Central Japan Railway (9022.T)
Industrials · Tokyo · Japan
Fundamentals
Valuation and ratings
Central Japan Railway trades at ¥3,785.00, which is 110% below the ¥7,966.20 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 74 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 6.3 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Central Japan Railway
Central Japan Railway Company engages in the railway and related businesses in Japan. The company operates through three segment: Transportation, Merchandise and Other, and Real Estate. It operates railway and conventional lines; and department stores. The company also engages in the wholesale and retail of food and beverage; leasing of real estate properties, such as station buildings; and bus operation, contracted accounting and financial, hotel, travel, advertising, rolling stock production, construction, and track maintenance businesses. In addition, it develops and maintains computer system, as well as offers construction consulting services. The company was incorporated in 1987 and is headquartered in Tokyo, Japan.
9022.T passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Central Japan Railway (9022.T) undervalued?
Against our discounted cash flow estimate of ¥7,966.20, 9022.T at ¥3,785.00 is 110% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is 9022.T's P/E ratio?
9022.T trades at 6.3 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.