West Japan Railway (WJRYY) AI Stock Analysis

• Market Cap: $9.00B
• Dividend Yield: 2.56%
• Average Volume (3M): 1.57K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.16
• Revenue Growth: 6.22%
• EPS Growth: 73.54%
• Country: US
• Employees: 44,366
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 0.54
• Shares Outstanding: 455,561,300
• 10 Day Avg. Volume: 2,819
• 30 Day Avg. Volume: 1,573
• PEG Ratio: 0.66
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.81
• P/FCF Ratio: 4.93
• Enterprise Value/Market Cap: 2.38
• Enterprise Value/Revenue: 0.01
• Enterprise Value/Gross Profit: 0.05
• Enterprise Value/Ebitda: 0.06
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $23.00 ▲(15.29% Upside)

West Japan Railway's overall stock score is driven by its strong financial recovery and attractive valuation. However, technical indicators suggest weak momentum, which could pose short-term challenges. The absence of recent earnings call insights or notable corporate events limits additional context for the stock's outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for services and effective business strategies, supporting long-term financial stability.

Cash Flow Management

Robust cash flow management ensures liquidity and financial flexibility, enabling investment in growth opportunities and debt servicing.

Profitability Improvement

Improved profitability margins reflect efficient operations and cost management, enhancing the company's competitive position.

Negative Factors

Debt Levels

High debt levels can increase financial risk and limit strategic flexibility, potentially impacting long-term growth and stability.

Past Financial Volatility

Past financial volatility suggests potential risks in revenue consistency and cost management, requiring ongoing attention to maintain stability.

Free Cash Flow History

Historical negative free cash flow indicates challenges in cash generation, which could affect future investment and debt repayment capabilities.

West Japan Railway Business Overview & Revenue Model

Company Description

West Japan Railway Company (WJRYY) is a leading railway operator in Japan, primarily serving the western regions of the country, including major cities such as Osaka, Kyoto, and Hiroshima. Established as part of the privatization of Japan National Railways, WJRYY operates passenger and freight rail services, focusing on the Shinkansen (bullet train) and conventional rail lines. In addition to transportation services, the company is involved in real estate, retail, and tourism, enhancing its portfolio with diverse offerings that cater to both domestic and international travelers.

How the Company Makes Money

West Japan Railway Company generates revenue primarily through its passenger transportation services, with significant income derived from ticket sales on its extensive rail network, including the high-speed Shinkansen trains. Additional revenue streams include freight services, which transport goods across its rail lines. The company also earns income from non-rail businesses such as real estate development, retail operations in train stations, and tourism-related activities. Partnerships with local businesses and tourism boards further enhance its offerings, while loyalty programs and promotional campaigns help to attract and retain customers, contributing to overall earnings.

West Japan Railway Financial Statement Overview

Summary

West Japan Railway has shown a solid recovery with improved revenue, profitability, and cash flow metrics. Despite historical challenges, the current financial trajectory is positive with stable operations and healthy financial ratios. However, the significant total debt remains a risk that needs careful management.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.73T	1.71T	1.64T	1.40T	1.03T	898.17B
Gross Profit	428.31B	418.18B	395.45B	268.70B	43.25B	-77.42B
EBITDA	351.78B	353.35B	328.61B	245.33B	41.78B	-72.08B
Net Income	124.53B	113.96B	98.76B	88.53B	-113.20B	-233.21B
Balance Sheet
Total Assets	3.69T	3.75T	3.78T	3.74T	3.70T	3.48T
Cash, Cash Equivalents and Short-Term Investments	94.19B	125.62B	233.47B	290.17B	319.92B	210.31B
Total Debt	1.43T	1.44T	1.48T	1.57T	1.64T	1.48T
Total Liabilities	2.41T	2.47T	2.55T	2.59T	2.63T	2.52T
Stockholders Equity	1.16T	1.16T	1.11T	1.03T	968.94B	852.91B
Cash Flow
Free Cash Flow	0.00	281.43B	68.96B	27.95B	-326.95B	-345.34B
Operating Cash Flow	0.00	281.43B	318.31B	273.96B	-86.47B	-103.30B
Investing Cash Flow	0.00	-263.11B	-243.65B	-214.90B	-188.71B	-211.69B
Financing Cash Flow	0.00	-126.17B	-131.62B	-88.77B	384.69B	446.75B

West Japan Railway Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 19.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 19.95 is above the 20-day moving average (MA) of 19.78, below the 50-day MA of 20.29, and below the 200-day MA of 21.41, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 50.15 is Neutral, neither overbought nor oversold. The STOCH value of 41.59 is Neutral, 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	79 Outperform	$36.65B	31.16	11.07%	0.46%	4.40%	14.60%
CSX	78 Outperform	$69.63B	24.31	22.60%	1.39%	-3.80%	-17.32%
GATX	76 Outperform	$6.01B	19.69	11.93%	1.45%	10.66%	13.61%
NSC	75 Outperform	$72.67B	22.66	20.46%	1.80%	0.48%	22.88%
UNP	75 Outperform	$142.33B	20.37	41.62%	2.26%	1.06%	8.21%
WJRYY	69 Neutral	$9.00B	10.32	11.32%	2.56%	6.22%	73.54%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%