners of the parent increasing by 13.6%. The company also announced a forecast for continued growth in the fiscal year ending March 31, 2026, with expected increases in operating revenues and net income. These results and projections indicate a positive trajectory for the company, potentially enhancing its market position and providing favorable implications for stakeholders.