Tokyu (9005) AI Stock Analysis

• Market Cap: $1.07T
• Dividend Yield: 1.22%
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.35
• Revenue Growth: 10.61%
• EPS Growth: 60.71%
• Country: JP
• Employees: 23,583
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Department Stores
• EPS (TTM): 32.46
• Shares Outstanding: 624,869,900
• 10 Day Avg. Volume: 1,080,070
• 30 Day Avg. Volume: 1,549,556
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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: $2,000.30
• Price Target Upside: 12.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Tokyu's overall stock score is driven by strong financial performance, particularly in profitability and revenue growth. However, moderate leverage and cash flow management issues present risks. Technical analysis suggests a neutral to slightly bearish trend, while fair valuation supports a moderate investment appeal.

Tokyu Business Overview & Revenue Model

Company Description

Tokyu Corporation, together with its subsidiaries, engages in the transportation, real estate, life services, and hotel and resort businesses in Japan and internationally. It is involved in railway, bus, and airport operations; real estate sales, leasing, and management activities; department store, chain store, shopping center, advertising, imaging, and CATV operations; and hotel and golf course operations. Tokyu Corporation was founded in 1918 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tokyu Corporation generates revenue through several key streams. The primary source of income comes from its transportation services, particularly its rail operations, which include passenger fares and related activities such as station retail. The real estate segment is another significant contributor, with income derived from leasing commercial and residential properties, property sales, and development projects. Retail operations, which include department stores and shopping centers, add to the revenue through sales and rental income. Additionally, Tokyu's hotel and resort operations generate earnings from accommodation and hospitality services. Strategic partnerships and joint ventures, especially in real estate and urban development, further bolster its financial performance.

Tokyu Financial Statement Overview

Summary

Tokyu shows promising signs of recovery with improving profitability and revenue trends. The balance sheet reflects moderate leverage typical for the industry but indicates reliance on debt, which may pose risks. Cash flow management needs attention to ensure sustained operational liquidity.

Income Statement

Tokyu has demonstrated a strong recovery with a consistent revenue growth from 2022 to TTM (Trailing-Twelve-Months), highlighted by a revenue increase of approximately 18% from 2022 to 2023 and further into TTM. Gross Profit Margin improved significantly to 42.33% in TTM, indicating enhanced operational efficiency. The Net Profit Margin expanded to 7.52% in TTM from previous years, reflecting effective cost management. EBIT and EBITDA margins also showed improvement, suggesting better profitability. However, the dip in 2021 highlights potential volatility in operations.

Balance Sheet

Tokyu maintains a moderate Debt-to-Equity Ratio of about 1.54 in TTM, which is fairly leveraged but common in the retail sector. The Return on Equity (ROE) improved significantly to 10.13% in TTM, indicating efficient utilization of equity. However, the Equity Ratio stands at a moderate 30.83%, suggesting a higher reliance on debt financing. The balance sheet shows steady equity growth, but the high debt levels pose a risk of financial strain in downturns.

Cash Flow

Cash flow metrics indicate mixed performance. While Free Cash Flow improved to a positive figure in 2023 from negative in previous years, the absence of data for TTM limits assessment. Operating Cash Flow has shown fluctuations, with a notable drop in TTM, impacting the Operating Cash Flow to Net Income Ratio. The financials suggest a need for improved cash flow management to support ongoing operations and growth initiatives.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.04T	931.29B	879.11B	935.93B	1.16T
	Gross Profit
321.66B	262.42B	239.77B	188.49B	297.61B
	EBIT
94.91B	44.60B	31.54B	-31.66B	68.76B
	EBITDA
189.54B	127.58B	115.74B	41.20B	154.24B
	Net Income Common Stockholders
63.76B	26.00B	8.78B	-56.23B	42.39B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
43.35B	69.34B	52.27B	45.96B	59.39B
	Total Assets
2.65T	2.61T	2.48T	2.48T	2.54T
	Total Debt
1.26T	1.29T	1.20T	1.18T	1.15T
	Net Debt
1.21T	1.22T	1.14T	1.14T	1.09T
	Total Liabilities
1.82T	1.83T	1.73T	1.72T	1.73T
	Stockholders Equity
789.25B	740.62B	702.97B	702.35B	757.00B
Cash Flow		Free Cash Flow
28.47B	-56.94B	-24.82B	-27.34B	-44.93B
	Operating Cash Flow
145.33B	95.40B	85.58B	85.89B	155.30B
	Investing Cash Flow
-101.00B	-154.43B	-78.81B	-115.19B	-190.64B
	Financing Cash Flow
-71.96B	74.61B	-1.37B	17.18B	59.63B

