Reported Earnings • May 17
Full year 2026 earnings: EPS exceeds analyst expectations Full year 2026 results: EPS: JP¥423 (up from JP¥267 in FY 2025). Revenue: JP¥474.2b (up 6.9% from FY 2025). Net income: JP¥32.2b (up 55% from FY 2025). Profit margin: 6.8% (up from 4.7% in FY 2025). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 14%. Revenue is forecast to grow 3.4% p.a. on average during the next 2 years, compared to a 3.2% growth forecast for the Transportation industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • May 14
Nishi-Nippon Railroad Co., Ltd., Annual General Meeting, Jun 26, 2026 Nishi-Nippon Railroad Co., Ltd., Annual General Meeting, Jun 26, 2026. Announcement • May 09
Nishi-Nippon Railroad Co., Ltd. to Report Fiscal Year 2026 Results on May 14, 2026 Nishi-Nippon Railroad Co., Ltd. announced that they will report fiscal year 2026 results on May 14, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 30 June 2026. Payout ratio is a comfortable 11% but the company is not cash flow positive. Trailing yield: 1.7%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (1.9%). Reported Earnings • Feb 14
Third quarter 2026 earnings released: EPS: JP¥149 (vs JP¥89.16 in 3Q 2025) Third quarter 2026 results: EPS: JP¥149 (up from JP¥89.16 in 3Q 2025). Revenue: JP¥121.3b (up 12% from 3Q 2025). Net income: JP¥11.2b (up 63% from 3Q 2025). Profit margin: 9.3% (up from 6.4% in 3Q 2025). Revenue is forecast to grow 3.4% p.a. on average during the next 3 years, compared to a 2.3% growth forecast for the Transportation industry in Japan. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Board Change • Feb 05
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 5 independent directors. 6 non-independent directors. Independent Outside Director Simon Nagata was the last independent director to join the board, commencing their role in 2025. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Announcement • Dec 04
Nishi-Nippon Railroad Co., Ltd. to Report Q3, 2026 Results on Feb 12, 2026 Nishi-Nippon Railroad Co., Ltd. announced that they will report Q3, 2026 results on Feb 12, 2026 Declared Dividend • Dec 02
First half dividend of JP¥25.00 announced Shareholders will receive a dividend of JP¥25.00. Ex-date: 30th March 2026 Payment date: 30th June 2026 Dividend yield will be 1.8%, which is higher than the industry average of 1.3%. Sustainability & Growth Dividend is covered by earnings (13% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 5.2% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 28% over the next 3 years. However, it would need to fall by 86% to increase the payout ratio to a potentially unsustainable range. Reported Earnings • Nov 16
Second quarter 2026 earnings released: EPS: JP¥133 (vs JP¥71.27 in 2Q 2025) Second quarter 2026 results: EPS: JP¥133 (up from JP¥71.27 in 2Q 2025). Revenue: JP¥118.6b (up 11% from 2Q 2025). Net income: JP¥10.0b (up 81% from 2Q 2025). Profit margin: 8.5% (up from 5.2% in 2Q 2025). Revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 2.2% growth forecast for the Transportation industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 01 December 2025. Payout ratio is a comfortable 13% but the company is not cash flow positive. Trailing yield: 1.7%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (1.8%). Announcement • Sep 01
Nishi-Nippon Railroad Co., Ltd. to Report Q2, 2026 Results on Nov 13, 2025 Nishi-Nippon Railroad Co., Ltd. announced that they will report Q2, 2026 results on Nov 13, 2025 New Risk • Aug 08
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 3.0% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (4.4% operating cash flow to total debt). Earnings are forecast to decline by an average of 3.0% per year for the foreseeable future. Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Reported Earnings • Aug 08
First quarter 2026 earnings released: EPS: JP¥83.84 (vs JP¥59.10 in 1Q 2025) First quarter 2026 results: EPS: JP¥83.84 (up from JP¥59.10 in 1Q 2025). Revenue: JP¥103.6b (flat on 1Q 2025). Net income: JP¥6.48b (up 40% from 1Q 2025). Profit margin: 6.3% (up from 4.4% in 1Q 2025). Revenue is forecast to grow 3.0% p.a. on average during the next 3 years, compared to a 2.1% growth forecast for the Transportation industry in Japan. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Major Estimate Revision • Jul 23
