HITO-Communications Holdings, Inc. (4433) AI Stock Analysis

• Market Cap: ¥18.43B
• Dividend Yield: 3.66%
• Average Volume (3M): 48.20K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.56
• Revenue Growth: 8.62%
• EPS Growth: N/A
• Country: JP
• Employees: 1,405
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.70
• Shares Outstanding: 17,899,338
• 10 Day Avg. Volume: 80,290
• 30 Day Avg. Volume: 48,200
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 64 Neutral
• Price Target: ¥1,105.00 ▲(8.23% Upside)

HITO-Communications Holdings, Inc. has a stable financial foundation with moderate growth and profitability. The valuation is attractive with a reasonable P/E ratio and a strong dividend yield. Technical indicators show neutral momentum, suggesting stability but not strong upward movement. The lack of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Stable Revenue Streams

The reliance on subscription services for revenue ensures a stable and predictable income stream, which supports long-term financial planning and investment in growth opportunities.

Cash Flow Generation

Strong cash flow generation relative to net income highlights the company's ability to convert earnings into cash, providing flexibility for reinvestment and debt management.

Balanced Leverage

A reasonable debt-to-equity ratio suggests a prudent use of leverage, ensuring financial stability and the capacity to withstand economic fluctuations.

Negative Factors

Low Net Profit Margin

A low net profit margin indicates challenges in converting revenue into profit, which could limit the company's ability to invest in growth and improve shareholder returns over time.

Volatile Free Cash Flow

Volatility in free cash flow growth can hinder the company's ability to consistently fund operations and strategic initiatives, potentially impacting long-term growth prospects.

Decreasing Return on Equity

A declining ROE suggests diminishing efficiency in generating profits from shareholders' equity, which could affect investor confidence and the company's ability to attract new capital.

HITO-Communications Holdings, Inc. Business Overview & Revenue Model

Company Description

HITO-Communications Holdings, Inc. (4433) is a dynamic player in the telecommunications and information technology sectors, primarily focusing on providing comprehensive communication solutions. The company specializes in a range of services including mobile communications, internet services, and cloud-based solutions, catering to both individual and enterprise clients. HITO-Communications aims to enhance connectivity and optimize communication efficiency through innovative technologies and customer-centric services.

How the Company Makes Money

HITO-Communications Holdings, Inc. generates revenue through multiple key streams, primarily from subscription services for mobile and internet plans, which provide a stable and recurring income base. The company also earns money from the sale of hardware such as smartphones and networking equipment, alongside offering value-added services like cloud storage and cybersecurity solutions. Additionally, strategic partnerships with technology providers and local enterprises enable HITO-Communications to expand its service offerings and access new markets, thereby enhancing its revenue potential. The company may also benefit from advertising revenues through its digital platforms, contributing further to its earnings.

HITO-Communications Holdings, Inc. Financial Statement Overview

Summary

The company is experiencing significant financial challenges, including declining revenues, negative profitability, and reduced cash flow. Despite a stable balance sheet with good cash reserves and moderate leverage, the negative return on equity and shrinking operating cash flow are concerning. Strategic adjustments are needed to improve operational efficiency and return to profitability.

Income Statement

The company experienced a significant decline in revenue and profitability over the past year. The revenue decreased from 63,980 million JPY in 2023 to 58,547 million JPY in 2024, marking a -8.5% revenue growth rate. Net income turned negative in 2024 with a net loss of 44 million JPY, indicating challenges in maintaining profitability. The gross profit margin dropped from 22.24% in 2023 to 20.66% in 2024, and the EBIT margin decreased significantly from 6.56% to 2.66%. This suggests deteriorating operational efficiency and pressure on margins.

Balance Sheet

The company maintains a relatively stable balance sheet with a debt-to-equity ratio of 0.55, indicating moderate leverage. The equity ratio is healthy at 42.97%, reflecting strong equity funding. However, the return on equity has turned negative, aligning with the net loss incurred. The overall asset base has slightly decreased, but the company's cash reserves remain robust, providing a buffer against financial instability.

Cash Flow

The cash flow situation shows a mixed picture. Operating cash flow has declined significantly from 2,525 million JPY in 2023 to 980 million JPY in 2024, indicating reduced cash generation from core operations. Free cash flow also dropped from 1,832 million JPY in 2023 to 26 million JPY in 2024, showing limited cash available for expansion or debt reduction. The free cash flow to net income ratio is not meaningful due to negative net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	61.70B	63.60B	58.55B	63.98B	64.13B	84.22B
Gross Profit	12.35B	12.91B	12.10B	14.24B	15.23B	14.72B
EBITDA	3.20B	3.48B	2.58B	4.79B	6.60B	5.68B
Net Income	380.00M	853.00M	-43.00M	1.89B	3.23B	2.77B
Balance Sheet
Total Assets	39.68B	40.82B	40.10B	42.55B	34.23B	31.18B
Cash, Cash Equivalents and Short-Term Investments	10.90B	12.13B	14.25B	16.46B	13.43B	9.81B
Total Debt	8.52B	8.20B	9.53B	10.89B	4.15B	4.79B
Total Liabilities	20.85B	21.92B	21.49B	23.47B	16.31B	16.24B
Stockholders Equity	17.35B	17.37B	17.24B	17.87B	16.92B	14.08B
Cash Flow
Free Cash Flow	0.00	1.38B	26.00M	1.83B	4.86B	2.36B
Operating Cash Flow	0.00	3.41B	980.00M	2.52B	5.33B	3.06B
Investing Cash Flow	0.00	-3.60B	-1.23B	-5.26B	-644.00M	-1.21B
Financing Cash Flow	0.00	-2.03B	-2.02B	5.70B	-1.16B	-1.00B

HITO-Communications Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1021.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4433, the sentiment is Positive. The current price of 1021 is below the 20-day moving average (MA) of 1031.90, below the 50-day MA of 1024.66, and above the 200-day MA of 1010.01, indicating a bullish trend. The MACD of -2.02 indicates Negative momentum. The RSI at 52.75 is Neutral, neither overbought nor oversold. The STOCH value of 89.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4433.

HITO-Communications Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2163	80 Outperform	¥21.89B	16.43	―	4.08%	8.88%	12.64%
6089	73 Outperform	¥26.03B	14.52	―	3.86%	1.18%	-5.05%
9332	73 Outperform	¥23.03B	14.71	―	3.13%	4.92%	-27.88%
6539	73 Outperform	¥25.42B	24.48	―	5.51%	21.90%	0.46%
2410	67 Neutral	¥12.25B	11.25	―	4.24%	5.14%	17.12%
4433	64 Neutral	¥18.43B	21.61	―	3.66%	8.62%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%