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HENNGE K.K. (JP:4475)
:4475
Japanese Market

HENNGE K.K. (4475) AI Stock Analysis

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JP:4475

HENNGE K.K.

(4475)

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Neutral 68 (OpenAI - 5.2)
Rating:68Neutral
Price Target:
¥1,110.00
▼(-15.01% Downside)
Action:ReiteratedDate:02/06/26
Score is anchored by strong financial performance (high margins, improving profitability, low leverage, and solid cash generation), but is materially offset by very weak current technicals (below major moving averages with bearish momentum). Valuation is moderate for a software name, with a low dividend yield providing limited support.
Positive Factors
High gross margins & rising profitability
Sustained gross margins in the low‑80s and improving operating/net margins indicate durable unit economics typical of scalable SaaS. This supports margin resilience as revenue grows, funds reinvestment in product and sales, and strengthens long‑term cash generation capacity.
Negative Factors
Uneven revenue growth cadence
Periodic softness in revenue growth reduces predictability of top‑line expansion and complicates capacity planning. For a subscription SaaS model, uneven growth can signal cyclical demand, account concentration, or sales execution gaps that may slow sustainable scale and ROI on go‑to‑market investments.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins & rising profitability
Sustained gross margins in the low‑80s and improving operating/net margins indicate durable unit economics typical of scalable SaaS. This supports margin resilience as revenue grows, funds reinvestment in product and sales, and strengthens long‑term cash generation capacity.
Read all positive factors

HENNGE K.K. (4475) vs. iShares MSCI Japan ETF (EWJ)

HENNGE K.K. Business Overview & Revenue Model

Company Description
HENNGE K.K. provides cloud security services worldwide. The company offers HENNGE One, a cloud-based identity and access management solution that offers single sign-on. It also provides HENNGE Secure Browser, which enables users to securely access...
How the Company Makes Money
HENNGE K.K. generates revenue through a subscription-based model for its cloud security services. The company's primary revenue stream comes from the sale of subscriptions to HENNGE One, which provides secure access management, email security, and...

HENNGE K.K. Financial Statement Overview

Summary
Strong fundamentals supported by very high gross margins (~82%–86%), improving operating and net margins (EBIT margin up to ~17% and net margin to ~12.4% in 2025), and rising operating/free cash flow with FCF closely tracking net income (~0.85–0.99). Balance sheet remains conservatively levered (debt-to-equity ~0.04) with improving ROE (to ~35% in 2025). Main risk is uneven growth cadence (notably softer growth in 2024) and modest cash conversion versus revenue.
Income Statement
84
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
86
Very Positive
BreakdownSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue10.92B8.36B6.78B5.65B4.84B
Gross Profit9.45B7.04B5.68B4.77B4.02B
EBITDA1.93B1.05B743.62M501.42M416.00M
Net Income1.36B827.41M508.83M321.17M223.84M
Balance Sheet
Total Assets10.74B8.29B6.29B5.21B4.49B
Cash, Cash Equivalents and Short-Term Investments7.32B6.33B4.59B4.05B3.39B
Total Debt148.15M0.000.000.000.00
Total Liabilities6.90B5.30B3.88B3.11B2.65B
Stockholders Equity3.89B2.99B2.42B2.09B1.84B
Cash Flow
Free Cash Flow2.70B1.87B1.14B748.20M505.20M
Operating Cash Flow2.73B1.93B1.23B776.74M526.93M
Investing Cash Flow-1.34B-34.83M-425.16M-119.78M-25.36M
Financing Cash Flow-417.51M-150.98M-270.31M-100.00K17.83M

HENNGE K.K. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1306.00
Price Trends
50DMA
1068.00
Negative
100DMA
1192.67
Negative
200DMA
1426.72
Negative
Market Momentum
MACD
-25.32
Negative
RSI
37.56
Neutral
STOCH
4.23
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4475, the sentiment is Negative. The current price of 1306 is above the 20-day moving average (MA) of 970.35, above the 50-day MA of 1068.00, and below the 200-day MA of 1426.72, indicating a bearish trend. The MACD of -25.32 indicates Negative momentum. The RSI at 37.56 is Neutral, neither overbought nor oversold. The STOCH value of 4.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4475.

