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Kyushu Railway Company (KYHHY) Fair Value & Analysis

Industrials · US · Market cap $3.9B

KR Kyushu Railway Company logo Kyushu Railway Company KYHHY · US
Price$12.62
Fair Value$15.33
Upside+21.5%
Quality51/100
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Expensive Growth
Thin margins · 9.1% net margin
Moderate debt · negative free cash flow
2.85% dividend yield
Ranks above peers (9/11)
Narrow moat 44/100
Evidence: Medium Range $11.49 – $19.16 Share as image

Fair value as of: Jul 26, 2026

From 6 valuation models · updated 15 days ago

Fair value updated Jul 26, 2026, revised from $15.58 to $15.33 (−1.6%) since Jun 26, 2026.

A solid business, screening 21% undervalued on our models.

What matters now

  • Solid quality (51/100) at a price below fair value, the discount is the argument here, not the business quality.
  • Our model range runs from $11.49 (bear) to $19.16 (bull), base $15.33. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 51/100 (solid quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (2 years)

$13.00 $11.23 Fair Value $15.33 Jul 2024 Jul 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 26, 2026.

How to read this chart

24‑month range $11.23 – $13.00 · fair‑value band $11.49 – $19.16 · the $12.62 price screens below the $15.33 fair value. Dashed = 300-day average. As of Jul 26, 2026.

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Analysis

Kyushu Railway Company (KYHHY) currently trades at $12.62, while our model-based Fair Value estimate is $15.33, implying the stock looks roughly 21.5% undervalued today. The Quality Score stands at 51/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Kyushu Railway Company generated revenue of $500B at a net margin of 9.1%. Revenue grew 6.0% year over year. It earns a return on equity of 9.6%. Net debt stands at $431B. Fundamentals as of Jul 26, 2026

Our scenario range runs from $11.49 (bear case) to $19.16 (bull case); at $12.62, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 3% below its 52-week high and 9% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -14% fair-value upside, at 21%, KYHHY screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
P/E Multiple $2,328 $3,103 $3,879 63
Residual Income $1,360 $1,482 $1,940 61
P/B Multiple $1,884 $2,512 $3,140 55
All 6 models by family
Earnings-Based
Graham-Dodd $1,005 $4,214 $5,748 54
Lynch FV $1,069 $1,527 $1,985 50
Multiples
P/E Multiple $2,328 $3,103 $3,879 63
P/B Multiple $1,884 $2,512 $3,140 55
Asset-Based
NCAV (Graham) $802.70 $1,076 $1,605 50
Economic Profit
Residual Income $1,360 $1,482 $1,940 61

Widest divergence: Multiples ($2,512) versus Asset-Based ($1,076). Highest evidence: P/E Multiple (63).

Key figures & financial health

Revenue (TTM) $500B
Revenue growth (YoY) +6.0%
Net margin 9.1%
Return on equity 9.6%
Free cash flow −$13.1B FY2026
P/E ratio 13.7
More key figures
Operating margin 8.1%
EPS (TTM) $0.9200
Dividend yield 2.9%
EPS growth (YoY) -24.8%
Net debt $431B FY2026

Figures from reported company fundamentals · as of Jul 26, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 51/100

Of which business quality 49 · Market factors (momentum, volatility) 65

Profitability 35
Margins and returns on capital today
Quality Growth 54
Are margins and returns improving?
Cashflow 34
Earnings quality: real cash, not paper profit
Fin. Strength 44
Balance sheet, leverage, solvency risk
Investment 49
Disciplined investing over empire-building
Low Volatility 100
Calm price path (market factor)
Momentum 46
Price trend over the last 3–12 months (market factor)
52W Momentum 59
Distance to the 52-week high (market factor)
Net Issuance 93
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Kyushu Railway Company engages in the railway business in Japan. It operates through five segments: Transportation, Construction, Real Estate and Hotels, Retail and Restaurant, and Business Services. The Transportation segment involved in railway and bus businesses, including shared, highway, and chartered bus business.

Full company description

Kyushu Railway Company engages in the railway business in Japan. It operates through five segments: Transportation, Construction, Real Estate and Hotels, Retail and Restaurant, and Business Services. The Transportation segment involved in railway and bus businesses, including shared, highway, and chartered bus business. The Construction segment offers construction, vehicle equipment and machinery-related operations, electrical work, civil engineering, railways maintenance, and construction consulting services, as well as engages in public and private construction business. The Real Estate and Hotels segment leases station buildings and other real estate; sells condominiums and other properties; and conducts hotel operations, etc. The Retail and Restaurant segment involved in retail, restaurant, and agriculture businesses, as well as operates Meihingura specialist souvenir shops and FamilyMart convenience stores. The Business Services segment sales, maintains, and rents construction machinery, such as diesel engines, generators, etc., as well as involved in wholesaling, cleaning, advertising, system-related, and other businesses. It also provides passenger railway, ferry, travel agency, parking, property management, and non-life and other insurance services; and retail sales of travel goods, food and drink, pharmaceuticals, etc. The company was incorporated in 1987 and is headquartered in Fukuoka City, Japan.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Kyushu Railway Company reported revenue of $500B in FY2026 versus $330B in FY2022, a compound +11.0%/yr. Reported net income was $45.5B in FY2026, compounding +36.1%/yr from FY2022.

Growth Quality 52/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
$500B
Latest YoY
+10.1%
Avg. growth/yr (3Y)
+9.3%
Avg. growth/yr (5Y)
+11.2%
Revenue +11.0%/yr
FY22 $330B
FY23 $383B
FY24 $420B
FY25 $454B
FY26 $500B
Net income +36.1%/yr
FY22 $13.3B
FY23 $31.2B
FY24 $38.4B
FY25 $43.7B
FY26 $45.5B

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Cite: Fair Value Calculator (2026). "Kyushu Railway Company Fair Value". https://www.fairvalue-calculator.com/stock/KYHHY

Peer Group

Conglomerates · 370 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 51 · Above median
Fair Value upside +22% · Above median
Return on equity (TTM) 10% · Above median
Return on assets 4% · Above median
Net margin (TTM) 9% · Above median
Operating margin (TTM) 8% · Above median
Revenue growth 6% · Above median
Dividend yield (TTM) 2.9% · Above median
Debt / equity 0.86× · Higher than 75% of peers

Valuation Multiples vs Conglomerates median · lower = cheaper

P/E (TTM) 13.7× · Cheaper than median
PEG 8.64× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 62 · sector 21
FUTURE 30 · sector 16
PAST 38 · sector 20
HEALTH 57 · sector 88
DIVIDEND 57 · sector 39

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

Is Kyushu Railway Company (KYHHY) overvalued or undervalued?
As of Jul 26, 2026, our model estimates a fair value of $15.33 versus a price of $12.62, about +21% (undervalued).
What is the fair value of KYHHY?
Our model-based fair value for Kyushu Railway Company is $15.33 (as of Jul 26, 2026), built from audited fundamentals. The current price is $12.62.
What is the quality score of KYHHY?
Kyushu Railway Company has a Quality Score of 51/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Kyushu Railway Company (KYHHY)?
Kyushu Railway Company reported trailing-twelve-month revenue of about $500B (latest available figure, as of Jul 26, 2026).
What is the net profit margin of KYHHY?
The net profit margin of Kyushu Railway Company is about 9.1%, meaning it keeps roughly 9.1% of revenue as net income. Based on the latest reported figures.
Does Kyushu Railway Company pay a dividend?
Kyushu Railway Company currently shows a dividend yield of about 2.85% relative to its recent price (as of Jul 26, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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