HIROSE ELECTRIC CO (6806) AI Stock Analysis

• Market Cap: $698.52B
• Dividend Yield: 2.88%
• Average Volume (3M): 97.63K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.79
• Revenue Growth: 11.18%
• EPS Growth: -0.75%
• Country: JP
• Employees: 4,654
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 245.79
• Shares Outstanding: 35,693,970
• 10 Day Avg. Volume: 106,790
• 30 Day Avg. Volume: 97,633
• PEG Ratio: 0.67
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 3.08
• P/FCF Ratio: 20.12
• Enterprise Value/Market Cap: 0.74
• Enterprise Value/Revenue: 2.66
• Enterprise Value/Gross Profit: 5.98
• Enterprise Value/Ebitda: 8.09
• 1Y Price Target: $24,004.39
• Price Target Upside: 40.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥18,595.00 ▲(8.74% Upside)

HIROSE ELECTRIC CO's strong financial performance is the most significant factor, showcasing robust revenue growth and a solid balance sheet. However, the technical analysis indicates bearish momentum, which negatively impacts the overall score. The valuation is reasonable, providing a balance between growth potential and income through dividends.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates a strong market position and effective business strategies, contributing to long-term financial stability.

Balance Sheet Health

A low debt-to-equity ratio reflects strong financial stability and minimizes risk, providing the company with flexibility for future investments and growth.

Cash Generation Ability

Strong operating cash flow indicates efficient cash management and the ability to support operational and strategic initiatives, ensuring long-term sustainability.

Negative Factors

Profitability Margins

Declining EBIT and EBITDA margins suggest potential pressure on operating efficiency, which could impact profitability if not addressed.

Free Cash Flow Conversion

A lower free cash flow to net income ratio indicates challenges in converting profits into cash, which may affect the company's ability to fund growth and dividends.

Profitability Margins

Slight declines in profitability margins could signal challenges in maintaining cost efficiency, potentially impacting future earnings if not managed.

HIROSE ELECTRIC CO Business Overview & Revenue Model

Company Description

HIROSE ELECTRIC CO., LTD. (6806) is a leading Japanese manufacturer specializing in the production of connectors and related electronic components. Established in 1957, the company operates primarily in the electronics and telecommunications sectors, providing innovative solutions for a wide range of applications, including automotive, industrial, and consumer electronics. HIROSE is recognized for its high-quality, reliable products, which include connectors, cable assemblies, and other electronic components designed to enhance connectivity in various technological environments.

How the Company Makes Money

HIROSE ELECTRIC generates revenue primarily through the sale of its connectors and electronic components to various industries, including automotive, telecommunications, and industrial automation. The company operates a B2B revenue model, where it supplies products to original equipment manufacturers (OEMs) and distributors worldwide. Key revenue streams include sales from standard connectors, custom connectors tailored to client specifications, and cable assemblies. Additionally, HIROSE has established significant partnerships with major companies in the electronics sector, which enhances its market reach and drives sales. Market demand for high-performance connectivity solutions, particularly in the growing fields of IoT and electric vehicles, also contributes to HIROSE's earnings. The company focuses on innovation and R&D to develop new products, ensuring a competitive edge and sustained revenue growth.

HIROSE ELECTRIC CO Financial Statement Overview

Summary

HIROSE ELECTRIC CO exhibits strong financial health with solid profitability, a robust balance sheet, and stable cash flows. While revenue growth is modest, the company maintains high margins and low leverage, reducing financial risk. Cash flow management could be improved to enhance free cash flow growth.

Income Statement

The company demonstrates strong profitability with a consistent gross profit margin around 44-45% and a net profit margin of approximately 16-17% in the TTM. Revenue growth is modest at 2.17% TTM, indicating stable but slow growth. EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio around 0.013, indicating minimal leverage and financial risk. The return on equity is solid at 8.55% TTM, showcasing effective use of equity capital. The equity ratio is strong, highlighting a solid capital structure.

