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Hakuhodo Dy Holdings Incorporated (JP:2433)
:2433

Hakuhodo Dy Holdings (2433) AI Stock Analysis

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JP:2433

Hakuhodo Dy Holdings

(2433)

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Neutral 58 (OpenAI - 4o)
Rating:58Neutral
Price Target:
¥1,204.00
▲(4.29% Upside)
Hakuhodo Dy Holdings' overall stock score is primarily impacted by its mixed financial performance and weak technical indicators. The high P/E ratio raises valuation concerns, while the stable balance sheet and improved cash flow provide some positive aspects. The lack of earnings call data and corporate events further limits the assessment.
Positive Factors
Cash Generation
Strong cash generation capabilities indicate that Hakuhodo DY Holdings can sustain operations and invest in growth opportunities, even amid profitability challenges.
Balance Sheet Stability
A stable balance sheet with a solid equity position provides financial resilience, enabling the company to withstand economic fluctuations and invest in strategic initiatives.
Gross Profit Margin
A strong gross profit margin suggests efficient cost management and pricing power, which can support long-term profitability and competitive positioning.
Negative Factors
Revenue Decline
A declining revenue trend indicates potential challenges in market demand or competitive pressures, which could impact long-term growth prospects.
Rising Debt Levels
Increasing debt levels can strain financial resources and limit flexibility, posing risks to long-term financial health if not managed effectively.
Profitability Challenges
Declining profitability margins indicate operational inefficiencies and could hinder the company's ability to reinvest in growth and innovation.

Hakuhodo Dy Holdings (2433) vs. iShares MSCI Japan ETF (EWJ)

Hakuhodo Dy Holdings Business Overview & Revenue Model

Company DescriptionHakuhodo Dy Holdings (2433) is a prominent Japanese advertising and marketing services company, operating in the fields of advertising, digital marketing, public relations, and media planning. The company is part of the larger Hakuhodo Group and focuses on providing integrated marketing solutions tailored to various industries. Its core services include creative advertising, strategic planning, and brand management, aimed at enhancing client visibility and engagement in a competitive market.
How the Company Makes MoneyHakuhodo Dy Holdings generates revenue primarily through its advertising and marketing services. The company earns money by charging clients for creative advertising campaigns, media buying, and digital marketing solutions. Key revenue streams include project-based fees for advertising services, commissions on media purchases, and ongoing retainers from long-term clients. Additionally, the company has established partnerships with various media outlets and digital platforms, which contribute to its earnings through collaborative advertising efforts. The growing trend of digitization in marketing also plays a significant role in expanding its revenue as more clients seek integrated digital solutions.

Hakuhodo Dy Holdings Financial Statement Overview

Summary
Hakuhodo Dy Holdings shows mixed financial performance. Revenue and profitability are under pressure with declining margins and returns on equity, indicating operational inefficiencies. However, the balance sheet remains stable, and cash flow improvements suggest substantial cash-generating potential despite profitability declines.
Income Statement
65
Positive
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
70
Positive
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
78
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue922.77B953.32B946.78B991.14B895.08B1.30T
Gross Profit393.32B387.01B394.18B403.56B387.09B313.22B
EBITDA62.72B58.99B78.40B84.42B114.71B69.50B
Net Income8.64B10.77B24.92B31.01B55.18B26.48B
Balance Sheet
Total Assets878.22B1.05T1.04T1.03T1.05T941.10B
Cash, Cash Equivalents and Short-Term Investments144.32B222.48B196.03B179.41B212.52B212.39B
Total Debt125.27B121.56B151.15B124.27B126.41B116.41B
Total Liabilities483.19B636.51B625.82B636.60B665.60B578.97B
Stockholders Equity382.87B390.38B385.16B364.12B358.08B330.67B
Cash Flow
Free Cash Flow0.0078.57B-7.08B20.13B10.40B25.44B
Operating Cash Flow0.0082.45B9.88B38.03B20.85B36.21B
Investing Cash Flow0.00-12.97B6.33B-32.79B-11.29B-9.83B
Financing Cash Flow0.00-46.41B1.10B-28.84B-8.70B-12.77B

