West Japan Railway (WJRYY) AI Stock Analysis

• Market Cap: $9.40B
• Dividend Yield: 2.59%
• Average Volume (3M): 1.57K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.14
• Revenue Growth: 6.22%
• EPS Growth: 73.54%
• Country: US
• Employees: 44,366
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): N/A
• 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: 308.65
• Enterprise Value/Revenue: 1.68
• Enterprise Value/Gross Profit: 6.78
• Enterprise Value/Ebitda: 8.25
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.73
• Revenue Forecast (FY): $11.84B

• Rating: 69 Neutral
• Price Target: $23.00 ▲(15.93% Upside)
• Action: Downgraded Date: 10/25/25
• Date: Action: Downgraded 10/25/25

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 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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Negative
• Last Price: 19.84
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• 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 Negative. The current price of 19.84 is below the 20-day moving average (MA) of 21.69, below the 50-day MA of 20.67, and below the 200-day MA of 21.38, indicating a bearish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 39.80 is Neutral, neither overbought nor oversold. The STOCH value of 3.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WJRYY.

West Japan Railway Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WAB	74 Outperform	$42.90B	31.11	11.01%	0.46%	4.40%	14.60%
UNP	73 Outperform	$154.40B	19.20	40.38%	2.32%	1.06%	8.21%
WJRYY	69 Neutral	$9.40B	10.17	11.32%	2.59%	6.22%	73.54%
GATX	69 Neutral	$6.45B	18.22	12.63%	1.41%	10.66%	13.61%
NSC	68 Neutral	$69.82B	22.59	19.23%	1.85%	0.48%	22.88%
CSX	67 Neutral	$76.52B	23.39	22.52%	1.42%	-3.80%	-17.32%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%