Chichibu Railway Co., Ltd. AI Stock Analysis
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Chichibu Railway Co., Ltd. (9012) AI Stock Analysis
Chichibu Railway Co., Ltd.
(TSE/TYO:9012)
The score is held back primarily by weak fundamentals: persistently negative free cash flow, heavy capital spending, elevated leverage following a sharp drop in equity, and a low ROE, despite steady revenue growth, expanding margins and a return to profitability projected into FY2026. A cheap P/E of 6.6 provides some support, though the lack of a dividend limits the valuation appeal. Technically, the shares trade above all major moving averages with a positive MACD, but the very high RSI points to an extended move that may need to consolidate. Overall, the stock screens as inexpensive with improving operating trends, but the cash flow and balance sheet risks keep the rating near the middle of the range.
Chichibu Railway Co., Ltd. (9012) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 3.12B
- Dividend Yield
- ―
- Average Volume (3M)
- 757
- Price to Earnings (P/E)
- 6.2
- Beta (1Y)
- 0.11
- Revenue Growth
- 2.60%
- EPS Growth
- 1.12%
- Country
- Japan
- Employees
- 377
- Sector
- General
- Sector Strength
- 55
- Industry
- Railroads
Chichibu Railway Co., Ltd. Business Overview & Revenue Model
Company Description
Chichibu Railway Co., Ltd. engages in the railway, tourism and real estate businesses. Its operations are carried out through the following segments: Railway, Real Estate, Tourism, Wholesale and Retail and Others. The Railway segment manages the frei...
How the Company Makes Money
The company primarily makes money by operating transportation services and collecting fares from passengers using its railway network, including commuter and leisure travel demand along its service area. A secondary source of revenue comes from opera...
Chichibu Railway Co., Ltd. Financial Statement Overview
Summary
Chichibu Railway is recovering but remains structurally weak. Revenue has grown steadily from ¥3.93bn (FY2021) to an estimated ¥5.64bn (FY2026) with gross margins expanding from 15.2% to 33.0% and net margin projected at 6.8%, supporting an income statement score of 52. However, the balance sheet (45) shows elevated leverage, with debt-to-equity near 1.1x after equity fell from ¥10.0bn to roughly ¥5.0bn following heavy write-downs, and ROE of just 2.3% in FY2025. Cash flow is the weakest link (38): free cash flow has been negative in nearly every year, with FY2026 projected at negative ¥472mn as capital expenditure far exceeds operating cash flow of ¥311mn, limiting the ability to self-fund growth or reduce debt.
Income Statement
52NeutralBalance Sheet
45NeutralCash Flow
38Negative| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.69B | 5.64B | 5.28B | 4.91B | 4.69B | 4.35B |
| Gross Profit | 1.91B | 1.86B | 1.57B | 1.34B | 987.42M | 981.00M |
| EBITDA | 808.58M | 690.64M | 396.38M | 414.55M | -5.73B | 217.55M |
| Net Income | 502.93M | 383.26M | 115.59M | 92.57M | -5.05B | -47.72M |
Balance Sheet | ||||||
| Total Assets | 16.58B | 17.69B | 16.90B | 16.45B | 16.95B | 23.70B |
| Cash, Cash Equivalents and Short-Term Investments | 754.63M | 790.99M | 1.08B | 981.76M | 810.76M | 749.34M |
| Total Debt | 5.42B | 5.40B | 5.58B | 5.63B | 5.52B | 5.48B |
| Total Liabilities | 10.88B | 12.17B | 11.90B | 11.52B | 11.94B | 13.67B |
| Stockholders Equity | 5.69B | 5.52B | 5.00B | 4.92B | 5.02B | 10.02B |
Cash Flow | ||||||
| Free Cash Flow | 0 | -471.56M | -116.08M | -704.72M | -787.62M | -1.69B |
| Operating Cash Flow | 0 | 310.65M | 538.27M | 34.28M | 333.38M | -724.16M |
| Investing Cash Flow | 0 | -477.89M | -406.07M | 19.96M | -299.67M | -754.97M |
| Financing Cash Flow | 0 | -119.53M | -36.22M | 116.76M | 27.71M | 959.98M |
Chichibu Railway Co., Ltd. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9012, the sentiment is Positive. The current price of 2098.00 is above the 20-day moving average (MA) of 2084.60, above the 50-day MA of 2097.02, and below the 200-day MA of 2117.92, indicating a neutral trend. The MACD of -7.46 indicates Negative momentum. The RSI at 54.27 is Neutral, neither overbought nor oversold. The STOCH value of 63.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9012.
Chichibu Railway Co., Ltd. Peers Comparison
Overall Rating
JP:901770Outperform
JP:904969Neutral
JP:903363.5Neutral
JP:905263Neutral
JP:904659Neutral- JP:901253Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:9017 | 70Outperform | JPY 7.49B | 5.96 | ― | 0.51% | 2.58% | 11.44% |
| JP:9049 | 69Neutral | JPY 12.58B | 5.96 | ― | 0.32% | -0.86% | 15.45% |
| JP:9033 | 64Neutral | JPY 19.01B | 12.37 | ― | 1.29% | 18.12% | 2.46% |
| JP:9052 | 63Neutral | JPY 42.48B | 12.03 | ― | 2.64% | 4.82% | -25.03% |
| JP:9046 | 59Neutral | JPY 18.30B | 12.65 | ― | 1.09% | 3.47% | 15.79% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| JP:9012 | 53Neutral | JPY 3.09B | 6.20 | ― | ― | 2.60% | 1.12% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:9012 | Chichibu Railway Co., Ltd. | 2098.00 | 31.00 | 1.50% | |
| JP:9017 | Niigata Kotsu Co., Ltd. | 1944.00 | -136.61 | -6.57% | |
| JP:9033 | Hiroshima Electric Railway Co., Ltd. | 618.00 | 23.54 | 3.96% | |
| JP:9046 | Kobe Electric Railway Co., Ltd. | 2300.00 | -55.82 | -2.37% | |
| JP:9049 | Keifuku Electric Railroad Co., Ltd. | 6260.00 | -1510.15 | -19.44% | |
| JP:9052 | Sanyo Electric Railway Co., Ltd. | 1896.00 | -73.73 | -3.74% |
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: Oct 08, 2026