HIMACS, Ltd. (4299) AI Stock Analysis

• Market Cap: ¥13.62B
• Dividend Yield: 3.56%
• Average Volume (3M): 11.68K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.59
• Revenue Growth: 3.96%
• EPS Growth: -3.68%
• Country: JP
• Employees: 930
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 26.95
• Shares Outstanding: 12,412,992
• 10 Day Avg. Volume: 9,110
• 30 Day Avg. Volume: 11,683
• PEG Ratio: 1.19
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.81
• P/FCF Ratio: 19.91
• 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: 76 Outperform
• Price Target: ¥1,477.00 ▲(14.50% Upside)

The score is driven primarily by strong financial quality—especially the debt-free balance sheet and steady growth—alongside supportive valuation (moderate P/E and solid dividend yield). Technicals are mixed/neutral, with the stock near trend levels and limited short-term momentum, which keeps the overall score from being higher.

Positive Factors

Debt-free balance sheet

Zero net debt provides durable financial flexibility and low refinancing risk, enabling the company to fund capex, R&D, dividends or opportunistic M&A from internal resources. This strengthens resilience through cycles and preserves strategic optionality over the medium term.

Steady revenue growth

Consistent mid-single-digit revenue growth indicates stable demand and predictable cash generation for reinvestment. Over 2–6 months this trend underpins planning for product development and customer retention, reducing execution risk versus highly cyclical peers.

Solid profitability and ROE

Sustained margins and a ~10% ROE show the business converts revenue to earnings efficiently and uses shareholder capital effectively. That persistent profitability supports dividend capacity and internal funding, favoring long-term capital allocation stability.

Negative Factors

Declining free cash flow

A notable drop in free cash flow weakens the company’s ability to fund growth, dividends and strategic initiatives from operations. If this trend continues it could force reliance on cash reserves or constrain investment, undermining long-term operational flexibility.

Weak operating cash conversion

Operating cash covers only ~56% of reported profits on a TTM basis, signaling weaker cash quality and potential working-capital strains. Persistent low cash conversion can erode liquidity, limit reinvestment, and make earnings less reliable as a funding source over time.

Margin erosion

Recent compression in net margin points to rising costs or adverse mix that reduces operating leverage. If structural, margin erosion will lower sustainable profitability, constrain free cash flow and pressure returns unless cost control or pricing power is restored.

HIMACS, Ltd. Business Overview & Revenue Model

Company Description

HIMACS, Ltd. provides defined valued processes for various system lifecycles in Japan. Its integrated services include consulting for system planning, as well as design, development, testing, and implementation, and systems maintenance. HIMACS, Ltd. was incorporated in 1976 and is headquartered in Yokohama, Japan.

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

Strong overall financial quality: steady revenue growth with ~10% operating margin, improving net margin versus earlier years, and a very conservative (debt-free) balance sheet with rising equity. The main risk is cash-flow consistency, as operating cash flow dropped meaningfully in 2025 despite higher profits.

Income Statement

Revenue has trended upward over the period (from ¥15.3B in 2020 to ¥18.1B in 2025), with a strong step-up in the latest year (2025 revenue growth 2.189). Profitability is solid and fairly consistent, with operating margin around ~10% in 2024–2025 and net margin improving versus earlier years (about 7.2% in 2025 vs 4.5% in 2020). Offsetting this, margins have not expanded meaningfully in the last two years (gross margin slightly lower in 2025 vs 2024), suggesting growth is coming more from volume than improved pricing/efficiency.

Balance Sheet

The balance sheet is conservatively positioned with zero debt across all reported years, materially reducing financial risk and interest-rate sensitivity. Equity has steadily grown (¥8.1B in 2020 to ¥11.8B in 2025), and returns on equity are healthy (roughly ~11% in 2024–2025, peaking higher in earlier years). A key limitation is that, while returns are good, they are not accelerating recently—pointing to stable but not rapidly improving capital efficiency.

Cash Flow

Free cash flow generation is generally strong relative to earnings (free cash flow close to net income in most years, including ~0.96x in 2025), which supports earnings quality. However, operating cash flow has been volatile and notably weaker in 2025 (¥0.77B vs ¥1.39B in 2024), and cash conversion versus net income also dipped (about 0.32x in 2025 vs ~0.60x in 2024). While free cash flow growth rebounded sharply in 2025, the drop in operating cash flow suggests working-capital or timing effects that bear monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.21B	18.07B	17.36B	17.33B	16.68B	15.43B
Gross Profit	3.52B	3.64B	3.54B	3.47B	3.31B	2.98B
EBITDA	1.66B	1.84B	1.76B	1.88B	1.77B	1.41B
Net Income	1.17B	1.29B	1.18B	1.29B	1.21B	937.00M
Balance Sheet
Total Assets	12.95B	14.43B	13.59B	12.88B	12.26B	11.22B
Cash, Cash Equivalents and Short-Term Investments	8.26B	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	2.37B	2.65B	2.65B	2.56B	2.75B	2.60B
Stockholders Equity	10.59B	11.78B	10.94B	10.31B	9.51B	8.62B
Cash Flow
Free Cash Flow	1.11B	739.00M	1.39B	1.58B	902.00M	1.04B
Operating Cash Flow	1.19B	766.00M	1.39B	1.58B	948.00M	1.08B
Investing Cash Flow	-71.00M	-32.00M	23.00M	15.00M	-76.00M	-38.00M
Financing Cash Flow	-1.98B	-510.00M	-640.00M	-507.00M	-347.00M	-437.00M

HIMACS, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1290.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 1290 is below the 20-day moving average (MA) of 1317.65, above the 50-day MA of 1275.62, and above the 200-day MA of 1214.97, indicating a neutral trend. The MACD of 5.66 indicates Positive momentum. The RSI at 51.53 is Neutral, neither overbought nor oversold. The STOCH value of 23.14 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	80 Outperform	¥16.83B	10.87	―	2.99%	12.78%	90.80%
4299	76 Outperform	¥13.62B	12.91	―	3.56%	3.96%	-3.68%
3800	71 Outperform	¥14.19B	19.16	―	3.62%	0.85%	12.73%
3937	68 Neutral	¥12.70B	12.80	―	3.78%	0.43%	44.79%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3856	46 Neutral	¥10.73B	2.41	―	1.45%	-40.21%	-54.31%
3823	43 Neutral	¥6.97B	-35.54	―	―	134.28%	94.74%

HIMACS, Ltd. Corporate Events

HIMACS Posts Lower Nine-Month Profits but Keeps Full-Year Outlook and Higher Dividend

HIMACS reported consolidated net sales of ¥13.47 billion for the nine months ended 31 December 2025, a modest 1.1% year-on-year increase, while operating profit, ordinary profit and profit attributable to owners of parent all declined by about 14%, pulling basic earnings per share down to ¥67.65 from ¥78.08. Despite the profit squeeze and a slight contraction in total assets and net assets, the company’s equity ratio remained robust at 81.7%, and management kept its full-year forecast unchanged, targeting ¥20 billion in net sales (+10.7% year-on-year) and broadly flat operating profit, alongside a slight decline in full-year earnings, while reaffirming an increased annual dividend forecast of ¥46 per share, signaling a continued commitment to shareholder returns even amid margin pressure.

The most recent analyst rating on (JP:4299) stock is a Buy with a Yen1567.00 price target. To see the full list of analyst forecasts on HIMACS, Ltd. stock, see the JP:4299 Stock Forecast page.