Kyushu Railway Company (9142) AI Stock Analysis

• Market Cap: ¥633.77B
• Dividend Yield: 2.72%
• Average Volume (3M): 398.47K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.25
• Revenue Growth: 10.39%
• EPS Growth: 32.43%
• Country: JP
• Employees: 14,677
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 38.80
• Shares Outstanding: 154,649,000
• 10 Day Avg. Volume: 378,690
• 30 Day Avg. Volume: 398,470
• PEG Ratio: 0.93
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 1.26
• P/FCF Ratio: -35.16
• 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: ¥3,799.35
• Price Target Upside: -7.40% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: ¥4,239.00 ▲(3.31% Upside)

Kyushu Railway Company's strong financial performance and attractive valuation are the primary strengths, suggesting a solid investment potential. However, technical indicators point to short-term bearish momentum, which could pose risks to immediate price appreciation. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

The consistent revenue growth indicates a strong market position and effective business strategies, enhancing long-term financial stability.

Profitability Management

Strong profit margins reflect effective cost control and operational efficiency, supporting sustainable profitability over time.

Diversified Revenue Streams

Diversified revenue streams reduce dependency on any single sector, providing resilience against market fluctuations and enhancing growth potential.

Negative Factors

High Leverage

Elevated leverage can increase financial risk, potentially impacting the company's ability to invest in growth opportunities and manage economic downturns.

Negative Free Cash Flow

Negative free cash flow limits financial flexibility, making it challenging to fund new projects or reduce debt without external financing.

Margin Improvement Needed

While current margins are strong, further improvements are necessary to achieve a competitive edge and maximize profitability in the industry.

Kyushu Railway Company Business Overview & Revenue Model

Company Description

Kyushu Railway Company (9142) is a major transportation provider in Japan, operating an extensive network of rail services primarily in the Kyushu region. The company is involved in both passenger and freight transportation, offering services that include high-speed trains, local commuter trains, and cargo transport. In addition to its core railway operations, Kyushu Railway Company also engages in tourism, real estate development, and the management of retail and dining facilities at its train stations.

How the Company Makes Money

Kyushu Railway Company generates revenue through several key streams. The primary source of income is from passenger fares collected from its extensive railway services, including high-speed Shinkansen trains and local commuter trains. The company also earns revenue from freight services, transporting goods across the region. Additionally, Kyushu Railway Capitalizes on tourism by offering travel packages and experiences, leveraging its scenic routes and attractions in the Kyushu area. Furthermore, revenue is supplemented through real estate ventures, including the development and leasing of commercial properties near railway stations, and retail operations that encompass shops and restaurants at these locations. Strategic partnerships with local businesses and tourism agencies also contribute to enhanced revenue opportunities, allowing the company to diversify its offerings and attract more customers.

Kyushu Railway Company Financial Statement Overview

Summary

Kyushu Railway Company demonstrates a strong financial performance with consistent revenue growth and effective profitability management. The balance sheet is stable, yet high leverage poses a potential risk. While operating cash flow is healthy, negative free cash flow highlights the need for better 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	467.77B	454.39B	420.40B	383.24B	329.53B	293.91B
Gross Profit	197.06B	189.38B	165.30B	137.99B	96.96B	68.88B
EBITDA	104.92B	97.84B	82.07B	73.82B	37.17B	8.84B
Net Income	48.64B	43.66B	38.45B	31.17B	13.25B	-18.98B
Balance Sheet
Total Assets	1.13T	1.14T	1.09T	996.70B	951.98B	891.38B
Cash, Cash Equivalents and Short-Term Investments	56.79B	46.08B	62.26B	52.30B	78.74B	65.02B
Total Debt	448.28B	423.32B	400.30B	362.06B	334.77B	262.46B
Total Liabilities	673.33B	681.89B	646.88B	589.85B	562.96B	495.97B
Stockholders Equity	457.58B	456.51B	441.43B	406.05B	388.33B	390.19B
Cash Flow
Free Cash Flow	0.00	-16.25B	-44.62B	-42.71B	-45.02B	-105.57B
Operating Cash Flow	0.00	96.67B	89.03B	62.08B	56.46B	-10.36B
Investing Cash Flow	0.00	-107.41B	-111.89B	-97.58B	-95.73B	-53.91B
Financing Cash Flow	0.00	-6.93B	32.25B	8.96B	52.54B	105.87B

Kyushu Railway Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4103.00
• 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:9142, the sentiment is Positive. The current price of 4103 is above the 20-day moving average (MA) of 3999.80, above the 50-day MA of 3957.78, and above the 200-day MA of 3805.52, indicating a bullish trend. The MACD of 21.01 indicates Negative momentum. The RSI at 60.13 is Neutral, neither overbought nor oversold. The STOCH value of 81.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	75 Outperform	¥4.36T	8.30	11.08%	0.72%	9.82%	24.12%
9020	74 Outperform	¥4.68T	20.20	7.85%	1.72%	4.61%	5.75%
9007	70 Outperform	¥611.52B	14.04	8.51%	2.90%	-2.82%	-50.73%
9142	70 Neutral	¥633.77B	14.69	9.26%	2.72%	10.39%	32.43%
9021	66 Neutral	¥1.39T	10.88	11.29%	3.02%	5.48%	33.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9001	62 Neutral	¥507.34B	10.27	8.78%	2.54%	1.72%	10.19%

Kyushu Railway Company Corporate Events

Kyushu Railway Company Revises Full-Year Performance Forecasts

Kyushu Railway Company has revised its full-year performance forecasts for the fiscal year ending March 31, 2026. The company has increased its forecasts for operating revenue, operating income, and ordinary income, but decreased its forecast for net income due to factors such as changes in rail fares, project cancellations, and natural disasters. Despite these adjustments, the annual dividend per share remains unchanged at ¥115.

Kyushu Railway Company Reports Strong Interim Financial Results with Positive Outlook

Kyushu Railway Company reported a significant increase in operating revenue and income for the six-month period ending September 30, 2025, with a 14% rise in revenue and a 38.4% increase in operating income. Despite the positive financial performance, net income attributable to owners of the parent saw a slight decline of 1.4%. The company also revised its full-year financial forecasts, reflecting a positive outlook with expected increases in operating and ordinary income, indicating strong operational performance and strategic positioning in the market.

Kyushu Railway Issues Correction Notice for Financial Results

Kyushu Railway Company has issued a correction notice for errors found in its financial results presentation materials for the second quarters of FY2021/3 and FY2025/3. The corrections pertain to inaccuracies in data regarding the average number of passengers and profitability by train line, which may impact stakeholders’ understanding of the company’s operational performance.