West Japan Railway (WJRYY) AI Stock Analysis

• Market Cap: $10.71B
• Dividend Yield: 1.53%
• Average Volume (3M): 1.76K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.20
• Revenue Growth: 3.42%
• EPS Growth: 100.74%
• Country: US
• Employees: 44,366
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): >-0.01
• Shares Outstanding: 471,009,800
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 1,762
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.84
• Enterprise Value/Revenue: 0.01
• Enterprise Value/Gross Profit: 0.05
• Enterprise Value/Ebitda: 0.06
• 1Y Price Target: $24.50
• Price Target Upside: 7.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: $24.50 ▲(7.64% Upside)

West Japan Railway's overall stock score is driven by strong financial performance and reasonable valuation. The technical analysis indicates some positive trends, although momentum remains moderate. The company's focus on managing debt levels and maintaining financial stability will be crucial for future growth.

West Japan Railway Business Overview & Revenue Model

Company Description

West Japan Railway Company (WJRYY) is a major railway operator in Japan, responsible for the operation of passenger and freight trains in the western part of the country. As one of the six Japan Railways Group companies, WJRYY provides a range of transportation services, including Shinkansen (bullet train) services, local and express trains, and freight transportation. The company also engages in various ancillary businesses such as real estate, retail, and tourism, contributing to the overall transportation infrastructure in the region.

How the Company Makes Money

WJRYY generates revenue primarily through fare collection from its extensive network of train services, including the Shinkansen and local trains. Key revenue streams include ticket sales from both individual passengers and bulk purchases by corporate clients and travel agencies. Additionally, the company earns income from freight transportation services, as well as from its operations in real estate, where it leases commercial spaces and properties near train stations. Retail operations within stations, including shops and restaurants, also contribute to revenue. Strategic partnerships with travel agencies and tourism services further enhance WJRYY's earnings, capitalizing on regional tourism growth. Economic factors, infrastructure investments, and public transportation policies can significantly influence its revenue generation capabilities.

West Japan Railway Financial Statement Overview

Summary

West Japan Railway has shown a positive trend in revenue growth, profitability, and cash flow metrics. Despite past challenges, the current trajectory with stable operations and healthy financial ratios is promising. Debt management remains a crucial area for focus.

Income Statement

West Japan Railway shows a positive trend in revenue growth, with a notable increase in total revenue from 2024 to 2025. Gross profit margin and net profit margin have improved, indicating enhanced profitability. The EBIT and EBITDA margins are healthy, reflecting efficient operations and strong earnings before interest, taxes, depreciation, and amortization. However, historical losses in 2021 and 2022 highlight past volatility that should be monitored.

Balance Sheet

The company's balance sheet exhibits a stable structure with a positive equity ratio, indicating a solid foundation. The debt-to-equity ratio is reasonable, suggesting manageable leverage levels. Return on equity has improved, reflecting better profitability for shareholders. However, the total debt remains significant, posing a risk if not carefully managed.

Cash Flow

Cash flow analysis reveals strong operating cash flow and substantial free cash flow in 2025. The free cash flow to net income ratio is robust, indicating effective cash management. The operating cash flow to net income ratio is favorable, highlighting efficient conversion of earnings into cash. Despite strong cash flow metrics, past negative free cash flow in 2021 and 2022 requires attention.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.71T	1.64T	1.40T	1.03T	898.17B
Gross Profit	418.18B	395.45B	268.70B	43.25B	-77.42B
EBITDA	353.35B	328.61B	245.33B	61.27B	-72.08B
Net Income	113.96B	98.76B	88.53B	-113.20B	-233.21B
Balance Sheet
Total Assets	3.75T	3.78T	3.74T	3.70T	3.48T
Cash, Cash Equivalents and Short-Term Investments	125.62B	233.47B	290.17B	319.92B	210.31B
Total Debt	1.44T	1.48T	1.57T	1.64T	1.48T
Total Liabilities	2.47T	2.55T	2.59T	2.63T	2.52T
Stockholders Equity	1.16T	1.11T	1.03T	968.94B	852.91B
Cash Flow
Free Cash Flow	281.43B	68.96B	27.95B	-326.95B	-345.34B
Operating Cash Flow	281.43B	318.31B	273.96B	-86.47B	-103.30B
Investing Cash Flow	-263.11B	-243.65B	-214.90B	-188.71B	-211.69B
Financing Cash Flow	-126.17B	-131.62B	-88.77B	384.69B	446.75B

West Japan Railway Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.76
• 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 WJRYY, the sentiment is Positive. The current price of 22.76 is below the 20-day moving average (MA) of 22.80, above the 50-day MA of 22.64, and above the 200-day MA of 20.68, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 47.38 is Neutral, neither overbought nor oversold. The STOCH value of 62.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WJRYY.

West Japan Railway Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSC	79 Outperform	63.65B	19.17	22.66%	1.90%	0.71%	86.84%
UNP	76 Outperform	130.83B	19.16	42.66%	2.45%	1.06%	8.13%
GATX	74 Outperform	6.13B	19.67	11.97%	1.40%	11.74%	33.85%
WJRYY	71 Outperform	$10.71B	12.70	11.32%	1.53%	3.42%	100.74%
WAB	71 Outperform	32.26B	28.16	10.67%	0.50%	3.38%	17.21%
CSX	68 Neutral	61.48B	20.27	25.06%	1.55%	-3.27%	-10.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%