West Japan Railway Co 9021

Morningstar Rating
¥‎2,789.00 +20.00 (0.72%)
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Company Report

Recovering Passenger Demand and Real Estate Developments Are Driving Growth for JR West

West Japan Railway, or JR West, is the main railway operator in western Honshu, headquartered in Osaka. Two-thirds of prepandemic operating income was from rail services, close to 20% from real estate, 10% from travel agency services and hotels, and 3% from retail operations. Rail services include long-distance bullet train lines, known as Shinkansen, and conventional train lines in the Kyoto-Osaka-Kobe metropolitan area and in regional areas.

Price vs Fair Value

9021 is trading at a 493% premium.
Price
¥‎2,789.00
Fair Value
¥‎1,548.00
Uncertainty
Medium
1-Star Price
¥‎2,568.00
5-Star Price
¥‎4,139.00
Economic Moat
Qvn
Capital Allocation
Pqdcpmsn

Bulls Say, Bears Say

Bulls

JR West owns stable infrastructure and property assets and generates defensive cash flows.

Bears

JR West's service territory is less affluent and less densely populated than other parts of Japan.

Trading Information

Previous Close Price
¥‎2,769.00
Day Range
¥‎2,780.002,801.00
52-Week Range
¥‎2,400.503,327.00
Bid/Ask
¥‎2,783.50 / ¥‎2,789.50
Market Cap
¥‎1.31 Tril
Volume/Avg
1.6 Mil / 2.0 Mil

Key Statistics

Price/Earnings (Normalized)
11.84
Price/Sales
0.81
Dividend Yield (Trailing)
2.81%
Dividend Yield (Forward)
2.58%
Total Yield
2.81%

Company Profile

West Japan Railway, or JR West, is the main railway operator in Western Japan, headquartered in Osaka. It was originally established when the government-owned nationwide railway operator underwent a six-way territorial split in 1987. Its main assets are the Sanyo Shinkansen, which stretches from Osaka to Fukuoka, and the urban rail network in the Osaka-Kobe-Kyoto metropolitan area. Its nearly 5,000 kilometers of rail track covers a third of Japan’s population and a fifth of its land area. Rail operations contribute more than half of revenue, with most of the balance from retail operations, real estate investments, travel agencies, and hotels.
Sector
Industrials
Industry
Railroads
Stock Style Box
Large Core
Total Number of Employees
54,825

Competitors

Valuation

Metric
9021
00066
9142
Price/Earnings (Normalized)
11.8420.5717.00
Price/Book Value
1.231.051.49
Price/Sales
0.813.181.57
Price/Cash Flow
4.5813.017.33
Price/Earnings
9021
00066
9142

Financial Strength

Metric
9021
00066
9142
Quick Ratio
0.650.620.56
Current Ratio
0.990.690.99
Interest Coverage
8.226.0922.97
Quick Ratio
9021
00066
9142

Profitability

Metric
9021
00066
9142
Return on Assets (Normalized)
4.54%2.57%4.77%
Return on Equity (Normalized)
15.52%5.04%11.52%
Return on Invested Capital (Normalized)
6.70%4.12%6.28%
Return on Assets
9021
00066
9142

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