HIROSE ELECTRIC CO (6806) AI Stock Analysis

• Market Cap: ¥635.25B
• Dividend Yield: 2.53%
• Average Volume (3M): 105.74K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.74
• Revenue Growth: 13.89%
• EPS Growth: 11.34%
• Country: JP
• Employees: 4,654
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 213.58
• Shares Outstanding: 35,693,970
• 10 Day Avg. Volume: 92,150
• 30 Day Avg. Volume: 105,740
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥22,649.41
• Price Target Upside: 17.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 77 Outperform
• Price Target: ¥21,444.00 ▲(10.94% Upside)

The strong financial performance, characterized by robust revenue and profit growth, efficient cost management, and solid balance sheet, is the primary driver of the score. The valuation is fair with a reasonable P/E ratio and attractive dividend yield. Technical indicators suggest potential overbought conditions, which could lead to short-term corrections, slightly impacting the overall score.

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 Co. makes money primarily through the sale of its connector products. The company's revenue model is centered around providing high-performance connectors to a diverse range of industries such as automotive, where connectors are used in vehicles for various electronic applications; telecommunications, where they are essential for network equipment; and consumer electronics, where they are used in gadgets and appliances. Hirose Electric's key revenue streams include product sales to original equipment manufacturers (OEMs) and direct sales to industrial clients. The company's earnings are also bolstered by its strong focus on research and development, which ensures a steady pipeline of innovative products tailored to meet the evolving demands of technology markets. Furthermore, Hirose Electric maintains strategic partnerships and collaborations with major electronics companies, which helps in expanding its market reach and enhancing its product offerings.

HIROSE ELECTRIC CO Financial Statement Overview

Summary

HIROSE ELECTRIC CO showcases a strong financial position with consistent revenue and profit growth, efficient operational management, and a sound capital structure. The low leverage and high equity ratio add to the stability, while effective cash flow management underscores its financial health.

Income Statement

The company has demonstrated a strong financial performance with consistent revenue growth, notably a 14.5% increase from 2024 to 2025. Gross profit margin remained healthy at approximately 45.1%, while the net profit margin improved to 17.4%, reflecting efficient cost management. The EBIT and EBITDA margins stood at 22.6% and 34.3% respectively, indicating strong operational efficiency.

Balance Sheet

HIROSE ELECTRIC CO maintains a robust balance sheet with a low debt-to-equity ratio of 0.014, showcasing minimal leverage and a strong equity position. The equity ratio is high at 88.8%, reflecting a solid capital structure. Return on equity is impressive at 8.9%, indicating effective utilization of shareholder equity to generate profits.

Cash Flow

The company exhibits strong cash flow management, with a free cash flow growth rate of 222.9% from 2024 to 2025. The operating cash flow to net income ratio is 1.69, suggesting robust cash generation relative to reported profits. Additionally, the free cash flow to net income ratio is 0.88, indicating significant cash retained after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	189.42B	189.42B	165.51B	183.22B	163.67B	133.54B
Gross Profit	85.37B	85.37B	73.79B	88.19B	74.94B	56.67B
EBITDA	59.26B	64.97B	55.70B	64.40B	57.45B	45.05B
Net Income	33.03B	33.03B	26.48B	34.65B	31.44B	19.92B
Balance Sheet
Total Assets	416.87B	416.87B	403.45B	401.36B	394.78B	370.50B
Cash, Cash Equivalents and Short-Term Investments	85.67B	85.67B	90.34B	179.25B	209.31B	189.11B
Total Debt	5.20B	5.20B	5.93B	5.48B	4.97B	4.40B
Total Liabilities	46.72B	46.72B	39.28B	51.50B	52.71B	44.41B
Stockholders Equity	370.15B	370.15B	364.17B	349.85B	342.07B	326.09B
Cash Flow
Free Cash Flow	29.00B	29.00B	8.98B	27.14B	30.47B	21.92B
Operating Cash Flow	55.68B	55.68B	41.05B	45.65B	44.32B	35.82B
Investing Cash Flow	-42.95B	-42.95B	-13.94B	6.40B	-10.88B	-20.70B
Financing Cash Flow	-16.67B	-16.67B	-28.19B	-34.17B	-25.25B	-9.28B

