East Japan Railway (EJPRY) AI Stock Analysis

23 Followers

East Japan Railway

(Other OTC:EJPRY)

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Rating:63Neutral

Price Target:$13.00▲(7.00% Upside)

Action:reiterated

Date:11/07/26

The score is primarily driven by improving operating performance (revenue and earnings recovery and stronger operating cash flow) but is held back by elevated leverage and persistently weak free cash flow. Technically the trend is positive, yet overbought signals temper the near-term outlook, while valuation appears fair with a modest dividend yield.

Positive Factors

Revenue and earnings recoveryThe return from losses in 2021–2022 to solid profitability through 2026 indicates a substantial operating recovery. Accelerating revenue growth in the latest year can strengthen internal funding, support network investment, and improve the durability of earnings if performance remains sustained.

Negative Factors

Elevated leverageElevated leverage makes JR East more financially geared than a conservatively financed operator. Rising debt can increase refinancing and interest-rate sensitivity, while also limiting the company’s ability to absorb weaker demand or fund new capital projects without added balance-sheet pressure.

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

Market Cap: $27.34B
Dividend Yield: 1.91%
Average Volume (3M): 52.96K
Price to Earnings (P/E): 17.4
Beta (1Y): -0.20
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 through multiple, network-linked businesses. (1) Transportation (railway) revenue: The core earnings engine is passenger rail, including (a) commuter and urban rail fares in the Greater Tokyo area and other regional cities,...

East Japan Railway Financial Statement Overview

Summary

Income statement recovery is strong (revenue rebound and sustained profitability in 2023–2026), but the balance sheet is meaningfully leveraged (debt-to-equity ~1.6–1.8x with debt rising into 2026) and free cash flow has been negative in most years, limiting deleveraging flexibility despite improved operating cash flow.

Income Statement

78Positive

Balance Sheet

62Positive

Cash Flow

48Neutral

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 Price12.15

Price Trends

50DMA11.24Positive

100DMA11.11Positive

200DMA11.31Positive

Market Momentum

MACD0.36Negative

RSI57.77Neutral

STOCH76.20Neutral

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 12.15 is above the 20-day moving average (MA) of 11.65, above the 50-day MA of 11.24, and above the 200-day MA of 11.31, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 57.77 is Neutral, neither overbought nor oversold. The STOCH value of 76.20 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	$6.53B	17.30	14.10%	1.38%	29.67%	25.84%
FSTR	74Outperform	$442.27M	31.57	7.74%	―	15.80%	182.29%
WAB	74Outperform	$50.93B	37.69	12.17%	0.39%	13.25%	16.83%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
EJPRY	63Neutral	$27.87B	17.43	8.23%	1.91%	2.85%	2.73%
GBX	54Neutral	$1.30B	16.67	4.73%	3.15%	-23.97%	-60.98%
RVSN	44Neutral	$5.61M	-0.39	-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)	12.15	-0.18	-1.49%
GATX	GATX Corporation	187.67	33.61	21.82%
GBX	Greenbrier Companies	42.50	1.39	3.39%
FSTR	L. B. Foster Company	42.31	15.56	58.17%
WAB	Westinghouse Air Brake Technologies Corporation	304.18	100.62	49.43%
RVSN	Rail Vision Ltd.	2.36	-8.16	-77.57%

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: Nov 07, 2026

East Japan Railway AI Stock Analysis