HUGroup Holdings (4544) AI Stock Analysis

• Market Cap: ¥182.74B
• Dividend Yield: 3.84%
• Average Volume (3M): 241.70K
• Price to Earnings (P/E): 48.0
• Beta (1Y): 0.42
• Revenue Growth: 2.93%
• EPS Growth: N/A
• Country: JP
• Employees: 5,295
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 24.69
• Shares Outstanding: 57,479,320
• 10 Day Avg. Volume: 227,840
• 30 Day Avg. Volume: 241,700
• PEG Ratio: -0.41
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 8.72
• 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: ¥4,090.63
• Price Target Upside: 9.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 105.62
• Revenue Forecast (FY): ¥252.12B

• Rating: 54 Neutral
• Price Target: ¥3,563.00 ▼(-4.45% Downside)

The overall stock score of 54 reflects a company with strong revenue growth but challenges in profitability and cash flow management. Technical indicators suggest bearish momentum, and the valuation appears high, limiting upside potential. The absence of earnings call data and corporate events further emphasizes the need for improved financial performance and market sentiment.

Positive Factors

Cash Generation Ability

Strong free cash flow growth indicates effective cash management, providing the company with flexibility to invest in growth opportunities and manage debt.

Leverage Management

Improved leverage management reduces financial risk and enhances the company's ability to withstand economic downturns, supporting long-term stability.

Operational Efficiency

Improved operational efficiency, as reflected in better EBIT and EBITDA margins, suggests the company is optimizing its operations, potentially leading to enhanced profitability.

Negative Factors

Profitability Concerns

Low net profit margins indicate challenges in converting revenue into profit, which could limit the company's ability to reinvest in growth and reward shareholders.

Return on Equity

Low return on equity suggests the company is not generating sufficient profit from shareholders' investments, potentially impacting investor confidence and capital raising ability.

Valuation Concerns

An overvalued stock may limit future price appreciation potential and could lead to investor skepticism, affecting long-term investment attractiveness.

HUGroup Holdings Business Overview & Revenue Model

Company Description

H.U. Group Holdings, Inc., through its subsidiaries, provides laboratory testing products and services in Japan. The company offers lab testing and its related services to medical institutions; self-medication services; food, environment, and cosmetic testing services; and testing services through corporate health insurance associations. It also researches, develops, manufactures, and sells in vitro diagnostic devices, which includes the LUMIPULSE, an automatic chemiluminescent enzyme immunoassay system that offers reagents for infectious disease, cancer, and lifestyle disease to medical institutions and testing centers; and ESPRINE, a rapid diagnostics kit series for influenza, hepatitis B, and the novel coronavirus, as well as supplies ingredients for test drugs. In addition, the company provides support services related to hospital administration work, including aid for surgical procedures and endoscope room work, inspection and maintenance services for medical equipment, and in-hospital logistics management and transportation services; and rents and sells nursing-care equipment and supplies. Further, it offers home-visit nursing care services. The company was formerly known as Miraca Holdings Inc. and changed its name to H.U. Group Holdings, Inc. in July 2020. H.U. Group Holdings, Inc. was incorporated in 1950 and is headquartered in Tokyo, Japan.

How the Company Makes Money

HUGroup Holdings generates revenue primarily through its insurance premiums from life and non-life insurance policies. The company collects premiums from policyholders in exchange for coverage against various risks, which constitutes a significant portion of its revenue stream. Additionally, HUGroup Holdings earns money through investment income generated from the premiums it collects, as these funds are invested in various financial instruments. The company also benefits from asset management fees charged to clients who utilize its investment management services. Strategic partnerships with financial institutions and distribution networks further bolster its earnings, allowing for a wider reach and customer base, thereby contributing to its overall revenue growth.

HUGroup Holdings Financial Statement Overview

Summary

HUGroup Holdings is showing signs of recovery with strong revenue growth, but profitability and cash flow management remain areas for improvement. The balance sheet is stable, with moderate leverage and a solid equity base. Continued focus on improving margins and cash flow efficiency will be crucial for sustained financial health.

Income Statement

HUGroup Holdings has shown a significant recovery in revenue growth with a TTM increase of 79.3%, indicating a strong rebound from previous declines. However, the net profit margin remains low at 0.55%, reflecting challenges in converting revenue into profit. The gross profit margin is stable at 28%, and the EBIT margin has improved slightly to 1.65%, but profitability remains a concern.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.53, suggesting a balanced approach to leveraging. However, the return on equity is low at 1%, indicating limited returns for shareholders. The equity ratio stands at 48.6%, showing a solid equity base relative to total assets.

