Hip Corporation (2136) AI Stock Analysis

• Market Cap: ¥6.32B
• Dividend Yield: 3.39%
• Average Volume (3M): 4.12K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.71
• Revenue Growth: 5.71%
• EPS Growth: 18.97%
• Country: JP
• Employees: 765
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 20.51
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥1,649.00 ▲(3.71% Upside)

Hip Corporation's strong financial performance, characterized by robust revenue and profit growth and a solid balance sheet, is the primary driver of its stock score. Technical indicators support a positive outlook, with the stock trading above key moving averages. The valuation is attractive with a reasonable P/E ratio and a solid dividend yield. The absence of earnings call insights and corporate events does not impact the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market reach and adapt to evolving customer needs, supporting long-term business sustainability.

Balance Sheet Health

A low debt-to-equity ratio indicates financial stability and low leverage, providing the company with flexibility to invest in growth opportunities and withstand economic fluctuations.

Cash Flow Generation

Strong cash flow generation ensures the company can fund its operations, invest in new projects, and maintain financial health, which is crucial for long-term success.

Negative Factors

Decline in Free Cash Flow

A decline in free cash flow may indicate increased capital expenditures or inefficiencies in working capital management, potentially impacting future investment capacity.

Monitoring Free Cash Flow Trends

The need to monitor free cash flow trends suggests potential volatility or uncertainty in cash management, which could affect the company's ability to fund future growth initiatives.

Lack of Earnings Call Insights

The absence of earnings call insights may indicate a lack of transparency or strategic direction, which could concern investors about the company's future plans and performance.

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 the sale of electronic devices such as smartphones, tablets, and smart home appliances. The company's core revenue comes from direct product sales to consumers through both online and retail channels. Additionally, Hip Corporation offers subscription-based services for its software applications, which provide users with premium features and cloud storage options. Significant partnerships with major retailers and online marketplaces enhance distribution and visibility, driving sales growth. The company also invests in research and development to continuously innovate, thereby maintaining its competitive edge and attracting a loyal customer base.

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: Positive
• Last Price: 1590.00
• 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 Positive. The current price of 1590 is above the 20-day moving average (MA) of 1569.00, above the 50-day MA of 1505.86, and above the 200-day MA of 1283.11, indicating a bullish trend. The MACD of 30.99 indicates Positive momentum. The RSI at 59.24 is Neutral, neither overbought nor oversold. The STOCH value of 47.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2136.

Hip Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7361	79 Outperform	¥4.34B	10.46	―	2.09%	24.84%	2.56%
2136	79 Outperform	¥6.32B	15.11	―	3.39%	5.71%	18.97%
9346	79 Outperform	¥6.20B	10.92	―	2.76%	10.27%	-0.35%
7089	76 Outperform	¥6.51B	12.97	―	―	21.37%	93.71%
7080	74 Outperform	¥6.03B	9.24	―	2.01%	12.91%	14.39%
4177	73 Outperform	¥5.62B	9.41	―	―	10.47%	229.21%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%