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Hochiki Corporation
(6745)
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Rating:75Outperform
Price Target:
¥2,149.00
▼(-51.60% Downside)
Action:Reiterated
Date:05/21/26
The score is driven primarily by strong financial performance (rising profits and an exceptionally low-debt balance sheet), partially offset by historically inconsistent cash generation. Technicals remain constructive with strong trend indicators, but elevated RSI/Stoch suggest near-term overheating risk. Valuation is reasonable but not a clear bargain, keeping the overall score in the mid-70s.
Positive Factors
Low-leverage balance sheet
Very low leverage and materially growing equity provide durable financial flexibility. This reduces refinancing and default risk across cycles, supports capital allocation for R&D or capex, and underpins the company’s ability to pursue projects or weather construction-market downturns.
Negative Factors
Cash-flow volatility
Historical swings between negative FCF (2023–2024) and a later rebound imply working-capital or investment timing risk. Inconsistent cash conversion can constrain funding for capex, service expansion, or unexpected repairs and may force reliance on retained earnings or external financing in weak years.
Read all positive and negative factors
Positive Factors
Negative Factors
Low-leverage balance sheet
Very low leverage and materially growing equity provide durable financial flexibility. This reduces refinancing and default risk across cycles, supports capital allocation for R&D or capex, and underpins the company’s ability to pursue projects or weather construction-market downturns.
Read all positive factors
Hochiki Corporation (6745) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥149.90B
Dividend Yield2.07%
Average Volume (3M)76.24K
Price to Earnings (P/E)15.4
Beta (1Y)1.06
Revenue Growth4.91%
EPS Growth22.52%
CountryJP
Employees2,722
SectorGeneral
Sector StrengthN/A
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)125.68
Shares Outstanding79,200,000
10 Day Avg. Volume67,050
30 Day Avg. Volume76,243
Financial Highlights & Ratios
PEG Ratio0.73
Price to Book (P/B)2.24
Price to Sales (P/S)1.45
P/FCF Ratio16.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)127.33
Revenue Forecast (FY)¥110.00B
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 systems, information and communication, fire extinguishing, crime prevention systems, and network and se...
How the Company Makes Money
Hochiki makes money primarily by selling fire detection and alarm products and associated system components for use in commercial, industrial, and public buildings. Its revenue model is centered on product sales (e.g., detectors, control panels, n...
Hochiki Corporation Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
62
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 105.86B | 100.90B | 93.48B | 85.46B | 81.25B |
| Gross Profit | 41.67B | 37.15B | 32.25B | 27.83B | 26.22B |
| EBITDA | 14.07B | 11.66B | 8.88B | 7.00B | 6.92B |
| Net Income | 9.38B | 7.65B | 5.66B | 4.42B | 4.12B |
Balance Sheet | |||||
| Total Assets | 97.94B | 89.66B | 85.23B | 77.82B | 73.91B |
| Cash, Cash Equivalents and Short-Term Investments | 27.97B | 21.16B | 11.63B | 15.31B | 18.62B |
| Total Debt | 1.23B | 1.27B | 1.14B | 666.00M | 513.00M |
| Total Liabilities | 29.46B | 30.33B | 32.32B | 31.47B | 31.05B |
| Stockholders Equity | 68.40B | 59.12B | 52.74B | 46.18B | 42.69B |
Cash Flow | |||||
| Free Cash Flow | 9.36B | 10.37B | -685.00M | -1.62B | 7.25B |
| Operating Cash Flow | 10.79B | 12.04B | 907.00M | 516.00M | 7.86B |
| Investing Cash Flow | -1.83B | -826.00M | -2.69B | -2.32B | -760.00M |
| Financing Cash Flow | -2.65B | -1.71B | -2.49B | -1.60B | -1.20B |
Hochiki Corporation Technical Analysis
Positive
4440.00
Price Trends
1964.92
Positive
2021.84
Negative
1779.58
Positive
Market Momentum
-10.87
Negative
55.94
Neutral
81.48
Negative
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 1945.30, above the 50-day MA of 1964.92, and above the 200-day MA of 1779.58, indicating a bullish trend. The MACD of -10.87 indicates Negative momentum. The RSI at 55.94 is Neutral, neither overbought nor oversold. The STOCH value of 81.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6745.
Hochiki Corporation Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥149.90B | 15.36 | ― | 2.03% | 4.91% | 22.52% | |
72 Outperform | ¥264.54B | 17.27 | 10.28% | 2.44% | 3.59% | 44.84% | |
68 Neutral | ¥127.90B | 10.62 | 11.24% | 3.83% | 3.44% | -2.97% | |
68 Neutral | ¥5.64B | 9.00 | ― | 4.13% | 0.83% | -20.80% | |
63 Neutral | ¥6.82T | 24.78 | 9.01% | 1.42% | 5.53% | 3.94% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
50 Neutral | ¥499.01B | 89.99 | 1.26% | 4.96% | 1.71% | -20.26% |
* General Sector Average
JP:6745
Hochiki Corporation
2,019.00
931.75
85.70%
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Hochiki Corporation Corporate Events
Hochiki Outlines Governance and Business Ties With Major Shareholder ALSOK
Jun 26, 2026
Hochiki Corporation has clarified its relationship with ALSOK CO., LTD., which holds 17.5% of its voting rights and is classified as an other affiliated company and largest shareholder. Despite this significant stake, Hochiki states that ALSOK imp...
Hochiki Issues Corrections to Fiscal 2026 Supplemental Financial Summary
May 13, 2026
Hochiki Corporation has announced that it corrected errors found in its previously released Supplemental Financial Summary for the fiscal year ended March 31, 2026. The company said that certain inaccuracies were identified in the May 8 disclosure...
Hochiki Raises Year-End Dividend and Signals Progressive Payout Policy
May 8, 2026
Hochiki Corporation’s board has approved a year-end dividend of ¥80 per share for the fiscal year ended March 31, 2026, up from ¥51 in the previous year, bringing total dividend payments to ¥2,006 million, funded from retained...
Hochiki Beats Full-Year Forecasts on Strong Fire Safety Demand at Home and Abroad
May 8, 2026
Hochiki Corporation reported that its consolidated results for the fiscal year ended March 31, 2026, exceeded prior forecasts, driven by solid domestic performance and stronger profitability amid robust construction demand in Japan. Overseas, sale...
Hochiki lifts profit, boosts dividend and executes stock split on stronger FY2026 results
May 8, 2026
Hochiki Corporation reported consolidated net sales of ¥105.9 billion for the fiscal year ended March 31, 2026, up 4.9% year on year, with operating profit climbing 26.3% to ¥12.1 billion and profit attributable to owners of parent risin...
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.