Hip Corporation (JP:2136)
:2136
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Hip Corporation
(2136)
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Rating:66Neutral
Price Target:
¥1,672.00
▲(5.89% Upside)
Action:DowngradedDate:03/24/26
The score is driven primarily by solid profitability and a strengthening, low-leverage balance sheet, offset by a material FY2025 cash flow deterioration. Valuation is supportive (P/E ~12 and ~3.5% yield), but technical signals remain weak-to-neutral with price below major moving averages and negative MACD.
Positive Factors
Balance Sheet Health
Very low and falling leverage gives the company durable financial flexibility: it can fund operations, tolerate cyclical downturns, support dividends or opportunistic M&A, and incur less interest expense. Consistent equity growth and ~10% ROE enhance long-term solvency and resilience.
Negative Factors
Free Cash Flow Deterioration
A ~68% FCF decline is a structural concern: it reduces internal funding for capex, dividends, or strategic initiatives and may force external financing if prolonged. Persistent weak FCF undermines the capital cushion implied by low leverage and raises business-model cash quality questions.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Health
Very low and falling leverage gives the company durable financial flexibility: it can fund operations, tolerate cyclical downturns, support dividends or opportunistic M&A, and incur less interest expense. Consistent equity growth and ~10% ROE enhance long-term solvency and resilience.
Read all positive factors
Hip Corporation (2136) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.81B
Dividend Yield3.39%
Average Volume (3M)4.12K
Price to Earnings (P/E)12.0
Beta (1Y)0.55
Revenue Growth5.71%
EPS Growth18.97%
CountryJP
Employees765
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)32.94
Shares Outstanding3,975,300
10 Day Avg. Volume4,550
30 Day Avg. Volume4,116
Financial Highlights & Ratios
PEG Ratio1.28
Price to Book (P/B)1.06
Price to Sales (P/S)0.71
P/FCF Ratio24.37
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Hip Corporation Business Overview & Revenue Model
Company Description
HIP Corporation provides outsourcing services in Japan. It offers technical services in the areas of mechanical and electronic design, and software development. The company serves transportation equipment, machinery-related, information communicat...
Hip Corporation Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.06B | 5.97B | 5.66B | 5.48B | 5.19B | 5.01B |
| Gross Profit | 1.05B | 1.32B | 1.28B | 1.30B | 1.14B | 929.98M |
| EBITDA | 354.25M | 590.22M | 576.28M | 601.83M | 476.98M | 277.02M |
| Net Income | 220.41M | 413.67M | 388.59M | 401.54M | 403.60M | 364.26M |
Balance Sheet | ||||||
| Total Assets | ― | 5.90B | 6.14B | 5.77B | 5.59B | 5.12B |
| Cash, Cash Equivalents and Short-Term Investments | ― | 3.43B | 3.76B | 3.42B | 3.25B | 2.82B |
| Total Debt | ― | 400.00M | 600.67M | 601.81M | 652.96M | 654.10M |
| Total Liabilities | ― | 1.92B | 2.33B | 2.13B | 2.23B | 2.05B |
| Stockholders Equity | ― | 3.98B | 3.81B | 3.63B | 3.35B | 3.07B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 172.90M | 543.94M | 340.29M | 551.74M | 350.33M |
| Operating Cash Flow | 0.00 | 217.54M | 549.42M | 344.76M | 560.00M | 367.38M |
| Investing Cash Flow | 0.00 | -95.17M | 1.71M | -4.46M | -7.75M | -47.76M |
| Financing Cash Flow | 0.00 | -444.90M | -214.65M | -170.08M | -120.27M | -96.64M |
Hip Corporation Technical Analysis
Negative
1579.00
Price Trends
1508.04
Negative
1497.43
Negative
1383.78
Positive
Market Momentum
-11.66
Positive
45.42
Neutral
29.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2136, the sentiment is Negative. The current price of 1579 is above the 20-day moving average (MA) of 1490.28, above the 50-day MA of 1508.04, and above the 200-day MA of 1383.78, indicating a neutral trend. The MACD of -11.66 indicates Positive momentum. The RSI at 45.42 is Neutral, neither overbought nor oversold. The STOCH value of 29.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2136.
Hip Corporation Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥10.82B | 13.11 | ― | 1.72% | 3.95% | 4.50% | |
70 Outperform | ¥37.43B | 30.08 | ― | 0.39% | 41.23% | 50.13% | |
70 Outperform | ¥25.05B | 24.11 | ― | 5.45% | 21.90% | 0.46% | |
66 Neutral | ¥5.81B | 11.98 | ― | 3.39% | 5.71% | 18.97% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | ¥21.09B | 14.32 | ― | 3.76% | 6.74% | 7.56% | |
49 Neutral | ¥10.94B | 426.22 | ― | 2.24% | 32.39% | -127.51% |
* Industrials Sector Average
JP:2136
Hip Corporation
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62.90%
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15.74%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.