Hochiki Corporation (6745) AI Stock Analysis

• Market Cap: ¥110.79B
• Dividend Yield: 2.03%
• Average Volume (3M): 76.24K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.95
• Revenue Growth: 6.69%
• EPS Growth: 29.94%
• Country: JP
• Employees: 2,295
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 89.06
• Shares Outstanding: 26,400,000
• 10 Day Avg. Volume: 67,050
• 30 Day Avg. Volume: 76,243
• PEG Ratio: 0.23
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 6.03
• 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: 75 Outperform
• Price Target: ¥4,326.00 ▼(-2.57% Downside)

Hochiki Corporation scores well due to its strong financial performance, characterized by robust revenue growth and efficient cost management. The technical analysis supports a positive short-term outlook, while the valuation suggests the stock is reasonably priced with a decent dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Cash Flow Management

Strong cash flow generation enhances financial flexibility, enabling reinvestment in growth opportunities and ensuring operational resilience.

Profitability Margins

Improved profitability margins reflect efficient cost management and operational efficiency, contributing to sustainable financial health.

Negative Factors

Equity Reliance

High reliance on equity limits leverage opportunities, potentially constraining financial strategies that could enhance growth or returns.

Leverage Opportunities

While low financial risk is positive, minimal leverage may restrict the company from capitalizing on growth opportunities that require external funding.

Earnings Call Data Absence

Lack of earnings call insights limits transparency and investor understanding of strategic direction, potentially affecting investor confidence.

Hochiki Corporation Business Overview & Revenue Model

Company Description

Hochiki Corporation engages in the research and development, manufacture, sale, consulting, engineering, design, and maintenance of fire alarm, smoke control, fire extinguishing, network, and security systems in Japan and internationally. The company's fire alarm systems comprise automatic fire alarm systems, emergency alarm systems, apartment house automatic fire alarm systems, dialer to fire stations, high sensitivity aspirating smoke detection systems, smoke control systems, fire and gas leakage alarm device, and residential use smoke alarms. Its information and communication systems include TV master antenna, digital terrestrial broadcasting receiving, BS/110CS receiving, cable TV/optical transmission, public address, intercom, ITV, LAN, and network camera systems, as well as ancillary facilities for radio communication. The company's fire-extinguishing systems comprise sprinkler, apartment house sprinkler, hydrant, foam fire extinguishing, CO2 fire extinguishing, N2 fire extinguishing, water cannon, and tunnel fire prevention system. Its security systems include intruder detection and alarm, access control, and key management systems. The company was formerly known as Tokyo Hochiki Co., Ltd. and changed its name to Hochiki Corporation in July 1972. Hochiki Corporation was incorporated in 1918 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Hochiki Corporation generates revenue primarily through the sale of its fire detection and alarm systems, including hardware and software solutions. Key revenue streams include direct sales of products to end-users, as well as partnerships with distributors and contractors who install these systems in various buildings and facilities. Additionally, the company earns income from maintenance and support services for its systems, which ensures ongoing customer engagement and loyalty. Strategic partnerships with construction firms and safety compliance organizations further enhance their market reach and contribute to their earnings by integrating Hochiki's products into larger safety and infrastructure projects.

Hochiki Corporation Financial Statement Overview

Summary

Hochiki Corporation's financial statements reflect robust financial health with strong revenue growth, efficient cost management, and impressive profitability margins. The balance sheet shows low leverage risks, and cash flow statements highlight excellent cash conversion and management.

Income Statement

Hochiki Corporation demonstrates strong financial growth with a consistent increase in total revenue over the years, particularly a notable rise from 93.5 billion to 100.9 billion yen in the last fiscal year. Gross profit margin has improved to 36.8%, reflecting efficient cost management. The net profit margin also improved to 7.6%, indicating robust profitability. The company benefits from a healthy EBIT margin of 9.5% and an EBITDA margin of 11.6%, showcasing operational efficiency.

Balance Sheet

The balance sheet shows a solid financial position with a low debt-to-equity ratio of 0.02, suggesting low financial risk. Return on equity has strengthened to 12.9%, indicating effective use of shareholders' equity to generate profits. The equity ratio stands at a healthy 65.9%, showcasing financial stability. However, the company's reliance on equity might limit potential leverage opportunities.

