West Japan Railway (WJRYY) AI Stock Analysis

• Market Cap: $10.41B
• Dividend Yield: 1.49%
• Average Volume (3M): 458.00
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.21
• Revenue Growth: -3.15%
• EPS Growth: 79.62%
• Country: US
• Employees: 44,366
• Sector: Industrials
• Sector Strength: 83
• Industry: Railroads
• EPS (TTM): >-0.01
• Shares Outstanding: 471,009,800
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 458
• PEG Ratio: -0.09
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 47.82
• 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: 76 Outperform
• Price Target: ―

West Japan Railway's strong financial recovery and solid technical indicators contribute to a positive outlook. Reasonable valuation and moderate dividend yield offer additional appeal. Continued financial stability and momentum support a favorable stock position, while caution is advised due to near-overbought technical levels.

West Japan Railway Business Overview & Revenue Model

Company Description

West Japan Railway Company provides passenger railway transport services in Japan. The company operates through Transportation Operations, Retail Business, Real Estate Business, and Other Businesses segments. It operates a route length of 4,903.1 kilometers, comprising Shinkansen route of 812.6 kilometers and conventional lines of 4,090.5 kilometers; and 1,174 stations, as well as bus and ferry services. The company also engages in the selling of goods and food services; wholesaling; and other retail businesses. It is also involved in the operation of department stores, convenience stores, restaurants, souvenir shops, shopping centers, and others; selling and leasing of real estate; hotel; credit cards and electronic money; and travel, rolling stock and equipment, electrical contracting, electrical equipment, construction, information services, advertising, and other businesses. The company was founded in 1987 and is headquartered in Osaka, Japan.

How the Company Makes Money

JR West generates revenue through several key streams. The primary source of income is its railway operations, which include passenger fares from local, rapid, and Shinkansen (bullet train) services. Additionally, the company earns from non-railway operations such as retail, through its shopping centers and convenience stores located in and around stations, and real estate, by developing and leasing commercial and residential properties. Tourism services, including travel packages and hotel operations, also contribute to its earnings. Significant partnerships with local governments and businesses enhance its service offerings and expand its market reach, further supporting its revenue.

West Japan Railway Financial Statement Overview

Summary

West Japan Railway has shown a strong recovery with significant revenue growth and improved profitability. The balance sheet is stable with moderate leverage, and cash flow metrics indicate robust cash generation. Continued focus on debt reduction could enhance financial stability.

Income Statement

West Japan Railway shows a strong recovery in its income statement with a significant revenue growth rate of 17.13% from the previous year, indicating robust sales performance. The gross profit margin improved to 24.18% from 19.25%, reflecting better cost management. The net profit margin is now at 6.04%, a healthy improvement from prior losses, showing restored profitability. EBIT and EBITDA margins have also improved to 10.99% and 20.09% respectively, showcasing operational efficiency gains.

Balance Sheet

The balance sheet shows a stable financial position with a debt-to-equity ratio of 1.33, indicating moderate leverage. The return on equity is 8.93%, which is a solid return for shareholders. The equity ratio is 29.27%, suggesting a balanced capital structure, though there is room for improvement in reducing debt levels to enhance financial flexibility.

Cash Flow

The cash flow statement reflects positive developments, with a 146.72% growth in free cash flow, indicating improved cash management and operational efficiency. The operating cash flow to net income ratio is 3.22, suggesting strong cash generation relative to earnings. The free cash flow to net income ratio is 0.70, showing a decent conversion of earnings into cash.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.67T	1.64T	1.40T	1.03T	898.17B	1.51T
	Gross Profit
408.94B	395.45B	268.70B	43.25B	-77.42B	378.06B
	EBIT
185.77B	179.75B	83.97B	-119.09B	-245.54B	160.63B
	EBITDA
310.54B	328.61B	245.33B	61.27B	-72.08B	331.08B
	Net Income Common Stockholders
103.72B	98.76B	88.53B	-113.20B	-233.21B	89.38B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
134.72B	233.47B	290.17B	319.92B	210.31B	78.66B
	Total Assets
3.61T	3.78T	3.74T	3.70T	3.48T	3.28T
	Total Debt
1.40T	1.48T	1.57T	1.64T	1.48T	1.00T
	Net Debt
1.27T	1.24T	1.28T	1.32T	1.27T	922.43B
	Total Liabilities
2.40T	2.55T	2.59T	2.63T	2.52T	2.05T
	Stockholders Equity
1.10T	1.11T	1.03T	968.94B	852.91B	1.12T
Cash Flow		Free Cash Flow
162.62B	68.96B	27.95B	-326.95B	-345.34B	-25.00B
	Operating Cash Flow
162.62B	318.31B	273.96B	-86.47B	-103.30B	240.15B
	Investing Cash Flow
0.00	-243.65B	-214.90B	-188.71B	-211.69B	-268.66B
	Financing Cash Flow
0.00	-131.62B	-88.77B	384.69B	446.75B	-29.17B

West Japan Railway Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WJRYY, the sentiment is Positive. The current price of 22.43 is above the 20-day moving average (MA) of 21.75, above the 50-day MA of 21.41, and above the 200-day MA of 19.31, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 64.70 is Neutral, neither overbought nor oversold. The STOCH value of 93.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WJRYY.

West Japan Railway Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WAB	83 Outperform	$34.38B	31.49	10.62%	0.50%	5.21%	24.15%
NSC	78 Outperform	$56.84B	17.22	24.52%	2.16%	0.70%	135.08%
WJRYY	76 Outperform	$10.41B	14.15	9.93%	1.49%	-3.15%	79.62%
CSX	73 Outperform	$61.17B	19.40	26.13%	1.62%	-2.39%	-7.80%
GATX	73 Outperform	$5.41B	19.19	11.64%	1.61%	12.07%	11.93%
UNP	71 Outperform	$134.22B	20.24	42.47%	2.43%	0.63%	5.93%
Sector *	66 Neutral	$4.46B	12.15	5.40%	4.71%	4.16%	-11.97%