Consensus EPS estimates increase by 24% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from JP¥455.1b to JP¥468.9b. EPS estimate increased from JP¥230 to JP¥285 per share. Net income forecast to grow 5.2% next year vs 3.6% growth forecast for Transportation industry in Japan. Consensus price target down from JP¥2,600 to JP¥2,350. Share price rose 3.3% to JP¥2,089 over the past week. Declared Dividend • Jul 09
Final dividend of JP¥20.00 announced Shareholders will receive a dividend of JP¥20.00. Ex-date: 29th September 2025 Payment date: 1st December 2025 Dividend yield will be 2.1%, which is higher than the industry average of 1.3%. Sustainability & Growth Dividend is covered by earnings (11% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 2.9% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 11% over the next 3 years. However, it would need to fall by 87% to increase the payout ratio to a potentially unsustainable range. Board Change • Jul 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 5 experienced directors. 2 highly experienced directors. Independent Outside Director Kikuyo Tsuno was the last director to join the board, commencing their role in 2023. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Jun 30
Nishi-Nippon Railroad Co., Ltd. Announces Change in Independent Committee Members Nishi-Nippon Railroad Co., Ltd. announced a change in its Independent Committee Members under the "Policy Against Large-Scale Acquisitions of Company Shares (Policy for Responding to Takeover Bids)." Outside Director Madoka Kitamura retired from the post of the Company's Director and Independent Committee Member at the conclusion of the Company's 185th Annual General Meeting of Shareholders held on June 27, 2025. At the Board of Directors meeting held on June 27, 2025, Osamu Nagata was appointed as a new Independent Committee Member. Osamu Nagata, born on March 2, 1957, has a distinguished career, having joined Toyota Motor Co., Ltd. (currently Toyota Motor Corporation) in April 1980. He served as Managing Officer in June 2009, Senior Vice President, Toyota Motor North America Inc., and President & CEO, Toyota Motor Engineering & Manufacturing North America Inc. in April 2013. He was Senior Managing Officer, TMC, and Executive Vice President and Chief Administrative Officer, North America Region in April 2015, Executive Vice President and Chief Financial Officer, TMC in April 2017, Director in June 2017, and President and Representative Director, Toyota Motor Kyushu Inc. in June 2018. He retired from the post of President and Representative Director in June 2024. Mr. Osamu Nagata is an outside director as defined in Article 2, Item 15 of the Companies Act. The date of assuming office is June 27, 2025, and the term of office is until the conclusion of the Annual General Meeting of Shareholders relating to the last fiscal year ending within three years after the conclusion of the Company's 184th Annual General Meeting of Shareholders held on June 27, 2024. Announcement • Jun 27
Nishi-Nippon Railroad Co., Ltd. to Report Q1, 2026 Results on Aug 07, 2025 Nishi-Nippon Railroad Co., Ltd. announced that they will report Q1, 2026 results on Aug 07, 2025 New Risk • Jun 09
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 1.9% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (4.3% operating cash flow to total debt). Earnings are forecast to decline by an average of 3.9% per year for the foreseeable future. Minor Risk Paying a dividend despite having no free cash flows. Major Estimate Revision • Jun 05
Consensus EPS estimates increase by 12% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from JP¥205 to JP¥230. Revenue forecast steady at JP¥455.1b. Net income forecast to shrink 14% next year vs 3.7% growth forecast for Transportation industry in Japan . Consensus price target of JP¥2,600 unchanged from last update. Share price fell 2.3% to JP¥2,125 over the past week. Reported Earnings • May 10
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥267 (down from JP¥314 in FY 2024). Revenue: JP¥443.5b (up 7.7% from FY 2024). Net income: JP¥20.8b (down 16% from FY 2024). Profit margin: 4.7% (down from 6.0% in FY 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.1%. Earnings per share (EPS) also surpassed analyst estimates by 21%. Revenue is forecast to grow 3.0% p.a. on average during the next 2 years, compared to a 2.4% growth forecast for the Transportation industry in Japan. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Announcement • May 10
