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Tobu Railway Co (TBURF) Fair Value & Analysis

Industrials · US · Market cap $3.2B

TR Tobu Railway Co logo Tobu Railway Co TBURF · US
Price$16.27
Fair Value$18.95
Upside+16.5%
Quality50/100
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Expensive Growth
Thin margins · 8.5% net margin
Moderate debt · negative free cash flow
2.21% dividend yield
Mixed vs. peers (5/10)
Moderate moat 46/100
Evidence: High Range $17.18 – $29.28 Share as image

Fair value as of: Jul 21, 2026

From 12 valuation models · updated 20 days ago

A solid business, screening 16% undervalued on our models.

What matters now

  • The price is below even our cautious bear case ($17.18). The market is more pessimistic than our downside scenario.
  • Our model range runs from $17.18 (bear) to $29.28 (bull), base $18.95. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 50/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

$30.80 $15.25 Fair Value $18.95 Apr 2021 Jul 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 21, 2026.

How to read this chart

60‑month range $15.25 – $30.80 · fair‑value band $17.18 – $29.28 · the $16.27 price screens below the $18.95 fair value. Dashed = 300-day average. As of Jul 21, 2026.

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Analysis

Tobu Railway Co (TBURF) currently trades at $16.27, while our model-based Fair Value estimate is $18.95, implying the stock looks roughly 16.5% undervalued today. The Quality Score stands at 50/100 (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: high), always confirm before acting.

Over the trailing twelve months, Tobu Railway Co generated revenue of $655B at a net margin of 8.5%. Revenue grew 3.8% year over year. It earns a return on equity of 9.5%. Net debt stands at $749B. Fundamentals as of Jul 21, 2026

Our scenario range runs from $17.18 (bear case) to $29.28 (bull case); at $16.27, the current price sits below 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 26% below its 52-week high and 4% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -28% fair-value upside, at 16%, TBURF 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
ROIC Compounder $0.2423 72
Growth-Adj P/E $13.27 $18.95 $24.64 68
P/E Multiple $18.79 $25.05 $31.31 63
All 12 models by family
Earnings-Based
Graham-Dodd $8.11 $13.32 $16.13 54
EPV $0.2423 59
Multiples
P/E Multiple $18.79 $25.05 $31.31 63
P/S Multiple $15.21 $20.28 $25.35 58
P/B Multiple $15.21 $20.28 $25.35 55
EV/EBIT $7.79 $14.34 $20.89 53
EV/EBITDA $14.71 $23.56 $32.42 54
EV/Revenue $2.16 $8.17 $14.18 43
Asset-Based
NCAV (Graham) $6.60 $8.84 $13.20 50
Economic Profit
Residual Income $11.13 $12.09 $15.31 61
ROIC Compounder $0.2423 72
Growth Earnings
Growth-Adj P/E $13.27 $18.95 $24.64 68

Widest divergence: Multiples ($20.28) versus Asset-Based ($8.84). Highest evidence: ROIC Compounder (72).

Key figures & financial health

Revenue (TTM) $655B
Revenue growth (YoY) +3.8%
Net margin 8.5%
Return on equity 9.5%
Free cash flow −$1.9B FY2026
P/E ratio 11.0
More key figures
Operating margin 7.6%
EPS (TTM) $1.48
Dividend yield 2.2%
EPS growth (YoY) -14.6%
Net debt $749B FY2026

Figures from reported company fundamentals · as of Jul 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 50/100

Of which business quality 47 · Market factors (momentum, volatility) 55

Profitability 31
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 43
Earnings quality: real cash, not paper profit
Fin. Strength 33
Balance sheet, leverage, solvency risk
Investment 53
Disciplined investing over empire-building
Low Volatility 100
Calm price path (market factor)
Momentum 42
Price trend over the last 3–12 months (market factor)
52W Momentum 24
Distance to the 52-week high (market factor)
Net Issuance 100
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

Tobu Railway Co., Ltd. provides private rail system services in Japan. The company also operates health clubs, golf courses, theme parks, and hotels. It also develops and manages condominiums, housing developments, department stores, and other properties along its railways.

