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Kyushu Railway Co 9142

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Stock XTKS Rating as of
¥3,327.00 +1.00 (0.03%)
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As of Delayed Price Closed

Company Report

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Kyushu Railway Has Solid Start; Earthquake Casts Shadow

Adrian Atkins, Alex Anderson

Kyushu Railway, or JR Kyushu, faces structural headwinds, including a declining and aging population. In addition, train travel in Kyushu is less popular than other, more densely populated and congested areas in Japan. Cars are a viable alternative, with around 60% of the island’s occupants owning a private vehicle. We expect greater earnings growth in the nonrailway segments, which have surpassed transportation earnings since fiscal 2021, driven by the pandemic hit on rail passenger numbers as well as investments in non-rail segments. We forecast the nonrailway segments to contribute about three-fourths of group earnings by fiscal 2028 from about 40% prepandemic.

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Price vs Fair Value

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9142 is trading within a range we consider fairly valued.
Price
¥3,327.00
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

JR Kyushu’s train station land has enabled the development of prime real estate in key locations such as Nagasaki and Fukuoka City.

Bears

Rail segment returns are at risk from Japan’s population decline.

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Trading Information

Previous Close Price
¥3,326.00
Day Range
¥3,326.00–3,365.00
52-Week Range
¥3,309.00–4,154.00
Bid/Ask
¥3,326.00 / ¥3,332.00
Shares Outstanding
153.83M
Market Cap
¥511.81B
Volume/Avg
712,600 / 782,766

Key Statistics

Price/Earnings (Normalized)
9.97
Price/Sales
1.01
Dividend Yield (Trailing)
3.55%
Dividend Yield (Forward)
3.64%
Dividend Payment Schedule
Jun, Dec
Total Yield
5.27%

Company Profile

Kyushu Railway, or JR Kyushu, is one of seven Japanese railway companies formed when the government privatized Japan Rail in 1987. The rail company services the island of Kyushu, which is just off the southern part of the Japanese mainland. Kyushu is colloquially referred to as the 10:10:10 region—covering about 10% of Japan’s landmass, housing about 10% of Japan’s population and producing about 10% of Japan’s gross domestic product. JR Kyushu operates three businesses: rail transportation; real estate and hotels; and construction, retail, restaurants, and business services.
Sector
Industrials
Industry
Conglomerates
Stock Style Box
Mid Value
Total Number of Employees
20,265
Website
https://www.jrkyushu.co.jp

Competitors

Valuation

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Metric
9142
9021
9020
Price/Earnings (Normalized)
 9.9710.3315.19
Price/Book Value
 1.031.081.25
Price/Sales
 1.010.731.30
Price/Cash Flow
 5.734.425.79
Price/Earnings
9142
9021
9020

Financial Strength

Metric
9142
9021
9020
Quick Ratio
 0.500.600.60
Current Ratio
 1.251.120.82
Interest Coverage
 13.288.384.72
Quick Ratio
9142
9021
9020

Profitability

Metric
9142
9021
9020
Return on Assets (Normalized)
 6.23%4.59%3.45%
Return on Equity (Normalized)
 15.49%14.79%11.97%
Return on Invested Capital (Normalized)
 8.07%6.75%5.34%
Return on Assets
9142
9021
9020

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