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Hochiki Corporation (JP:6745)
:6745
Japanese Market

Hochiki Corporation (6745) AI Stock Analysis

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JP:6745

Hochiki Corporation

(6745)

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Outperform 79 (OpenAI - 5.2)
Rating:79Outperform
Price Target:
¥6,916.00
▲(55.77% Upside)
Action:ReiteratedDate:03/18/26
The score is driven primarily by strong financial performance (improving revenue, margins, and robust free cash flow) supported by a conservative balance sheet. Technicals add a positive tailwind with an established uptrend and constructive momentum. Valuation is supportive with a low P/E, though dividend yield is only modest.
Positive Factors
Revenue Growth
Revenue increasing to ¥100.9B indicates steady demand for core fire detection and alarm products and growing project wins. Durable top-line growth supports scale, backlog visibility, and reinvestment in R&D and distribution, strengthening long-term competitive positioning.
Negative Factors
Conservative Capital Structure
Very low debt and high equity ratio reduce financial risk but constrain the firm’s ability to use leverage to accelerate growth or pursue larger M&A. This conservative posture can limit return-on-equity enhancement and slower capital-efficient expansion over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Revenue increasing to ¥100.9B indicates steady demand for core fire detection and alarm products and growing project wins. Durable top-line growth supports scale, backlog visibility, and reinvestment in R&D and distribution, strengthening long-term competitive positioning.
Read all positive factors

Hochiki Corporation (6745) vs. iShares MSCI Japan ETF (EWJ)

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 comp...
How the Company Makes Money
Hochiki makes money primarily by selling fire detection and alarm products and related system components to customers through distributors, installers, and direct/project-based channels. Key revenue streams typically include (1) product sales of f...

Hochiki Corporation Financial Statement Overview

Summary
Strong overall fundamentals: rising revenue (to 100.9B yen), improving profitability (gross margin 36.8%, net margin 7.6%), and solid operating efficiency (EBIT margin 9.5%). Balance sheet is conservative with very low leverage (debt-to-equity 0.02) and a healthy equity ratio (65.9%), while cash flow is a key strength with free cash flow improving to 10.37B yen and strong cash conversion (operating cash flow/net income 1.57).
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue102.38B100.90B93.48B85.46B81.25B76.57B
Gross Profit38.12B37.15B32.25B27.83B26.22B24.88B
EBITDA11.38B11.66B8.88B7.00B6.92B6.68B
Net Income7.88B7.65B5.66B4.42B4.12B3.83B
Balance Sheet
Total Assets83.11B89.66B85.23B77.82B73.91B67.63B
Cash, Cash Equivalents and Short-Term Investments20.13B21.16B11.63B15.31B18.62B12.51B
Total Debt1.94B1.27B1.14B666.00M513.00M576.00M
Total Liabilities23.92B30.33B32.32B31.47B31.05B28.61B
Stockholders Equity59.01B59.12B52.74B46.18B42.69B38.87B
Cash Flow
Free Cash Flow0.0010.37B-685.00M-1.62B7.25B3.17B
Operating Cash Flow0.0012.04B907.00M516.00M7.86B4.12B
Investing Cash Flow0.00-826.00M-2.69B-2.32B-760.00M-1.03B
Financing Cash Flow0.00-1.71B-2.49B-1.60B-1.20B-1.15B

Hochiki Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4440.00
Price Trends
50DMA
1977.92
Positive
100DMA
1712.50
Positive
200DMA
1434.17
Positive
Market Momentum
MACD
28.64
Positive
RSI
54.29
Neutral
STOCH
53.17
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 2118.82, above the 50-day MA of 1977.92, and above the 200-day MA of 1434.17, indicating a bullish trend. The MACD of 28.64 indicates Positive momentum. The RSI at 54.29 is Neutral, neither overbought nor oversold. The STOCH value of 53.17 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥165.82B10.412.03%6.69%29.94%
76
Outperform
¥221.75B14.348.53%2.45%5.14%-10.92%
66
Neutral
¥5.94T42.689.46%1.52%1.60%5.80%
66
Neutral
¥129.65B10.4212.89%3.40%2.98%41.11%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
¥5.85B4.984.13%2.76%-10.23%
52
Neutral
¥478.20B16.111.44%4.80%0.68%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6745
Hochiki Corporation
2,135.00
1,407.99
193.67%
JP:6367
Daikin
20,280.00
4,747.41
30.56%
JP:5938
LIXIL Group
1,663.50
140.14
9.20%
JP:1979
Taikisha
3,550.00
1,430.03
67.46%
JP:5930
Bunka Shutter Co., Ltd.
1,930.00
64.27
3.44%
JP:5936
Toyo Shutter Co., Ltd.
923.00
213.93
30.17%

Hochiki Corporation Corporate Events

Hochiki Doubles Year-End Dividend Forecast, Lifts Annual Payout Guidance
Mar 16, 2026
Hochiki Corporation has revised its dividend forecast for the fiscal year ending March 31, 2026, doubling the planned year-end dividend from ¥40 to ¥80 per share. This lifts the expected annual dividend to ¥120 per share, up ¥4...
Hochiki Lifts Nine-Month Profits and Holds FY2026 Guidance Steady
Feb 4, 2026
The company posted nine-month revenue of ¥75.8 billion, up 4.9% year on year, with operating profit jumping 22.7% to ¥7.9 billion and net profit climbing 15.8% to ¥5.7 billion, while balance-sheet strength improved...
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: Mar 18, 2026