Cash Flow

Operating cash flow remains strong, but free cash flow has declined by 4.32% in the TTM, indicating potential cash management issues. The free cash flow to net income ratio is healthy at 84.4%, suggesting efficient cash conversion, but the decline in free cash flow growth is a concern.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	247.43B	243.03B	236.95B	260.91B	272.94B	223.02B
Gross Profit	70.56B	66.72B	63.23B	89.92B	111.80B	76.21B
EBITDA	25.06B	24.55B	13.65B	43.08B	56.34B	33.63B
Net Income	3.76B	2.76B	-7.55B	15.68B	29.60B	17.47B
Balance Sheet
Total Assets	274.02B	279.58B	290.85B	297.92B	286.59B	252.75B
Cash, Cash Equivalents and Short-Term Investments	39.56B	40.88B	39.95B	44.41B	46.71B	42.96B
Total Debt	70.30B	91.12B	81.94B	77.16B	73.00B	80.45B
Total Liabilities	138.88B	142.28B	148.34B	147.88B	146.41B	137.45B
Stockholders Equity	135.01B	137.29B	142.50B	150.04B	140.18B	115.31B
Cash Flow
Free Cash Flow	18.59B	17.88B	-1.01B	10.85B	20.10B	14.40B
Operating Cash Flow	21.52B	21.96B	16.55B	32.53B	55.23B	35.59B
Investing Cash Flow	-11.23B	-15.96B	-16.05B	-29.58B	-30.86B	-28.27B
Financing Cash Flow	-21.79B	-5.30B	-5.78B	-5.76B	-21.73B	-1.57B

HUGroup Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3729.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4544, the sentiment is Negative. The current price of 3729 is above the 20-day moving average (MA) of 3442.25, above the 50-day MA of 3647.00, and above the 200-day MA of 3194.83, indicating a neutral trend. The MACD of -116.35 indicates Positive momentum. The RSI at 28.64 is Positive, neither overbought nor oversold. The STOCH value of 11.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4544.

HUGroup Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4694	74 Outperform	¥141.54B	20.78	5.59%	3.39%	5.90%	16.30%
4671	73 Outperform	¥25.44B	13.82	―	4.85%	1.23%	9.96%
9776	68 Neutral	¥6.71B	12.47	―	1.17%	2.80%	34.63%
4886	67 Neutral	¥53.49B	11.96	―	2.55%	5.44%	-20.33%
4549	66 Neutral	¥79.32B	20.55	―	2.28%	4.36%	79.43%
4544	54 Neutral	¥182.74B	48.03	2.65%	3.84%	2.93%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

HUGroup Holdings Corporate Events

H.U. Group Holdings Reports Strong Financial Performance for H1 2025

H.U. Group Holdings reported a significant improvement in its financial performance for the six months ended September 30, 2025, with a notable increase in operating profit by 143.2% year-on-year. The company’s net sales rose by 3.7%, indicating a steady growth trajectory. This positive financial outcome reflects the company’s strengthened market position and operational efficiency, which could have favorable implications for stakeholders and investors.

H.U. Group Completes Treasury Stock Acquisition

H.U. Group Holdings, Inc. has completed the acquisition of 1,350,400 of its common shares, totaling approximately 4.99 billion yen, through market purchases on the Tokyo Stock Exchange. This acquisition is part of a previously resolved plan by the Board of Directors to repurchase up to 2.5 million shares, aiming to enhance shareholder value and optimize capital structure.

H.U. Group Holdings Reports No Treasury Stock Acquisition in September

H.U. Group Holdings, Inc. announced that it has not acquired any treasury stock during the period from September 1 to September 30, 2025, despite a resolution to acquire up to 2,500,000 shares. The company had planned to repurchase shares as part of a strategy to manage its capital structure, but no shares were acquired during the specified period, potentially impacting its financial strategies and market perception.

H.U. Group Holdings Introduces Stock Grant ESOP Trust to Boost Employee Engagement

H.U. Group Holdings has introduced a ‘Stock Grant ESOP Trust’ to incentivize managers and employees by granting them company shares, aiming to boost engagement and retention. This plan is part of their strategy to align employee interests with corporate goals, enhancing sustainable value creation and corporate value.

H.U. Group Holdings Revises Earnings Forecast Following Asset Sales

H.U. Group Holdings has announced the sale of certain non-current assets and shares, resulting in extraordinary income and a revised full-year earnings forecast for the fiscal year ending March 2026. These transactions are part of the company’s strategic plan to optimize capital allocation and improve capital efficiency, which is expected to increase the company’s return on equity.

H.U. Group Transfers Majority Stake in Care’x to Wakita

H.U. Group Holdings has decided to transfer 80% of its shares in Care’x Inc. to Wakita & Co., aiming to enhance Care’x’s growth potential by leveraging Wakita’s strategic investments in the nursing care market. This move aligns with H.U. Group’s strategy to improve capital efficiency and focus on investment returns, while Care’x will benefit from Wakita’s expertise and resources to navigate the competitive welfare equipment rental market.