Hakuhodo Dy Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1154.50
Price Trends
50DMA
1143.69
Positive
100DMA
1164.48
Negative
200DMA
1128.13
Positive
Market Momentum
MACD
0.64
Positive
RSI
50.72
Neutral
STOCH
41.97
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 1154.5 is below the 20-day moving average (MA) of 1155.80, above the 50-day MA of 1143.69, and above the 200-day MA of 1128.13, indicating a neutral trend. The MACD of 0.64 indicates Positive momentum. The RSI at 50.72 is Neutral, neither overbought nor oversold. The STOCH value of 41.97 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥86.38B22.827.55%-10.10%-37.28%
63
Neutral
¥32.08B25.392.13%-22.10%-16.33%
63
Neutral
¥34.79B24.275.13%3.22%13.97%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
58
Neutral
¥424.01B26.413.96%2.77%-8.56%-47.89%
58
Neutral
¥656.73B20.7418.07%1.30%9.04%94.01%
58
Neutral
¥868.33B-3.38-34.34%4.19%0.24%-731.34%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2433
Hakuhodo Dy Holdings
1,154.50
-72.97
-5.94%
JP:4751
CyberAgent
1,312.50
186.51
16.56%
JP:4324
Dentsu
3,328.00
-525.78
-13.64%
JP:2389
Digital Holdings, Inc.
2,015.00
832.14
70.35%
JP:2461
FAN Communications. Inc.
526.00
137.20
35.29%
JP:4293
Septeni Holdings Co., Ltd.
415.00
-6.83
-1.62%

Hakuhodo Dy Holdings Corporate Events

Hakuhodo DY Holdings Acquires DIGITAL HOLDINGS, INC.
Dec 4, 2025

Hakuhodo DY Holdings Inc. has successfully completed a tender offer to acquire shares of DIGITAL HOLDINGS, INC., resulting in the latter becoming a consolidated subsidiary. This strategic acquisition is expected to enhance Hakuhodo’s market position and expand its operational capabilities in the digital marketing sector.

Hakuhodo DY Holdings Reports Improved Profit Margins Amid Structural Reforms
Dec 1, 2025

Hakuhodo DY Holdings reported an improvement in gross profit margin in the first half of FY2025, attributed to insourcing and cost control measures. The company is undergoing structural reforms, particularly in North America, which have led to a decline in SG&A expenses. Despite challenges in international markets, especially in China and ASEAN, the company remains optimistic about future growth, driven by promising projects and a shift towards internet and performance-based advertising.

Hakuhodo DY Holdings Embraces Human-Centered AI for Strategic Growth
Dec 1, 2025

Hakuhodo DY Holdings Inc. is prioritizing the integration of artificial intelligence into its business strategy, emphasizing a human-centered AI approach. This initiative is expected to significantly transform the company’s operations, potentially enhancing its market position and offering new opportunities for stakeholders.

Hakuhodo DY Holdings Updates on Share Acquisition Progress
Dec 1, 2025

Hakuhodo DY Holdings Inc. announced an update on its share acquisition program, revealing that it has acquired 1,365,600 shares at a cost of approximately 1.56 billion JPY between November 1 and November 30, 2025. This acquisition is part of a larger plan approved by the board to purchase up to 12 million shares by March 2026, reflecting the company’s strategic move to enhance shareholder value and optimize its capital structure.

Hakuhodo DY Holdings Amends Tender Offer for DIGITAL HOLDINGS
Nov 19, 2025

Hakuhodo DY Holdings Inc. announced amendments to its tender offer for shares of DIGITAL HOLDINGS, INC., aiming to increase the likelihood of successful acquisition by adjusting the minimum share purchase requirement and tender offer price. This strategic move is expected to enhance the company’s market positioning and shareholder value by facilitating the acquisition process and ensuring economic benefits for involved parties.

Hakuhodo DY Holdings Adjusts Company Split Date Amid Tender Offer Extension
Nov 19, 2025

Hakuhodo DY Holdings Inc. has announced a change in the effective date of its company split, which involves the transfer of rights and obligations related to DIGITAL HOLDINGS, INC. This adjustment aligns with the extended tender offer period for acquiring shares of DIGITAL HOLDINGS, INC., now set to conclude on December 3, 2025. The company assures stakeholders that this change will not impact its consolidated business performance.

Hakuhodo DY Holdings to Retire 17 Million Treasury Shares
Nov 13, 2025

Hakuhodo DY Holdings Inc. has announced its decision to retire a substantial portion of its treasury shares, totaling 17 million shares, as part of a strategic move to optimize its capital structure. This decision, resolved at the Board of Directors meeting, is expected to impact the company’s share value positively and reflects its commitment to enhancing shareholder value.

Hakuhodo DY Holdings Reports Improved Profitability Amid Decline in Billings
Nov 13, 2025

Hakuhodo DY Holdings Inc. reported a 5.5% year-over-year decline in consolidated billings for the first half of FY2025, primarily due to reduced domestic and overseas billings. Despite this, the company improved its profitability, with operating income rising by 21.0% year-over-year, driven by effective cost control measures. The company returned to profitability with a net income of ¥310 million, reflecting a recovery from the previous year’s net loss.

