Tobu Railway Co., Ltd. (9001) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

West Japan Railway Co.

Tobu Railway Co., Ltd.

Odakyu Electric Railway Co., Ltd.

Kyushu Railway Co.

Keihan Holdings Co., Ltd.

Kobe Electric Railway Co. Ltd.

East Japan Railway Co.

Chichibu Railway Co., Ltd.

Keisei Electric Railway Co., Ltd.

Keikyu Corp.

Why is Tobu Railway Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.68%

The company has been able to generate a Return on Capital Employed (avg) of 3.68% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -0.70% and Operating profit at 3.55% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 5.54% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -0.70% and Operating profit at 3.55% over the last 5 years

Flat results in Dec 25

INTEREST(HY) At JPY 3,882 MM has Grown at 24.34%
INVENTORY TURNOVER RATIO(HY) Lowest at 13.24 times

With ROCE of 5.75%, it has a very attractive valuation with a 0.96 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 7.21%, its profits have fallen by -13.7%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tobu Railway Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Tobu Railway Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tobu Railway Co., Ltd.

7.21%

0.24

18.78%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.70%

EBIT Growth (5y)

3.55%

EBIT to Interest (avg)

7.43

Debt to EBITDA (avg)

9.20

Net Debt to Equity (avg)

1.34

Sales to Capital Employed (avg)

0.48

Tax Ratio

31.98%

Dividend Payout Ratio

23.72%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

3.68%

ROE (avg)

5.54%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.90

EV to EBIT

16.68

EV to EBITDA

9.71

EV to Capital Employed

0.96

EV to Sales

1.97

PEG Ratio

Dividend Yield

0.02%

ROCE (Latest)

5.75%

ROE (Latest)

7.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

ROCE(HY)

Highest at 9.97%

RAW MATERIAL COST(Y)

Fallen by 0.55% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 126.47 %

OPERATING PROFIT(Q)

Highest at JPY 36,394 MM

PRE-TAX PROFIT(Q)

Highest at JPY 33,981 MM

NET PROFIT(Q)

Highest at JPY 23,682.59 MM

EPS(Q)

Highest at JPY 120.93

-9What is not working for the Company

INTEREST(HY)

At JPY 3,882 MM has Grown at 24.34%

INVENTORY TURNOVER RATIO(HY)

Lowest at 13.24 times

Here's what is working for Tobu Railway Co., Ltd.

Operating Profit

Highest at JPY 36,394 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 33,981 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 23,682.59 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 120.93

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Lowest at 126.47 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by 0.55% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Tobu Railway Co., Ltd.

Interest

At JPY 3,882 MM has Grown at 24.34%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 13.24 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio