Fact based stock research
East Japan Railway (TSE:9020)

JP3783600004

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

East Japan Railway stock research in summary

jreast.co.jp

ANALYSIS: With an Obermatt Combined Rank of 8 (worse than 92% compared with investment alternatives), East Japan Railway (Railroads, Japan) shares have lower financial characteristics compared with similar stocks. Shares of East Japan Railway are low in value (priced high) with a consolidated Value Rank of 25 (worse than 75% of alternatives), show below-average growth (Growth Rank of 43), and are riskily financed (Safety Rank of 6), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 8, is a sell recommendation based on East Japan Railway's financial characteristics. As the company East Japan Railway's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 25), low growth (Obermatt Growth Rank of 43), and risky financing practices (Obermatt Safety Rank of 6), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	25
Growth Rank	43
Safety Rank	6
Combined Rank	8

Country	Japan
Industry	Railroads
Index	TOPIX 100, Energy Efficient, Nikkei 225
Size class	XX-Large

This stock has achievements: Top 10 Stock.

15-May-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: East Japan Railway

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	55	41	33	25
GROWTH
GROWTH	85	57	66	43
SAFETY
SAFETY	4	3	6	6
SENTIMENT
SENTIMENT	18	28	14	^new
360° VIEW
360° VIEW	27	12	15	^new

Most recent update of the stock research: 15-May-2025. Financial reporting date used for calculating ranks: 31-Dec-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better East Japan Railway is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	55	41	33	25
GROWTH
GROWTH	85	57	66	43
SAFETY
SAFETY	4	3	6	6
COMBINED
COMBINED	40	15	21	8

Last update of combined financial performance: 15-May-2025. Stock analysis on combined financial performance: The higher the rank of East Japan Railway the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 25 (worse than 75% compared with alternatives), East Japan Railway shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with all four indicators below average for East Japan Railway. Price-to-Sales is 41 which means that the stock price compared with what market professionals expect for future profits is higher than 59% of comparable companies, indicating a low value concerning East Japan Railway's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 46, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of East Japan Railway. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 30 and Dividend Yield, which is lower than 76% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 25, is a hold recommendation based on East Japan Railway's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for East Japan Railway? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as East Japan Railway? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. East Japan Railway may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	54	48	41	41
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	31	39	43	30
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	74	66	55	46
DIVIDEND YIELD
DIVIDEND YIELD	45	36	29	24
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	55	41	33	25

Last update of Value Rank: 15-May-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of East Japan Railway; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 43 (better than 43% compared with alternatives), East Japan Railway shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for East Japan Railway. Sales Growth has a rank of 56 which means that currently, professionals expect the company to grow more than 56% of its competitors. Both Profit Growth, with a rank of 54, and Stock Returns, with a rank of 61, are also above average. But Capital Growth only has a rank of 16, which means that, currently, professionals expect the company to grow its invested capital less than 84% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 43, is a hold recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	80	12	52	56
PROFIT GROWTH
PROFIT GROWTH	42	77	56	54
CAPITAL GROWTH
CAPITAL GROWTH	88	70	61	16
STOCK RETURNS
STOCK RETURNS	51	53	49	61
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	85	57	66	43

Last update of Growth Rank: 15-May-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of East Japan Railway.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 6 (better than 6% compared with alternatives), the company East Japan Railway has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of East Japan Railway is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for East Japan Railway. Liquidity is at 33, meaning that the company generates less profit to service its debt than 67% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 7, meaning the company has an above-average debt-to-equity ratio. It has more debt than 93% of its competitors. Finally, Refinancing is at a rank of 12 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 88% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 6 (worse than 94% compared with alternatives), East Japan Railway has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of East Japan Railway because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	28	6	5	7
REFINANCING
REFINANCING	7	31	23	12
LIQUIDITY
LIQUIDITY	10	12	29	33
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	4	3	6	6

Last update of Safety Rank: 15-May-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of East Japan Railway and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	27	25	^new
OPINIONS CHANGE
OPINIONS CHANGE	50	40	37	^new
PRO HOLDINGS
PRO HOLDINGS	57	95	54	^new
MARKET PULSE
MARKET PULSE	25	11	19	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	18	28	14	^new

Last update of Sentiment Rank: 15-May-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for East Japan Railway.
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