ScoreWhy is West Japan Railway Co. ?
1
Poor Management Efficiency with a low ROCE of 3.62%
- The company has been able to generate a Return on Capital Employed (avg) of 3.62% signifying low profitability per unit of total capital (equity and debt)
2
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 2.52% and Operating profit at 2.32% 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 6.55% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 2.52% and Operating profit at 2.32% over the last 5 years
4
Flat results in Dec 25
- INTEREST(HY) At JPY 10,883 MM has Grown at 11.2%
- INVENTORY TURNOVER RATIO(HY) Lowest at 5.88 times
- DEBTORS TURNOVER RATIO(HY) Lowest at 9.8 times
5
With ROCE of 7.28%, it has a very attractive valuation with a 1.13 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 4.89%, its profits have risen by 2.9%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to West Japan Railway Co. 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 West Japan Railway Co. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
West Japan Railway Co.
4.89%
186.55
20.32%
Japan Nikkei 225
38.94%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.52%
EBIT Growth (5y)
2.32%
EBIT to Interest (avg)
0.93
Debt to EBITDA (avg)
11.92
Net Debt to Equity (avg)
1.14
Sales to Capital Employed (avg)
0.62
Tax Ratio
27.89%
Dividend Payout Ratio
35.20%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
3.56%
ROE (avg)
6.55%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
1.27
EV to EBIT
15.46
EV to EBITDA
7.97
EV to Capital Employed
1.13
EV to Sales
1.63
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
7.28%
ROE (Latest)
11.62%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 0.35% (YoY
NET PROFIT(9M)
Higher at JPY 129,549.4 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 119.48 %
NET SALES(Q)
Highest at JPY 467,641 MM
OPERATING PROFIT(Q)
Highest at JPY 118,853 MM
PRE-TAX PROFIT(Q)
Highest at JPY 69,780 MM
-7What is not working for the Company
INTEREST(HY)
At JPY 10,883 MM has Grown at 11.2%
INVENTORY TURNOVER RATIO(HY)
Lowest at 5.88 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 9.8 times
Here's what is working for West Japan Railway Co.
Net Sales
Highest at JPY 467,641 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 118,853 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Pre-Tax Profit
Highest at JPY 69,780 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Debt-Equity Ratio
Lowest at 119.48 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Net Profit
Higher at JPY 129,549.4 MM
than preceding 12 month period ended Dec 2025MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (JPY MM)
Raw Material Cost
Fallen by 0.35% (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 West Japan Railway Co.
Interest
At JPY 10,883 MM has Grown at 11.2%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Inventory Turnover Ratio
Lowest at 5.88 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 9.8 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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