West Japan Railway (WJRYY) AI Stock Analysis

• Market Cap: $10.14B
• Dividend Yield: 1.54%
• Average Volume (3M): 512.00
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.24
• Revenue Growth: -0.78%
• EPS Growth: 148.74%
• Country: US
• Employees: 44,366
• Sector: Industrials
• Sector Strength: 90
• Industry: Railroads
• EPS (TTM): >-0.01
• Shares Outstanding: 471,009,800
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 512
• PEG Ratio: 1.36
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 71 Outperform
• Price Target: $24.50 ▲(13.58%Upside)

West Japan Railway exhibits strong financial performance with positive revenue and profitability trends, although debt management is crucial. Technical indicators are generally favorable, showing positive price trends. Valuation metrics are reasonable, providing a balanced outlook on the stock's potential.

West Japan Railway Business Overview & Revenue Model

Company Description

West Japan Railway Company provides passenger railway transport services in Japan. The company operates through Transportation Operations, Retail Business, Real Estate Business, and Other Businesses segments. It operates a route length of 4,903.1 kilometers, comprising Shinkansen route of 812.6 kilometers and conventional lines of 4,090.5 kilometers; and 1,174 stations, as well as bus and ferry services. The company also engages in the selling of goods and food services; wholesaling; and other retail businesses. It is also involved in the operation of department stores, convenience stores, restaurants, souvenir shops, shopping centers, and others; selling and leasing of real estate; hotel; credit cards and electronic money; and travel, rolling stock and equipment, electrical contracting, electrical equipment, construction, information services, advertising, and other businesses. The company was founded in 1987 and is headquartered in Osaka, Japan.

How the Company Makes Money

JR West generates revenue primarily through its railway operations, which include passenger fares from its expansive network of local and Shinkansen trains. The company also capitalizes on its real estate assets, developing and leasing properties around its stations, thereby creating retail and commercial hubs that attract significant foot traffic. Additionally, JR West derives income from its retail businesses, operating stores and shopping centers within and around railway stations. The company's hospitality sector, which includes hotels and travel services, further contributes to its revenue streams. Strategic partnerships and investments in technology and infrastructure improvements also play a significant role in enhancing operational efficiency and expanding service offerings, thereby positively impacting its financial performance.

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: Neutral
• Last Price: 21.57
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WJRYY, the sentiment is Neutral. The current price of 21.57 is below the 20-day moving average (MA) of 22.21, below the 50-day MA of 21.94, and above the 200-day MA of 19.66, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 40.51 is Neutral, neither overbought nor oversold. The STOCH value of 14.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WJRYY.

West Japan Railway Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WAB	81 Outperform	$36.26B	33.22	10.62%	0.47%	5.21%	24.15%
NSC	80 Outperform	$62.37B	18.89	24.52%	1.95%	0.70%	135.08%
GATX	76 Outperform	$5.50B	19.51	11.64%	1.58%	12.07%	11.93%
CSX	75 Outperform	$64.60B	20.49	26.13%	1.51%	-2.39%	-7.80%
WJRYY	71 Outperform	$10.14B	13.70	9.93%	1.54%	-0.78%	148.74%
UNP	70 Outperform	$134.35B	20.26	42.47%	2.38%	0.63%	5.93%
Sector *	58 Neutral	HK$14.28B	4.63	-3.01%	6.75%	3.67%	-54.16%