HENNGE K.K. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥16.37B17.990.17%31.39%13.12%
73
Outperform
¥32.04B16.5919.71%3.09%3.44%79.35%
71
Outperform
¥695.22B24.7829.21%2.57%1.91%44.78%
68
Neutral
¥19.68B9.9617.93%91.21%
68
Neutral
¥30.32B27.580.39%30.59%65.14%
63
Neutral
¥35.64B29.030.90%25.06%37.24%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4475
HENNGE K.K.
933.00
-520.57
-35.81%
JP:3040
Soliton Systems KK
1,731.00
509.78
41.74%
JP:4704
Trend Micro
5,295.00
-4,805.37
-47.58%
JP:3915
TerraSky Co., Ltd.
1,524.00
-674.52
-30.68%
JP:4417
Global Security Experts Inc.
2,328.00
-247.79
-9.62%
JP:4493
Cyber Security Cloud, Inc.
1,615.00
-209.95
-11.50%

HENNGE K.K. Corporate Events

HENNGE Posts Strong Revenue Growth but Lower Profit, Keeps FY2026 Outlook and Hikes Dividend
Feb 4, 2026
HENNGE K.K. reported consolidated results for the three months ended 31 December 2025 showing solid top-line growth but softer profitability. Net sales rose 20.1% year on year to ¥3,016 million, while operating profit was essentially flat at ...
HENNGE Completes Disposal of Treasury Shares for Restricted Stock Remuneration
Jan 26, 2026
HENNGE K.K. has completed the payment procedures for the disposal of 17,700 treasury shares as restricted stock remuneration, following a Board of Directors resolution made on December 24, 2025. The shares, all common stock, were disposed of on Ja...
HENNGE to Grant ¥22 Million in Restricted Stock to Directors as Part of Long-Term Incentive Plan
Dec 24, 2025
HENNGE K.K. has approved the disposal of 17,700 treasury shares as restricted stock remuneration for nine directors, including outside directors and Audit and Supervisory Committee members, with a total value of ¥22.4 million at a disposal pr...
HENNGE Completes Treasury Share Buyback Totaling 700,000 Shares
Dec 22, 2025
HENNGE K.K. has completed a share buyback program authorized by its board on November 21, 2025, acquiring 580,000 shares of its common stock for approximately ¥751 million between December 1 and December 19, 2025. Cumulatively under the broad...
HENNGE K.K. Announces Treasury Share Acquisition to Enhance Corporate Value
Nov 21, 2025
HENNGE K.K. has announced its decision to acquire up to 700,000 treasury shares, representing a maximum of 2.2% of its total outstanding shares, as part of its strategy to enhance corporate value by balancing profit growth and capital efficiency. ...
HENNGE K.K. Announces Change in Major Shareholder
Nov 20, 2025
HENNGE K.K. announced a change in its major shareholders as Yoshiki Nagatome, a key shareholder and Executive Senior Vice President, sold a portion of his shares to TORECO, Inc., an asset management firm. This transaction slightly reduces Nagatome...
HENNGE K.K. Increases Dividend Amid Strong Financial Performance
Nov 7, 2025
HENNGE K.K. announced an increase in its dividend distribution from retained earnings, with a new dividend of JPY 5.00 per share, up from the previously forecasted JPY 4.00. This decision reflects the company’s commitment to maximizing share...
HENNGE K.K. Reports Robust Financial Growth for FY 2025
Nov 7, 2025
HENNGE K.K. reported significant financial growth for the fiscal year ended September 30, 2025, with net sales increasing by 30.6% and operating profit rising by 76.7% compared to the previous year. The company’s strong financial performance...
HENNGE K.K. Prepares for Tokyo Stock Exchange Prime Market Application
Nov 7, 2025
HENNGE K.K. has announced its Board of Directors’ decision to prepare for an application to move from the Tokyo Stock Exchange Growth Market to the Prime Market. This strategic move is intended to support the company’s long-term growth...
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.Date of analysis: Feb 06, 2026