HYPER Inc. (3054) AI Stock Analysis

• Market Cap: ¥2.79B
• Dividend Yield: 2.45%
• Average Volume (3M): 9.23K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.19
• Revenue Growth: 14.52%
• EPS Growth: 38.35%
• Country: JP
• Employees: 322
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 7.54
• Shares Outstanding: 9,878,100
• 10 Day Avg. Volume: 11,330
• 30 Day Avg. Volume: 9,233
• PEG Ratio: 0.07
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 15.28
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥331.00 ▲(15.73% Upside)

HYPER Inc. receives a moderate overall stock score driven by its transition to profitability and solid balance sheet. The stock's attractive valuation with a low P/E ratio and reasonable dividend yield further supports its investment appeal. However, challenges in cash flow stability and neutral technical indicators suggest a cautious outlook. Continued focus on improving cash flow and maintaining revenue growth will be essential for enhancing its financial health and stock performance.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for HYPER Inc.'s products and services, supporting long-term business expansion and market presence.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing flexibility for strategic investments and growth opportunities.

Profitability Transition

The transition to profitability reflects effective cost management and operational efficiency, strengthening the company's financial foundation.

Negative Factors

Cash Flow Stability

Declining operating cash flow can hinder the company's ability to fund operations and growth initiatives, posing a risk to financial health.

Earnings Volatility

Earnings volatility may indicate challenges in maintaining consistent profitability, affecting investor confidence and long-term planning.

Free Cash Flow Growth

Negative free cash flow growth suggests inefficiencies in cash generation, potentially limiting the company's ability to invest in future growth.

HYPER Inc. Business Overview & Revenue Model

Company Description

HYPER Inc. engages in the sale and installation setting/maintenance of computers and peripheral equipment in Japan. It also sells, installs, and maintains communication, office, and office automation equipment; plans, develops, and sells software; and provides information processing services. In addition, the company is involved in the planning and production of Websites; Internet mail ordering business; and network construction and system maintenance services. HYPER Inc. was founded in 1990 and is headquartered in Tokyo, Japan.

How the Company Makes Money

HYPER Inc. generates revenue through multiple streams, primarily by selling its software solutions and consumer electronics to both individual and enterprise clients. The company also offers subscription-based services, providing ongoing support and updates for its software products. Additionally, HYPER Inc. engages in strategic partnerships with other technology firms to expand its market reach and enhance its product offerings, contributing to its overall earnings. Significant factors such as technological advancements, customer demand, and strong brand reputation also play a crucial role in the company's revenue generation.

HYPER Inc. Financial Statement Overview

Summary

HYPER Inc. demonstrates a transition towards profitability with improving income statement metrics and a solid balance sheet. The company has managed debt effectively, enhancing its equity position. However, cash flow stability presents challenges, with recent declines in operating cash flow. Continued focus on revenue growth and cash flow management will be crucial for sustaining financial health.

Income Statement

HYPER Inc. has shown a notable recovery in net income and EBIT over the past two years, transitioning from losses to profitability, with a solid net profit margin of 1.76% in 2024. Revenue growth has been consistent, with a 9% increase in 2024 compared to 2023. Margins have improved, but gross profit margin remains moderate at 27.22%. The company has experienced volatility in earnings in previous years, indicating potential risks in sustaining profitability.

Balance Sheet

The company's balance sheet is robust, with a low debt-to-equity ratio of 0.28 indicating prudent leverage management. The equity ratio is strong at 39.12%, reflecting solid equity backing. Return on Equity improved significantly to 7.47% in 2024, showcasing effective equity utilization. However, fluctuations in equity levels over the years suggest potential volatility.

Cash Flow

Cash flow management shows mixed results, with a decline in operating cash flow from 2023 to 2024. The free cash flow to net income ratio is favorable, indicating efficient cash conversion. However, the free cash flow growth rate is negative, and there is a significant drop in operating cash flow, suggesting challenges in cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.41B	12.41B	11.40B	10.60B	20.54B	21.35B
Gross Profit	3.49B	3.38B	3.25B	2.91B	2.85B	2.94B
EBITDA	406.56M	359.99M	246.46M	-322.05M	160.36M	394.32M
Net Income	294.84M	218.42M	78.94M	-499.38M	-53.48M	182.35M
Balance Sheet
Total Assets	7.61B	7.46B	7.28B	7.13B	6.83B	6.88B
Cash, Cash Equivalents and Short-Term Investments	2.12B	2.36B	2.54B	2.52B	3.04B	3.09B
Total Debt	584.82M	803.00M	1.05B	1.29B	587.77M	873.30M
Total Liabilities	4.52B	4.54B	4.51B	4.35B	3.47B	3.65B
Stockholders Equity	3.09B	2.92B	2.77B	2.78B	3.36B	3.19B
Cash Flow
Free Cash Flow	0.00	184.15M	376.30M	-758.78M	-31.48M	239.20M
Operating Cash Flow	0.00	198.29M	393.62M	-737.50M	76.61M	259.88M
Investing Cash Flow	0.00	-30.75M	10.02M	-399.41M	-83.32M	-31.62M
Financing Cash Flow	0.00	-333.25M	-384.38M	614.90M	-31.38M	597.45M

HYPER Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 286.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3054, the sentiment is Negative. The current price of 286 is above the 20-day moving average (MA) of 285.26, below the 50-day MA of 292.45, and below the 200-day MA of 296.78, indicating a neutral trend. The MACD of -0.54 indicates Negative momentum. The RSI at 47.70 is Neutral, neither overbought nor oversold. The STOCH value of 41.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3054.

HYPER Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6599	78 Outperform	¥4.36B	12.14	―	1.57%	4.40%	35.86%
6734	73 Outperform	¥5.07B	13.90	―	1.89%	33.70%	36.99%
6803	72 Outperform	¥2.79B	12.53	―	1.08%	7.21%	―
3054	67 Neutral	¥2.79B	6.66	―	2.45%	14.52%	38.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6836	55 Neutral	¥4.71B	165.31	―	―	17.29%	―
7709	46 Neutral	¥2.55B	-8.83	―	―	-23.14%	-829.31%