HIROSE ELECTRIC CO (6806) AI Stock Analysis

• Market Cap: $766.87B
• Dividend Yield: 2.85%
• Average Volume (3M): 97.63K
• Price to Earnings (P/E): 25.9
• Beta (1Y): 0.96
• Revenue Growth: 11.18%
• EPS Growth: -0.75%
• Country: JP
• Employees: 4,654
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 278.98
• 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: 0.91
• Enterprise Value/Revenue: 3.45
• Enterprise Value/Gross Profit: 8.10
• Enterprise Value/Ebitda: 11.00
• 1Y Price Target: $22,829.28
• Price Target Upside: -2.17% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 937.06
• Revenue Forecast (FY): $204.70B

• Rating: 78 Outperform
• Price Target: ¥27,343.00 ▲(17.18% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is primarily driven by strong financial quality—high margins and a very low-leverage balance sheet—supporting resilience. Technicals are supportive due to a clear uptrend, but the stock looks overheated (RSI/Stoch elevated), which tempers the rating. Valuation is somewhat demanding at ~24.9x earnings, with the dividend providing partial support.

Positive Factors

Strong Profitability

Sustained high gross and operating margins indicate durable pricing power and cost control in connector manufacturing. These margins provide a structural buffer through cyclical demand, support reinvestment in R&D, and allow consistent operating cash generation that underpins long‑term earnings resilience.

Conservative Balance Sheet

Very low leverage and a large equity base give the company strong financial flexibility to fund R&D, weather downturns, and pursue selective M&A without stressing liquidity. This structural strength reduces refinancing risk and preserves capacity to return capital or invest for secular growth.

Design‑in Recurring Revenue Model

Engineering-led design wins create embedded, recurring revenue as connectors are specified into customers' products. That structural business model generates predictable production-volume sales, higher switching costs, and a recurring demand base that supports steady long‑term cash flows.

Negative Factors

Low Revenue Growth

Modest top-line growth indicates limited organic expansion and suggests the company is operating in mature end markets or facing slower design-win momentum. Persistently low revenue growth constrains operating-leverage gains and limits the pace at which profits and shareholder returns can scale over the medium term.

Weaker Free Cash Flow Conversion

Declining free‑cash‑flow conversion and FCF shrinkage point to higher reinvestment or working‑capital drag. Structurally lower conversion reduces excess cash available for dividends, buybacks, or acquisitions and increases sensitivity to any revenue or margin deterioration over the medium term.

Moderate Return on Equity

ROE that is modest despite minimal leverage implies limited capital efficiency. Without higher revenue growth or margin expansion, returns are likely to remain moderate, which can cap long‑term shareholder value creation even though the balance sheet is very conservative.

HIROSE ELECTRIC CO Business Overview & Revenue Model

Company Description

Hirose Electric Co.,Ltd. manufactures and sells various types of connectors in Japan and internationally. The company offers multi-pin connectors, including circular and rectangular connectors; connectors for ribbon cables; connectors used for printed circuit boards comprising flexible printed circuit boards; and nylon connectors for use in a range of fields, such as smartphones, communications equipment, and automotive electronics, as well as in industrial fields, such as measuring and control equipment, FA equipment, and medical electronics equipment. It also provides coaxial connectors for microwave and other high-frequency signals; and optical fiber connectors and coaxial switches used in various applications, which include microwave communications devices, satellite communications equipment, electronic measuring instruments, smartphones, switching and transmission equipment, and other electronic equipment. In addition, Hirose Electric Co.,Ltd. provides micro switches and instruments for connectors. The company was formerly known as Hirose Manufacturing Co., Ltd. and changed its name to Hirose Electric Co.,Ltd. in August 1963. Hirose Electric Co.,Ltd. was founded in 1937 and is headquartered in Tokyo, Japan.

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

Strong overall fundamentals supported by high profitability (TTM gross margin ~42.6%, operating margin ~22.0%, net margin ~15.0%) and an exceptionally conservative balance sheet (TTM debt-to-equity ~0.03). Offsetting factors are modest recent revenue growth (~2.3%), some margin normalization versus FY2022–FY2023, and softer free-cash-flow performance (TTM FCF ~¥26.3B; ~55% of net income; ~-7.4% YoY).

