Hosiden (6804) AI Stock Analysis

• Market Cap: ¥147.83B
• Dividend Yield: 2.64%
• Average Volume (3M): 225.32K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.83
• Revenue Growth: 79.29%
• EPS Growth: 35.48%
• Country: JP
• Employees: 6,839
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 161.41
• Shares Outstanding: 58,502,583
• 10 Day Avg. Volume: 224,880
• 30 Day Avg. Volume: 225,320
• PEG Ratio: -0.83
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.44
• P/FCF Ratio: -4.48
• 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): 244.05
• Revenue Forecast (FY): ¥440.05B

• Rating: 72 Outperform
• Price Target: ¥3,206.00 ▲(27.48% Upside)
• Action: Reiterated Date: 02/08/26
• Date: Action: Reiterated 02/08/26

The score is driven primarily by financial stability and improved TTM revenue, offset by inconsistent cash generation and weaker cash conversion. Technicals add moderate support with the stock trading above key moving averages, while valuation is a clear positive due to the low P/E and a healthy dividend yield.

Positive Factors

Conservative balance sheet

Very low leverage provides durable financial flexibility to fund capex, absorb cyclical demand swings, and pursue manufacturing contracts without material refinancing risk. A conservative balance sheet supports stable operations and investment capacity over the next few quarters.

Revenue rebound

A 17.5% TTM revenue rebound signals recovering end-market demand or improved product mix. Sustained top-line growth strengthens scale, helps absorb fixed costs, and can underpin reinvestment into higher-value module production and R&D over the medium term.

ODM/OEM manufacturing capability

Integrated ODM/OEM design and assembly capabilities create stickier customer relationships and enable capture of higher-value module revenue versus commoditized parts. This manufacturing scale and engineering service mix supports durable contract opportunities and margin resilience.

Negative Factors

Weak cash conversion

Free cash flow materially lagging net income indicates weak cash conversion, limiting internally generated funding for dividends, capex, or strategic initiatives. Volatile operating and free cash flows increase execution risk and constrain financial flexibility over coming quarters.

Margin compression

Relatively low and declining gross and net margins point to pricing pressure, rising costs, or a shift toward lower-value components. Persistent margin erosion reduces operating leverage, curtails reinvestment capacity, and undermines sustainable profitability in the medium term.

Moderate returns on equity

ROE around high-single-digits shows decent but not exceptional capital efficiency. For a capital-intensive electronic components maker, moderate ROE limits internal capital accumulation and may slow organic growth or returns to shareholders compared with higher-return peers.

Hosiden Business Overview & Revenue Model

Company Description

Hosiden Corporation (6804) is a Japan-based company primarily engaged in the manufacturing and sale of electronic components and systems. The company operates in various sectors, including automotive, telecommunications, and consumer electronics. Hosiden's core product offerings include connectors, sensors, and modules that are essential for the connectivity and functionality of electronic devices.

How the Company Makes Money

Hosiden generates revenue through the production and sale of electronic components, which are supplied to diverse industries such as automotive, telecommunications, and consumer electronics. The company's revenue model is based on the sale of high-quality, innovative products that meet the specific needs of its clients. Key revenue streams include direct sales to manufacturers of electronic equipment, long-term contracts with major clients, and partnerships with industry leaders to develop tailored solutions. Additionally, Hosiden benefits from economies of scale in production and a strong focus on research and development, which allows it to introduce new products and adapt to market changes, further enhancing its earning potential.

Hosiden Financial Statement Overview

Summary

Strong balance sheet (low leverage; debt-to-equity ~0.07) and solid revenue rebound (+17.5% TTM), but profitability is modest with margin compression (TTM gross ~6.6%, net ~3.6%) and cash-flow quality is a key concern due to weak cash conversion and volatility (FCF well below net income; uneven OCF/FCF across periods).

Income Statement

TTM (Trailing-Twelve-Months) revenue rebounded strongly (+17.5%), showing improved demand and/or mix versus the prior annual period. Profitability is positive but modest for the sector: TTM gross margin is ~6.6% and net margin ~3.6%, and margins are lower than recent annual levels (FY2024–FY2025 gross margin ~9–10% and net margin ~4–5%), indicating some pricing/volume or cost pressure. Net income remains solid and consistent over time, but overall earnings quality is tempered by the margin compression.

Balance Sheet

The balance sheet is conservatively levered, with low debt relative to equity (TTM debt-to-equity ~0.07) and a large equity base. Returns on equity are steady in the high-single-digits to ~10% range (TTM ~8.4%), suggesting decent profitability without heavy leverage. The main drawback is that returns are not exceptionally high, but overall financial risk from leverage appears limited.