Cash Flow

Hochiki Corporation exhibits strong cash flow generation with a significant increase in free cash flow from negative to 10.37 billion yen. The operating cash flow to net income ratio of 1.57 indicates efficient cash conversion from profits. The free cash flow to net income ratio at 1.36 further supports the company's strong cash management capabilities, highlighting its capacity to cover capital expenditures and possibly reinvest in growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	102.38B	100.90B	93.48B	85.46B	81.25B	76.57B
Gross Profit	38.12B	37.15B	32.25B	27.83B	26.22B	24.88B
EBITDA	11.38B	11.66B	8.88B	7.00B	6.92B	6.68B
Net Income	7.88B	7.65B	5.66B	4.42B	4.12B	3.83B
Balance Sheet
Total Assets	83.11B	89.66B	85.23B	77.82B	73.91B	67.63B
Cash, Cash Equivalents and Short-Term Investments	20.13B	21.16B	11.63B	15.31B	18.62B	12.51B
Total Debt	1.94B	1.27B	1.14B	666.00M	513.00M	576.00M
Total Liabilities	23.92B	30.33B	32.32B	31.48B	31.06B	28.61B
Stockholders Equity	59.01B	59.12B	52.74B	46.17B	42.69B	38.86B
Cash Flow
Free Cash Flow	0.00	10.37B	-1.04B	-1.88B	7.11B	3.01B
Operating Cash Flow	0.00	11.87B	775.00M	415.00M	7.79B	4.05B
Investing Cash Flow	0.00	-636.00M	-2.54B	-2.20B	-669.00M	-950.00M
Financing Cash Flow	0.00	-1.74B	-2.51B	-1.62B	-1.22B	-1.17B

Hochiki Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4440.00
• 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:6745, the sentiment is Positive. The current price of 4440 is above the 20-day moving average (MA) of 4428.00, above the 50-day MA of 4240.50, and above the 200-day MA of 3396.48, indicating a bullish trend. The MACD of 53.73 indicates Positive momentum. The RSI at 56.36 is Neutral, neither overbought nor oversold. The STOCH value of 60.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6745.

Hochiki Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1969	79 Outperform	¥651.49B	15.64	―	2.13%	15.98%	82.99%
6458	79 Outperform	¥102.00B	13.96	―	3.65%	8.96%	-0.82%
1979	76 Outperform	¥225.96B	17.16	8.53%	2.45%	5.14%	-10.92%
6745	75 Outperform	¥110.79B	13.22	―	2.03%	6.69%	29.94%
5929	68 Neutral	¥875.39B	14.82	18.61%	2.94%	2.90%	36.64%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5938	62 Neutral	¥547.34B	58.91	1.44%	4.80%	0.68%	―

Hochiki Corporation Corporate Events

Hochiki Corporation Announces Interim Dividend of 40.00 Yen Per Share

Hochiki Corporation has announced an interim dividend of 40.00 yen per share, reflecting its commitment to shareholder returns and a progressive dividend policy. This decision aligns with the company’s strategy of maintaining financial health while prioritizing investments for sustainable growth, with the total dividend amounting to 1,003 million yen.

The most recent analyst rating on (JP:6745) stock is a Buy with a Yen4326.00 price target. To see the full list of analyst forecasts on Hochiki Corporation stock, see the JP:6745 Stock Forecast page.

Hochiki Corporation Reports Strong Financial Performance for First Half of 2025

Hochiki Corporation reported a significant increase in its consolidated financial results for the six months ended September 30, 2025, with net sales rising by 6.7% and operating profit increasing by 27.5% compared to the previous year. The company also announced a stable dividend forecast, maintaining its financial health and commitment to shareholder returns, despite a slight decrease in projected profit for the full fiscal year ending March 31, 2026.

The most recent analyst rating on (JP:6745) stock is a Buy with a Yen4326.00 price target. To see the full list of analyst forecasts on Hochiki Corporation stock, see the JP:6745 Stock Forecast page.

Hochiki Corporation Raises Financial Forecasts Amid Strong Market Performance

Hochiki Corporation has revised its financial forecasts for the six months ending September 30, 2025, showing an increase in expected net sales and profits compared to previous forecasts. This positive adjustment is attributed to strong domestic performance in refurbishment projects and fire extinguishing services, as well as favorable currency exchange rates and robust sales in the Asia-Pacific region.

The most recent analyst rating on (JP:6745) stock is a Buy with a Yen4326.00 price target. To see the full list of analyst forecasts on Hochiki Corporation stock, see the JP:6745 Stock Forecast page.