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Kyushu Railway Company (9142) AI Stock Analysis

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JP:9142

Kyushu Railway Company

(TSE/TYO:9142)

Select Model
Rating:73Outperform
Price Target:JPY 4,218.00â–²(12.63% Upside)
Action:upgraded
Date:11/06/26

The score is anchored by improved profitability and margins but held back by persistently negative free cash flow and some balance-sheet consistency questions. Technicals add support with strong trend alignment and positive momentum, while valuation is favorable with a moderate P/E and a ~3.1% dividend yield.

Positive Factors
Profitability RecoveryThe recovery from substantial losses to solid profitability shows that JR Kyushu has restored earnings power as transportation and related businesses scale. Higher revenue, gross margin, and EBIT margin provide a stronger operating base that can support investment and resilience over the next several quarters.
Negative Factors
Negative Free Cash FlowPersistent negative free cash flow indicates that ongoing investment requirements exceed internally generated cash after operating needs. For a capital-intensive railroad, this can constrain discretionary spending, reduce financial flexibility, and increase reliance on balance-sheet funding to sustain growth and infrastructure.

Kyushu Railway Company (9142) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%JP:9142-0.48%EWJ+15.69%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 560.09B
Dividend Yield
3.15%
Average Volume (3M)
880.11K
Price to Earnings (P/E)
12.9
Beta (1Y)
0.17
Revenue Growth
5.30%
EPS Growth
3.85%
Country
Japan
Employees
15,365
Sector
General
Sector Strength
55
Industry
Railroads

Kyushu Railway Company Business Overview & Revenue Model

Company Description

Kyushu Railway Company is a Japanese corporation primarily known for its extensive railway network operations. The enterprise diversifies its activities across several key segments: Transportation, Construction, Real Estate and Hospitality, Retail an...

How the Company Makes Money

JR Kyushu earns revenue through multiple business segments built around its rail network and regional footprint. (1) Transportation (railway) revenue: The core earnings driver is passenger transportation, primarily from fares and surcharges paid by c...

Kyushu Railway Company Financial Statement Overview

Summary

Strong operating recovery and scale gains (revenue up materially since 2021; EBIT margin improved to 14.8% in 2026; gross margin expanded), but the cash-flow profile is a key drag: free cash flow is negative in every year shown (including -13.1B in 2026), which limits near-term flexibility for a capital-intensive railroad. Balance sheet leverage appears much lower in 2026 (debt-to-equity 0.09), but the sharp shift vs. prior years adds uncertainty.

Income Statement

78Positive

Balance Sheet

72Positive

Cash Flow

54Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue509.24B500.39B454.39B420.40B383.24B329.53B
Gross Profit213.34B213.08B183.99B159.42B133.49B92.21B
EBITDA97.82B104.28B97.83B85.55B73.82B37.17B
Net Income44.62B45.47B43.66B38.45B31.17B13.25B
Balance Sheet
Total Assets1.26T1.22T1.16T1.10T1.01T963.33B
Cash, Cash Equivalents and Short-Term Investments45.95B44.97B46.08B62.26B52.30B78.74B
Total Debt506.63B467.92B434.17B415.17B362.20B335.17B
Total Liabilities756.84B727.56B696.62B661.68B602.36B574.31B
Stockholders Equity505.98B493.93B456.51B441.43B406.05B388.33B
Cash Flow
Free Cash Flow0-13.06B-16.25B-44.62B-42.71B-45.02B
Operating Cash Flow072.85B96.67B89.03B62.08B56.46B
Investing Cash Flow0-87.13B-107.41B-111.89B-97.58B-95.73B
Financing Cash Flow012.51B-6.93B32.25B8.96B52.54B

Kyushu Railway Company Technical Analysis

Technical Analysis SentimentPositive
Last Price3745.00

Price Trends

50DMA3468.81Positive
100DMA3471.58Positive
200DMA3570.56Positive

Market Momentum

MACD75.30Negative
RSI64.15Neutral
STOCH75.07Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9142, the sentiment is Positive. The current price of 3745.00 is above the 20-day moving average (MA) of 3503.95, above the 50-day MA of 3468.81, and above the 200-day MA of 3570.56, indicating a bullish trend. The MACD of 75.30 indicates Negative momentum. The RSI at 64.15 is Neutral, neither overbought nor oversold. The STOCH value of 75.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9142.

Kyushu Railway Company Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:9142 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:9022JP:902279OutperformJPY 4.06T7.7210.57%0.75%4.99%6.51%
JP:9142JP:914273OutperformJPY 560.09B12.919.00%3.15%5.30%3.85%
JP:9021JP:902170OutperformJPY 1.48T13.309.38%3.01%4.80%-10.55%
JP:9031JP:903165NeutralJPY 238.47B7.6210.62%2.94%8.35%9.73%
JP:9001JP:900164NeutralJPY 568.22B9.1910.19%2.52%3.47%28.64%
JP:9020JP:902059NeutralJPY 4.39T17.898.23%2.07%8.51%9.19%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%20%JP:9142JP:9022JP:9020JP:9001JP:9021JP:9031Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:9142 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:9142Kyushu Railway Company3745.00-30.80-0.82%
JP:9022Central Japan Railway Company4391.00411.2010.33%
JP:9020East Japan Railway Company4005.00322.678.76%
JP:9001Tobu Railway Co 2980.50532.1121.73%
JP:9021West Japan Railway Company3355.00412.8314.03%
JP:9031Nishi-Nippon Railroad Co., Ltd.3064.00633.8326.08%

Kyushu Railway Company Corporate Events

Kyushu Railway Sets ¥60.50 Interim Dividend

Nov 4, 2026

Kyushu Railway Company is a railway and transportation services provider focused on Kyushu, Japan, and listed on the Tokyo and Fukuoka stock exchanges.Its board resolved on November 4, 2026, to pay an interim dividend of ¥60.50 per share to sharehold...

Kyushu Railway Reports Higher Revenue but Lower Interim Profit

Nov 4, 2026

Kyushu Railway Company is a Kyushu-focused transportation group providing railway passenger services alongside real estate, retail and hospitality businesses. The company is listed in Tokyo and Fukuoka and serves regional mobility and related consume...

Kyushu Railway Reports Earthquake Damage and Cuts Earnings Outlook

Nov 4, 2026

Kyushu Railway Company, a Kyushu-focused railway and facilities operator, reported damage from the July 28, 2026 Kumamoto Earthquake that disrupted Shinkansen and conventional-line services, reduced train frequencies and temporarily closed some stati...

Kyushu Railway Sets Timetable to Restore Services After Kumamoto Earthquake

Aug 27, 2026

Kyushu Railway Company has outlined a phased restoration plan for services disrupted by the July 28 Kumamoto Earthquake, providing new target dates for resuming operations on two major routes. The Kyushu Shinkansen segment between Kumamoto and Shin-M...

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: Nov 06, 2026