Kyushu Railway Co KYHHY

IndustrialsPassenger Transportation ServicesJapan

Last close 11.97 USD on Nov 1, 2026, −7.9% year to date

Quant rating

Quant rating B Rank 166 of 418 in Industrials

Growth A 57 of 418
Valuation B 77 of 418
Quality B 113 of 418
Revisions C 244 of 418
Momentum D 331 of 418

Wall Street consensus Buy (2.10)Average target 27.60 USD +130.6%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 3.4B
Enterprise value: 6.2B
52-week range: 11.97 – 13.00
3-year range: 11.74 – 13.00
Dividend yield: 3.02%
Beta (5 years): –
Shares outstanding: 155M
Next earnings: Nov 4, 2026

About the company

Kyushu Railway Co is a Japan-based company mainly engaged in transportation services, real estate and hotel, retail and restaurant, construction, as well as business services, primarily throughout Kyushu. The Company has five business segments. Transportation Services segment engages in railway and bus operations. Real Estate and Hotel segment engages in real estate leasing, including commercial facilities, offices and apartments, real estate sales, including condominiums, and hotel operations. Retail and Restaurant segment engages in retail, restaurant and agricultural businesses. Construction segment engages in construction, railway vehicle and machinery equipment work, electrical work and construction consulting. Business Services segment engages in construction machinery sales and rental, wholesale, cleaning and maintenance, advertising, as well as system-related businesses.

Growth and profitability fiscal year ends March 31

Growth and profitability by fiscal year
	2026	2025	2024	2023	2022	5Y avg
Revenue (mil)	3,153	3,030	2,778	2,886	2,709	–
Revenue growth	4.0%	9.1%	−3.7%	6.6%	2.0%	3.5%
EPS (basic, normalized)	1.88	1.92	1.57	1.47	0.65	–
EPS growth	−2.1%	21.9%	6.8%	128.0%	–	–
Gross margin	42.6%	41.7%	39.3%	36.0%	29.4%	37.8%
Net margin	9.1%	9.6%	9.1%	8.1%	4.0%	8.0%
ROE	9.6%	9.7%	9.1%	7.8%	3.4%	7.9%

Balance sheet, last quarter
Cash & short-term investments (mil)	416
Current ratio	1.25x
Long-term debt (mil)	2,638
Net debt (mil)	2,704
Total equity (mil)	3,071
Net debt / equity	0.88x
Net debt / EBITDA	3.72x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2026 actual	3,153	+4.0%	2.0x	727	+5.2%	8.5x	1.88	−2.1%	6.4x
2027	3,310	+5.0%	1.9x	727	0.0%	8.5x	2.02	+7.5%	5.9x
2028	3,530	+6.7%	1.8x	796	+9.4%	7.8x	2.33	+15.1%	5.1x
2029	3,663	+3.8%	1.7x	820	+3.1%	7.5x	2.31	−0.8%	5.2x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2027	3,310	−0.1%	−0.4%	+1.8%	2.02	−1.8%	−7.0%	−8.2%
2028	3,530	0.0%	+0.3%	+5.5%	2.33	0.0%	−0.2%	+2.5%
2029	3,663	0.0%	+0.2%	+7.2%	2.31	0.0%	+0.6%	+11.9%

Earnings surprises EPS beat in 2 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	127,488	104,141	104,271	113,491	132,490	117,517	120,099	122,403	140,374	125,819
Sales mean (mil)	130,593	104,900	99,930	103,816	125,758	111,724	111,373	117,650	135,323	121,267
Surprise	−2.4%	−0.7%	+4.3%	+9.3%	+5.4%	+5.2%	+7.8%	+4.0%	+3.7%	+3.8%
EPS reported	−14.51	72.68	71.70	94.43	40.15	106.13	38.63	120.36	30.13	102.04
EPS mean	–	–	89.20	87.67	40.13	92.31	98.30	100.84	60.30	94.58
Surprise	–	–	−19.6%	+7.7%	0.0%	+15.0%	−60.7%	+19.4%	−50.0%	+7.9%

Peer comparison Passenger Transportation Services

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
KYHHY Kyushu Railway Co	3.4B	3.72x	9.1%	1.07x	5.9x	5.1x	8.5x	7.8x
ALK Alaska Air Group Inc	4.0B	2.91x	0.7%	1.13x	−7.7x	28.9x	21.4x	5.5x
CAR Avis Budget Group Inc	3.8B	34.06x	−7.6%	−1.12x	95.4x	17.2x	34.7x	31.2x
AC Air Canada	3.6B	2.34x	2.9%	2.43x	84.1x	21.0x	4.6x	3.8x
SKYW SkyWest, Inc.	3.2B	1.83x	10.6%	1.14x	7.7x	7.1x	5.1x	4.8x
AFLYY Air France KLM SA	3.0B	2.30x	4.6%	3.98x	4.6x	2.7x	2.9x	2.6x
Mean		7.86x	3.4%	1.44x	31.7x	13.7x	12.9x	9.3x
Median		2.63x	3.8%	1.13x	6.8x	12.1x	6.8x	5.1x

