HIROSE ELECTRIC CO (JP:6806)
:6806
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HIROSE ELECTRIC CO
(6806)
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Rating:78Outperform
Price Target:
¥23,570.00
▲(12.40% Upside)
Action:ReiteratedDate: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 Operating Cash Flow
Robust operating cash flow that materially exceeds reported net income signals high quality earnings and the ability to self-fund R&D and production ramps. Even with some FCF variability, sustained OCF underpins dividends, reinvestment, and strategic flexibility over the medium term.
Negative Factors
Margin Normalization Risk
A pullback from prior peak margins indicates possible mix shifts, pricing pressure, or rising input costs. Sustained margin normalization would compress returns and ROE, making growth or shareholder-return objectives harder to achieve without higher revenue or efficiency gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Operating Cash Flow
Robust operating cash flow that materially exceeds reported net income signals high quality earnings and the ability to self-fund R&D and production ramps. Even with some FCF variability, sustained OCF underpins dividends, reinvestment, and strategic flexibility over the medium term.
Read all positive factors
HIROSE ELECTRIC CO (6806) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥679.46B
Dividend Yield2.85%
Average Volume (3M)97.63K
Price to Earnings (P/E)15.5
Beta (1Y)0.98
Revenue Growth11.18%
EPS Growth-0.75%
CountryJP
Employees4,654
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)278.98
Shares Outstanding35,693,970
10 Day Avg. Volume106,790
30 Day Avg. Volume97,633
Financial Highlights & Ratios
PEG Ratio0.67
Price to Book (P/B)1.58
Price to Sales (P/S)3.08
P/FCF Ratio20.12
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥24,702.69Price Target Upside17.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)947.52
Revenue Forecast (FY)¥206.41B
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 pri...
How the Company Makes Money
Hirose Electric primarily makes money by manufacturing and selling connectors and related interconnect components. Revenue is generated through (1) product sales to OEMs and electronics manufacturers where connectors are designed into end products...
HIROSE ELECTRIC CO Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
93
Very Positive
Cash Flow
76
Positive
| 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 | 64.08B | 64.97B | 55.70B | 65.64B | 59.56B | 45.70B |
| 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 | 6.07B | 5.20B | 5.93B | 5.48B | 4.97B | 4.40B |
| Total Liabilities | 50.20B | 45.90B | 38.76B | 50.97B | 52.15B | 43.83B |
| 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
Neutral
20970.00
Price Trends
20128.90
Positive
18895.15
Positive
18586.78
Positive
Market Momentum
190.23
Positive
45.32
Neutral
47.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6806, the sentiment is Neutral. The current price of 20970 is below the 20-day moving average (MA) of 21866.00, above the 50-day MA of 20128.90, and above the 200-day MA of 18586.78, indicating a neutral trend. The MACD of 190.23 indicates Positive momentum. The RSI at 45.32 is Neutral, neither overbought nor oversold. The STOCH value of 47.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6806.
HIROSE ELECTRIC CO Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥411.76B | 9.21 | 11.96% | 3.04% | 2.70% | ― | |
78 Outperform | ¥679.46B | 15.50 | 8.07% | 2.85% | 11.18% | -0.75% | |
74 Outperform | ¥6.47T | 59.16 | 8.95% | 1.88% | 2.88% | 28.76% | |
74 Outperform | ¥67.27B | 12.79 | ― | 2.20% | 4.75% | 164.54% | |
67 Neutral | ¥3.88T | 15.03 | ― | 1.41% | 7.73% | -1.93% | |
64 Neutral | ¥154.35B | 29.59 | 5.91% | 2.39% | -3.24% | -25.21% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:6806
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HIROSE ELECTRIC CO Corporate Events
Hirose Electric Reports Progress on Multi-Billion Yen Share Buyback Program
Mar 2, 2026
Hirose Electric has disclosed the latest progress of its ongoing share buyback program authorized by its board in December 2025, reporting the repurchase of 8,700 common shares on the Tokyo Stock Exchange in February 2026 for approximately 145.97 ...
Hirose Electric Flags Uncertainty Around FY2025 Q3 Outlook
Feb 4, 2026
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 statem...
Hirose Electric Reports Initial Progress on ¥15 Billion Share Buyback Program
Feb 3, 2026
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...
Hirose Electric Lifts Full-Year Earnings Outlook on Stronger Industrial Demand and FX Tailwinds
Feb 3, 2026
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 pro...
Hirose Electric Grows Revenue but Cuts Profit Outlook for Fiscal 2025
Feb 3, 2026
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...
Hirose Electric Launches ¥15 Billion Share Buyback to Boost Shareholder Returns
Dec 25, 2025
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 ...
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.