Kobe Electric Railway Co., Ltd. (9046) AI Stock Analysis

• Market Cap: ¥19.96B
• Dividend Yield: 0.81%
• Average Volume (3M): 15.10K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.43
• Revenue Growth: -0.12%
• EPS Growth: 10.36%
• Country: JP
• Employees: 884
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 73.08
• Shares Outstanding: 8,061,566
• 10 Day Avg. Volume: 8,010
• 30 Day Avg. Volume: 15,103
• PEG Ratio: 1.32
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 53.76
• 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

• Rating: 61 Neutral
• Price Target: ¥2,623.00 ▲(5.98% Upside)

Kobe Electric Railway Co., Ltd. has a stable financial position with moderate profitability and cash flow generation. However, the stock exhibits weak technical indicators, suggesting bearish momentum. The valuation metrics are neutral, providing no strong signals of undervaluation or overvaluation.

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

Company Description

Kobe Electric Railway Co., Ltd. (9046) is a prominent transportation company based in Japan, primarily engaged in the operation of railway services. The company operates several railway lines serving the Kobe area and its surrounding regions, contributing to urban mobility and regional connectivity. In addition to rail services, Kobe Electric Railway also invests in real estate development and engages in various ancillary businesses, including tourism and retail operations at its stations, enhancing the overall customer experience and revenue generation.

How the Company Makes Money

Kobe Electric Railway generates revenue primarily through its railway operations, which include passenger fares collected from commuters using its train services. The company also benefits from real estate development, leasing properties around its railway stations, and generating rental income. Additionally, revenue is supplemented by retail operations and tourism-related activities, particularly at stations that attract visitors. Partnerships with local businesses and tourism organizations further enhance the company's earnings potential, enabling it to diversify its income streams beyond traditional rail fare revenues.

Kobe Electric Railway Co., Ltd. Financial Statement Overview

Summary

Kobe Electric Railway Co., Ltd. exhibits stable financial performance with moderate profitability and cash flow generation. The company faces challenges in revenue growth and carries significant leverage, which could impact financial flexibility. However, its operational efficiency and cash conversion remain strengths, providing a balanced financial outlook.

Income Statement

Kobe Electric Railway Co., Ltd. demonstrates moderate profitability with a consistent gross profit margin averaging around 20% over the years, which is healthy for the railroads industry. The company has also shown positive EBIT and EBITDA margins, indicating efficiency in operations. However, revenue growth has been relatively flat, with some fluctuations, suggesting challenges in expanding the top line significantly.

Balance Sheet

The company maintains a high debt-to-equity ratio, reflecting significant leverage, which could pose financial risks. However, the equity ratio shows that a fair portion of the company's assets is financed by equity. The return on equity has been positive but modest, indicating some profitability but also room for improvement in generating returns for shareholders.

Cash Flow

Kobe Electric Railway Co., Ltd. has shown stable operating cash flows and positive free cash flow generation in recent years, despite negative free cash flow in some past periods. The operating cash flow to net income ratio is strong, suggesting good cash conversion capabilities. However, free cash flow growth has been inconsistent, highlighting potential volatility in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.36B	22.13B	22.31B	21.32B	20.52B	20.23B
Gross Profit	4.80B	4.62B	4.48B	3.98B	3.63B	3.28B
EBITDA	4.54B	4.40B	4.18B	3.75B	3.65B	3.41B
Net Income	1.19B	1.15B	1.02B	676.00M	519.00M	187.00M
Balance Sheet
Total Assets	89.79B	90.68B	90.45B	90.80B	92.35B	92.89B
Cash, Cash Equivalents and Short-Term Investments	1.48B	1.05B	1.47B	1.44B	1.26B	1.37B
Total Debt	54.66B	54.44B	54.88B	57.15B	58.84B	60.48B
Total Liabilities	65.82B	67.14B	67.51B	69.56B	71.73B	72.72B
Stockholders Equity	23.96B	23.54B	22.94B	21.24B	20.63B	20.17B
Cash Flow
Free Cash Flow	0.00	355.00M	1.93B	1.65B	1.08B	-652.00M
Operating Cash Flow	0.00	2.96B	3.78B	3.42B	2.81B	1.88B
Investing Cash Flow	0.00	-2.02B	-1.32B	-1.35B	-1.07B	-1.36B
Financing Cash Flow	0.00	-1.36B	-2.44B	-1.89B	-1.84B	-328.00M

Kobe Electric Railway Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2475.00
• 50DMA: Negative
• 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:9046, the sentiment is Positive. The current price of 2475 is below the 20-day moving average (MA) of 2499.90, below the 50-day MA of 2513.82, and above the 200-day MA of 2405.81, indicating a neutral trend. The MACD of -21.88 indicates Positive momentum. The RSI at 47.40 is Neutral, neither overbought nor oversold. The STOCH value of 61.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9046.

Kobe Electric Railway Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9044	78 Outperform	¥315.59B	13.49	―	1.69%	7.02%	-11.48%
9049	70 Outperform	¥13.54B	7.56	―	0.28%	1.27%	-6.53%
9052	65 Neutral	¥45.82B	12.18	―	1.93%	2.43%	34.21%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9033	63 Neutral	¥18.58B	12.55	―	1.31%	6.14%	191.46%
9081	63 Neutral	¥43.81B	12.76	―	2.49%	1.10%	-29.92%
9046	61 Neutral	¥19.96B	16.64	―	0.81%	-0.12%	10.36%

Kobe Electric Railway Co., Ltd. Corporate Events

Kobe Electric Railway Reports Strong Q1 Financial Performance

Kobe Electric Railway Co., Ltd. reported a 4.2% increase in operating revenue for the three months ended June 30, 2025, compared to the same period last year. The company’s operating profit rose by 17.9%, indicating strong operational performance. Despite a slight decline in comprehensive income, the company maintained a stable financial position with a slight increase in net assets and equity-to-asset ratio. The forecast for the fiscal year ending March 31, 2026, suggests a moderate growth in operating revenue and profit, although profit attributable to owners is expected to slightly decrease.