Cash Flow

Operating cash flow is strong relative to net income, with a ratio of 1.83 TTM. However, free cash flow growth is negative, which could indicate potential cash flow management issues. The free cash flow to net income ratio is moderate, suggesting room for improvement in cash generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	193.52B	189.42B	165.51B	183.22B	163.67B	133.54B
Gross Profit	85.93B	85.37B	72.50B	88.19B	74.94B	56.67B
EBITDA	63.57B	64.97B	55.70B	65.64B	59.56B	45.05B
Net Income	31.86B	33.03B	26.48B	34.65B	31.44B	19.92B
Balance Sheet
Total Assets	420.47B	416.87B	403.45B	401.36B	394.78B	370.50B
Cash, Cash Equivalents and Short-Term Investments	81.77B	85.67B	90.34B	88.03B	68.39B	57.84B
Total Debt	5.04B	5.20B	5.93B	5.48B	4.97B	4.40B
Total Liabilities	46.32B	46.72B	39.28B	51.50B	52.71B	44.41B
Stockholders Equity	374.15B	370.15B	364.17B	349.85B	342.07B	326.09B
Cash Flow
Free Cash Flow	27.64B	29.00B	8.98B	27.14B	30.47B	21.92B
Operating Cash Flow	50.91B	55.68B	41.05B	45.65B	44.32B	35.82B
Investing Cash Flow	-31.26B	-42.95B	-13.94B	6.40B	-10.88B	-20.70B
Financing Cash Flow	-17.53B	-16.67B	-28.19B	-34.17B	-25.25B	-9.28B

HIROSE ELECTRIC CO Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17100.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6806, the sentiment is Negative. The current price of 17100 is below the 20-day moving average (MA) of 17485.25, below the 50-day MA of 18510.60, and below the 200-day MA of 17601.74, indicating a bearish trend. The MACD of -408.66 indicates Negative momentum. The RSI at 37.70 is Neutral, neither overbought nor oversold. The STOCH value of 15.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6806.

HIROSE ELECTRIC CO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6915	75 Outperform	¥32.09B	12.36	―	4.91%	-7.10%	6.38%
6928	74 Outperform	¥15.70B	19.46	―	2.97%	9.64%	163.46%
6908	70 Outperform	¥72.77B	24.61	―	3.04%	10.79%	12.28%
6806	68 Neutral	$698.52B	23.17	8.09%	2.88%	11.18%	-0.75%
6919	66 Neutral	¥9.99B	54.14	―	5.71%	-0.23%	-32.32%
6807	64 Neutral	$157.73B	19.08	5.91%	2.31%	-3.24%	-25.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

HIROSE ELECTRIC CO Corporate Events

HIROSE ELECTRIC Reports Progress on Share Buyback Program

HIROSE ELECTRIC CO., LTD. has reported on the progress of its share buyback program, initially resolved in August 2025. As of October 31, 2025, the company repurchased 133,700 shares for approximately 2.55 billion yen, contributing to a cumulative total of 480,400 shares repurchased for over 9.13 billion yen. This strategic move is part of a larger plan to buy back up to 1.05 million shares, indicating the company’s commitment to enhancing shareholder value and optimizing its capital structure.

HIROSE ELECTRIC Revises Earnings Forecast Upward for Fiscal Year 2026

HIROSE ELECTRIC CO., LTD. has revised its full-year earnings forecast for the fiscal year ending March 2026, increasing its revenue and profit expectations due to favorable foreign exchange trends and stronger than anticipated business performance in general industries. The revised forecast indicates a positive outlook with a 4.7% increase in revenue and a 7.1% rise in profit attributable to owners, reflecting the company’s strong market positioning and operational efficiency.

HIROSE ELECTRIC Reports Mixed Financial Results Amid Revenue Growth

HIROSE ELECTRIC CO., LTD. reported its consolidated financial results for the six months ending September 30, 2025, showing a revenue increase of 7.9% compared to the previous year. However, the company experienced declines in operating profit and profit before tax by 7.9% and 7.3%, respectively, indicating challenges in maintaining profitability despite revenue growth. The financial forecast for the year ending March 31, 2026, anticipates a revenue increase of 5.6%, but a decrease in operating profit and profit before tax by 6.3% and 7.0%, respectively, suggesting ongoing financial pressures.

HIROSE ELECTRIC CO., LTD. Updates on Share Buyback Progress

HIROSE ELECTRIC CO., LTD. announced the progress of its share buyback program, initially resolved by the Board of Directors on August 4, 2025. As of September 30, 2025, the company repurchased 91,400 shares for approximately 1.76 billion yen, with the buyback conducted through the Tokyo Stock Exchange. This initiative is part of a larger plan to repurchase up to 1.05 million shares by March 31, 2026, reflecting the company’s strategy to enhance shareholder value and optimize its capital structure.