Tokyu Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1775.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9005, the sentiment is Positive. The current price of 1775 is above the 20-day moving average (MA) of 1752.42, above the 50-day MA of 1732.96, and above the 200-day MA of 1757.26, indicating a bullish trend. The MACD of 10.92 indicates Positive momentum. The RSI at 55.33 is Neutral, neither overbought nor oversold. The STOCH value of 48.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9005.

Tokyu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9005	63 Neutral	$1.07T	12.87	10.20%	1.22%	10.61%	60.71%
Sector *	61 Neutral	$6.58B	11.77	3.05%	3.99%	2.61%	-21.52%

Tokyu Corporate Events

Tokyu Corporation to Acquire Significant Stake in TOKYU REIT

Tokyu Corporation has announced its decision to acquire a significant stake in TOKYU REIT, Inc., amounting to 5% of the total investment units, which is equivalent to a tender offer under Japanese financial regulations. This strategic acquisition, planned between March 25 and September 30, 2025, reflects Tokyu’s continued investment in real estate assets, potentially enhancing its influence and operational synergy within the real estate investment trust sector.

Tokyu Corporation Announces Strategic Reorganization and Merger Plans

Tokyu Corporation announced a reorganization involving an absorption-type merger with its wholly owned subsidiary, Tokyu Department Store Co., Ltd., and an absorption-type demerger to streamline its commercial facilities management business. This strategic move aims to enhance capital efficiency and competitive edge amidst a changing market environment. The reorganization will result in the establishment of Tokyu Retail Management to unify management functions across its subsidiaries, with minimal impact on the company’s consolidated financial results.

Tokyu Corporation Reports Strong Q3 Financial Results and Dividend Growth

Tokyu Corporation reported strong financial performance for the third quarter ending December 31, 2024, with significant year-on-year increases in operating revenue, operating profit, and profit attributable to owners. The company also announced a forecasted increase in annual dividends, reflecting confidence in its continued growth and stability, which may positively impact investor sentiment and market positioning.

Tokyu Corporation to Invest in Shibuya Development Project

Tokyu Corporation has announced its decision to invest in a special purpose company for the development of the west district of Shibuya, where the Tokyu Department Store Shibuya flagship store was previously located. This investment will result in the special purpose company becoming a specified subsidiary, with Tokyu Corporation and Tokyu Department Store Co., Ltd. holding a combined preferential investment ratio of 70%. The impact on the company’s consolidated business results for the fiscal year ending March 31, 2025, is expected to be minor.

Tokyu Corporation Enhances Stock-Based Compensation Plan for Directors

Tokyu Corporation has announced an additional contribution to its stock-based compensation plan for directors and executive officers. The decision, made during a board meeting, aims to accommodate an increase in eligible executive officers due to newly created posts. This move is not intended to increase compensation amounts but to ensure sufficient shares are available in the trust. The planned additional acquisition comprises 119,500 shares, estimated at 250 million yen, to be executed between March 3 and March 24, 2025. This strategic adjustment reflects the company’s commitment to effectively managing its executive incentive structures without altering existing compensation limits, thus maintaining shareholder-approved constraints.

Tokyu Corporation Reports Robust Third Quarter Earnings

Tokyu Corporation reported a strong financial performance for the third quarter ending March 31, 2025, with significant increases in operating revenue and profit compared to the previous year. The positive earnings results reflect the company’s robust operational strategies, positioning it well within the industry and offering positive implications for stakeholders.