Kobe Electric Railway Co., Ltd. AI Stock Analysis
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Kobe Electric Railway Co., Ltd. (9046) AI Stock Analysis
Kobe Electric Railway Co., Ltd.
(TSE/TYO:9046)
Kobe Electric Railway earns an overall score in the mid-70s, driven primarily by improving financial performance: revenues and margins have strengthened, ROE is rising, and leverage is gradually declining, signaling a company on a constructive recovery path albeit still constrained by high debt and volatile free cash flow. Technicals add a supportive layer, with the share price trading slightly above tightly clustered moving averages and momentum indicators (MACD, RSI, stochastic) suggesting steady, low-volatility upside rather than speculative excess. Valuation is reasonable, with a mid-teens P/E and a modest 1% dividend yield that together reflect fair pricing for a stable, capital-intensive rail business, offering moderate return potential without clear deep-value or high-growth characteristics.
Kobe Electric Railway Co., Ltd. (9046) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 18.17B
- Dividend Yield
- 1.10%
- Average Volume (3M)
- 13.47K
- Price to Earnings (P/E)
- 12.6
- Beta (1Y)
- 0.31
- Revenue Growth
- 3.47%
- EPS Growth
- 15.79%
- Country
- Japan
- Employees
- 827
- Sector
- General
- Sector Strength
- 55
- Industry
- Railroads
Kobe Electric Railway Co., Ltd. Business Overview & Revenue Model
Company Description
Kobe Electric Railway Co., Ltd., a transportation enterprise founded in 1926 and based in Kobe, Japan, primarily engages in operating railway lines across the country. Its rail network features the 22.5-kilometer Arima Line, the 12.0-kilometer Mita L...
How the Company Makes Money
The company primarily makes money by operating passenger railway services. Its main revenue stream is fare revenue collected from riders who use its train services, including commuting and other local travel on its routes. Additional revenue commonly...
Kobe Electric Railway Co., Ltd. Financial Statement Overview
Summary
Financial performance is solid and improving, led by steady revenue growth and a meaningful rise in profitability, with net margin expanding from under 1% to over 6% and ROE nearly tripling, though still moderate for a leveraged rail operator. The balance sheet remains heavily indebted with a debt-to-equity ratio around 2.1x despite gradual improvement, and cash generation, while generally supportive of investment needs, is uneven with volatile free cash flow and a low operating cash flow-to-debt ratio. Overall, fundamentals are sound with a clear recovery trend, but the leveraged capital structure and lumpy free cash flow keep risk at a mid-range level rather than best-in-class.
Income Statement
76PositiveBalance Sheet
62PositiveCash Flow
58Neutral| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.43B | 23.35B | 22.13B | 22.31B | 21.32B | 20.52B |
| Gross Profit | 5.17B | 5.27B | 4.35B | 4.17B | 3.66B | 3.30B |
| EBITDA | 4.86B | 4.99B | 4.40B | 4.19B | 3.75B | 3.66B |
| Net Income | 1.38B | 1.46B | 1.15B | 1.02B | 676.00M | 519.00M |
Balance Sheet | ||||||
| Total Assets | 92.32B | 93.49B | 90.86B | 90.64B | 91.09B | 92.60B |
| Cash, Cash Equivalents and Short-Term Investments | 1.73B | 1.32B | 1.05B | 1.47B | 1.44B | 1.26B |
| Total Debt | 54.66B | 53.90B | 55.73B | 56.25B | 58.74B | 60.66B |
| Total Liabilities | 66.55B | 68.20B | 67.32B | 67.69B | 69.85B | 71.97B |
| Stockholders Equity | 25.76B | 25.29B | 23.54B | 22.94B | 21.24B | 20.63B |
Cash Flow | ||||||
| Free Cash Flow | 0 | -153.00M | 355.00M | 1.93B | 1.65B | 1.08B |
| Operating Cash Flow | 0 | 3.84B | 2.96B | 3.78B | 3.42B | 2.81B |
| Investing Cash Flow | 0 | -2.39B | -2.02B | -1.32B | -1.35B | -1.07B |
| Financing Cash Flow | 0 | -1.18B | -1.36B | -2.44B | -1.89B | -1.84B |
Kobe Electric 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:9046, the sentiment is Negative. The current price of 2277.00 is below the 20-day moving average (MA) of 2287.90, below the 50-day MA of 2376.94, and below the 200-day MA of 2428.81, indicating a bearish trend. The MACD of -30.96 indicates Negative momentum. The RSI at 42.33 is Neutral, neither overbought nor oversold. The STOCH value of 54.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9046.
Kobe Electric Railway Co., Ltd. Peers Comparison
Overall Rating
- JP:904673.9Outperform
JP:904969Neutral
JP:904466Neutral
JP:903165Neutral
JP:903363.5Neutral
JP:905263Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:9046 | 74Outperform | JPY 18.24B | 12.57 | ― | 1.10% | 3.47% | 15.79% |
| JP:9049 | 69Neutral | JPY 12.58B | 6.03 | ― | 0.32% | -0.86% | 15.45% |
| JP:9044 | 66Neutral | JPY 332.72B | 13.00 | ― | 1.73% | 6.91% | 11.37% |
| JP:9031 | 65Neutral | JPY 240.20B | 6.75 | 12.40% | 2.98% | 8.35% | 9.73% |
| JP:9033 | 64Neutral | JPY 18.98B | 12.45 | ― | 1.28% | 18.12% | 2.46% |
| JP:9052 | 63Neutral | JPY 42.71B | 12.12 | ― | 2.62% | 5.52% | -6.89% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:9046 | Kobe Electric Railway Co., Ltd. | 2277.00 | -79.81 | -3.39% | |
| JP:9031 | Nishi-Nippon Railroad Co., Ltd. | 3025.00 | 587.54 | 24.10% | |
| JP:9033 | Hiroshima Electric Railway Co., Ltd. | 626.00 | 28.58 | 4.78% | |
| JP:9044 | Nankai Electric Railway Co., Ltd. | 3041.00 | 266.03 | 9.59% | |
| JP:9049 | Keifuku Electric Railroad Co., Ltd. | 6330.00 | -901.53 | -12.47% | |
| JP:9052 | Sanyo Electric Railway Co., Ltd. | 1912.00 | -57.73 | -2.93% |
Kobe Electric Railway Co., Ltd. Corporate Events
Kobe Electric Railway Posts Profit Decline Amid Modest Revenue Growth
Kobe Electric Railway reported consolidated operating revenue of ¥5,862 million for the three months ended June 30, 2026, up 1.4% year on year, but operating profit fell 13.4% to ¥843 million and profit attributable to owners of parent declined 13.5%...
Kobe Electric Railway Details Ties to Hankyu Hanshin, Stresses Operational Independence
Kobe Electric Railway Co., Ltd. disclosed its relationship with Hankyu Hanshin Holdings, Inc., identifying HH as an other affiliated company and its largest shareholder with 27.97% of voting rights, rising to 28.95% including indirect holdings. The f...
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