HIROSE ELECTRIC CO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19330.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 19330 is above the 20-day moving average (MA) of 19308.25, above the 50-day MA of 18773.20, and above the 200-day MA of 17668.52, indicating a bullish trend. The MACD of 166.54 indicates Positive momentum. The RSI at 54.96 is Neutral, neither overbought nor oversold. The STOCH value of 60.42 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6915	83 Outperform	34.55B	13.33	7.78%	4.85%	-4.88%	-8.72%
6806	77 Outperform	¥635.25B	20.80	8.68%	2.53%	13.89%	11.34%
6919	75 Outperform	10.40B	56.78	2.64%	5.59%	-2.65%	-74.99%
6807	70 Outperform	178.56B	19.01	8.67%	2.32%	-5.19%	-10.59%
6908	67 Neutral	70.67B	24.26	3.77%	3.31%	6.60%	-36.94%
6928	64 Neutral	11.46B	16.95	2.05%	4.17%	8.68%	859.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

HIROSE ELECTRIC CO Corporate Events

HIROSE ELECTRIC Initiates Share Buyback Program to Enhance Shareholder Value

HIROSE ELECTRIC CO., LTD. announced a share buyback program authorized by its Board of Directors, aiming to repurchase up to 1,050,000 shares, which is 3.10% of its total shares, excluding treasury stock. This initiative is designed to enhance shareholder returns, improve capital efficiency, and provide flexibility in capital management amid changing business conditions.

The most recent analyst rating on (JP:6806) stock is a Hold with a Yen19200.00 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 Q1 2025 Financial Results with Revenue Growth Amid Profit Decline

HIROSE ELECTRIC CO., LTD. reported its consolidated financial results for the three months ending June 30, 2025, showing a 9.1% increase in revenue compared to the previous year. However, the company experienced declines in operating profit, profit before tax, and profit attributable to owners, indicating challenges in maintaining profitability despite revenue growth. The financial forecast for the fiscal year ending March 31, 2026, anticipates modest revenue growth but continued pressure on profits, reflecting ongoing challenges in the market.

The most recent analyst rating on (JP:6806) stock is a Hold with a Yen19200.00 price target. To see the full list of analyst forecasts on HIROSE ELECTRIC CO stock, see the JP:6806 Stock Forecast page.

Hirose Electric Acquires S.E.R. Corporation to Boost Semiconductor Business

Hirose Electric Co., Ltd. has acquired all shares of S.E.R. Corporation, making it a subsidiary to enhance its semiconductor test product business. This acquisition is expected to leverage Hirose’s manufacturing expertise and sales channels to support advanced product development and business expansion, although the immediate financial impact is anticipated to be minor.

The most recent analyst rating on (JP:6806) stock is a Hold with a Yen19200.00 price target. To see the full list of analyst forecasts on HIROSE ELECTRIC CO stock, see the JP:6806 Stock Forecast page.

Hirose Electric Considers Investment Unit Reduction to Expand Investor Base

Hirose Electric Co., Ltd. has announced its consideration of reducing its investment unit as a strategy to broaden its investor base and invigorate the stock market. The company emphasizes its proactive approach in disclosing information to shareholders and investors, ensuring fair market evaluation while carefully assessing the cost-effectiveness and financial implications of such a move.

HIROSE ELECTRIC Reports Strong Financial Growth in FY 2025

HIROSE ELECTRIC CO., LTD. reported a significant increase in its non-consolidated financial results for the fiscal year ending March 31, 2025, compared to the previous year. The company attributes this growth to the strong performance in its smartphone and consumer mobile device segments, which led to a 17.3% increase in revenue and a 21.3% rise in operating profit, highlighting its strengthened market position in the electronics sector.

HIROSE ELECTRIC Announces New Share Repurchase Policy

HIROSE ELECTRIC CO., LTD. announced a new policy on share repurchases, aiming to enhance shareholder returns and improve capital efficiency. The company plans to repurchase up to 60 billion yen of its own shares between FY2025 and FY2028, with flexibility to adjust the policy in response to significant business disruptions or investment needs.

HIROSE ELECTRIC CO., LTD. Reports Strong Financial Performance for FY2024

HIROSE ELECTRIC CO., LTD. reported its consolidated financial results for the year ended March 31, 2025, showing a significant increase in revenue and profits compared to the previous year. The company experienced a 14.4% rise in revenue and a 25.4% increase in operating profit, reflecting strong operational performance. The announcement highlights the company’s robust financial health, with a notable improvement in cash flows from operating activities and an increased dividend payout, indicating a positive outlook for stakeholders.