Sotetsu Holdings, Inc. (9003) AI Stock Analysis

• Market Cap: ¥215.01B
• Dividend Yield: 2.96%
• Average Volume (3M): 390.22K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.44
• Revenue Growth: 8.20%
• EPS Growth: 39.43%
• Country: JP
• Employees: 5,075
• Sector: Industrials
• Sector Strength: 88
• Industry: Conglomerates
• EPS (TTM): -6.50
• Shares Outstanding: 98,145,490
• 10 Day Avg. Volume: 245,350
• 30 Day Avg. Volume: 390,223
• PEG Ratio: 0.71
• Price to Book (P/B): 1.24
• 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

Sotetsu Holdings demonstrates strong financial performance with revenue growth and improved margins, but high leverage and cash flow volatility are concerns. The stock's technical indicators suggest mild bearish momentum, yet its valuation is attractive, offering potential value for investors. Improving balance sheet strength and cash flow stability will be key to enhancing the overall outlook.

Sotetsu Holdings, Inc. Business Overview & Revenue Model

Company Description

Sotetsu Holdings, Inc. provides transportation services in Japan. It offers railroad and bus transport services. The company also operates supermarkets, convenience stores, and station stalls; sells and leases real estate properties; develops and operates hotels; develops and manages buildings; provides and heat supply services. In addition, it offers building management and maintenance services; operates non-life insurance agency; provides district heating and cooling services; rents optical fiber infrastructure; develops residential properties and condominiums; and offers real estate consulting services. In addition, the company provides water purification systems for residential and commercial facilities. The company was formerly known as Sotetsu Junbi K.K. and changed its name to Sotetsu Holdings, Inc. in 2009. Sotetsu Holdings, Inc. was founded in 1917 and is headquartered in Yokohama, Japan.

How the Company Makes Money

Sotetsu Holdings, Inc. generates revenue primarily through its railway operations, which include passenger fares and related services. The company benefits from a stable customer base due to the necessity of commuter travel within its service areas. Additionally, Sotetsu Holdings capitalizes on its real estate assets by developing and leasing properties near its railway lines, creating synergies between its transportation and real estate businesses. The company also earns income from its retail and hospitality ventures, which are strategically located to capture the foot traffic generated by its railway operations. These diversified revenue streams are bolstered by strategic partnerships and investments that enhance operational efficiency and expand its market reach.

Sotetsu Holdings, Inc. Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
301.47B	270.04B	249.67B	216.68B	221.14B	265.10B
	Gross Profit
111.47B	94.58B	73.83B	56.13B	51.89B	92.19B
	EBIT
40.64B	28.96B	14.35B	4.00B	-3.15B	26.42B
	EBITDA
50.23B	51.79B	36.81B	25.84B	11.85B	46.71B
	Net Income Common Stockholders
25.18B	16.08B	6.98B	1.85B	-13.06B	14.63B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.70B	27.55B	20.16B	22.04B	23.68B	24.14B
	Total Assets
727.60B	715.38B	646.95B	623.41B	619.41B	620.93B
	Total Debt
421.86B	416.87B	373.32B	366.88B	358.88B	340.78B
	Net Debt
399.16B	399.21B	353.17B	344.84B	335.21B	316.64B
	Total Liabilities
546.37B	550.65B	501.16B	483.71B	480.10B	468.90B
	Stockholders Equity
181.16B	164.65B	145.69B	139.63B	139.23B	151.94B
Cash Flow		Free Cash Flow
0.00	-37.71B	4.39B	-23.32B	-42.58B	-6.25B
	Operating Cash Flow
0.00	20.55B	36.35B	23.75B	11.84B	34.32B
	Investing Cash Flow
0.00	-58.04B	-33.57B	-29.42B	-24.75B	-28.65B
	Financing Cash Flow
0.00	34.92B	-4.92B	3.89B	12.53B	-9.44B

Sotetsu Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2219.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9003, the sentiment is Negative. The current price of 2219.5 is above the 20-day moving average (MA) of 2217.73, above the 50-day MA of 2205.06, and below the 200-day MA of 2339.11, indicating a bearish trend. The MACD of -8.08 indicates Positive momentum. The RSI at 45.90 is Neutral, neither overbought nor oversold. The STOCH value of 58.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9003.

Sotetsu Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9007	74 Outperform	¥555.70B	10.53	10.86%	2.40%	9.04%	57.29%
9020	72 Outperform	¥3.49T	15.56	7.93%	1.88%	5.77%	14.05%
9008	70 Outperform	$401.48B	10.02	10.45%	2.78%	15.47%	67.47%
9001	70 Outperform	$523.06B	10.34	9.22%	2.28%	-0.71%	8.85%
9003	66 Neutral	¥215.01B	9.59		2.96%	8.20%	39.43%
Sector *	64 Neutral	$4.39B	12.06	5.17%	249.63%	4.03%	-11.04%
9005	63 Neutral	$1.05T	12.95	9.70%	1.28%	10.61%	60.71%

Sotetsu Holdings, Inc. Corporate Events

Sotetsu Holdings Unveils Seventh Medium-Term Management Plan

Sotetsu Holdings, Inc. has announced its Seventh Medium-Term Management Plan for FY2025 to FY2027, focusing on sustainable growth through the expansion of business areas and strengthening its real estate and overseas operations. The plan aims to balance the development of a preferred railway line with business diversification, emphasizing structural reforms, sustainability, and leveraging management resources to enhance earning power and prepare for large-scale investments.

Sotetsu Holdings Increases Year-End Dividend Amid Strong Performance

Sotetsu Holdings, Inc. announced an increase in its year-end dividend for the fiscal year ended March 31, 2025, raising it to 35.00 yen per share, up from the previous forecast of 30.00 yen. This decision reflects the company’s policy to distribute profits according to business performance, enhancing internal reserves while considering the business environment and capital investment plans.

Sotetsu Holdings Reports Robust Financial Growth for FY 2025

Sotetsu Holdings, Inc. reported a strong financial performance for the fiscal year ended March 31, 2025, with a notable increase in operating revenues and profits. The company saw a 39.3% rise in profit attributable to owners, reflecting robust operational efficiency and strategic growth initiatives. The announcement highlights the company’s solid financial footing and its commitment to enhancing shareholder value through increased dividends and strategic treasury share purchases.

Sotetsu Holdings Announces Treasury Share Acquisition

Sotetsu Holdings, Inc. has announced the acquisition of 687,700 of its common shares at a total price of 1,557,992,500 yen, as part of a broader plan to acquire up to 2 million shares. This strategic move is aimed at optimizing the company’s capital structure and enhancing shareholder value, with the acquisitions being conducted on the Tokyo Stock Exchange.