Cash Flow

Cash generation is the key weak spot. TTM operating cash flow is positive (~9.7B) and free cash flow is positive (~3.2B), but free cash flow is well below net income (about one-third), pointing to weaker cash conversion. Cash flow volatility is evident across annual periods (including negative operating and free cash flow in FY2022 and FY2025), and the reported free cash flow growth is sharply negative in TTM, highlighting inconsistency and potential working-capital or investment-driven swings.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	442.82B	247.57B	218.91B	277.24B	207.61B	233.93B
Gross Profit	29.38B	23.15B	22.75B	25.76B	21.72B	22.36B
EBITDA	27.57B	17.11B	16.08B	21.95B	19.53B	15.52B
Net Income	15.77B	10.04B	11.63B	12.64B	11.90B	10.34B
Balance Sheet
Total Assets	217.91B	200.28B	175.01B	179.99B	171.53B	161.89B
Cash, Cash Equivalents and Short-Term Investments	68.62B	59.56B	86.91B	70.75B	63.49B	70.77B
Total Debt	10.17B	11.24B	11.06B	12.22B	12.09B	12.01B
Total Liabilities	71.46B	59.96B	40.14B	53.24B	51.99B	52.64B
Stockholders Equity	146.45B	140.32B	134.87B	126.75B	119.53B	109.25B
Cash Flow
Free Cash Flow	3.22B	-24.49B	24.01B	17.81B	-5.19B	9.79B
Operating Cash Flow	9.70B	-18.23B	26.93B	20.77B	-1.23B	12.59B
Investing Cash Flow	-3.17B	-5.93B	-8.35B	-9.85B	-3.06B	-2.36B
Financing Cash Flow	-8.66B	-5.31B	-7.94B	-7.44B	-3.75B	-3.86B

Hosiden Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2515.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6804, the sentiment is Positive. The current price of 2515 is below the 20-day moving average (MA) of 2784.30, below the 50-day MA of 2636.12, and above the 200-day MA of 2385.44, indicating a bullish trend. The MACD of 80.82 indicates Negative momentum. The RSI at 65.45 is Neutral, neither overbought nor oversold. The STOCH value of 77.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6804.

Hosiden Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5819	75 Outperform	¥14.42B	12.16	―	3.02%	3.43%	3.75%
6516	75 Outperform	¥193.52B	24.60	―	1.53%	3.37%	21.35%
6804	72 Outperform	¥147.83B	9.44	8.07%	2.64%	79.29%	35.48%
5803	72 Outperform	¥7.38T	51.29	32.32%	0.91%	27.53%	137.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5801	61 Neutral	¥1.98T	37.68	10.06%	1.21%	10.52%	60.75%
6905	59 Neutral	¥56.27B	-141.26	―	5.01%	-32.74%	-117.06%

Hosiden Corporate Events

Hosiden Posts Strong Nine-Month Earnings Surge and Confirms Outlook

Hosiden Corporation, a Japanese electronics maker listed in Tokyo, reported a sharp upswing in results for the nine months to December 31, 2025, with net sales surging 108.6% year on year to ¥375.0 billion. Operating profit rose 53.6% to ¥16.7 billion, ordinary profit climbed 74.3% to ¥21.0 billion, and profit attributable to owners of parent increased 67.0% to ¥14.2 billion, lifting basic earnings per share to ¥281.44 from ¥164.14.

The company’s financial position remained solid, with total assets of ¥217.9 billion and an equity ratio of 67.2%, while net assets rose to ¥146.4 billion despite a slight dilution in capital ratio. Hosiden maintained its full-year forecast, now projecting a 77.7% jump in net sales to ¥440.0 billion and a 44.5% rise in profit attributable to owners of parent to ¥14.5 billion, and it plans a full-year dividend of ¥50 per share, based on a 30% payout ratio and an assumed exchange rate of ¥150 to the U.S. dollar.

The most recent analyst rating on (JP:6804) stock is a Buy with a Yen2990.00 price target. To see the full list of analyst forecasts on Hosiden stock, see the JP:6804 Stock Forecast page.

Hosiden Doubles Sales and Lifts Full-Year Forecast on Earnings Rebound

Hosiden reported a sharp recovery in earnings for the nine months ended December 31, 2025, with net sales more than doubling year-on-year to ¥375.0 billion, operating profit up 53.6% to ¥16.7 billion, and profit attributable to owners of parent surging 67.0% to ¥14.2 billion. Equity increased to ¥146.4 billion despite a slight decline in the equity ratio, and basic earnings per share jumped to ¥281.44. The company kept its full-year dividend forecast unchanged at ¥50 per share, based on a 30% payout ratio, and raised its full-year earnings forecast, now projecting net sales of ¥440.0 billion and profit attributable to owners of parent of ¥14.5 billion, assuming an exchange rate of ¥150 to the U.S. dollar. These results and upgraded guidance signal stronger operational momentum and improved profitability, which may support shareholder returns and reinforce Hosiden’s financial position amid a favorable currency environment.

The most recent analyst rating on (JP:6804) stock is a Buy with a Yen3023.00 price target. To see the full list of analyst forecasts on Hosiden stock, see the JP:6804 Stock Forecast page.

Hosiden Completes Strategic Treasury Share Acquisition and Cancellation

Hosiden Corporation has completed the acquisition and cancellation of a significant portion of its treasury shares, as per the resolutions passed by its Board of Directors. This strategic move, involving the acquisition of 354,700 shares and the cancellation of 1,662,200 shares, is aimed at optimizing the company’s capital structure and potentially enhancing shareholder value.

The most recent analyst rating on (JP:6804) stock is a Buy with a Yen2779.00 price target. To see the full list of analyst forecasts on Hosiden stock, see the JP:6804 Stock Forecast page.