Nishi-Nippon Railroad Co., Ltd. (TSE:9031) announces an Equity Buyback for 2,000,000 shares, representing 2.57% for ¥5,300 million. Nishi-Nippon Railroad Co., Ltd. (TSE:9031) announces a share repurchase program. Under the program, the company will repurchase up to 2,000,000 shares, representing 2.57% of its share capital, for ¥5,300 million. The purpose of the program is to implement a flexible capital policy that responds to changes in the business environment. The program will expire on November 28, 2025. As of March 31, 2025, the company had 77,860,929 shares in issue (excluding treasury stock) and 1,499,257 shares in treasury. Announcement • May 09
Nishi-Nippon Railroad Co., Ltd., Annual General Meeting, Jun 27, 2025 Nishi-Nippon Railroad Co., Ltd., Annual General Meeting, Jun 27, 2025. Buy Or Sell Opportunity • Mar 28
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 3.4% to JP¥2,218. The fair value is estimated to be JP¥2,818, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 2.6% over the last 3 years. Earnings per share has grown by 29%. Revenue is forecast to grow by 10% in 2 years. Earnings are forecast to decline by 22% in the next 2 years. Announcement • Mar 27
Nishi-Nippon Railroad Co., Ltd. to Report Fiscal Year 2025 Results on May 09, 2025 Nishi-Nippon Railroad Co., Ltd. announced that they will report fiscal year 2025 results on May 09, 2025 Announcement • Mar 24
Nishi-Nippon Railroad Co., Ltd.(TSE:9031) dropped from FTSE All-World Index (USD) Nishi-Nippon Railroad Co., Ltd.(TSE:9031) dropped from FTSE All-World Index (USD) Upcoming Dividend • Mar 21
Upcoming dividend of JP¥17.50 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 30 June 2025. Payout ratio is a comfortable 11% but the company is not cash flow positive. Trailing yield: 1.6%. Lower than top quartile of Japanese dividend payers (3.7%). In line with average of industry peers (1.7%). Buy Or Sell Opportunity • Mar 01
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 5.4% to JP¥2,172. The fair value is estimated to be JP¥2,735, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 2.6% over the last 3 years. Earnings per share has grown by 29%. Revenue is forecast to grow by 10% in 2 years. Earnings are forecast to decline by 22% in the next 2 years. Reported Earnings • Feb 15
Third quarter 2025 earnings released: EPS: JP¥89.16 (vs JP¥72.22 in 3Q 2024) Third quarter 2025 results: EPS: JP¥89.16 (up from JP¥72.22 in 3Q 2024). Revenue: JP¥108.6b (up 1.9% from 3Q 2024). Net income: JP¥6.91b (up 22% from 3Q 2024). Profit margin: 6.4% (up from 5.3% in 3Q 2024). Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 2.6% growth forecast for the Transportation industry in Japan. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Announcement • Dec 04
Nishi-Nippon Railroad Co., Ltd. to Report Q3, 2025 Results on Feb 13, 2025 Nishi-Nippon Railroad Co., Ltd. announced that they will report Q3, 2025 results on Feb 13, 2025 Declared Dividend • Nov 30
First half dividend of JP¥17.50 announced Shareholders will receive a dividend of JP¥17.50. Ex-date: 28th March 2025 Payment date: 30th June 2025 Dividend yield will be 1.5%, which is higher than the industry average of 1.3%. Sustainability & Growth Dividend is covered by earnings (6% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 1.6% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 30% over the next 3 years. However, it would need to fall by 93% to increase the payout ratio to a potentially unsustainable range. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥17.50 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 02 December 2024. Payout ratio is a comfortable 14% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.8%). In line with average of industry peers (1.6%). Announcement • Aug 27
Nishi-Nippon Railroad Co., Ltd. to Report Q2, 2025 Results on Nov 14, 2024 Nishi-Nippon Railroad Co., Ltd. announced that they will report Q2, 2025 results on Nov 14, 2024 Announcement • Aug 16
Nishi-Nippon Railroad Co., Ltd. Provides Consolidated Earnings Guidance for the First Half and Full Year Ending March 31, 2025 Nishi-Nippon Railroad Co., Ltd. provided consolidated earnings guidance for the first half and full year Ending March 31, 2025. For the first half, the company expects Operating revenue of JPY 210,400 million, Operating income of JPY 10,400 million, Profit attributable to owners of parent of JPY 6,200 million and Net income per share-basic of JPY 78.86.
