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Nishi-Nippon Railroad Co., Ltd. (JP:9031)
:9031
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Nishi-Nippon Railroad Co., Ltd. (9031) AI Stock Analysis

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JP:9031

Nishi-Nippon Railroad Co., Ltd.

(9031)

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Neutral 65 (OpenAI - Gpt-5.6Sol)
Rating:65Neutral
Price Target:
¥3,248.00
▲(16.17% Upside)
Action:Reiterated
Date:08/18/26
The score is driven primarily by improved profitability but constrained by weak and volatile free cash flow and a still levered balance sheet; valuation is a clear positive (low P/E and a moderate dividend yield), while technical signals are mixed with largely neutral momentum.
Positive Factors
Profitability recovery and revenue growth
The return to sustained profitability and renewed revenue growth indicates improved operating performance. Margin expansion provides a stronger earnings base, although maintaining this improvement will depend on consistent demand and cost control across the group.
Negative Factors
Weak and inconsistent free cash flow
Near-zero or negative free cash flow limits financial flexibility and may constrain debt reduction, reinvestment, or shareholder returns. The divergence from earnings suggests that capital spending or working-capital needs remain structurally significant.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability recovery and revenue growth
The return to sustained profitability and renewed revenue growth indicates improved operating performance. Margin expansion provides a stronger earnings base, although maintaining this improvement will depend on consistent demand and cost control across the group.
Read all positive factors

Nishi-Nippon Railroad Co., Ltd. (9031) vs. iShares MSCI Japan ETF (EWJ)

Nishi-Nippon Railroad Co., Ltd. Business Overview & Revenue Model

Company Description
Nishi-Nippon Railroad Co., Ltd. operates primarily as a transportation and diversified services company within Japan. Its core offerings include rail networks, taxi services, and public and tourist bus transportation. The company maintains a subst...
How the Company Makes Money
The company earns revenue through multiple operating segments. (1) Transportation: It collects passenger fares from its railway lines and bus operations, along with related transport income such as commuter pass sales and other mobility-service re...

Nishi-Nippon Railroad Co., Ltd. Financial Statement Overview

Summary
Income statement strength is solid (profitability recovery since 2021, 2026 revenue +6.4% YoY, net margin up to 6.8%), but this is offset by weak cash conversion (free cash flow ~breakeven/slightly negative in 2026 and deeply negative in 2025) and a still debt-heavy balance sheet (debt-to-equity ~1.28x in 2026).
Income Statement
74
Positive
Balance Sheet
60
Neutral
Cash Flow
42
Neutral
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue474.16B443.50B411.65B494.64B427.16B
Gross Profit62.91B55.61B53.68B53.59B36.76B
EBITDA73.53B53.74B60.05B48.37B38.20B
Net Income32.16B20.81B24.72B18.37B9.87B
Balance Sheet
Total Assets820.85B782.13B727.00B685.79B734.50B
Cash, Cash Equivalents and Short-Term Investments46.87B51.32B69.62B72.80B70.83B
Total Debt362.99B366.16B316.84B334.87B347.79B
Total Liabilities527.80B526.08B491.16B483.91B555.41B
Stockholders Equity284.09B249.26B229.30B195.12B173.00B
Cash Flow
Free Cash Flow-63.00M-67.87B6.17B21.51B4.69B
Operating Cash Flow38.61B15.61B62.21B43.77B30.59B
Investing Cash Flow-30.15B-74.55B-42.03B-24.60B-10.34B
Financing Cash Flow-13.51B39.23B-25.96B-19.16B-1.68B

Nishi-Nippon Railroad Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2796.00
Price Trends
50DMA
3013.45
Positive
100DMA
2967.36
Positive
200DMA
2895.43
Positive
Market Momentum
MACD
21.49
Negative
RSI
55.72
Neutral
STOCH
58.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9031, the sentiment is Positive. The current price of 2796 is below the 20-day moving average (MA) of 3055.10, below the 50-day MA of 3013.45, and below the 200-day MA of 2895.43, indicating a bullish trend. The MACD of 21.49 indicates Negative momentum. The RSI at 55.72 is Neutral, neither overbought nor oversold. The STOCH value of 58.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9031.

Nishi-Nippon Railroad Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
¥591.16B10.499.47%2.26%5.23%13.35%
68
Neutral
¥546.19B12.269.54%3.08%8.75%-6.80%
65
Neutral
¥244.38B6.8612.18%1.68%10.01%48.37%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
¥45.26B12.982.17%5.52%-6.89%
62
Neutral
¥331.42B12.981.61%3.35%12.80%
60
Neutral
¥634.60B17.427.55%3.17%2.63%-13.44%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9031
Nishi-Nippon Railroad Co., Ltd.
3,120.00
925.50
42.17%
JP:9142
Kyushu Railway Company
3,594.00
-357.29
-9.04%
JP:9007
Odakyu Electric Railway Co
1,785.00
148.90
9.10%
JP:9001
Tobu Railway Co
2,975.00
359.49
13.74%
JP:9044
Nankai Electric Railway Co., Ltd.
3,103.00
500.45
19.23%
JP:9052
Sanyo Electric Railway Co., Ltd.
2,031.00
-66.76
-3.18%

Nishi-Nippon Railroad Co., Ltd. Corporate Events

Nishi-Nippon Railroad Posts Strong Q1 Results, Keeps Profit Forecasts Unchanged
Aug 13, 2026
Nishi-Nippon Railroad reported strong consolidated results for the three months ended June 30, 2026, with operating revenue rising 14.2% year on year to ¥119.6 billion and profit attributable to owners of parent climbing 29.7% to ¥8.4 bi...
Nishi-Nippon Railroad lifts Q1 profits, maintains cautious full-year outlook and higher dividend
Aug 6, 2026
Nishi-Nippon Railroad reported a solid start to fiscal 2026, with operating revenue for the April–June quarter rising 14.2% year on year to ¥119.6 billion and profit attributable to owners of the parent climbing 29.7% to ¥8.4 billi...
Nishi-Nippon Railroad Extends Officer Stock Trust, Disposes Treasury Shares for Compensation
Aug 6, 2026
Nishi-Nippon Railroad has approved the disposal of 336,300 shares of treasury stock, worth about ¥980 million, to The Master Trust Bank of Japan for use in its stock-based compensation scheme. The shares will be allocated under existing retir...
Nishi-Nippon Railroad Delivers Profit Surge and Dividend Hike, Flags Earnings Normalization
May 21, 2026
Nishi-Nippon Railroad reported solid results for the fiscal year ended March 31, 2026, with operating revenue up 6.9% to ¥474.2 billion and profit attributable to owners of parent jumping 54.5% to ¥32.2 billion, helped by stronger ordina...
Nishi-Nippon Railroad Moves to Broaden Business Scope With Articles Amendment
May 21, 2026
Nishi-Nippon Railroad’s board has approved a proposal to partially amend its Articles of Incorporation, to be put to shareholders at the 186th Annual General Meeting scheduled for June 26, 2026. The revision broadens the stated corporate pur...
Nishi-Nippon Railroad Expands Stock-Based Pay to Align Executives With Shareholders
May 21, 2026
Nishi-Nippon Railroad has approved a revision of its executive compensation framework that increases the role of stock-based pay for directors and titled executive officers residing in Japan. The company will abolish its medium-term performance-li...
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 18, 2026