TipRanks
Go Ultimate55% OFF

West Japan Railway (WJRYY) AI Stock Analysis

WJRYY

West Japan Railway

(Other OTC:WJRYY)

Select Model
Rating:66Neutral
Price Target:$20.00â–²(2.06% Upside)
Action:reiterated
Date:08/06/26

The score is driven primarily by improving financial performance but held back by leverage and inconsistent free cash flow. Valuation is a key positive (low P/E and a solid dividend yield), while technical signals are mixed with neutral momentum and the price still below the long-term average.

Positive Factors
Revenue & Margin RecoveryRevenue growth (~13.0% in FY2026) and margin recovery (EBIT ~10.7%) indicate a durable demand rebound and improved operating leverage across core rail services. Sustained margin expansion strengthens cash generation from operations and supports station retail and development investments over months.
Negative Factors
Elevated LeverageLeverage remains meaningfully elevated (FY2026 debt-to-equity ~1.28x and historically higher), which reduces financial flexibility. High debt increases interest and refinancing burdens, limits buffer for downturns, and constrains the company's ability to pursue opportunistic investments without raising more debt.

West Japan Railway (WJRYY) vs. SPDR S&P 500 ETF (SPY)

-30%-20%-10%0%10%20%WJRYY-4.85%SPY+11.79%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
$8.87B
Dividend Yield
3.15%
Average Volume (3M)
14.98K
Price to Earnings (P/E)
11.9
Beta (1Y)
0.06
Revenue Growth
3.18%
EPS Growth
-5.97%
Country
US
Employees
47,225
Sector
Industrials
Sector Strength
63
Industry
Railroads

West Japan Railway Business Overview & Revenue Model

Company Description

Founded in 1987 and based in Osaka, Japan, West Japan Railway Company is a key provider of passenger rail services across the nation. Its operations are segmented into four main areas: Transportation, Retail, Real Estate, and various Other Businesses...

How the Company Makes Money

The company primarily earns revenue by operating passenger rail services and monetizing the station-and-corridor ecosystem around its rail network. Key revenue streams include: (1) Transportation revenue: Fare revenue from commuter, regional, and lon...

West Japan Railway Financial Statement Overview

Summary

Operating recovery is clear (income statement score 74) with improving revenue and profitability, but overall quality is constrained by elevated leverage (balance sheet score 63) and uneven free cash flow with weak FY2026 conversion (cash flow score 56).

Income Statement

74Positive

Balance Sheet

63Positive

Cash Flow

56Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue1.87T1.96T1.71T1.64T1.40T1.03T
Gross Profit462.55B490.20B418.18B395.45B268.70B43.25B
EBITDA360.29B398.60B353.35B328.61B245.33B41.78B
Net Income119.10B135.19B113.96B98.76B88.53B-113.20B
Balance Sheet
Total Assets3.90T4.00T3.75T3.78T3.74T3.70T
Cash, Cash Equivalents and Short-Term Investments199.91B236.23B125.62B233.47B290.17B319.92B
Total Debt1.56T1.55T1.44T1.48T1.57T1.64T
Total Liabilities2.55T2.66T2.47T2.55T2.59T2.63T
Stockholders Equity1.22T1.21T1.16T1.11T1.03T968.94B
Cash Flow
Free Cash Flow083.23B281.43B68.96B27.95B-326.95B
Operating Cash Flow0383.44B281.43B318.31B273.96B-86.47B
Investing Cash Flow0-268.99B-263.11B-243.65B-214.90B-188.71B
Financing Cash Flow079.52M-126.17B-131.62B-88.77B384.69B

West Japan Railway Technical Analysis

Technical Analysis SentimentPositive
Last Price19.60

Price Trends

50DMA19.03Positive
100DMA18.37Positive
200DMA18.89Positive

Market Momentum

MACD0.18Negative
RSI57.42Neutral
STOCH22.89Neutral

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 19.60 is above the 20-day moving average (MA) of 18.94, above the 50-day MA of 19.03, and above the 200-day MA of 18.89, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 57.42 is Neutral, neither overbought nor oversold. The STOCH value of 22.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WJRYY.

West Japan Railway Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

WJRYY against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
NSCNSC78Outperform$76.96B28.7016.69%1.58%5.99%-9.02%
UNPUNP75Outperform$180.65B23.6637.82%1.83%7.40%8.86%
CSXCSX74Outperform$95.84B26.9425.95%1.06%5.80%25.25%
WJRYYWJRYY66Neutral$8.92B11.939.82%3.15%3.18%-5.97%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
AALAAL41Neutral$8.35B-17.2612.03%―12.32%-179.51%
ALKALK41Neutral$3.99B-10.12-10.50%―8.23%-370.75%

* Industrials Sector Average

Performance Comparison

-20%0%20%40%WJRYYALKCSXNSCUNPAALDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
WJRYY and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
WJRYYWest Japan Railway (WJRYY)19.60-0.91-4.45%
ALKAlaska Air Group35.71-5.36-13.05%
CSXCSX Corporation51.9916.6246.97%
NSCNorfolk Southern Corp342.6465.3623.57%
UNPUnion Pacific Corporation304.0089.7041.86%
AALAmerican Airlines Group Inc12.60-0.74-5.55%
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 06, 2026