Hakuhodo Dy Holdings (2433) AI Stock Analysis

• Market Cap: $422.91B
• Dividend Yield: 2.78%
• Average Volume (3M): 622.04K
• Price to Earnings (P/E): 39.3
• Beta (1Y): 0.65
• Revenue Growth: 0.69%
• EPS Growth: -56.84%
• Country: JP
• Employees: 28,894
• Sector: Communication Services
• Sector Strength: 92
• Industry: Advertising Agencies
• EPS (TTM): 28.62
• Shares Outstanding: 389,559,450
• 10 Day Avg. Volume: 679,880
• 30 Day Avg. Volume: 622,040
• PEG Ratio: -0.41
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.70
• 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: $1,213.66
• Price Target Upside: 4.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ¥1,229.00 ▲(5.54%Upside)

Hakuhodo Dy Holdings receives a score of 67, reflecting a mixed financial performance with stable but leveraged balance sheet and strong cash flow potential. Technical analysis indicates moderate bullish momentum, while the high P/E ratio suggests overvaluation despite a decent dividend yield.

Hakuhodo Dy Holdings Business Overview & Revenue Model

Company Description

Hakuhodo DY Holdings Inc. is a leading advertising and communications company based in Japan. The company operates in sectors including advertising, media representation, and marketing services, offering a wide range of creative solutions to its clients. Its core services encompass integrated marketing communications, media buying, and strategic consulting. As one of the largest advertising agencies in Japan, Hakuhodo DY Holdings is known for its innovative approach to branding and marketing, leveraging data and insights to drive impactful campaigns.

How the Company Makes Money

Hakuhodo DY Holdings makes money primarily through its comprehensive advertising and marketing services. The company's revenue model is centered around providing integrated marketing solutions that include creative development, media planning and buying, digital marketing, and strategic consulting. Key revenue streams include fees from advertising campaigns, commissions on media placements, and consulting fees for strategic marketing services. Additionally, the company benefits from significant partnerships with media outlets and digital platforms, which enhance its media buying capabilities and provide competitive pricing advantages. The firm's ability to leverage data analytics and consumer insights further contributes to its revenue by delivering targeted and effective marketing strategies to clients across various industries.

Hakuhodo Dy Holdings Financial Statement Overview

Summary

Hakuhodo Dy Holdings shows mixed financial performance with stable equity but rising debt levels. Revenue and profitability are under pressure, with declining margins and returns on equity, indicating operational inefficiencies. Cash flow improvements are a positive sign, suggesting substantial cash-generating potential despite profitability declines.

Income Statement

Hakuhodo Dy Holdings' revenue has shown a downward trend over the years, with a slight uptick in the most recent year, indicating potential recovery. The gross profit margin remains strong at 40.6% for 2025, though net profit margin has decreased significantly to 1.1%, reflecting weakened profitability. The EBIT and EBITDA margins have also declined, indicating operational challenges.

Balance Sheet

The company's balance sheet reflects a solid equity position with an equity ratio of 37.2%, maintaining stability. However, the debt-to-equity ratio has increased from previous years, reaching 0.31, which could pose leverage risks if not managed. Return on equity has decreased to 2.8%, suggesting limited return on shareholders' investments.

Cash Flow

Cash flow analysis reveals a remarkable recovery in free cash flow, which turned positive in 2025 after a negative year. The operating cash flow to net income ratio is high, indicating strong cash generation capabilities despite profitability pressures. However, free cash flow growth is volatile, pointing to potential future cash management challenges.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	959.98B	953.32B	946.78B	991.14B	895.08B	1.30T
Gross Profit	398.02B	387.01B	394.18B	403.56B	387.09B	313.22B
EBITDA	68.18B	58.99B	78.40B	79.95B	90.98B	60.38B
Net Income	30.48B	10.77B	24.92B	31.01B	55.18B	26.48B
Balance Sheet
Total Assets	960.37B	1.05T	1.04T	1.03T	1.05T	941.10B
Cash, Cash Equivalents and Short-Term Investments	153.91B	222.48B	196.03B	179.41B	212.52B	212.39B
Total Debt	156.83B	121.56B	151.15B	124.27B	126.41B	116.41B
Total Liabilities	560.14B	636.51B	625.82B	636.60B	665.60B	578.97B
Stockholders Equity	377.42B	390.38B	385.16B	364.12B	358.08B	330.67B
Cash Flow
Free Cash Flow	24.38B	78.57B	-7.08B	20.13B	10.40B	25.44B
Operating Cash Flow	28.59B	82.45B	9.88B	38.03B	20.85B	36.21B
Investing Cash Flow	19.40B	-12.97B	6.33B	-32.79B	-11.29B	-9.83B
Financing Cash Flow	-39.19B	-46.41B	1.10B	-28.84B	-8.70B	-12.77B

Hakuhodo Dy Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1164.50
• 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:2433, the sentiment is Positive. The current price of 1164.5 is above the 20-day moving average (MA) of 1145.47, above the 50-day MA of 1116.24, and above the 200-day MA of 1134.87, indicating a bullish trend. The MACD of 11.08 indicates Positive momentum. The RSI at 59.49 is Neutral, neither overbought nor oversold. The STOCH value of 43.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2433.