Full company description

Tobu Railway Co., Ltd. provides private rail system services in Japan. The company also operates health clubs, golf courses, theme parks, and hotels. It also develops and manages condominiums, housing developments, department stores, and other properties along its railways. In addition, the company operate sightseeing service centers that offers assistance on ticket exchanges, purchase of tickets, various arrangements, and sightseeing information. Tobu Railway Co., Ltd. was incorporated in 1896 and is headquartered in Tokyo, Japan.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Tobu Railway Co reported revenue of $660B in FY2026 versus $506B in FY2022, a compound +6.8%/yr. Reported net income was $56.0B in FY2026, compounding +42.8%/yr from FY2022.

Growth Quality 39/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
$660B
Latest YoY
+4.4%
Avg. growth/yr (3Y)
+2.4%
Avg. growth/yr (5Y)
+5.9%
Avg. growth/yr (21Y)
+0.2%
Revenue +6.8%/yr
FY22 $506B
FY23 $615B
FY24 $636B
FY25 $631B
FY26 $660B
Net income +42.8%/yr
FY22 $13.5B
FY23 $29.2B
FY24 $48.2B
FY25 $51.3B
FY26 $56.0B

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Cite: Fair Value Calculator (2026). "Tobu Railway Co Fair Value". https://www.fairvalue-calculator.com/stock/TBURF

Peer Group

Railroads · 111 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 50 · Below median
Fair Value upside +17% · Above median
Return on equity (TTM) 9% · Above median
Return on assets 2% · Below median
Net margin (TTM) 8% · Above median
Operating margin (TTM) 8% · Below median
Revenue growth 4% · Below median
Dividend yield (TTM) 2.2% · Above median
Debt / equity 0.97× · Higher than 75% of peers

Valuation Multiples vs Railroads median · lower = cheaper

P/E (TTM) 11.0× · Cheaper 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 55 · sector 28
FUTURE 19 · sector 20
PAST 38 · sector 31
HEALTH 51 · sector 88
DIVIDEND 44 · sector 41

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.

Similar stocks

10 more Railroads stocks, each showing price versus our Fair Value estimate (as of Jul 21, 2026).

Stock Price Fair Value vs Fair Value
Union Pacific Corporation UNP $301.75 $144.60 -52%
CSX Corporation CSX $49.41 $12.85 -74%
Canadian Pacific Kansas City Limited CP $92.91 $35.00 -62%
Canadian National Railway Company CNI $128.22 $92.63 -28%
Norfolk Southern Corporation NSC $327.47 $117.90 -64%
Westinghouse Air Brake Technologies Corporation WAB $259.71 $144.80 -44%
Beijing-Shanghai High-Speed Railway Co 601816 ¥4.82 ¥5.65 +17%
CRRC Corporation 601766 ¥5.65 ¥9.53 +69%
Daqin Railway Co 601006 ¥4.85 ¥6.24 +29%
Hyundai Rotem Company 064350 167,700 KRW 125,182 KRW -25%

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Frequently asked questions

Is Tobu Railway Co (TBURF) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of $18.95 versus a price of $16.27, about +16% (undervalued).
What is the fair value of TBURF?
Our model-based fair value for Tobu Railway Co is $18.95 (as of Jul 21, 2026), built from audited fundamentals. The current price is $16.27.
What is the quality score of TBURF?
Tobu Railway Co has a Quality Score of 50/100. 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 Tobu Railway Co (TBURF)?
Tobu Railway Co reported trailing-twelve-month revenue of about $655B (latest available figure, as of Jul 21, 2026).
What is the net profit margin of TBURF?
The net profit margin of Tobu Railway Co is about 8.5%, meaning it keeps roughly 8.5% of revenue as net income. Based on the latest reported figures.
Does Tobu Railway Co pay a dividend?
Tobu Railway Co currently shows a dividend yield of about 2.21% relative to its recent price (as of Jul 21, 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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