For the full year, the company expects Operating revenue of JPY 451,100 million, Operating income of JPY 24,100 million, Profit attributable to owners of parent of JPY 15,700 million and Net income per share-basic of JPY 199.70. New Risk • Aug 12
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 1.9% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (19% operating cash flow to total debt). Earnings are forecast to decline by an average of 1.9% per year for the foreseeable future. Minor Risk Large one-off items impacting financial results. Reported Earnings • Aug 12
First quarter 2025 earnings released: EPS: JP¥47.03 (vs JP¥119 in 1Q 2024) First quarter 2025 results: EPS: JP¥47.03 (down from JP¥119 in 1Q 2024). Revenue: JP¥101.6b (up 5.0% from 1Q 2024). Net income: JP¥3.70b (down 61% from 1Q 2024). Profit margin: 3.6% (down from 9.7% in 1Q 2024). Revenue is forecast to grow 5.1% p.a. on average during the next 3 years, compared to a 2.9% growth forecast for the Transportation industry in Japan. Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Declared Dividend • Jul 11
Final dividend of JP¥17.50 announced Shareholders will receive a dividend of JP¥17.50. Ex-date: 27th September 2024 Payment date: 2nd December 2024 Dividend yield will be 1.6%, which is higher than the industry average of 1.3%. Sustainability & Growth Dividend is well covered by both earnings (14% earnings payout ratio) and cash flows (45% cash payout ratio). The dividend has increased by an average of 1.6% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 34% over the next 3 years. However, it would need to fall by 84% to increase the payout ratio to a potentially unsustainable range. Announcement • Jun 06
Nishi-Nippon Railroad Co., Ltd. to Report Q1, 2025 Results on Aug 08, 2024 Nishi-Nippon Railroad Co., Ltd. announced that they will report Q1, 2025 results on Aug 08, 2024 Announcement • May 15
Nishi-Nippon Railroad Co., Ltd., Annual General Meeting, Jun 27, 2024 Nishi-Nippon Railroad Co., Ltd., Annual General Meeting, Jun 27, 2024. Reported Earnings • May 12
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: JP¥314 (up from JP¥233 in FY 2023). Revenue: JP¥411.6b (down 17% from FY 2023). Net income: JP¥24.7b (up 35% from FY 2023). Profit margin: 6.0% (up from 3.7% in FY 2023). Revenue missed analyst estimates by 2.9%. Earnings per share (EPS) exceeded analyst estimates by 5.3%. Revenue is forecast to grow 4.4% p.a. on average during the next 2 years, compared to a 3.3% growth forecast for the Transportation industry in Japan. Over the last 3 years on average, earnings per share has increased by 78% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • May 12
Nishi-Nippon Railroad Co., Ltd. (TSE:9031) announces an Equity Buyback for 1,500,000 shares, representing 1.9% for ¥3,000 million. Nishi-Nippon Railroad Co., Ltd. (TSE:9031) announces a share repurchase program. Under the program, the company will repurchase up to 1,500,000 shares, representing 1.9% of its share capital, for ¥3,000 million. The purpose of the program is to implement a flexible capital policy that responds to changes in the business environment and to improve capital efficiency. The program will expire on November 29, 2024. As of March 31, 2024, the company had 79,095,903 shares in issue (excluding treasury stock) and 264,283 shares in treasury. Major Estimate Revision • Apr 17
Consensus EPS estimates increase by 73%, revenue downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from JP¥447.2b to JP¥424.0b. EPS estimate rose from JP¥173 to JP¥298. Net income forecast to shrink 25% next year vs 8.0% growth forecast for Transportation industry in Japan . Consensus price target broadly unchanged at JP¥2,650. Share price fell 3.1% to JP¥2,414 over the past week. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥17.50 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 01 July 2024. Payout ratio is a comfortable 14% and this is well supported by cash flows. Trailing yield: 1.4%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (1.2%). Announcement • Mar 15
Nishi-Nippon Railroad Co., Ltd. to Report Fiscal Year 2024 Results on May 10, 2024 Nishi-Nippon Railroad Co., Ltd. announced that they will report fiscal year 2024 results on May 10, 2024 Major Estimate Revision • Mar 05
Consensus EPS estimates increase by 13% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from JP¥153 to JP¥173. Revenue forecast steady at JP¥447.2b. Net income forecast to shrink 40% next year vs 8.0% growth forecast for Transportation industry in Japan . Consensus price target of JP¥2,600 unchanged from last update. Share price was steady at JP¥2,382 over the past week. Reported Earnings • Feb 10