Technical analysis

1M–
3M−5.2%
1Y−7.9%
3Y−7.9%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, Kyushu Railway Co, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Total revenue	3,153	3,030	2,778	2,886	2,709	2,655
Cost of revenue	1,810	1,767	1,686	1,847	1,912	2,033
Gross profit	1,343	1,263	1,092	1,039	797	622
Selling, general & administrative expenses	838	834	742	743	725	783
Research & development	3.3	–	–	–	–	–
Depreciation/amortization	35.1	35.9	38.8	38.0	39.1	45.5
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	105	22.3	22.3	−10.5	12.4	26.6
Other operating expenses	0	0	0	0	0	0
Operating income	361	371	289	269	20.0	−233
Net interest income (expense)	−4.0	2.2	13.7	34.8	9.8	6.1
Gain (loss) on sale of assets	14.7	–	15.1	–	–	–
Other non-operating income (expense)	3.9	1.7	2.0	−0.2	24.7	25.9
Net income before taxes	376	375	320	303	54.5	−201
Provision for taxes	89.0	83.6	65.4	67.9	−51.4	−31.6
Minority interest	−0.3	−0.3	−0.2	−0.8	3.0	−2.0
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	286	291	254	235	109	−171
Extraordinary items	–	–	–	–	–	–
Net income	286	291	254	235	109	−171
EBIT, normalized	467	393	311	258	32.4	−207
EBITDA, normalized	720	649	542	498	271	58.8
Basic EPS, normalized	1.88	1.92	1.57	1.47	0.65	–

Balance sheet in millions of USD, fiscal years

Balance sheet, Kyushu Railway Co, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Assets
Cash & short-term investments	283	307	411	394	647	587
Receivables	404	409	418	397	392	469
Total inventory	648	530	453	490	390	383
Prepaid expenses	–	–	–	–	–	–
Other current assets	225	183	182	204	270	376
Total current assets	1,561	1,428	1,464	1,485	1,699	1,815
Property, plant & equipment	5,005	5,112	4,658	4,761	4,729	4,806
Goodwill	–	–	–	–	–	–
Intangibles	43.7	36.2	40.6	46.7	47.1	35.6
Long-term investments	460	355	367	379	371	408
Note receivable	–	–	–	–	–	–
Other long-term assets	632	674	668	834	979	988
Total assets	7,702	7,606	7,198	7,506	7,825	8,052
Liabilities
Accounts payable	193	216	191	206	238	289
Payable/accrued	–	–	–	–	–	–
Accrued expenses	82.2	75.2	62.3	61.1	58.1	52.5
Short-term debt	1.0	183	293	166	338	62.2
Current portion of long-term debt	314	275	284	330	117	90.2
Other current liabilities	699	669	651	709	747	814
Total current liabilities	1,289	1,419	1,482	1,472	1,497	1,307
Long-term debt	2,735	2,465	2,166	2,273	2,345	2,273
Minority interest	5.9	14.1	5.7	6.0	5.7	47.1
Other liabilities	560	664	627	697	785	901
Total liabilities	4,590	4,562	4,281	4,448	4,633	4,527
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	101	107	106	120	132	145
Additional paid-in capital	1,361	1,508	1,492	1,701	1,856	2,024
Retained earnings (accumulated deficit)	1,509	1,407	1,244	1,239	1,216	1,355
Treasury stock	−19.7	−28.7	−3.8	−4.4	−4.9	−5.4
Other equity	161	51.6	78.7	2.6	−7.1	6.7
Total equity	3,112	3,044	2,917	3,058	3,192	3,525
Total liabilities & shareholders' equity	7,702	7,606	7,198	7,506	7,825	8,052

Cash flow statement in millions of USD, fiscal years

Cash flow statement, Kyushu Railway Co, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Operating activities
Net income	376	375	320	303	54.5	−201
Depreciation, depletion & amortization	253	256	231	240	239	265
Deferred taxes	–	–	–	–	–	–
Non-cash items	84.8	25.9	−2.8	−50.1	−15.9	−4.5
Changes in working capital	−254	−3.0	41.2	−25.6	187	−155
Cash from operations	460	654	589	468	464	−95.4
Investing activities
Capital expenditures	−541	−753	−883	−789	−834	−860
Other investing cash flows	−7.7	36.7	144	54.3	47.2	373
Cash from investing	−549	−716	−739	−735	−787	−487
Financing activities
Financing cash flow items	−30.4	−10.1	−2.1	−26.3	−42.0	25.3
Cash dividends paid	−107	−146	−96.7	−110	−120	−66.1
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	216	110	312	204	594	997
Cash from financing	78.8	−46.2	213	67.5	432	956
Foreign exchange effects	0.2	1.0	0.7	0.8	3.4	−1.8
Net change in cash	−9.7	−107	63.6	−199	113	372
Free cash flow	−81.1	−98.9	−294	−322	−370	−955

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.