HIROSE ELECTRIC CO (6806) AI Stock Analysis

• Market Cap: $554.08B
• Dividend Yield: 2.91%
• Average Volume (3M): 80.29K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.76
• Revenue Growth: 14.45%
• EPS Growth: 26.45%
• Country: JP
• Employees: 4,654
• Sector: Technology
• Sector Strength: 84
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 161.08
• Shares Outstanding: 35,693,970
• 10 Day Avg. Volume: 71,370
• 30 Day Avg. Volume: 80,290
• PEG Ratio: 1.31
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.00
• 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: $20,400.35
• Price Target Upside: 19.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: ¥18,925.00 ▲(10.90%Upside)

The overall stock score is primarily driven by HIROSE ELECTRIC CO's strong financial performance, characterized by robust revenue and profit growth, efficient operations, and a solid capital structure. The technical analysis presents mixed signals, with some positive momentum indicators offset by potential resistance levels. Valuation is reasonable with a moderate P/E ratio and attractive dividend yield.

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., Ltd. generates revenue primarily through the design, production, and sale of electronic connectors. The company serves a diverse range of industries, with key revenue streams coming from the automotive, telecommunications, and consumer electronics sectors. Hirose Electric Co.'s products are essential components in electronic devices, providing connectivity solutions that are critical for device functionality. The company benefits from long-term relationships with major global manufacturers and technology firms, which contribute significantly to its earnings. Additionally, Hirose invests in research and development to innovate and expand its product offerings, maintaining a competitive edge in the market.

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 sound capital structure. The low leverage and high equity ratio add to stability, while effective cash flow management underscores its financial health. The company is well-positioned for future growth with minimal financial risk.

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
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
189.42B	165.51B	183.22B	163.67B	133.54B
	Gross Profit
85.37B	73.79B	88.19B	74.94B	56.67B
	EBIT
42.91B	35.26B	46.75B	40.77B	27.89B
	EBITDA
64.97B	55.70B	64.40B	57.45B	45.05B
	Net Income Common Stockholders
33.03B	26.48B	34.65B	31.44B	19.92B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
85.67B	90.34B	179.25B	209.31B	189.11B
	Total Assets
416.87B	403.45B	401.36B	394.78B	370.50B
	Total Debt
5.20B	5.93B	5.48B	4.97B	4.40B
	Net Debt
-80.47B	-84.42B	-82.55B	-63.43B	-53.44B
	Total Liabilities
46.72B	39.28B	51.50B	52.71B	44.41B
	Stockholders Equity
370.15B	364.17B	349.85B	342.07B	326.09B
Cash Flow		Free Cash Flow
29.00B	8.98B	27.14B	30.47B	21.92B
	Operating Cash Flow
55.68B	41.05B	45.65B	44.32B	35.82B
	Investing Cash Flow
-42.95B	-13.94B	6.40B	-10.88B	-20.70B
	Financing Cash Flow
-16.67B	-28.19B	-34.17B	-25.25B	-9.28B

HIROSE ELECTRIC CO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17065.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 17065 is above the 20-day moving average (MA) of 16812.25, above the 50-day MA of 16295.20, and below the 200-day MA of 17616.36, indicating a neutral trend. The MACD of 106.14 indicates Positive momentum. The RSI at 59.62 is Neutral, neither overbought nor oversold. The STOCH value of 55.63 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
6806	75 Outperform	$554.08B	17.27	8.88%	2.91%	14.45%	26.45%
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
JPAVF		$1.18B	15.05	8.79%	0.02%	―	―
6915	78 Outperform	¥28.79B	9.90		5.82%	1.17%	8.92%
6919	72 Outperform	¥9.64B	24.01		6.03%	-2.94%	-52.90%
6908	70 Outperform	¥60.84B	21.99		3.85%	1.92%	-49.19%
6928	67 Neutral	¥9.17B	19.89		5.28%	6.48%	277.27%

HIROSE ELECTRIC CO Corporate Events

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.

Hirose Electric Co. to Amend Articles and Expand Board

Hirose Electric Co., Ltd. announced plans to amend its Articles of Incorporation to increase the number of directors from 10 to 11, aiming to strengthen its management structure. This change, pending approval at the upcoming General Meeting of Shareholders, reflects the company’s strategic move to enhance governance and operational oversight.