DB:T41

Stock Analysis Report

Executive Summary

Tobu Railway Co., Ltd. operates a private rail system in the Kanto region.

Snowflake

Fundamentals

Second-rate dividend payer with imperfect balance sheet.

Share Price & News

How has Tobu Railway's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.6%

DB:T41

-0.6%

DE Transportation

0.4%

DE Market


1 Year Return

15.6%

DB:T41

-11.5%

DE Transportation

-4.5%

DE Market

T41 outperformed the Transportation industry which returned -9.4% over the past year.

T41 outperformed the Market in Germany which returned -3.8% over the past year.


Share holder returns

T41IndustryMarket
7 Day5.6%-0.6%0.4%
30 Day9.3%10.8%6.4%
90 Day14.0%0.4%0.9%
1 Year16.8%15.6%-9.4%-11.5%-1.5%-4.5%
3 Year41.7%33.9%63.4%51.7%18.4%8.3%
5 Year62.5%50.3%128.8%98.6%32.0%14.0%

Price Volatility Vs. Market

How volatile is Tobu Railway's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Tobu Railway undervalued based on future cash flows and its price relative to the stock market?

24.81x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Tobu Railway's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Tobu Railway's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Tobu Railway is overvalued based on earnings compared to the Europe Transportation industry average.

Tobu Railway is overvalued based on earnings compared to the Germany market.


Price Based on Expected Growth

Tobu Railway is poor value based on expected growth next year.


Price Based on Value of Assets

Tobu Railway is overvalued based on assets compared to the DE Transportation industry average.


Next Steps

Future Growth

How is Tobu Railway expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Tobu Railway's revenue is expected to grow by 2.1% yearly, however this is not considered high growth (20% yearly).

Tobu Railway's earnings are expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).

Tobu Railway's revenue growth is positive but not above the Germany market average.

Tobu Railway's earnings growth is positive but not above the Germany market average.

Tobu Railway's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Tobu Railway is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Tobu Railway performed over the past 5 years?

-0.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Tobu Railway's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Tobu Railway's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Tobu Railway's 1-year earnings growth is negative, it can't be compared to the Europe Transportation industry average.


Return on Equity

Tobu Railway has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Tobu Railway used its assets less efficiently than the Europe Transportation industry average last year based on Return on Assets.


Return on Capital Employed

Tobu Railway has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Tobu Railway's financial position?


Financial Position Analysis

Tobu Railway's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Tobu Railway's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Tobu Railway's level of debt (165.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (232.7% vs 165.8% today).

Debt is not well covered by operating cash flow (11.2%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 13.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

What is Tobu Railway's current dividend yield, its reliability and sustainability?

1.11%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Tobu Railway before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Tobu Railway's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.41%).

Tobu Railway's dividend is below the markets top 25% of dividend payers in Germany (3.85%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.1x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Tobu Railway's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Yoshizumi Nezu (68yo)

20.3yrs

Tenure

0

Mr. Yoshizumi Nezu has been the President of Tobu Railway Co., Ltd. since June 1999. Mr. Nezu joined Tobu Railway Co., Ltd in April 1974 and served as its Managing Director since April 1991; Senior Managin ...


Management Age and Tenure

3.7yrs

Average Tenure

62yo

Average Age

The tenure for the Tobu Railway management team is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Yoshizumi Nezu (68yo)

    President & Representative Director

    • Tenure: 20.3yrs
  • Osamu Makino

    Senior Managing Director

    • Tenure: 0yrs
  • Kenichi Tsunoda

    VP & Representative Director

    • Tenure: 0yrs
  • Hiroaki Miwa

    MD & Representative Director

    • Tenure: 0yrs
  • Shinji Inomori (62yo)

    Senior Managing Director

    • Tenure: 0yrs
  • Akihiro Ojiro

    MD, GM of Lifestyle Service Foundation Div

    • Tenure: 3.3yrs
  • Yasuyoshi Okuma

    Systems Development Manager

    • Tenure: 0yrs
  • Koichi Sekiguchi

    Railway Division Deputy GM & Director

    • Tenure: 0yrs
  • Yoshimi Yokota

    MD & Manager of Corporate Planning Department

    • Tenure: 3.7yrs
  • Toshiaki Onodera (60yo)

    Chief of Inspection Office

    • Tenure: 0yrs

Board Members

  • Mitsuyoshi Shibata (66yo)

    External Director

    • Tenure: 0yrs
  • Yoshizumi Nezu (68yo)

    President & Representative Director

    • Tenure: 20.3yrs
  • Kenichi Tsunoda

    VP & Representative Director

    • Tenure: 0yrs
  • Naotaka Nakajima

    Standing Audit & Supervisory Board Member

    • Tenure: 0yrs
  • Hiroaki Miwa

    MD & Representative Director

    • Tenure: 0yrs
  • Takaharu Ando (70yo)

    External Director

    • Tenure: 0yrs
  • Koichi Sekiguchi

    Railway Division Deputy GM & Director

    • Tenure: 0yrs
  • Toshiaki Onodera (60yo)

    Chief of Inspection Office

    • Tenure: 0yrs
  • Tsutomu Yamamoto

    Director

    • Tenure: 0yrs
  • Takashi Kobiyama

    Director

    • Tenure: 0yrs

Company Information

Tobu Railway Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tobu Railway Co., Ltd.
  • Ticker: T41
  • Exchange: DB
  • Founded: 1897
  • Industry: Railroads
  • Sector: Transportation
  • Market Cap: JP¥748.920b
  • Listing Market Cap: JP¥6.263b
  • Shares outstanding: 211.26m
  • Website: https://www.tobu.co.jp

Number of Employees


Location

  • Tobu Railway Co., Ltd.
  • 18-12 Oshiage 2-chome
  • Sumida-ku
  • Tokyo
  • 131-8522
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
9001TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYJan 1992
T41DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992

Biography

Tobu Railway Co., Ltd. operates a private rail system in the Kanto region. The company’s transportation business consists of fixed-route and long distance bus services, taxi services, freight trucking, and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 21:33
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.