Keifuku Electric Railroad is considered highly undervalued among global railway companies, with a low PBR despite its high ROE. For the fiscal year ending March 2026, net income is approximately 2.8x the previous fiscal year, while shareholders' equity has increased approximately 2.7x.
In a comparison of 35 railway companies, Keifuku Electric Railroad is reported to have an ROE of 14% and a PBR of 0.9x, placing it among the most undervalued stocks. The ranking shown in the table places it at a high level of undervaluation.
Stock market data shows Keifuku Electric Railroad's share price at ¥6,440 and its market capitalization at approximately ¥12.8 billion, a level also identified as undervalued compared with its peers.
The company's net income has been on an upward trend since the fiscal year ended March 2016, reaching approximately 2.8x the 2016 level. This represents 1.2x the increase in net sales and 3.5x the increase in operating income, indicating ongoing improvement in its earnings structure.
By business segment, real estate is driving earnings growth, with higher rental income from real estate contributing to improved profit margins. The recovery in tourism demand and the rental strategy are affecting the accumulation of shareholders' equity and share price performance.