HIMACS, Ltd. (4299) AI Stock Analysis

• Market Cap: ¥14.13B
• Dividend Yield: 3.7%
• Average Volume (3M): 9.73K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.61
• Revenue Growth: 4.86%
• EPS Growth: 4.48%
• Country: JP
• Employees: 930
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): 13.85
• Shares Outstanding: 12,412,992
• 10 Day Avg. Volume: 10,360
• 30 Day Avg. Volume: 9,730
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• 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: 79 Outperform
• Price Target: ―

HIMACS, Ltd. presents a strong financial profile with robust profitability and a solid balance sheet. Although technical indicators signal caution, the stock's valuation is appealing due to its low P/E ratio and high dividend yield. Overall, the company is well-positioned for stability and potential growth in the software application industry.

HIMACS, Ltd. Business Overview & Revenue Model

Company Description

HIMACS, Ltd. (4299) is a Japanese company primarily engaged in the provision of information technology (IT) services. The company offers a wide range of services including system development, IT consulting, and software solutions, with a focus on the financial, manufacturing, and public sectors. HIMACS is dedicated to delivering advanced technology solutions to optimize business processes and enhance operational efficiency for its clients.

How the Company Makes Money

HIMACS, Ltd. generates revenue through multiple streams, primarily through the development and implementation of customized IT solutions for its clients. The company charges fees for system development projects, IT consulting services, and ongoing maintenance and support. Additionally, HIMACS earns income from licensing its proprietary software solutions. Key partnerships with leading technology companies and long-term contracts with clients in various industries contribute significantly to its earnings, ensuring a steady flow of revenue.

HIMACS, Ltd. Financial Statement Overview

Summary

HIMACS, Ltd. demonstrates strong financial health with robust profitability and revenue growth. The balance sheet is exceptionally solid with zero debt and a high equity ratio, providing financial resilience. Cash flow metrics are mixed, with a need for improved operating cash but strong free cash flow, maintaining overall financial strength.

Income Statement

HIMACS, Ltd. demonstrates strong profitability with a TTM gross profit margin of 20.67% and a net profit margin of 7.17%. The company has shown consistent revenue growth, with a 7.23% increase from 2022 to 2023 and a 1.85% increase in the latest TTM period. EBIT and EBITDA margins are healthy at 10.38% and 10.48% respectively, indicating efficient operational management. Overall, the income statement reflects strong growth and robust profitability, making it a standout performer in its industry.

Balance Sheet

The balance sheet of HIMACS, Ltd. is exceptionally solid with a strong equity base and zero debt, resulting in a debt-to-equity ratio of 0.0. The equity ratio stands at an impressive 82.03%, highlighting financial stability and low leverage risk. Return on Equity (ROE) is healthy at 11.16%, pointing to effective use of shareholder capital. The company's balance sheet strength is a significant advantage, providing flexibility for future growth and investment opportunities.

Cash Flow

HIMACS, Ltd.'s cash flow metrics show a mixed picture. The operating cash flow to net income ratio is modest at 0.32 in the TTM, reflecting a need for improvements in cash generation relative to earnings. However, free cash flow is strong, with a positive growth trajectory, and the free cash flow to net income ratio is robust at 0.31. While cash flow from operations is lower than desired, the overall cash position remains solid, supported by substantial free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.19B	18.07B	17.36B	17.33B	16.68B	15.43B
Gross Profit	3.61B	3.64B	3.54B	3.47B	3.31B	2.98B
EBITDA	1.77B	1.84B	1.76B	1.88B	1.77B	1.41B
Net Income	1.25B	1.29B	1.18B	1.29B	1.21B	937.00M
Balance Sheet
Total Assets	14.10B	14.43B	13.59B	12.88B	12.26B	11.22B
Cash, Cash Equivalents and Short-Term Investments	9.62B	9.47B	9.85B	8.47B	7.39B	6.36B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	2.43B	2.65B	2.65B	2.56B	2.75B	2.60B
Stockholders Equity	11.66B	11.78B	10.94B	10.31B	9.51B	8.62B
Cash Flow
Free Cash Flow	1.25B	739.00M	1.39B	1.58B	902.00M	1.04B
Operating Cash Flow	1.29B	766.00M	1.39B	1.58B	948.00M	1.08B
Investing Cash Flow	-54.00M	-32.00M	23.00M	15.00M	-76.00M	-38.00M
Financing Cash Flow	-523.00M	-510.00M	-640.00M	-507.00M	-347.00M	-437.00M

HIMACS, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1217.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4299, the sentiment is Positive. The current price of 1217 is above the 20-day moving average (MA) of 1211.55, above the 50-day MA of 1203.84, and below the 200-day MA of 1264.48, indicating a neutral trend. The MACD of 2.88 indicates Positive momentum. The RSI at 56.62 is Neutral, neither overbought nor oversold. The STOCH value of 43.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4299.

HIMACS, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9651	84 Outperform	¥14.30B	9.81		3.60%	10.61%	102.16%
3937	84 Outperform	¥13.62B	14.47		3.60%	2.47%	46.51%
4299	79 Outperform	¥14.13B	11.31		3.70%	4.86%	4.48%
3800	68 Neutral	¥13.86B	19.28		3.62%	-1.03%	-3.19%
Sector *	61 Neutral	$35.55B	8.88	-11.02%	1.87%	8.55%	-8.14%
3856	60 Neutral	¥19.41B	8.79		0.29%	-40.21%	-54.31%
3823	40 Neutral	¥8.02B	―		―	99.79%	7.36%

HIMACS, Ltd. Corporate Events

HIMACS Reports Strong Nine-Month Financial Performance

HIMACS, Ltd. has reported its consolidated financial results for the nine months ending December 31, 2024, showing a year-on-year increase in net sales by 2.5% reaching 13,326 million yen, and a significant rise in profits attributable to owners of the parent by 10.2%. The company’s financial position remains strong with an equity ratio of 82.0%. The forecast for the full fiscal year ending March 31, 2025, predicts continued growth with net sales expected to increase by 7.2%, indicating a positive outlook for the company’s stakeholders.