Hip Corporation (2136) AI Stock Analysis

• Market Cap: ¥5.57B
• Dividend Yield: 3.86%
• Average Volume (3M): 4.12K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.68
• Revenue Growth: 6.09%
• EPS Growth: 6.63%
• Country: JP
• Employees: 765
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 19.05
• Shares Outstanding: 3,975,300
• 10 Day Avg. Volume: 4,550
• 30 Day Avg. Volume: 4,116
• PEG Ratio: 1.28
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 24.37
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥1,443.00
• Price Target Upside: 3.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥1,443.00 ▲(3.07% Upside)

Hip Corporation's strong financial performance and attractive valuation are the primary drivers of its stock score. The technical analysis suggests bullish momentum, though caution is advised due to overbought indicators. The absence of earnings call data and corporate events does not impact the score.

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 communication and precision equipment-related, electrical and electronic equipment, semiconductor circuit related, and information processing and software related clients. HIP Corporation was founded in 1995 and is headquartered in Yokohama, Japan.

How the Company Makes Money

Hip Corporation generates revenue through multiple streams including software licensing fees, subscription services for its cloud-based platforms, and consulting services related to digital transformation projects. The company also earns income from long-term contracts with enterprises for customized communication solutions. Strategic partnerships with major telecommunications providers enhance its market reach and enable bundled service offerings, which contribute significantly to its earnings. Furthermore, the company invests in research and development to continuously innovate and adapt to market demands, ensuring a steady flow of new products and services that drive sales.

Hip Corporation Financial Statement Overview

Summary

Hip Corporation exhibits strong financial health with consistent revenue and profit growth, a robust balance sheet with low leverage, and positive cash flows. The company is well-positioned to capitalize on future opportunities, although monitoring free cash flow trends will be important to ensure continued financial flexibility.

Income Statement

Hip Corporation has demonstrated strong revenue growth with a consistent increase over the years, reaching ¥5,969,419,000 in 2025 from ¥5,000,621,700 in 2021. The gross profit margin has remained healthy, averaging around 22%, indicating efficient cost management. The net profit margin has also been stable, around 7%, showcasing profitability. EBIT and EBITDA margins are robust, reflecting strong operational performance.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.10, indicating low leverage and financial stability. The equity ratio is strong at approximately 67%, signifying a high proportion of equity financing. Return on equity is healthy, reflecting effective use of shareholders' funds. The substantial cash reserves further enhance financial flexibility.

Cash Flow

Operating cash flow has been positive and consistent, supporting the company's operations and growth. However, there was a decline in free cash flow in 2025 compared to 2024, which may indicate increased capital expenditures or changes in working capital. The operating cash flow to net income ratio is favorable, suggesting efficient cash generation relative to earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.97B	5.66B	5.48B	5.19B	5.01B
Gross Profit	1.32B	1.29B	1.32B	1.15B	937.77M
EBITDA	594.47M	520.46M	617.72M	617.03M	556.23M
Net Income	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	172.90M	543.32M	340.29M	550.75M	319.62M
Operating Cash Flow	217.54M	549.42M	344.76M	560.00M	367.38M
Investing Cash Flow	-95.17M	1.71M	-4.46M	-7.75M	-47.76M
Financing Cash Flow	-444.90M	-214.65M	-170.08M	-120.27M	-96.64M

Hip Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1400.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2136, the sentiment is Neutral. The current price of 1400 is below the 20-day moving average (MA) of 1414.70, above the 50-day MA of 1379.94, and above the 200-day MA of 1187.18, indicating a neutral trend. The MACD of 10.56 indicates Positive momentum. The RSI at 49.12 is Neutral, neither overbought nor oversold. The STOCH value of 68.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2136.

Hip Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7080	81 Outperform	¥6.48B	8.93	―	1.84%	15.97%	26.52%
9346	79 Outperform	¥6.86B	12.01	―	2.54%	10.88%	5.40%
2136	78 Outperform	¥5.57B	13.07	―	3.86%	6.09%	6.63%
7089	76 Outperform	¥6.35B	14.91	―	―	11.03%	24.40%
7361	72 Outperform	¥3.78B	9.71	―	2.35%	18.92%	1.22%
4177	69 Neutral	¥4.80B	7.38	―	―	11.90%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%