9001 (Tobu Railway Co Ltd) vs Nikkei 225 Comparison

9001

Nikkei 225

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9001

Nikkei 225

Difference

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9001

Nikkei 225

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Nikkei 225

9001

UNP

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CSX

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Tobu Railway Co Ltd
Glance View

Market Cap

509.9B JPY

Industry

Road & Rail

In the bustling sphere of Japanese transportation, Tobu Railway Co., Ltd. stands as a pivotal conduit that intertwines the rich tapestry of regional communities and urban centers. Originating in 1897, Tobu has evolved beyond merely shuttling passengers across eastern Japan; it has become an essential artery of daily life for millions, particularly within the Greater Tokyo Area. The company's extensive railway network penetrates the hearts of thriving metropolises while gently threading into serene, rural landscapes. This vast network ensures reliable, efficient transport services, generating consistent revenue from passenger fares. Its dynamic operations are further buoyed by strategic landholdings and real estate ventures along its lines, where it capitalizes on the symbiotic relationship between transit hubs and real estate development. Yet, Tobu's pursuits extend beyond tracks and stations. The firm astutely diversifies its income streams through adept management of its integrated business model. It owns and operates a selection of hotels, retail outlets, and leisure facilities strategically located to complement its transportation services. Among its prized assets are the Tobu department stores and popular tourist destinations like the venerable Nikko region, drawing visitors eager to experience Japan’s cultural heritage. By skillfully amalgamating real estate, hospitality, and retail ventures into its core transport operations, Tobu Railway Co., Ltd. crafts a resilient economic ecosystem. This model not only ensures robust profitability but also weaves a seamless experience for its customers, underscoring Tobu's influence as a multifaceted enterprise deeply embedded in the socio-economic fabric of Japan.

View Tobu Railway Co Ltd Analysis

Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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CA		Canadian Pacific Railway Ltd TSX:CP	Add
CA		Canadian National Railway Co TSX:CNR	Add
US		CSX Corp NASDAQ:CSX	Add
US		Norfolk Southern Corp NYSE:NSC	Add
CN		Beijing-Shanghai High Speed Railway Co Ltd SSE:601816	Add
US	K	Kansas City Southern LSE:0JQ4	Add
HK		MTR Corp Ltd HKEX:66	Add
JP		East Japan Railway Co TSE:9020	Add
JP		Central Japan Railway Co TSE:9022	Add

US		Union Pacific Corp NYSE:UNP	Select
CA		Canadian Pacific Railway Ltd TSX:CP	Select
CA		Canadian National Railway Co TSX:CNR	Select
US		CSX Corp NASDAQ:CSX	Select
US		Norfolk Southern Corp NYSE:NSC	Select
CN		Beijing-Shanghai High Speed Railway Co Ltd SSE:601816	Select
US	K	Kansas City Southern LSE:0JQ4	Select
HK		MTR Corp Ltd HKEX:66	Select
JP		East Japan Railway Co TSE:9020	Select
JP		Central Japan Railway Co TSE:9022	Select

US		Union Pacific Corp NYSE:UNP	Add
CA		Canadian Pacific Railway Ltd TSX:CP	Add
CA		Canadian National Railway Co TSX:CNR	Add
US		CSX Corp NASDAQ:CSX	Add
US		Norfolk Southern Corp NYSE:NSC	Add
CN		Beijing-Shanghai High Speed Railway Co Ltd SSE:601816	Add
US	K	Kansas City Southern LSE:0JQ4	Add
HK		MTR Corp Ltd HKEX:66	Add
JP		East Japan Railway Co TSE:9020	Add
JP		Central Japan Railway Co TSE:9022	Add

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9001

vs

Nikkei 225

Stocks Performance
9001 vs Nikkei 225

Performance Gap
9001 vs Nikkei 225

Performance By Year
9001 vs Nikkei 225

Competitors Performance
Tobu Railway Co Ltd vs Peers

Tobu Railway Co Ltd
Glance View

Company

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9001 vs Nikkei 225

Stocks Performance 9001 vs Nikkei 225

Performance Gap 9001 vs Nikkei 225

Performance By Year 9001 vs Nikkei 225

Competitors Performance Tobu Railway Co Ltd vs Peers

Tobu Railway Co Ltd Glance View

Company

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Stocks

9001

vs

Nikkei 225

Stocks Performance
9001 vs Nikkei 225

Performance Gap
9001 vs Nikkei 225

Performance By Year
9001 vs Nikkei 225

Competitors Performance
Tobu Railway Co Ltd vs Peers

Tobu Railway Co Ltd
Glance View