Breaking Down Keikyu Corporation Financial Health: Key Insights for Investors

Curious how Keikyu Corporation's financial engine is running after FY2025? The company posted quarterly revenue of ¥69.45 billion (TTM ¥295.47 billion) and annual revenue of ¥293.86 billion for FY2025 (up 4.72% year-over-year), while profitability showed strain with net income slipping to ¥24.3 billion (a 71% drop) and a profit margin of 8.3% versus 30% a year earlier; EPS fell to ¥88.40 and ROE sits at 6.69%. On the balance sheet front, total assets are about ¥1.1 trillion with liabilities of ¥672.3 billion (debt-to-equity ~1.5) and net interest-bearing debt near ¥406 billion, even as cash and deposits eased from ¥74.5 billion to ¥68.3 billion-liquidity metrics show a current ratio ~1.3 and quick ratio ~0.9. Valuation and shareholder returns present a different picture: stock price ¥1,493.50 (trailing P/E 15.76, forward P/E 13.34), market cap ~¥400-408 billion, enterprise value ¥812.49 billion, P/S ~1.38 and a dividend of ¥46 per share (yield ~3.08%). With transportation revenue resilience, leisure occupancy at 90% and infrastructure projects like the Shinagawa West Exit development underway, these hard numbers frame both the risks-higher expenses, leverage, and tighter liquidity-and the growth levers worth unpacking; dive into the sections below for granular analysis on revenue, profitability, leverage, liquidity, valuation, risks and upside opportunities.

Keikyu Corporation (9006.T) - Revenue Analysis

• Quarter (Q2 FY2026 est.): ¥69.45 billion (Q-on-Q +1.98%)
• TTM Revenue: ¥295.47 billion (YoY +0.65%)
• FY2025 Revenue: ¥293.86 billion (YoY +4.72%)
• FY2024 Revenue growth: 10.92% (for context)

• Stability: Revenue growth decelerated from FY2024's 10.92% to FY2025's 4.72%, now approaching low-single-digit expansion.
• Segment dynamics: Transportation provides steady cash flow; real estate weakness moderates consolidated growth.
• Valuation context: P/S 1.38 and market cap ~¥408.26B imply moderate market expectations for future growth.

Keikyu Corporation (9006.T) - Profitability Metrics

Keikyu reported a marked deterioration in profitability in FY 2025, driven by higher expenses and lower net income. Key headline figures:

• FY 2025 net income: ¥24.3 billion (down 71% YoY)
• FY 2025 profit margin: 8.3% (vs. 30% in FY 2024)
• EPS FY 2025: ¥88.40 (vs. ¥304 in FY 2024)
• Operating profit margin H1 FY 2025: 10.02%
• ROE (TTM): 6.69%
• Net income H1 FY 2025: ¥5.4 billion (vs. ¥6.8 billion prior-year H1)

Implications for investors:

• Sharp YoY decline in net income and profit margin signals cost pressures or one-off charges that materially hit the bottom line.
• EPS compression (¥304 → ¥88.40) reduces per-share earnings power and may affect dividend capacity and market valuation.
• Operating margin improvement in H1 (10.02%) suggests some operational leverage, but full-year margins remain significantly lower than FY 2024.
• ROE at 6.69% indicates moderate shareholder returns; below historical peak implied by FY 2024 profitability.

For context on strategic direction and how management frames these results, see Mission Statement, Vision, & Core Values (2026) of Keikyu Corporation.

Keikyu Corporation (9006.T) - Debt vs. Equity Structure

• Total assets (as of June 30, 2025): ¥1.1 trillion
• Liabilities (as of June 30, 2025): ¥672.3 billion
• Implied shareholders' equity (Assets - Liabilities): ¥427.7 billion
• Reported debt-to-equity ratio: ≈ 1.5
• Equity-to-asset ratio: 36%
• Capital adequacy ratio: 25.7%

• Net interest-bearing debt (reported snapshots): ¥406.0 billion (stated figure)
• Net interest-bearing debt - period movement (reported): reduced from ¥354.2 billion in Mar 2025 to ¥372.5 billion in Jun 2025
• Market capitalization: ≈ ¥400.48 billion
• Price-to-book (P/B) ratio: 1.12
• Enterprise value (EV): ¥812.49 billion
• EV-to-revenue ratio: 2.77

• Balance-sheet posture: sizable liabilities vs. equity with a moderate leverage profile by Japanese rail operator standards.
• Capital cushions: capital adequacy at 25.7% supports resilience against cyclical shocks.
• Market valuation: P/B ~1.12 implies market pricing close to book value; EV indicates moderate revenue multiple (2.77).

Keikyu Corporation (9006.T) - Liquidity and Solvency

Keikyu's short-term liquidity profile shows a moderate contraction in cash reserves alongside generally adequate current assets versus liabilities, while solvency metrics offer a material buffer. Key datapoints and implications are summarized below.

• Cash and deposits: decreased from ¥74.5 billion (Mar 2025) to ¥68.3 billion (Jun 2025), reflecting a reduction in readily available liquidity.
• Current ratio: ≈ 1.3 - indicates adequate short-term financial health (current assets ≈ 1.3× current liabilities).
• Quick ratio: ≈ 0.9 - suggests potential difficulty meeting short-term obligations without converting inventory to cash.
• Net cash flow from operating activities: Positive in H1 FY2025 - operational cash generation remains intact.
• Capital adequacy ratio: 25.7% - provides a solvency buffer against financial stress.
• Free cash flow: negative in recent periods - implies reliance on external financing or balance-sheet adjustments to fund operations and investments.

