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Hikari Business Form Co., Ltd. (JP:3948)
:3948
Japanese Market

Hikari Business Form Co., Ltd. (3948) AI Stock Analysis

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JP

Hikari Business Form Co., Ltd.

(3948)

Rating:64Neutral
Price Target:
Hikari Business Form Co., Ltd. has a strong technical position, indicating positive market momentum. However, the financial performance shows declining revenue and profitability, requiring strategic improvements. The stock's high P/E ratio suggests overvaluation, despite an attractive dividend yield. These factors combined result in a moderate overall score.

Hikari Business Form Co., Ltd. (3948) vs. iShares MSCI Japan ETF (EWJ)

Hikari Business Form Co., Ltd. Business Overview & Revenue Model

Company DescriptionHikari Business Form Co., Ltd. (3948) is a Japanese company specializing in the manufacturing and distribution of business forms and related printed materials. The company operates in the printing industry, offering a range of products that include computer forms, envelopes, and other business-related printed documents. With a focus on quality and precision, Hikari Business Form Co., Ltd. serves various sectors, including corporate, financial, and governmental organizations, providing them with essential printed materials for their operations.
How the Company Makes MoneyHikari Business Form Co., Ltd. generates revenue primarily through the sale of its printed products and services. The company's core revenue streams include the production and distribution of computer forms, envelopes, and other business forms required by organizations for their daily operations. It leverages its expertise in the printing industry to offer customized solutions that meet the specific needs of its clients. Additionally, the company may engage in partnerships with other firms to expand its market reach and enhance its product offerings, although specific details on such partnerships are null. The reliability and quality of its products play a significant role in maintaining long-term client relationships, contributing to its steady revenue flow.

Hikari Business Form Co., Ltd. Financial Statement Overview

Summary
Hikari Business Form Co., Ltd. exhibits stable financial health with strong equity but faces challenges in revenue growth and profitability. While leverage is low and financial stability is evident, declining margins and cash flow highlight areas for improvement. Strategic initiatives may be required to enhance revenue streams and optimize operational efficiency to ensure long-term success.
Income Statement
58
Neutral
The income statement shows declining revenue and profitability over the years. Gross profit margin has decreased from 22.68% in 2019 to 20.39% in 2024. Similarly, net profit margin has dropped from 3.98% to 2.04% over the same period. Revenue growth has been negative in recent years, indicating challenges in maintaining sales levels. EBIT and EBITDA margins have also shown a downward trend. These figures suggest a need for strategic improvement to regain growth and profitability.
Balance Sheet
72
Positive
The balance sheet reflects a strong equity position, with a debt-to-equity ratio of 0.02 in 2024, indicating low leverage. Return on equity has decreased from 4.21% in 2019 to 1.73% in 2024, showing reduced profitability on equity. However, the equity ratio remains high at 84.12% in 2024, highlighting a solid financial structure. Despite challenges in profitability, the company maintains financial stability with substantial equity backing.
Cash Flow
65
Positive
Cash flow analysis indicates a notable decline in free cash flow from 2019 to 2024. Operating cash flow to net income ratio is healthy, suggesting good cash generation relative to net income. However, free cash flow growth rate is negative, reflecting reduced cash available for reinvestment and dividends. The company may need to focus on improving cash generation to support future initiatives.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
7.92B9.88B11.99B9.57B7.26B
Gross Profit
1.61B2.72B3.45B2.53B1.72B
EBIT
178.55M1.27B1.97B1.20B445.51M
EBITDA
632.79M1.35B2.17B1.54B801.43M
Net Income Common Stockholders
161.25M748.02M1.27B819.21M354.54M
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.81B4.01B4.13B3.18B2.18B
Total Assets
11.10B11.38B11.88B10.80B9.52B
Total Debt
186.84M198.14M334.98M529.15M546.96M
Net Debt
-3.62B-3.79B-3.75B-2.62B-1.63B
Total Liabilities
1.76B1.95B2.96B2.89B2.32B
Stockholders Equity
9.34B9.43B8.92B7.91B7.20B
Cash FlowFree Cash Flow
124.57M381.68M1.51B1.07B696.10M
Operating Cash Flow
224.51M471.31M1.59B1.10B750.44M
Investing Cash Flow
32.73M2.04M-252.46M250.46M137.41M
Financing Cash Flow
-430.77M-574.55M-403.67M-371.08M-352.52M

Hikari Business Form Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1071.00
Price Trends
50DMA
969.20
Positive
100DMA
857.71
Positive
200DMA
802.57
Positive
Market Momentum
MACD
21.63
Negative
RSI
67.73
Neutral
STOCH
85.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3948, the sentiment is Positive. The current price of 1071 is above the 20-day moving average (MA) of 1015.50, above the 50-day MA of 969.20, and above the 200-day MA of 802.57, indicating a bullish trend. The MACD of 21.63 indicates Negative momentum. The RSI at 67.73 is Neutral, neither overbought nor oversold. The STOCH value of 85.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3948.

Hikari Business Form Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥15.53B7.72
3.91%10.75%287.84%
74
Outperform
¥3.18B5.88
2.70%2.92%-6.42%
70
Neutral
¥916.68M14.99
2.53%5.17%-57.44%
68
Neutral
¥3.36B8.50
1.92%-7.15%39.05%
66
Neutral
$4.51B12.295.40%3.67%4.15%-12.21%
64
Neutral
¥6.16B58.46
3.73%-15.74%-80.43%
62
Neutral
¥4.00B56.70
3.83%0.38%24.47%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3948
Hikari Business Form Co., Ltd.
1,071.00
222.89
26.28%
JP:7805
PRINTNET INC.
687.00
100.47
17.13%
JP:7811
Nakamoto Packs Co. Ltd.
1,749.00
192.14
12.34%
JP:7916
Mitsumura Printing Co., Ltd.
1,308.00
-208.94
-13.77%
JP:7919
Nozaki Insatsu Shigyo Co., Ltd.
187.00
-5.89
-3.05%
JP:7946
Koyosha Inc.
1,316.00
-246.25
-15.76%
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.