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HIROSE ELECTRIC CO (JP:6806)
:6806

HIROSE ELECTRIC CO (6806) AI Stock Analysis

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JP:6806

HIROSE ELECTRIC CO

(6806)

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Outperform 78 (OpenAI - 5.2)
Rating:78Outperform
Price Target:
¥27,343.00
▲(18.96% 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
High profit margins
Sustained high gross and operating margins reflect durable product-level economics and pricing power in precision connectors. This margin profile funds R&D and supports profitability through cycles, enabling reinvestment in product development and steady cash available for shareholders and strategic initiatives.
Very conservative balance sheet
Exceptionally low leverage provides the company durable financial flexibility to fund capex, R&D, dividends or M&A without stress. It reduces refinancing risk in downturns and preserves investment capacity, supporting long-term resilience and strategic optionality across industry cycles.
Strong operating cash flow
Consistent operating cash generation underpins the business's ability to self-fund growth and return capital. Robust OCF relative to earnings supports sustainable capital allocation to production scale, product development, and shareholder distributions, strengthening long-term financial stability.
Negative Factors
Modest revenue growth
Low recent top-line growth suggests limited expansion of design wins or end-market demand acceleration. Over the medium term, stagnant revenue growth constrains operating leverage and makes it harder to expand absolute profits without substantial margin improvements or new market penetration.
Weaker free cash flow conversion
Declining FCF conversion and negative FCF growth indicate higher reinvestment or working-capital drag. Persistently weaker conversion reduces discretionary cash for buybacks, special investments, or cushioning against downturns, limiting net cash returns despite strong operating cash flow.
Margins normalizing from peak
A rollback from peak margins and lower ROE suggests margin pressure from competitive dynamics or mix shifts. If structural, this erodes return on invested capital and limits scope for growth investments or improved shareholder returns absent regained pricing power or efficiency gains.

HIROSE ELECTRIC CO (6806) vs. iShares MSCI Japan ETF (EWJ)

HIROSE ELECTRIC CO Business Overview & Revenue Model

Company DescriptionHirose 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 MoneyHIROSE 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
82
Very Positive
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
93
Very Positive
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
76
Positive
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.
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue201.55B189.42B165.51B183.22B163.67B133.54B
Gross Profit85.81B85.37B72.50B88.19B74.94B56.67B
EBITDA63.21B64.97B55.70B65.64B59.56B45.05B
Net Income30.26B33.03B26.48B34.65B31.44B19.92B
Balance Sheet
Total Assets427.83B416.87B403.45B401.36B394.78B370.50B
Cash, Cash Equivalents and Short-Term Investments86.34B85.67B90.34B88.03B68.39B57.84B
Total Debt11.02B5.20B5.93B5.48B4.97B4.40B
Total Liabilities50.20B46.72B39.28B51.50B52.71B44.41B
Stockholders Equity377.63B370.15B364.17B349.85B342.07B326.09B
Cash Flow
Free Cash Flow26.29B29.00B8.98B27.14B30.47B21.92B
Operating Cash Flow47.85B55.68B41.05B45.65B44.32B35.82B
Investing Cash Flow-11.16B-42.95B-13.94B6.40B-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 Price22985.00
Price Trends
50DMA
18908.20
Positive
100DMA
18626.85
Positive
200DMA
18224.97
Positive
Market Momentum
MACD
1309.77
Negative
RSI
69.05
Neutral
STOCH
72.89
Neutral
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 22985 is above the 20-day moving average (MA) of 21274.75, above the 50-day MA of 18908.20, and above the 200-day MA of 18224.97, indicating a bullish trend. The MACD of 1309.77 indicates Negative momentum. The RSI at 69.05 is Neutral, neither overbought nor oversold. The STOCH value of 72.89 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥446.06B9.1911.96%3.04%2.70%
78
Outperform
$755.37B25.948.09%2.85%11.18%-0.75%
74
Outperform
$7.50T39.898.95%1.88%2.88%28.76%
74
Outperform
¥79.61B38.222.20%4.75%164.54%
67
Neutral
¥4.43T24.541.41%7.73%-1.93%
64
Neutral
$184.08B24.555.91%2.39%-3.24%-25.21%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6806
HIROSE ELECTRIC CO
22,195.00
5,174.15
30.40%
JP:6770
Alps Alpine Co
2,141.50
659.57
44.51%
JP:6807
Japan Aviation Electronics Industry
2,513.00
-90.47
-3.48%
JP:6981
Murata Manufacturing Co
3,730.00
1,262.44
51.16%
JP:6762
TDK Corporation
2,094.00
521.85
33.19%
JP:6800
Yokowo Co., Ltd.
3,230.00
1,852.66
134.51%

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 million yen. This activity forms part of a broader authorization to buy back up to 1 million shares, of which 308,900 shares totaling about 5.33 billion yen have been acquired by the end of February, signaling continued capital return to shareholders and potentially supporting share price and capital efficiency metrics.

The current program allows repurchases until the end of July 2026, with a total budget cap of 15 billion yen, indicating substantial remaining capacity for further buybacks in the coming months. For investors, the pace of execution to date suggests management is actively using the mandate, which may influence the company’s share liquidity, earnings per share, and overall valuation profile as the program progresses.

The most recent analyst rating on (JP:6806) stock is a Buy with a Yen26835.00 price target. To see the full list of analyst forecasts on HIROSE ELECTRIC CO stock, see the JP:6806 Stock Forecast page.

Hirose Electric 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 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
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 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
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 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
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 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
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 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.

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: Feb 26, 2026