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

• Market Cap: ¥6.16B
• Dividend Yield: 3.73%
• Average Volume (3M): 8.51K
• Price to Earnings (P/E): 58.5
• Beta (1Y): 0.36
• Revenue Growth: -15.74%
• EPS Growth: -80.43%
• Country: JP
• Employees: 392
• Sector: Industrials
• Sector Strength: 90
• Industry: Specialty Business Services
• EPS (TTM): -0.66
• Shares Outstanding: 5,815,294
• 10 Day Avg. Volume: 5,150
• 30 Day Avg. Volume: 8,510
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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

• Rating: 64 Neutral
• 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. Business Overview & Revenue Model

Company Description

Hikari 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 Money

Hikari 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.92B	9.88B	11.99B	9.57B	7.26B
	Gross Profit
1.61B	2.72B	3.45B	2.53B	1.72B
	EBIT
178.55M	1.27B	1.97B	1.20B	445.51M
	EBITDA
632.79M	1.35B	2.17B	1.54B	801.43M
	Net Income Common Stockholders
161.25M	748.02M	1.27B	819.21M	354.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.81B	4.01B	4.13B	3.18B	2.18B
	Total Assets
11.10B	11.38B	11.88B	10.80B	9.52B
	Total Debt
186.84M	198.14M	334.98M	529.15M	546.96M
	Net Debt
-3.62B	-3.79B	-3.75B	-2.62B	-1.63B
	Total Liabilities
1.76B	1.95B	2.96B	2.89B	2.32B
	Stockholders Equity
9.34B	9.43B	8.92B	7.91B	7.20B
Cash Flow		Free Cash Flow
124.57M	381.68M	1.51B	1.07B	696.10M
	Operating Cash Flow
224.51M	471.31M	1.59B	1.10B	750.44M
	Investing Cash Flow
32.73M	2.04M	-252.46M	250.46M	137.41M
	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 Price: 1071.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 1020.05, above the 50-day MA of 973.94, and above the 200-day MA of 804.36, indicating a bullish trend. The MACD of 24.28 indicates Negative momentum. The RSI at 70.30 is Negative, neither overbought nor oversold. The STOCH value of 85.86 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7811	78 Outperform	¥15.53B	7.72		3.91%	10.75%	287.84%
7919	74 Outperform	¥3.21B	5.95		2.67%	2.92%	-6.42%
7946	70 Neutral	¥916.68M	14.99		2.53%	5.17%	-57.44%
7805	68 Neutral	¥3.36B	8.50		1.92%	-7.15%	39.05%
Sector *	66 Neutral	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%
3948	64 Neutral	¥6.16B	58.46		3.73%	-15.74%	-80.43%
7916	62 Neutral	¥4.01B	56.78		3.82%	0.38%	24.47%