Japan Transcity Corporation (9310) AI Stock Analysis

• Market Cap: ¥76.54B
• Dividend Yield: 3.63%
• Average Volume (3M): 81.00K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.76
• 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: 66,405,520
• 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

Operating margin resilience

Sustained operating and EBITDA margins around mid-single to low-double digits reflect efficient operations and pricing power in logistics. Durable margins provide a cushion during revenue cycles, support reinvestment in capacity/tech, and underpin predictable profitability over coming quarters.

Conservative leverage and capital base

A low debt-to-equity ratio and a large equity base signal balance-sheet conservatism that supports strategic flexibility. This financial strength reduces refinancing risk, enables opportunistic investments or M&A, and helps the firm absorb demand shocks without severe liquidity strain.

Integrated logistics business model

An integrated service set across warehousing, freight and logistics solutions creates diversified revenue streams and stickier client relationships. Cross-selling and contract continuity with corporate customers support stable revenue backdrops and strengthen competitive positioning over time.

Negative Factors

Recent top-line contraction

A 12.5% TTM revenue decline indicates weakening demand or lost volumes that can impair scale economics. If the top-line slump persists, utilization of fleet and warehouses falls, margin resilience will be tested and growth initiatives may have to be deferred to protect earnings.

Inconsistent cash conversion

Operating cash flow materially below EBIT and a negative FCF year highlight volatile cash conversion and working-capital sensitivity. This inconsistency constrains steady reinvestment, debt paydown or shareholder returns, and makes financing plans more vulnerable to cycle swings.

Eroding returns on capital

Falling returns on equity versus prior years point to weakening capital efficiency or competitive margin pressure. Lower ROE limits the firm's ability to generate attractive returns on new investments and may signal structural headwinds in pricing or mix if not reversed.

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	37.95B	42.27B	28.43B	30.32B	32.88B
Total Liabilities	68.89B	69.83B	71.11B	57.42B	57.10B	58.54B
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: Negative
• Last Price: 1136.00
• 50DMA: Negative
• 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 Negative. The current price of 1136 is below the 20-day moving average (MA) of 1274.30, below the 50-day MA of 1267.60, and below the 200-day MA of 1148.66, indicating a neutral trend. The MACD of -17.61 indicates Positive momentum. The RSI at 40.62 is Neutral, neither overbought nor oversold. The STOCH value of 47.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9310.

Japan Transcity Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9306	80 Outperform	¥14.18B	8.60	―	3.04%	4.45%	29.58%
9037	78 Outperform	¥136.56B	11.68	―	2.12%	3.09%	8.50%
9312	75 Outperform	¥19.18B	6.27	―	2.46%	7.13%	16.09%
9304	73 Outperform	¥79.78B	6.51	―	3.48%	4.17%	24.54%
9351	73 Outperform	¥15.43B	7.26	―	3.85%	4.96%	38.47%
9310	68 Neutral	¥76.54B	9.20	―	3.63%	2.67%	18.02%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Japan Transcity Corporation Corporate Events

Japan Transcity Completes ¥1 Billion Share Buyback and Sets Cancellation Date

Japan Transcity Corporation has completed a share buyback of 736,900 common shares, equivalent to 1.2% of its issued shares excluding treasury stock, for a total acquisition cost of ¥999,973,300 via the ToSTNeT-3 off-auction repurchase system on March 2, 2026. The company will cancel all of these repurchased shares on March 16, 2026, a move likely aimed at enhancing capital efficiency and shareholder value by reducing the total number of shares outstanding.

The most recent analyst rating on (JP:9310) stock is a Buy with a Yen1489.00 price target. To see the full list of analyst forecasts on Japan Transcity Corporation stock, see the JP:9310 Stock Forecast page.

Japan Transcity Launches ¥1 Billion Share Buyback With Full Cancellation Plan

Japan Transcity Corporation’s board has approved a share buyback of up to 736,900 common shares, representing about 1.2% of its issued shares excluding treasury stock, for a maximum of ¥999,973,300. The shares will be repurchased via the Tokyo Stock Exchange’s off-auction ToSTNeT-3 system at the February 27 closing price of ¥1,357, with the order scheduled for execution at 8:45 a.m. on March 2, 2026.

All shares acquired in this program will be cancelled on March 16, 2026, reducing the company’s share count and potentially enhancing per-share metrics. The move is framed as part of a capital policy aimed at boosting shareholder returns and optimizing the capital structure in line with a management focus on cost of capital and stock price, signaling a shareholder-friendly stance to investors.

The most recent analyst rating on (JP:9310) stock is a Buy with a Yen1489.00 price target. To see the full list of analyst forecasts on Japan Transcity Corporation stock, see the JP:9310 Stock Forecast page.

Japan Transcity 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.