East Japan Railway (EJPRY) AI Stock Analysis

Top Page

East Japan Railway

(Other OTC:EJPRY)

Select Model

Rating:69Neutral

Price Target:$11.50▼(-0.43% Downside)

Action:reiterated

Date:08/06/26

The overall score of 69 reflects a mixed outlook. Financial performance is strong, with robust revenue growth and profitability, though high debt and negative free cash flow due to capital investments are concerns. Technical indicators show a bearish trend with the stock trading below its moving averages, but oversold conditions may provide some support. Valuation appears modestly attractive with a P/E below industry average and a reasonable dividend yield.

Positive Factors

Diversified revenue modelJR East's multi-segment model—commuter fares, station retail leasing, and real estate development—creates durable, recurring cash flows tied to daily mobility and property income. This diversification reduces single-source risk and supports steady revenue even if one segment softens.

Negative Factors

Elevated leverageLeverage at roughly 1.6–1.8x and rising total debt constrain financial flexibility. For a capital-intensive rail operator this elevates refinancing and interest-rate sensitivity risks, limiting the company's capacity to absorb shocks or pursue opportunistic investments.

East Japan Railway (EJPRY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $27.10B
Dividend Yield: 2.01%
Average Volume (3M): 56.90K
Price to Earnings (P/E): 17.3
Beta (1Y): -0.19
Revenue Growth: 2.85%
EPS Growth: 2.73%
Country: US
Employees: 70,623
Sector: Industrials
Sector Strength: 63
Industry: Railroads

East Japan Railway Business Overview & Revenue Model

Company Description

East Japan Railway Co. engages in the business of railway transportation services. It operates through the following segments: Transportation, Retails and Services, Real Estate and Hotels, and Others. The Transportation segment handles the transporta...

How the Company Makes Money

JR East generates revenue primarily through a multi-segment model centered on transportation and station-area businesses. (1) Transportation revenue: The company earns fare revenue from daily commuter and regional passengers in the Greater Tokyo area...

East Japan Railway Financial Statement Overview

Summary

Strong income statement with 12.2% revenue growth, 8.0% net margin, and improving profitability. Balance sheet carries high debt (debt-to-equity 1.69) but manageable with healthy interest coverage. Cash flow from operations is robust, but heavy capital expenditures result in negative free cash flow. Overall financial health is good.

Income Statement

88Very Positive

Balance Sheet

72Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	3.19T	3.27T	2.89T	2.73T	2.41T	1.98T
Gross Profit	1.18T	1.20T	1.03T	964.48B	636.22B	299.43B
EBITDA	869.48B	908.88B	778.32B	737.33B	541.16B	249.97B
Net Income	241.09B	262.79B	224.28B	196.45B	99.23B	-94.95B
Balance Sheet
Total Assets	10.47T	10.87T	10.17T	9.77T	9.41T	9.16T
Cash, Cash Equivalents and Short-Term Investments	120.36B	263.38B	233.67B	281.00B	215.19B	171.29B
Total Debt	5.27T	5.18T	4.65T	4.56T	4.46T	4.05T
Total Liabilities	7.41T	7.79T	7.30T	7.03T	6.91T	6.74T
Stockholders Equity	3.04T	3.06T	2.86T	2.72T	2.47T	2.39T
Cash Flow
Free Cash Flow	0	-130.41B	-38.68B	-26.81B	26.17B	-392.55B
Operating Cash Flow	0	811.21B	732.25B	688.10B	581.75B	190.51B
Investing Cash Flow	0	-930.53B	-783.42B	-690.62B	-565.51B	-526.36B
Financing Cash Flow	0	147.08B	3.66B	66.10B	26.83B	304.64B

East Japan Railway Technical Analysis

Technical Analysis SentimentPositive

Last Price11.55

Price Trends

50DMA11.09Positive

100DMA10.98Positive

200DMA11.33Positive

Market Momentum

MACD0.14Negative

RSI58.95Neutral

STOCH27.68Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EJPRY, the sentiment is Positive. The current price of 11.55 is above the 20-day moving average (MA) of 11.03, above the 50-day MA of 11.09, and above the 200-day MA of 11.33, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 58.95 is Neutral, neither overbought nor oversold. The STOCH value of 27.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EJPRY.

East Japan Railway Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

EJPRY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GATX	75Outperform	$6.39B	16.69	14.10%	1.43%	29.67%	25.84%
WAB	74Outperform	$46.92B	34.65	12.17%	0.42%	13.25%	16.83%
EJPRY	69Neutral	$26.07B	17.32	8.23%	2.01%	2.85%	2.73%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FSTR	62Neutral	$377.13M	32.89	6.49%	―	10.13%	-67.50%
GBX	59Neutral	$1.21B	15.30	4.73%	3.38%	-23.97%	-60.98%
RVSN	37Underperform	$6.03M	-0.45	-70.18%	―	191.88%	51.03%

* Industrials Sector Average

Performance Comparison

EJPRY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
EJPRY	East Japan Railway (EJPRY)	11.55	-0.63	-5.21%
GATX	GATX Corporation	181.14	28.20	18.44%
GBX	Greenbrier Companies	39.01	-1.68	-4.14%
FSTR	L. B. Foster Company	35.85	8.91	33.07%
WAB	Westinghouse Air Brake Technologies Corporation	279.60	75.63	37.08%
RVSN	Rail Vision Ltd.	2.75	-10.02	-78.47%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 06, 2026

East Japan Railway AI Stock Analysis

Top Page