tiprankstipranks
HENNGE K.K. (JP:4475)
:4475
Japanese Market
Want to see JP:4475 full AI Analyst Report?

HENNGE K.K. (4475) AI Stock Analysis

8 Followers

Top Page

JP:4475

HENNGE K.K.

(4475)

Select Model
Select Model
Select Model
Neutral 68 (OpenAI - 5.2)
Rating:68Neutral
Price Target:
¥1,329.00
▲(1.76% Upside)
Action:Reiterated
Date: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
Sustained gross margins in the low‑80s to mid‑80s percent indicate durable product economics and pricing power typical of cloud security/SaaS. High gross margins support long‑term operating leverage, funding of R&D and sales while preserving profitability as revenue scales.
Negative Factors
Uneven revenue growth
Volatile top‑line growth reduces revenue visibility and complicates capacity planning and sales investment decisions. For a subscription business, inconsistent growth raises the bar for sustaining long‑term unit economics and can require higher sales/marketing to reaccelerate recurring revenues.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained gross margins in the low‑80s to mid‑80s percent indicate durable product economics and pricing power typical of cloud security/SaaS. High gross margins support long‑term operating leverage, funding of R&D and sales while preserving profitability as revenue scales.
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. primarily makes money by selling its software services on a subscription basis (software-as-a-service). Revenue is generated mainly from recurring fees paid by corporate customers for use of its cloud security/identity products (typica...

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
Positive
Last Price1306.00
Price Trends
50DMA
1008.62
Positive
100DMA
1052.65
Positive
200DMA
1287.71
Negative
Market Momentum
MACD
49.05
Negative
RSI
67.39
Neutral
STOCH
83.68
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4475, the sentiment is Positive. The current price of 1306 is above the 20-day moving average (MA) of 1088.45, above the 50-day MA of 1008.62, and above the 200-day MA of 1287.71, indicating a neutral trend. The MACD of 49.05 indicates Negative momentum. The RSI at 67.39 is Neutral, neither overbought nor oversold. The STOCH value of 83.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
82
Outperform
¥42.33B15.8619.71%3.09%9.27%48.93%
75
Outperform
¥18.56B19.530.17%29.37%66.06%
74
Outperform
¥833.87B21.3629.21%2.57%2.97%15.33%
72
Outperform
¥32.66B27.0113.54%54.38%
70
Outperform
¥51.44B31.020.90%25.23%46.99%
68
Neutral
¥39.62B25.090.39%22.45%23.34%
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.
1,200.00
-323.63
-21.24%
JP:3040
Soliton Systems KK
2,219.00
945.53
74.25%
JP:4704
Trend Micro
6,333.00
-4,699.78
-42.60%
JP:3915
TerraSky Co., Ltd.
3,030.00
328.93
12.18%
JP:4417
Global Security Experts Inc.
3,175.00
-208.74
-6.17%
JP:4493
Cyber Security Cloud, Inc.
1,778.00
-81.86
-4.40%

HENNGE K.K. Corporate Events

HENNGE Declares FY2026 Interim Dividend and Lifts Full-Year Payout Plan
May 7, 2026
HENNGE K.K. has approved an interim dividend from retained earnings with a record date of March 31, 2026, setting the payout at JPY 3.00 per share, for a total of JPY 94 million, with an effective payment date of June 12, 2026. The company reitera...
HENNGE Posts Double-Digit Revenue Growth and Raises Interim Dividend Plan
May 7, 2026
HENNGE K.K. reported consolidated net sales of ¥6.13 billion for the six months ended March 31, 2026, up 17.7% year on year, with operating and ordinary profit of ¥1.27 billion and profit attributable to owners of parent rising 11.7% to ...
HENNGE Releases Q2 FY2026 Results and Updates Growth Outlook
May 7, 2026
HENNGE K.K. released its consolidated financial results for the second quarter of the fiscal year ending September 2026. The company also provided an update on its progress toward the full-year forecast, outlining how current performance aligns wi...
HENNGE Sets Terms for New Employee Stock Option Issuance
May 1, 2026
HENNGE K.K. has approved the detailed terms for a new issuance of stock options to employees of the company and its subsidiary, following a March 19, 2026 board resolution. The program covers 3,232 stock acquisition rights in total, each exercisab...
HENNGE Executive Transfers Shares to Own Asset Management Firm, Keeps Major Holder Status
Apr 27, 2026
HENNGE K.K. announced a change in its major shareholders following a transaction by Representative Director and Executive Senior Vice President Kazuaki Miyamoto. Miyamoto sold a portion of his holdings in HENNGE to Yoimikan Asset Management, Inc.,...
HENNGE Issues Employee Stock Options to Support Long-Term Growth
Mar 19, 2026
HENNGE K.K. has approved the issuance of its 8th series of stock acquisition rights, granting up to 3,560 units tied to a maximum of 356,000 shares of common stock to employees of the company and its subsidiary. The options are intended as a non-c...
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