Hakuhodo Dy Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4293	77 Outperform	¥89.94B	24.99		7.31%	-17.46%	43.19%
4751	74 Outperform	$822.94B	36.20	14.25%	0.98%	6.67%	114.29%
2433	67 Neutral	$422.91B	39.29	2.71%	2.78%	0.69%	-56.84%
Sector *	66 Neutral	¥370.54B	13.79	2.32%	2.56%	5.41%	-19.09%
2389	64 Neutral	¥18.50B	8.26		2.41%	-9.56%	127.51%
2461	63 Neutral	¥29.02B	22.43		4.34%	-5.88%	15.11%
4324	56 Neutral	¥829.85B	―	-24.51%	4.37%	6.88%	-1044.58%

Hakuhodo Dy Holdings Corporate Events

Hakuhodo DY Holdings Reports No Share Acquisition in May 2025

Hakuhodo DY Holdings Inc. announced that no shares were acquired during the specified period from May 14, 2025, to May 31, 2025, despite a board resolution to purchase up to 12 million shares. This lack of acquisition may impact the company’s strategic plans for capital management and market positioning.

The most recent analyst rating on (JP:2433) stock is a Hold with a Yen1100.00 price target. To see the full list of analyst forecasts on Hakuhodo Dy Holdings stock, see the JP:2433 Stock Forecast page.

Hakuhodo DY Holdings Restructures Stake in UNITED, Inc. for Strategic Independence

Hakuhodo DY Holdings Inc. announced a strategic decision to sell a portion of its shares in UNITED, Inc., transitioning UNITED from a consolidated subsidiary to an equity-method affiliate. This move aims to enhance UNITED’s independence and eliminate potential conflicts of interest, thereby increasing its corporate value and ensuring better alignment with minority shareholders’ interests.

The most recent analyst rating on (JP:2433) stock is a Hold with a Yen1100.00 price target. To see the full list of analyst forecasts on Hakuhodo Dy Holdings stock, see the JP:2433 Stock Forecast page.

Hakuhodo DY Holdings Inc. Announces Strategic Restructuring and Growth Plans

Hakuhodo DY Holdings Inc. is undergoing significant restructuring efforts, particularly in the US, to improve profitability and expand its top line. The company has formed an alliance, kyu Pulse, to enhance collaboration and expects growth in client acquisitions. Despite uncertainties like tariffs, consulting services are recovering, and the company anticipates a strong performance in FY2025. In Japan, the company projects a 6.4% increase in adjusted gross profit, driven by market growth and strategic investments. Internationally, growth is expected to be led by Taiwan and ASEAN, with North America contributing as restructuring efforts bear fruit. The company is also focusing on share buy-backs and maintaining a stable dividend policy, despite a deviation in payout ratio due to increased profitability.

The most recent analyst rating on (JP:2433) stock is a Hold with a Yen1100.00 price target. To see the full list of analyst forecasts on Hakuhodo Dy Holdings stock, see the JP:2433 Stock Forecast page.

Hakuhodo DY Holdings Unveils Ambitious Medium-Term Business Plan

Hakuhodo DY Holdings has launched a new Medium-Term Business Plan for FY2024-FY2026, aiming to evolve beyond traditional advertising into a creativity platform. The plan includes restructuring marketing, creating new growth options, and remodeling global business to enhance profitability and growth, with specific financial targets set for fiscal 2026.

The most recent analyst rating on (JP:2433) stock is a Hold with a Yen1100.00 price target. To see the full list of analyst forecasts on Hakuhodo Dy Holdings stock, see the JP:2433 Stock Forecast page.

Hakuhodo DY Holdings Reports FY2024 Financial Results Amid Economic Challenges

Hakuhodo DY Holdings Inc. reported its financial results for FY2024, showing a modest increase in billings and revenue despite challenging economic conditions. The company saw significant growth in internet and outdoor media services, although some client industries like automobiles and beverages experienced declines. Operating income and ordinary income rose, but net income attributable to owners of the parent decreased significantly due to extraordinary losses, including restructuring expenses in North America.

The most recent analyst rating on (JP:2433) stock is a Hold with a Yen1100.00 price target. To see the full list of analyst forecasts on Hakuhodo Dy Holdings stock, see the JP:2433 Stock Forecast page.

Hakuhodo DY Holdings Announces Share Buyback Plan

Hakuhodo DY Holdings Inc. has announced a decision to acquire up to 12 million of its own shares, representing 3.27% of its total shares, with a maximum acquisition cost of 10 billion yen. This move is aimed at enhancing shareholder returns, improving capital efficiency, and adapting to the evolving business landscape.

The most recent analyst rating on (JP:2433) stock is a Hold with a Yen1100.00 price target. To see the full list of analyst forecasts on Hakuhodo Dy Holdings stock, see the JP:2433 Stock Forecast page.