Income Statement

Profitability is a clear strength: TTM (Trailing-Twelve-Months) gross margin ~42.6% and operating margin ~22.0% remain strong for hardware components, supporting a solid net margin of ~15.0%. However, momentum has softened versus prior years—TTM revenue growth is modest (~2.3%) and margins are below the stronger FY2022–FY2023 levels (when net margin was closer to ~19%). Overall, the income statement reflects a high-quality earnings profile with some recent normalization.

Balance Sheet

The balance sheet is very conservative, with extremely low leverage (TTM debt-to-equity ~0.03) and a large equity base (TTM equity ~¥377.6B vs. debt ~¥11.0B). Returns are healthy given the low leverage (TTM return on equity ~8.3%), though they are slightly below the peak levels seen in FY2023 (~9.9%). Key takeaway: strong financial resilience and flexibility, with only mild pressure from lower recent profitability.

Cash Flow

Cash generation is solid but less consistent. TTM operating cash flow is strong (~¥47.9B) and comfortably supports reported earnings (about 1.65x net income). The main weakness is conversion to free cash flow: TTM free cash flow is ~¥26.3B (about 55% of net income) and has declined year over year (TTM free cash flow growth ~-7.4%), indicating higher reinvestment and/or working-capital drag versus prior periods.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	201.55B	189.42B	165.51B	183.22B	163.67B	133.54B
Gross Profit	85.81B	85.37B	72.50B	88.19B	74.94B	56.67B
EBITDA	63.21B	64.97B	55.70B	65.64B	59.56B	45.05B
Net Income	30.26B	33.03B	26.48B	34.65B	31.44B	19.92B
Balance Sheet
Total Assets	427.83B	416.87B	403.45B	401.36B	394.78B	370.50B
Cash, Cash Equivalents and Short-Term Investments	86.34B	85.67B	90.34B	88.03B	68.39B	57.84B
Total Debt	11.02B	5.20B	5.93B	5.48B	4.97B	4.40B
Total Liabilities	50.20B	46.72B	39.28B	51.50B	52.71B	44.41B
Stockholders Equity	377.63B	370.15B	364.17B	349.85B	342.07B	326.09B
Cash Flow
Free Cash Flow	26.29B	29.00B	8.98B	27.14B	30.47B	21.92B
Operating Cash Flow	47.85B	55.68B	41.05B	45.65B	44.32B	35.82B
Investing Cash Flow	-11.16B	-42.95B	-13.94B	6.40B	-10.88B	-20.70B
Financing Cash Flow	-32.42B	-16.67B	-28.19B	-34.17B	-25.25B	-9.28B

HIROSE ELECTRIC CO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23335.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6806, the sentiment is Positive. The current price of 23335 is above the 20-day moving average (MA) of 20946.75, above the 50-day MA of 18788.60, and above the 200-day MA of 18193.61, indicating a bullish trend. The MACD of 1331.02 indicates Negative momentum. The RSI at 73.17 is Negative, neither overbought nor oversold. The STOCH value of 84.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6806.

HIROSE ELECTRIC CO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6770	78 Outperform	¥459.59B	9.19	11.96%	3.04%	2.70%	―
6806	78 Outperform	$766.87B	25.94	8.09%	2.85%	11.18%	-0.75%
6981	74 Outperform	¥7.58T	39.89	8.95%	1.88%	2.88%	28.76%
6800	74 Outperform	¥77.62B	38.22	―	2.20%	4.75%	164.54%
6762	67 Neutral	¥4.60T	24.54	―	1.41%	7.73%	-1.93%
6807	64 Neutral	¥186.42B	24.55	5.91%	2.39%	-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 Flags Uncertainty Around FY2025 Q3 Outlook

Hirose Electric released a notice related to its third-quarter FY2025 business results, emphasizing that any performance figures or operational outlooks discussed are based on current management estimates. The company highlighted that these statements are subject to significant risks and uncertainties that could cause actual results to differ materially, signaling to investors and other stakeholders that the disclosed figures and projections should be interpreted with caution and are not guarantees of future performance.

