Japan Transcity Corporation (9310) AI Stock Analysis

• Market Cap: ¥85.85B
• Dividend Yield: 3.63%
• Average Volume (3M): 81.00K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.70
• Revenue Growth: 2.67%
• EPS Growth: 18.02%
• Country: JP
• Employees: 2,492
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): 30.88
• Shares Outstanding: 67,142,420
• 10 Day Avg. Volume: 57,300
• 30 Day Avg. Volume: 81,003
• PEG Ratio: 0.29
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 4.91
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥1,417.00 ▲(24.74% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is driven primarily by solid profitability and a stable balance sheet, tempered by the recent TTM revenue decline and uneven cash-flow conversion/consistency. Technicals are supportive with price above major moving averages, while valuation is reasonable with a ~3.1% dividend yield and mid-teens P/E.

Positive Factors

Sustained Profitability

Operating and EBITDA margins are durable for an integrated logistics operator, indicating structural cost discipline and pricing power. Margins improved versus 2024, supporting long-term cash generation and the ability to reinvest in network efficiency and technology.

Manageable Leverage

Relatively low leverage and a large equity base provide balance-sheet flexibility to fund capex, M&A or handle volume swings. This structural strength lowers refinancing risk and supports steady investment in warehousing and fleet capacity over multiple cycles.

Positive Cash Generation (TTM)

Positive and growing free cash flow in the trailing period demonstrates the business can convert earnings into spendable cash. That supports ongoing network investment, working-capital funding, and returns to shareholders when cash conversion remains consistent.

Negative Factors

Top-line Contraction

A significant recent revenue decline suggests demand weakness or lost volumes in core logistics services. Top-line contraction can pressure asset utilization and margin sustainability, requiring time and strategic action to restore growth and secure long-term revenue trajectories.

Inconsistent Cash Conversion

Volatile free cash flow and modest conversion of EBIT to operating cash highlight sensitivity to working capital and investment timing. This weakens predictability for reinvestment, deleveraging or shareholder distributions across cycles, raising execution risk.

Eroding Return on Equity

Declining ROE versus prior years signals reduced capital efficiency, which can limit long-term shareholder value creation unless offset by higher growth or productivity gains. It may reflect harder market conditions or the need for strategic repositioning.

Japan Transcity Corporation Business Overview & Revenue Model

Company Description

Japan Transcity Corporation engages in logistics business in Japan and internationally. The company provides warehousing, stevedoring, cargo transportation by automobiles, consigned freight forwarding and agency, international multi modal transportation, agency, and customs brokerage services. It also engages in the packaging, labeling, and storage of pharmaceutical products, quasi drugs, cosmetics, and medical products; and power generation and electrical supply business. In addition, the company is involved in trading and leasing of containers, pallets, and other transport equipment and material handling equipment. Further, the company trades in, manages, and leases properties; and designs, constructs, and manages civil engineering and construction works. Additionally, the company provides sport facility management and vehicle maintenance services. Japan Transcity Corporation was founded in 1895 and is headquartered in Yokkaichi, Japan.

How the Company Makes Money

Japan Transcity Corporation generates revenue through multiple streams, primarily by offering logistics services such as freight forwarding, warehousing, and transportation management. The company charges fees for handling, storing, and transporting goods, which constitute a significant portion of its revenue. Additionally, Japan Transcity may engage in value-added services, including inventory management and supply chain consulting, further diversifying its revenue sources. Strategic partnerships with shipping and freight carriers enhance its service offerings and operational efficiency, contributing to its overall profitability. The company's focus on technological integration in logistics processes also serves to attract and retain clients, driving continued revenue growth.

Japan Transcity Corporation Financial Statement Overview

Summary

Mixed fundamentals: margins improved and remain solid (EBIT ~7.1%, EBITDA ~11.3%) with manageable leverage (debt-to-equity ~0.38), but TTM revenue declined 12.5% and cash-flow consistency is a concern (2024 negative FCF; only moderate cash conversion in TTM).

Income Statement

TTM (Trailing-Twelve-Months) revenue declined 12.5% versus the prior annual period, but profitability held up with ~12.2% gross margin and ~4.8% net margin. Operating profitability remains solid for the business (EBIT margin ~7.1%, EBITDA margin ~11.3%) and margins have improved versus 2024, suggesting better cost control/mix. Key weakness is the recent top-line contraction after a modest growth year in 2025 (annual), which raises near-term momentum risk.

Balance Sheet

Leverage appears manageable with debt-to-equity around 0.38 in TTM (Trailing-Twelve-Months), improving versus 2024 levels, supported by a large equity base (equity ~96.8B vs. assets ~170.1B). Returns on equity are steady in the mid-6% range in both TTM and the latest annual period, indicating consistent (though not high) profitability on shareholder capital. The main drawback is that returns have come down from the higher levels seen in 2022–2023, suggesting profitability is not as strong as earlier in the cycle.

