HIROSE ELECTRIC CO (6806) AI Stock Analysis

• Market Cap: ¥555.40B
• Dividend Yield: 2.9%
• Average Volume (3M): 73.50K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.78
• Revenue Growth: 14.45%
• EPS Growth: 26.45%
• Country: JP
• Employees: 4,654
• Sector: Technology
• Sector Strength: 86
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 161.08
• Shares Outstanding: 35,693,970
• 10 Day Avg. Volume: 87,940
• 30 Day Avg. Volume: 73,503
• 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: ¥19,260.17
• Price Target Upside: 13.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥18,886.00 ▲(11.75%Upside)

HIROSE ELECTRIC CO's strong financial performance is the most significant strength, supported by consistent growth and solid financial management. The technical analysis presents a neutral outlook, while the company's valuation reflects a reasonable market position with a decent dividend yield. The lack of recent earnings call insights or notable corporate events means these aspects do not influence the overall score.

HIROSE ELECTRIC CO Business Overview & Revenue Model

Company Description

Hirose Electric Co., Ltd. is a Japanese company specializing in the manufacturing and sales of high-performance electronic connectors. Established in 1937, the company operates in sectors such as automotive, industrial, telecommunications, consumer electronics, and medical equipment. Hirose is known for its innovative connector solutions, including circular connectors, coaxial connectors, and FPC/FFC connectors, which are integral to various electronic devices and systems.

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
EBITDA	64.97B	55.70B	64.40B	57.45B	45.05B
Net Income	33.03B	26.48B	34.65B	31.44B	19.92B
Balance Sheet
Total Assets	416.87B	403.45B	401.36B	394.78B	370.50B
Cash, Cash Equivalents and Short-Term Investments	85.67B	90.34B	179.25B	209.31B	189.11B
Total Debt	5.20B	5.93B	5.48B	4.97B	4.40B
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: 16900.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 16900 is below the 20-day moving average (MA) of 16916.00, above the 50-day MA of 16612.50, and below the 200-day MA of 17544.41, indicating a neutral trend. The MACD of 162.71 indicates Negative momentum. The RSI at 65.12 is Neutral, neither overbought nor oversold. The STOCH value of 82.69 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
6915	81 Outperform	¥28.99B	9.97		5.78%	1.17%	8.92%
6806	74 Outperform	¥555.40B	17.31	8.88%	2.90%	14.45%	26.45%
6919	71 Outperform	¥9.72B	24.22		5.98%	-2.94%	-52.90%
6807	70 Outperform	$175.25B	14.77	8.79%	2.36%	-1.83%	27.04%
Sector *	69 Neutral	¥228.24B	14.40	7.64%	2.72%	9.13%	8.48%
6908	67 Neutral	¥65.96B	23.84		3.59%	1.92%	-50.25%
6928	62 Neutral	¥9.07B	19.68		5.34%	6.48%	275.25%

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.