The most recent analyst rating on (JP:6806) stock is a Hold with a Yen20400.00 price target. To see the full list of analyst forecasts on HIROSE ELECTRIC CO stock, see the JP:6806 Stock Forecast page.

Hirose Electric Reports Initial Progress on ¥15 Billion Share Buyback Program

Hirose Electric has disclosed progress on its ongoing share buyback program, authorized by its board on December 25, 2025, under provisions of the Companies Act. Between January 5 and January 31, 2026, the company repurchased 300,200 shares of its common stock on the Tokyo Stock Exchange, for a total consideration of approximately ¥5.18 billion, against a maximum approved ceiling of up to 1 million shares and ¥15 billion to be executed by July 31, 2026. This initial tranche represents about 30% of the authorized amount in monetary terms and signals active execution of the capital policy, potentially enhancing earnings per share and shareholder returns while indicating management’s confidence in the company’s valuation and long‑term prospects.

The most recent analyst rating on (JP:6806) stock is a Hold with a Yen20400.00 price target. To see the full list of analyst forecasts on HIROSE ELECTRIC CO stock, see the JP:6806 Stock Forecast page.

Hirose Electric Lifts Full-Year Earnings Outlook on Stronger Industrial Demand and FX Tailwinds

Hirose Electric has raised its full-year consolidated earnings forecast for the fiscal year ending March 2026, citing favorable foreign exchange trends and stronger-than-expected demand in businesses serving general industries. The company now projects revenue of ¥205 billion and operating profit of ¥41 billion, both up 2.5% from the previous forecast, with profit attributable to owners of the parent revised to ¥30.5 billion and basic earnings per share to ¥911.47. While the updated outlook still points to slightly lower profit compared with the prior fiscal year, the upward revision signals more resilient business conditions than initially expected, and the company confirmed there will be no change to its year-end dividend forecast, providing stability for shareholders.

The most recent analyst rating on (JP:6806) stock is a Hold with a Yen20400.00 price target. To see the full list of analyst forecasts on HIROSE ELECTRIC CO stock, see the JP:6806 Stock Forecast page.

Hirose Electric Grows Revenue but Cuts Profit Outlook for Fiscal 2025

Hirose Electric reported consolidated revenue of ¥156.5 billion for the nine months ended 31 December 2025, up 8.4% year on year, but saw operating profit decline 5.0% to ¥32.5 billion and profit attributable to owners of the parent fall 10.0% to ¥24.8 billion, reflecting margin pressure despite top-line growth and a drop in basic earnings per share to ¥738.35. The balance sheet remains solid with equity attributable to owners at ¥377.6 billion and an equity ratio above 88%, and the company maintained its dividend stance, paying ¥245 per share at the second quarter and forecasting a full-year total of ¥490, even as it revised its full-year outlook to project revenue of ¥205 billion (up 8.2%) but lower profits, with operating profit expected to fall 3.9% and net profit 7.7%, signaling a cautious profit outlook for stakeholders amid a still-growing revenue base.

The most recent analyst rating on (JP:6806) stock is a Hold with a Yen20400.00 price target. To see the full list of analyst forecasts on HIROSE ELECTRIC CO stock, see the JP:6806 Stock Forecast page.

Hirose Electric Launches ¥15 Billion Share Buyback to Boost Shareholder Returns

Hirose Electric’s board has approved a share buyback program authorizing the repurchase of up to 1 million shares, representing about 3.03% of its outstanding common stock, for a maximum total of ¥15 billion through market purchases on the Tokyo Stock Exchange between January 5, 2026 and July 31, 2026. The company aims to enhance shareholder returns, improve capital efficiency, and preserve flexibility in its capital policy, with the buyback framework designed to address potential undervaluation if anticipated future profitability is not fully reflected in its share price over the program period, which could support earnings per share and signal confidence in its medium-term outlook to investors.

The most recent analyst rating on (JP:6806) stock is a Hold with a Yen18595.00 price target. To see the full list of analyst forecasts on HIROSE ELECTRIC CO stock, see the JP:6806 Stock Forecast page.