[Company analysis] Odakyu Electric Railway Co., Ltd. (小田急電鉄)

                                              

「Odakyu Electric Railway Co., Ltd. (小田急電鉄)」operates railway and real estate business mainly in Tokyo and Kanagawa prefectures as a core company of「Odakyu Electric Railway Group(小田急行電鉄グループ)」. The abbreviation is "Odakyu". They are conducting business mainly on the railway, so the railway business accounts for 70% of the total profit. The number of consolidated employees is approximately 13,938.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Odakyu Electric Railway Co., Ltd.
Company name (Japanese)	小田急電鉄
Date of establishment	Tuesday, June 1, 1948
Headquarters location	〒160-8309 東京都新宿区西新宿1丁目8番3号
Capital	60,359
Consolidated sales	526,675
Consolidated operating profit	52,089
Consolidated total assets	1,312,433
Consolidated capital	389,180
Capital adequacy ratio	29.7%
Consolidated number of employees	13,938

 

 

 

2. Summary and Features

 
On May 1, 1923,「Odawara Express Railway(小田原急行鉄道)」, the predecessor of the current「Odakyu Electric Railway(小田急電鉄)」, was established. In 1941, the other predecessor,「Kinugawa hydro‐electric Power(鬼怒川水力電気)」merged with the「Odawara Express Railway」, so current「Odakyu Electric Railway」was established. During the Second World War, it was temporarily integrated into the「Tokyu Corporation(東京急行電鉄)」, but it was separated in 1948.

 

Currently, this company has three railway lines: the "Odawara Line(小田原線)" connecting Shinjuku Station to Odawara Station, the "Enoshima Line(江ノ島線)" from Sagami-Ono to the Shonan area, and the "Tama Line(多摩線)" from Shin-Yurigaoka to Tama New Town. This company operates 70 stations with the total operating distance of 120.5km. For the convenience of passengers, it is connected to the Tokyo Metro's Chiyoda line and the East Japan Railway Company's Joban line.

As a group company,「Odakyu Electric Railway 」owns 99 affiliated companies such as transportation, distribution, real estate, and hotels. In total sales, the railway business accounts for around 72%, which is the fifth largest volume in Japanese private railway companies. Their real estate business accounts about 20%.

From its establishment,「Odakyu Electric Railway 」has focused on strengthening its railway business in the Tokyo metropolitan area and securing stable profit. So the business diversification was not so advanced compared to its competitors. However, many private railway companies now worry about securing capital investment costs for the railway business recently. But in the case of「Odakyu Electric Railway 」, since high profitability and a low debt ratio, they are relatively free from that issue.

 

3. Major Business

 

■ Transportation business

■ Distribution business

■ Real estate business

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		523,031	524,660	526,675
Consolidated operating profit		49,946	51,464	52,089
Consolidated total assets		1,270,102	1,297,334	1,312,433
Consolidated net assets		338,703	366,466	389,180
Breakdown of sales	Transportation business	169,896	173,229	176,373
	Distribution business	216,420	210,893	207,428
	Real estate business	60,728	62,400	62,623
	Others	75,985	78,136	80,250