Implications for investors include monitoring working-capital trends (cash drawdown from Mar → Jun 2025), the gap between current and quick ratios (inventory dependence), and the persistence of negative free cash flow despite positive operating cash - factors that influence funding needs and capital structure. For additional context on shareholder activity and investor composition, see Exploring Keikyu Corporation Investor Profile: Who's Buying and Why?

Keikyu Corporation (9006.T) - Valuation Analysis

Key market valuation metrics for Keikyu Corporation (9006.T) as of December 12, 2025 provide a snapshot of how the market prices the company relative to earnings, sales and book value. These figures help investors gauge whether Keikyu is trading at a premium, discount, or roughly in line with peers and historical norms.

• Share price: ¥1,493.50 (12-Dec-2025)
• Trailing P/E: 15.76 - moderate valuation versus last 12 months' earnings
• Forward P/E: 13.34 - market-implied earnings growth or margin improvement expected
• Price-to-Sales (P/S): 1.38 - price close to annual revenue multiple
• EV/EBITDA: 12.68 - moderate enterprise valuation relative to operating cash-flow proxy
• Dividend yield: 3.08% (annual dividend ¥46 per share) - income-oriented element of total return
• Market capitalization: ≈ ¥400.48 billion
• Price-to-Book (P/B): 1.12 - trading near book value

• Income component: A 3.08% yield combined with a modest P/E makes Keikyu attractive for yield-seeking investors who also want exposure to stability in earnings.
• Growth expectations: Forward P/E (13.34) below trailing P/E (15.76) implies analysts/model-driven expectations for EPS expansion or margin recovery.
• Balance-sheet lens: P/B at 1.12 indicates limited goodwill premium - market values assets close to carrying value, reducing downside from asset write-down risk.
• Relative valuation: EV/EBITDA of 12.68 positions Keikyu in a moderate valuation band versus capital-intensive transportation peers; P/S 1.38 suggests revenue is being monetized at roughly one-and-a-half times annual sales.

For additional investor context and shareholder activity, see: Exploring Keikyu Corporation Investor Profile: Who's Buying and Why?

Keikyu Corporation (9006.T) - Risk Factors

Keikyu Corporation faces multiple financial and operational risks that investors should weigh carefully. Key quantitative signals and qualitative exposures underline potential vulnerabilities in near-term performance and balance-sheet resilience.

• Rising operational expenses have materially compressed profit margins and driven a significant decline in net income in recent periods.
• High financial leverage: debt-to-equity ratio ≈ 1.5, indicating substantial reliance on debt financing and elevated interest/payment obligations.
• Weakened liquidity: cash and deposits decreased from ¥74.5 billion to ¥68.3 billion over a three-month period, reducing the company's buffer for short-term obligations.
• Concentration risk in transportation: heavy reliance on passenger demand exposes revenue to cyclical ridership, economic downturns, and regulatory shifts in the transport sector.
• Real estate exposure: holdings and development activities subject Keikyu to property market volatility and changing demand for commercial and residential space.
• Profitability pressure amplified by higher expenses and an absence of material asset disposals to offset margin deterioration.

• Short-term risks: cash decline and margin compression could force tighter treasury management or accelerated borrowings.
• Medium-term risks: sustained high leverage may limit strategic flexibility and increase refinancing cost sensitivity.
• Operational risks: lower passenger volumes or stricter transport regulation would directly hit core revenue streams.
• Market risks: real estate corrections would impair asset valuations and potential sale proceeds, reducing recovery options.

For context on corporate priorities that may affect risk appetite and capital allocation, see: Mission Statement, Vision, & Core Values (2026) of Keikyu Corporation.

Keikyu Corporation (9006.T) - Growth Opportunities

Keikyu Corporation (9006.T) has signaled a positive growth trajectory driven by recovery in transportation demand, expansion of leisure services, targeted real estate development and a strong sustainability agenda. Key metrics and strategic actions below highlight where future value may be created for shareholders.

• Revised financial outlook: management has revised forecasts for the fiscal year ending March 31, 2026, expecting increased profits as transportation and leisure demand recovers.
• Shareholder returns: annual dividend increased to ¥46 per share, reflecting confidence in cash flow and capital allocation strategy.
• Leisure services momentum: business hotel occupancy at 90% and average room rates up 8.5% year‑on‑year, supporting higher segment margins and revenue per available room.
• Real estate / infrastructure development: major project - Shinagawa Station West Exit Area Development - expected to augment recurring revenue and the company's property portfolio.
• Sustainability credentials: switched 100% of railway electricity to renewable sources in FY2024 and targeting a 70% carbon reduction by FY2035, enhancing ESG appeal to investors.
• Capital allocation balance: deliberate strategy to balance growth investments (transportation, real estate, leisure) with stable shareholder returns.

• Investor implications:
  • Dividend increase and stable leisure metrics support income-oriented allocations.
  • Shinagawa development and sustained hotel performance point to mid‑to‑long‑term top‑line upside.
  • Sustainability actions reduce regulatory and transition risk while broadening investor appeal.

Further background and shareholder activity can be reviewed here: Exploring Keikyu Corporation Investor Profile: Who's Buying and Why?