Third quarter 2024 earnings released: EPS: JP¥72.22 (vs JP¥64.75 in 3Q 2023) Third quarter 2024 results: EPS: JP¥72.22 (up from JP¥64.75 in 3Q 2023). Revenue: JP¥106.6b (down 15% from 3Q 2023). Net income: JP¥5.68b (up 11% from 3Q 2023). Profit margin: 5.3% (up from 4.1% in 3Q 2023). Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 2.9% growth forecast for the Transportation industry in Japan. Over the last 3 years on average, earnings per share has increased by 91% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Major Estimate Revision • Feb 09
Consensus EPS estimates increase by 41%, revenue downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from JP¥450.1b to JP¥418.3b. EPS estimate rose from JP¥153 to JP¥216. Net income forecast to shrink 29% next year vs 5.9% growth forecast for Transportation industry in Japan . Consensus price target of JP¥2,600 unchanged from last update. Share price was steady at JP¥2,480 over the past week. Announcement • Jan 12
Nishi-Nippon Railroad Co., Ltd. to Report Q3, 2024 Results on Feb 08, 2024 Nishi-Nippon Railroad Co., Ltd. announced that they will report Q3, 2024 results on Feb 08, 2024 Major Estimate Revision • Dec 08
Consensus EPS estimates increase by 11%, revenue downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from JP¥455.2b to JP¥450.1b. EPS estimate rose from JP¥138 to JP¥153. Net income forecast to shrink 41% next year vs 4.2% growth forecast for Transportation industry in Japan . Consensus price target down from JP¥2,700 to JP¥2,600. Share price was steady at JP¥2,427 over the past week. Reported Earnings • Nov 11
Second quarter 2024 earnings released: EPS: JP¥20.03 (vs JP¥61.72 in 2Q 2023) Second quarter 2024 results: EPS: JP¥20.03 (down from JP¥61.72 in 2Q 2023). Revenue: JP¥100.3b (down 25% from 2Q 2023). Net income: JP¥1.58b (down 68% from 2Q 2023). Profit margin: 1.6% (down from 3.6% in 2Q 2023). Revenue is forecast to grow 1.8% p.a. on average during the next 3 years, compared to a 3.1% growth forecast for the Transportation industry in Japan. Over the last 3 years on average, earnings per share has increased by 102% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥17.50 per share at 1.4% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 01 December 2023. Payout ratio is a comfortable 12% and this is well supported by cash flows. Trailing yield: 1.4%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (1.2%). Major Estimate Revision • Sep 02
Consensus EPS estimates increase by 10%, revenue downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from JP¥466.7b to JP¥455.2b. EPS estimate rose from JP¥126 to JP¥138. Net income forecast to shrink 53% next year vs 12% growth forecast for Transportation industry in Japan . Consensus price target up from JP¥2,600 to JP¥2,700. Share price rose 2.6% to JP¥2,718 over the past week. New Risk • Aug 13
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 22% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (14% operating cash flow to total debt). Earnings are forecast to decline by an average of 25% per year for the foreseeable future. Minor Risk Large one-off items impacting financial results. Reported Earnings • Aug 12
First quarter 2024 earnings released: EPS: JP¥119 (vs JP¥49.75 in 1Q 2023) First quarter 2024 results: EPS: JP¥119 (up from JP¥49.75 in 1Q 2023). Revenue: JP¥96.8b (down 19% from 1Q 2023). Net income: JP¥9.39b (up 140% from 1Q 2023). Profit margin: 9.7% (up from 3.3% in 1Q 2023). Revenue is forecast to stay flat during the next 3 years compared to a 3.4% growth forecast for the Transportation industry in Japan. Over the last 3 years on average, earnings per share has increased by 107% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Reported Earnings • May 15
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: JP¥233 (up from JP¥125 in FY 2022). Revenue: JP¥494.6b (up 16% from FY 2022). Net income: JP¥18.4b (up 86% from FY 2022). Profit margin: 3.7% (up from 2.3% in FY 2022). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) exceeded analyst estimates by 2.9%. Revenue is expected to decline by 5.8% p.a. on average during the next 2 years, while revenues in the Transportation industry in Japan are expected to grow by 3.2%. Over the last 3 years on average, earnings per share has increased by 91% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Announcement • May 13
