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Kyushu Railway Company (JP:9142)
:9142

Kyushu Railway Company (9142) AI Stock Analysis

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JP

Kyushu Railway Company

(OTC:9142)

Rating:76Outperform
Price Target:
¥4,384.00
▲(16.32%Upside)
Kyushu Railway Company's stock is buoyed by strong technical momentum and solid financial performance despite challenges with leverage and free cash flow. Valuation metrics are stable but not exceptional, maintaining an overall positive outlook.

Kyushu Railway Company (9142) vs. iShares MSCI Japan ETF (EWJ)

Kyushu Railway Company Business Overview & Revenue Model

Company DescriptionKyushu 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 MoneyKyushu 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 shows strong revenue growth and profitability, driven by effective cost management and operational efficiency. The balance sheet reflects a stable capital structure with a moderate debt burden. However, cash flow challenges persist, with ongoing negative free cash flow, necessitating careful management to ensure long-term financial health. Overall, the company is on a growth trajectory but must address cash flow issues to sustain its financial stability.
Income Statement
75
Positive
Kyushu Railway Company has demonstrated solid revenue growth with a TTM revenue increase of 6.9% compared to the previous year. The gross profit margin stands at 40.65%, indicating effective cost management. The net profit margin is 7.81%, showing healthy profitability, although it slightly decreased from the previous year. The EBIT margin is 11.93%, and the EBITDA margin is 16.99%, highlighting strong operational efficiency. However, the decline in net income compared to the previous year suggests potential challenges in maintaining profit levels.
Balance Sheet
68
Positive
The company maintains a moderate debt-to-equity ratio of 0.95, indicating balanced leverage. Return on Equity (ROE) is 7.79%, reflecting decent profitability relative to shareholder equity. The equity ratio is 40.05%, showing a stable capital structure. Despite the strong equity position, the increasing debt levels over recent years may pose a risk if not managed carefully.
Cash Flow
60
Neutral
The free cash flow remains negative, but there has been a reduction in the deficit from the previous year. The operating cash flow to net income ratio is 0.55, suggesting a need to improve cash generation relative to profits. The free cash flow to net income ratio remains negative, indicating challenges in covering expenditures with generated cash. Despite these challenges, the company has managed to improve operating cash flow compared to the previous fiscal year.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
449.39B420.40B383.24B329.53B293.91B432.64B
Gross Profit
182.74B165.30B137.99B96.96B68.88B159.24B
EBIT
53.61B47.09B34.32B3.94B-22.87B49.41B
EBITDA
76.40B85.00B73.82B37.17B8.84B71.14B
Net Income Common Stockholders
35.12B38.45B31.17B13.25B-18.98B31.50B
Balance SheetCash, Cash Equivalents and Short-Term Investments
80.09B62.26B52.30B78.74B65.02B23.82B
Total Assets
1.13T1.09T996.70B951.98B891.38B828.59B
Total Debt
426.38B400.30B362.06B334.77B262.46B152.03B
Net Debt
382.31B366.36B324.78B295.06B239.54B128.21B
Total Liabilities
673.52B646.88B589.85B562.96B495.97B410.29B
Stockholders Equity
450.68B441.43B406.05B388.33B390.19B413.29B
Cash FlowFree Cash Flow
-20.99B-44.62B-42.71B-45.02B-105.57B-49.48B
Operating Cash Flow
19.46B89.03B62.08B56.46B-10.36B60.47B
Investing Cash Flow
-37.51B-111.89B-97.58B-95.73B-53.91B-76.94B
Financing Cash Flow
18.22B32.25B8.96B52.54B105.87B3.37B

Kyushu Railway Company Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3769.00
Price Trends
50DMA
3757.97
Positive
100DMA
3698.93
Positive
200DMA
3803.08
Negative
Market Momentum
MACD
9.15
Positive
RSI
42.38
Neutral
STOCH
9.04
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9142, the sentiment is Neutral. The current price of 3769 is below the 20-day moving average (MA) of 3850.40, above the 50-day MA of 3757.97, and below the 200-day MA of 3803.08, indicating a neutral trend. The MACD of 9.15 indicates Positive momentum. The RSI at 42.38 is Neutral, neither overbought nor oversold. The STOCH value of 9.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9142.

Kyushu Railway Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$3.08T6.7210.31%0.89%7.10%19.25%
76
Outperform
¥596.89B13.629.60%2.81%8.09%14.04%
72
Outperform
¥3.40T15.187.93%1.90%5.77%14.05%
71
Outperform
¥592.55B11.2310.86%2.26%3.14%-34.88%
70
Outperform
¥504.45B9.979.22%2.25%-0.71%8.85%
70
Neutral
¥1.49T13.149.93%2.58%4.46%18.61%
66
Neutral
$4.50B12.295.40%248.66%4.13%-12.33%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9142
Kyushu Railway Company
3,769.00
325.66
9.46%
JP:9021
West Japan Railway Company
3,182.00
146.01
4.81%
JP:9020
East Japan Railway Company
3,014.00
360.82
13.60%
JP:9022
Central Japan Railway Company
3,106.00
-327.14
-9.53%
JP:9001
Tobu Railway Co
2,485.50
-197.84
-7.37%
JP:9007
Odakyu Electric Railway Co
1,637.00
111.53
7.31%

Kyushu Railway Company Corporate Events

Kyushu Railway Company Finalizes Stock Acquisition Terms for Share Buyback
May 12, 2025

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
May 12, 2025

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
May 9, 2025

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
May 9, 2025

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
May 9, 2025

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
May 9, 2025

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.

JR Kyushu Unveils Medium-Term Business Plan for 2025-2027
Mar 11, 2025

JR Kyushu has announced the implementation of its Medium-Term Business Plan for 2025-2027, following a resolution at a Board of Directors meeting. This plan outlines the company’s strategic direction and operational goals for the next three years, potentially affecting its market positioning and stakeholder interests.

Kyushu Railway Company Enhances Corporate Governance and Workforce Diversity
Mar 11, 2025

Kyushu Railway Company has outlined its corporate governance policies, emphasizing the importance of safety, customer focus, and transparency. The company is actively working to reduce unnecessary cross-shareholdings and improve diversity within its workforce by promoting female and foreign employees to managerial positions. These initiatives aim to enhance corporate value and foster sustainable growth.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.