Cash Flow

Cash generation is positive in TTM (Trailing-Twelve-Months) with operating cash flow of ~11.2B and free cash flow of ~6.5B, and free cash flow growth is strong versus the prior period. However, cash conversion is only moderate: operating cash flow is less than half of EBIT and free cash flow is about 55% of net income in TTM, implying working-capital needs and/or investment spend are limiting cash realization. Volatility is also evident: 2024 had negative free cash flow, highlighting execution and cycle sensitivity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	125.10B	124.77B	122.56B	134.06B	116.75B	101.17B
Gross Profit	15.30B	14.62B	13.50B	14.01B	12.97B	10.49B
EBITDA	14.05B	14.45B	12.32B	14.37B	11.19B	9.57B
Net Income	6.12B	6.04B	4.63B	6.16B	5.60B	4.64B
Balance Sheet
Total Assets	170.14B	165.41B	160.32B	137.16B	129.89B	125.53B
Cash, Cash Equivalents and Short-Term Investments	24.73B	27.03B	21.99B	19.81B	14.57B	13.35B
Total Debt	36.18B	37.29B	41.71B	27.67B	29.68B	32.15B
Total Liabilities	68.89B	69.83B	71.12B	57.43B	57.11B	58.55B
Stockholders Equity	96.76B	91.19B	85.52B	76.61B	70.21B	64.69B
Cash Flow
Free Cash Flow	6.51B	11.42B	-10.73B	8.07B	4.68B	5.28B
Operating Cash Flow	11.22B	15.14B	7.28B	11.60B	7.26B	8.62B
Investing Cash Flow	-4.70B	-3.11B	-18.04B	-2.96B	-2.52B	-3.48B
Financing Cash Flow	-6.19B	-7.43B	12.20B	-3.26B	-3.59B	-3.41B

Japan Transcity Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1136.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9310, the sentiment is Positive. The current price of 1136 is below the 20-day moving average (MA) of 1324.75, below the 50-day MA of 1238.08, and above the 200-day MA of 1124.70, indicating a bullish trend. The MACD of 30.46 indicates Positive momentum. The RSI at 62.57 is Neutral, neither overbought nor oversold. The STOCH value of 63.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9310.

Japan Transcity Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9381	78 Outperform	¥53.61B	17.48	―	3.98%	10.52%	7.14%
9304	73 Outperform	¥85.26B	11.80	―	3.48%	4.17%	24.54%
9310	68 Neutral	¥85.85B	13.87	―	3.63%	2.67%	18.02%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9369	57 Neutral	¥80.16B	30.65	―	0.99%	4.26%	―

Japan Transcity Corporation Corporate Events

Japan Transcity Lifts FY2026 Profit and Dividend Forecasts on Overseas Strength

Japan Transcity revised its full-year forecast for the fiscal year ending March 31, 2026, keeping operating revenue unchanged at ¥126 billion but raising projections for operating income, ordinary profit, and net income attributable to owners. The company cites stronger-than-expected handling volumes at overseas offices, improved productivity through operational efficiencies, fee optimization, and higher dividend income as drivers for this earnings upgrade.

In line with the improved profit outlook, the company also raised its annual dividend forecast, lifting the expected year-end dividend per share to ¥20.50 and the total annual dividend to ¥39.00. Management reaffirmed its capital policy of maintaining shareholder returns based on a 40% payout ratio or 2.0% DOE, indicating a continued focus on stable and enhanced returns for investors as earnings modestly outpace prior guidance.

The most recent analyst rating on (JP:9310) stock is a Buy with a Yen1515.00 price target. To see the full list of analyst forecasts on Japan Transcity Corporation stock, see the JP:9310 Stock Forecast page.

Japan Transcity Posts Steady Nine-Month Earnings and Lifts Dividend Forecast

Japan Transcity reported consolidated net sales of ¥94.49 billion for the nine months ended December 31, 2025, up 0.4% year on year, with operating profit rising 4.3% to ¥6.63 billion and profit attributable to owners of parent edging up 1.6% to ¥5.15 billion. Total assets increased to ¥170.14 billion and the equity-to-asset ratio improved to 56.9%, while the company raised its interim dividend to ¥18.50 and forecast a full-year payout of ¥39.00 per share, alongside slightly revised full-year guidance calling for modest growth in sales and earnings and almost flat ordinary profit.

Net assets climbed to ¥101.24 billion and comprehensive income surged 24.2% to ¥8.18 billion, reflecting strengthened financial health despite only marginal top-line expansion. The updated full-year forecast projects net sales of ¥126 billion, operating profit of ¥7.9 billion and profit attributable to owners of parent of ¥6.1 billion, signaling management’s expectation of steady but moderate performance and continued shareholder returns in the current fiscal year.

The most recent analyst rating on (JP:9310) stock is a Buy with a Yen1515.00 price target. To see the full list of analyst forecasts on Japan Transcity Corporation stock, see the JP:9310 Stock Forecast page.