Hiroshima Electric Railway Co., Ltd. (9033) AI Stock Analysis

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Hiroshima Electric Railway Co., Ltd.

(TSE/TYO:9033)

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Rating:68Neutral

Price Target:JPY 689.00▲(10.95% Upside)

Action:reiterated

Date:08/17/26

Hiroshima Electric Railway achieves a score of 68, driven primarily by excellent technical momentum and an attractive valuation multiple. While the stock's price action and P/E ratio are robust strengths, the overall score is constrained by mixed financial performance. Although the balance sheet is secure and revenues are growing, heavy cash burn and operating losses present notable ongoing risks.

Positive Factors

Revenue GrowthSustained revenue improvement indicates recovering demand and ridership or transport activity. Continued top-line growth can improve operating leverage over the next several quarters if the company controls costs and converts higher volume into stronger margins.

Negative Factors

Weak Operating ProfitabilityPersistent operating losses show that revenue growth has not yet translated into durable core-business profitability. Thin margins leave limited protection against wage, energy, maintenance, or other cost increases, making earnings recovery dependent on execution.

Hiroshima Electric Railway Co., Ltd. (9033) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 18.87B
Dividend Yield: 1.29%
Average Volume (3M): 12.80K
Price to Earnings (P/E): 12.4
Beta (1Y): 0.27
Revenue Growth: 24.87%
EPS Growth: 4.87%
Country: Japan
Employees: 2,241
Sector: General
Sector Strength: 55
Industry: Railroads

Hiroshima Electric Railway Co., Ltd. Business Overview & Revenue Model

Company Description

Hiroshima Electric Railway Co., Ltd. operates a diverse range of services in Japan, primarily encompassing bus and railway transportation. Beyond transit, the company also engages in real estate, including the sale of condominiums and residential lan...

How the Company Makes Money

Hiroshima Electric Railway primarily makes money by charging fares for passenger transportation on its streetcar (tram) network and other transport services it operates. Core revenue is generated from ridership volumes multiplied by fare levels, incl...

Hiroshima Electric Railway Co., Ltd. Financial Statement Overview

Summary

The company exhibits stabilizing top-line growth and a resilient, moderately leveraged balance sheet appropriate for its sector. However, fundamental challenges remain, particularly persistent negative free cash flow due to heavy capital expenditures and a struggle to achieve core operating profitability.

Income Statement

65Positive

Balance Sheet

70Positive

Cash Flow

40Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	39.68B	37.47B	33.71B	30.47B	27.45B	27.39B
Gross Profit	6.99B	6.37B	4.65B	4.46B	1.99B	765.00M
EBITDA	5.07B	5.07B	4.01B	3.62B	3.90B	1.78B
Net Income	1.52B	1.16B	1.38B	656.00M	943.00M	-1.05B
Balance Sheet
Total Assets	104.28B	108.72B	104.08B	98.40B	94.11B	92.50B
Cash, Cash Equivalents and Short-Term Investments	3.02B	3.27B	4.05B	3.97B	4.45B	5.29B
Total Debt	27.42B	30.58B	28.36B	26.54B	28.31B	27.17B
Total Liabilities	57.50B	63.20B	61.32B	56.79B	54.88B	53.81B
Stockholders Equity	45.62B	44.37B	41.72B	40.65B	38.36B	37.81B
Cash Flow
Free Cash Flow	0	-3.38B	-2.27B	1.61B	-3.95B	-4.87B
Operating Cash Flow	0	1.71B	5.08B	5.53B	449.00M	-1.12B
Investing Cash Flow	0	-4.31B	-5.57B	-3.65B	-2.15B	-3.56B
Financing Cash Flow	0	1.78B	604.00M	-2.36B	894.00M	4.66B

Hiroshima Electric Railway Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price621.00

Price Trends

50DMA625.58Negative

100DMA625.29Negative

200DMA626.37Negative

Market Momentum

MACD-0.80Negative

RSI45.34Neutral

STOCH64.71Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9033, the sentiment is Negative. The current price of 621.00 is above the 20-day moving average (MA) of 620.40, below the 50-day MA of 625.58, and below the 200-day MA of 626.37, indicating a bearish trend. The MACD of -0.80 indicates Negative momentum. The RSI at 45.34 is Neutral, neither overbought nor oversold. The STOCH value of 64.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9033.

Hiroshima Electric Railway Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:9033 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:9049	69Neutral	JPY 12.44B	6.03	―	0.32%	-0.86%	15.45%
JP:9033	68Neutral	JPY 18.77B	12.43	―	1.29%	24.87%	4.87%
JP:9044	66Neutral	JPY 340.19B	13.33	―	1.65%	6.91%	11.37%
JP:9031	65Neutral	JPY 241.55B	7.71	10.62%	2.90%	8.35%	9.73%
JP:9052	63Neutral	JPY 42.13B	13.51	―	2.62%	4.82%	-25.02%
JP:9046	59Neutral	JPY 18.49B	12.54	―	1.10%	3.47%	15.79%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:9033 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9033	Hiroshima Electric Railway Co., Ltd.	621.00	26.54	4.46%
JP:9031	Nishi-Nippon Railroad Co., Ltd.	3101.00	670.83	27.60%
JP:9044	Nankai Electric Railway Co., Ltd.	3176.00	419.72	15.23%
JP:9046	Kobe Electric Railway Co., Ltd.	2280.00	-75.82	-3.22%
JP:9049	Keifuku Electric Railroad Co., Ltd.	6330.00	-1440.15	-18.53%
JP:9052	Sanyo Electric Railway Co., Ltd.	1905.00	-64.73	-3.29%

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 17, 2026

Hiroshima Electric Railway Co., Ltd. AI Stock Analysis