East Japan Railway Company (9020.T) stock analysis
In our weekly check, East Japan Railway Company is graded B (A to F). Of 24 checks on debt, profit, cash flow and trend: 17 pass, warnings: 2, red flags: 5.
About East Japan Railway Company
East Japan Railway Company is an Industrials company (Railroads) based in Japan, listed on JPX as 9020.T.
What our checks show for 9020.T
Red flags
- Net debt is 6.1x a year of EBITDA (debt/equity 1.73). That limits room in a downturn and raises refinancing risk.
- Free cash flow is negative (-3.9% of revenue): the business spends more cash than it brings in.
- Recovering from its deepest fall took about 3.8 years.
- Return on capital (ROCE) is only 4.7%.
- Pay in shares equals 0% of free cash flow: it dilutes shareholders.
Warning signs
- The net margin is only 7.5%: little room if costs rise.
- The stock has fallen as much as 58% from a peak. Would you have held through that?
Strengths
- The net margin rose by 12.3 points over 5 years, to 7.5%.
- The gross margin is 36.9% and has risen by 17.5 points: pricing power is holding.
- Operating cash flow is 3.23x net profit: the profit arrives as real cash.
- Analysts expect earnings per share to grow about 12.1% a year over the next years.
- Earnings per share grew 33.8% a year over the last 3 years.
- Net profit grew 33.7% a year over the last 3 years.
Next earnings report: 2026-10-30
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Questions
What grade does East Japan Railway Company (9020.T) have?
In our weekly check, East Japan Railway Company is graded B (A to F). Of 24 checks on debt, profit, cash flow and trend: 17 pass, warnings: 2, red flags: 5. The grade is a risk check, not a buy or sell recommendation.
What are the main risks of 9020.T stock?
This week's biggest flags for East Japan Railway Company: High debt, Weak free cash flow, Slow recovery after falls. In total 7 of 24 checks show a warning or a red flag.
What does East Japan Railway Company do?
East Japan Railway Company is an Industrials company (Railroads) based in Japan, listed on JPX as 9020.T.
When does East Japan Railway Company report earnings next?
The next earnings report is expected on 2026-10-30. We re-run the checks every week, so the grade can change after it.
The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.
Updated 2026-10-24
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