Nishi-Nippon Railroad Co., Ltd., Annual General Meeting, Jun 29, 2023 Nishi-Nippon Railroad Co., Ltd., Annual General Meeting, Jun 29, 2023. Agenda: Annual General Meeting. Major Estimate Revision • Apr 15
Consensus revenue estimates increase by 14% The consensus outlook for revenues in fiscal year 2023 has improved. 2023 revenue forecast increased from JP¥441.6b to JP¥501.5b. EPS estimate increased from JP¥154 to JP¥227 per share. Net income forecast to shrink 31% next year vs 14% growth forecast for Transportation industry in Japan . Consensus price target down from JP¥2,775 to JP¥2,625. Share price was steady at JP¥2,415 over the past week. Price Target Changed • Apr 14
Price target decreased by 9.5% to JP¥2,625 Down from JP¥2,900, the current price target is an average from 2 analysts. New target price is 8.7% above last closing price of JP¥2,415. Stock is down 7.3% over the past year. The company is forecast to post earnings per share of JP¥227 for next year compared to JP¥125 last year. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥15.00 per share at 1.3% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 30 June 2023. Payout ratio is a comfortable 14% and this is well supported by cash flows. Trailing yield: 1.3%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (1.2%). Major Estimate Revision • Mar 11
Consensus revenue estimates increase by 15% The consensus outlook for revenues in fiscal year 2023 has improved. 2023 revenue forecast increased from JP¥382.9b to JP¥441.6b. EPS estimate increased from JP¥87.60 to JP¥154 per share. Net income forecast to shrink 32% next year vs 14% growth forecast for Transportation industry in Japan . Consensus price target down from JP¥2,900 to JP¥2,775. Share price was steady at JP¥2,416 over the past week. Price Target Changed • Mar 10
Price target decreased by 9.0% to JP¥2,775 Down from JP¥3,050, the current price target is an average from 2 analysts. New target price is 15% above last closing price of JP¥2,416. Stock is down 4.4% over the past year. The company is forecast to post earnings per share of JP¥87.60 for next year compared to JP¥125 last year. Announcement • Feb 15
Nishi-Nippon Railroad Co., Ltd. Provides Consolidated Earnings Guidance for the Fiscal Year Ending March 31, 2023 Nishi-Nippon Railroad Co., Ltd. provided consolidated earnings guidance for the fiscal year ending March 31, 2023. For the year, the company expects operating revenue of JPY 497,500 million, operating income of JPY 24,000 million, profit attributable to owners of parent of JPY 15,500 million and net income per share-basic of JPY 196.72. Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥64.75 (vs JP¥64.61 in 3Q 2022) Third quarter 2023 results: EPS: JP¥64.75 (up from JP¥64.61 in 3Q 2022). Revenue: JP¥125.6b (up 11% from 3Q 2022). Net income: JP¥5.10b (flat on 3Q 2022). Profit margin: 4.1% (down from 4.5% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 1.3% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Transportation industry in Japan. Over the last 3 years on average, earnings per share has increased by 67% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Announcement • Dec 28
Nishi-Nippon Railroad Co., Ltd. to Report Q3, 2023 Results on Feb 09, 2023 Nishi-Nippon Railroad Co., Ltd. announced that they will report Q3, 2023 results on Feb 09, 2023 Reported Earnings • Nov 16
Second quarter 2023 earnings released: EPS: JP¥61.72 (vs JP¥2.18 in 2Q 2022) Second quarter 2023 results: EPS: JP¥61.72 (up from JP¥2.18 in 2Q 2022). Revenue: JP¥133.6b (up 35% from 2Q 2022). Net income: JP¥4.86b (up JP¥4.69b from 2Q 2022). Profit margin: 3.6% (up from 0.2% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to stay flat during the next 3 years compared to a 4.4% growth forecast for the Transportation industry in Japan. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 12
Second quarter 2023 earnings released: EPS: JP¥61.72 (vs JP¥2.18 in 2Q 2022) Second quarter 2023 results: EPS: JP¥61.72 (up from JP¥2.18 in 2Q 2022). Revenue: JP¥133.6b (up 35% from 2Q 2022). Net income: JP¥4.86b (up JP¥4.69b from 2Q 2022). Profit margin: 3.6% (up from 0.2% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to stay flat during the next 3 years compared to a 4.7% growth forecast for the Transportation industry in Japan. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 01 December 2022. Payout ratio is a comfortable 17% and this is well supported by cash flows. Trailing yield: 1.0%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (1.2%).