Hakuhodo DY Holdings Adjusts Company Split Date Amid Tender Offer Extension
Nov 12, 2025

Hakuhodo DY Holdings Inc. has announced a change in the effective date of its company split involving the transfer of rights and obligations related to DIGITAL HOLDINGS, INC. The effective date has been moved from November 19, 2025, to December 4, 2025, due to an extension of the tender offer period for acquiring share certificates of DIGITAL HOLDINGS, INC. This adjustment aligns with the extended tender offer period and is not expected to impact the company’s consolidated business performance.

Hakuhodo DY Holdings Extends Tender Offer for DIGITAL HOLDINGS
Nov 12, 2025

Hakuhodo DY Holdings Inc. has announced an extension of its tender offer period for acquiring shares of DIGITAL HOLDINGS, INC. The decision to extend the offer until November 27, 2025, aims to provide shareholders and stock acquisition rights holders additional time to make informed decisions, thereby increasing the likelihood of a successful acquisition.

Hakuhodo DY Holdings Advances Share Buyback Plan
Nov 4, 2025

Hakuhodo DY Holdings Inc. has announced the acquisition of 3,800,300 of its own shares, amounting to a total cost of approximately 4.31 billion JPY. This acquisition is part of a larger plan approved by the board to repurchase up to 12 million shares, aiming to optimize capital structure and enhance shareholder value.

Hakuhodo DY Holdings Adjusts Company Split Effective Date
Oct 28, 2025

Hakuhodo DY Holdings has announced a change in the effective date for a company split involving the transfer of rights and obligations related to DIGITAL HOLDINGS, INC. The new effective date is November 19, 2025, postponed from the original date of November 5, 2025, due to an extension in the tender offer period for acquiring shares of DIGITAL HOLDINGS, INC. This adjustment aligns with the extended tender offer period, but it will not impact the company’s consolidated business performance.

Hakuhodo DY Holdings Extends Tender Offer for DIGITAL HOLDINGS
Oct 28, 2025

Hakuhodo DY Holdings Inc. has announced an extension of its tender offer period for acquiring shares of DIGITAL HOLDINGS, INC., now set to conclude on November 12, 2025. This extension aims to provide shareholders and stock acquisition rights holders additional time to make informed decisions, thereby increasing the likelihood of a successful acquisition. The target company’s board continues to support the offer, leaving the final decision to its shareholders.

Hakuhodo DY Holdings Launches Strategic Tender Offer for DIGITAL HOLDINGS
Oct 15, 2025

Hakuhodo DY Holdings has initiated a tender offer for shares of DIGITAL HOLDINGS, INC., aiming to integrate the latter’s digital advertising capabilities with its own diverse assets across six business domains. This strategic move is expected to enhance digital marketing structures, strengthen new account development, expand customer base, and optimize costs, thereby maintaining competitive advantage in a rapidly evolving market.

Hakuhodo DY Holdings Announces Share Buyback Progress
Oct 1, 2025

Hakuhodo DY Holdings Inc. has announced the acquisition of its own shares, totaling 1,198,600 shares at a cost of 1,455,008,300 JPY, through market purchases on the Tokyo Stock Exchange. This move is part of a broader strategy approved by the board to acquire up to 12,000,000 shares, reflecting the company’s commitment to enhancing shareholder value and optimizing capital structure.

Hakuhodo DY Holdings Expands Digital Portfolio Through Strategic Acquisitions
Sep 12, 2025

Hakuhodo DY Holdings Inc. announced a strategic move to acquire shares of HIBC Co., Ltd. and Time & Space, Ltd., making them wholly-owned subsidiaries. This acquisition is part of a broader strategy to make Digital Holdings a wholly-owned subsidiary, enhancing Hakuhodo’s digital capabilities and market positioning. The company plans a simplified absorption-type company split to integrate these entities, with minimal impact on its financials, indicating a strategic realignment rather than a financial overhaul.

Hakuhodo DY Holdings to Acquire DIGITAL HOLDINGS via Tender Offer
Sep 12, 2025

Hakuhodo DY Holdings Inc. announced its decision to acquire all common shares of DIGITAL HOLDINGS, INC. through a tender offer, aiming to make it a wholly owned subsidiary. This strategic move is expected to strengthen Hakuhodo’s market position and expand its capabilities in the digital marketing sector, potentially impacting stakeholders by increasing the company’s influence in the industry.

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.Date of analysis: Oct 09, 2025