HIROSE ELECTRIC CO (6806) AI Stock Analysis

• Market Cap: $649.71B
• Dividend Yield: 2.45%
• Average Volume (3M): 97.63K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.76
• 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: 106,790
• 30 Day Avg. Volume: 97,633
• PEG Ratio: 0.67
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 3.08
• P/FCF Ratio: 20.12
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 2.66
• Enterprise Value/Gross Profit: 5.98
• Enterprise Value/Ebitda: 8.09
• 1Y Price Target: $22,668.60
• Price Target Upside: 9.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: ¥20,689.00 ▼(-0.05% Downside)

HIROSE ELECTRIC CO's strong financial performance, characterized by high profitability and low leverage, is the most significant factor driving the stock score. The technical analysis supports a positive trend, although valuation metrics suggest the stock is fairly valued. The absence of earnings call data and corporate events limits additional insights.

HIROSE ELECTRIC CO Business Overview & Revenue Model

Company Description

HIROSE ELECTRIC CO., LTD. (6806) is a leading Japanese manufacturer specializing in the production of connectors and related electronic components. Established in 1957, the company operates primarily in the electronics and telecommunications sectors, providing innovative solutions for a wide range of applications, including automotive, industrial, and consumer electronics. HIROSE is recognized for its high-quality, reliable products, which include connectors, cable assemblies, and other electronic components designed to enhance connectivity in various technological environments.

How the Company Makes Money

HIROSE 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

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 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	193.52B	189.42B	165.51B	183.22B	163.67B	133.54B
Gross Profit	85.93B	85.37B	72.50B	88.19B	74.94B	56.67B
EBITDA	63.57B	64.97B	55.70B	65.64B	59.56B	45.05B
Net Income	31.86B	33.03B	26.48B	34.65B	31.44B	19.92B
Balance Sheet
Total Assets	420.47B	416.87B	403.45B	401.36B	394.78B	370.50B
Cash, Cash Equivalents and Short-Term Investments	81.77B	85.67B	90.34B	88.03B	68.39B	57.84B
Total Debt	5.04B	5.20B	5.93B	5.48B	4.97B	4.40B
Total Liabilities	46.32B	46.72B	39.28B	51.50B	52.71B	44.41B
Stockholders Equity	374.15B	370.15B	364.17B	349.85B	342.07B	326.09B
Cash Flow
Free Cash Flow	27.64B	29.00B	8.98B	27.14B	30.47B	21.92B
Operating Cash Flow	50.91B	55.68B	41.05B	45.65B	44.32B	35.82B
Investing Cash Flow	-31.26B	-42.95B	-13.94B	6.40B	-10.88B	-20.70B
Financing Cash Flow	-17.53B	-16.67B	-28.19B	-34.17B	-25.25B	-9.28B

HIROSE ELECTRIC CO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20700.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 20700 is above the 20-day moving average (MA) of 19601.25, above the 50-day MA of 19181.67, and above the 200-day MA of 17622.02, indicating a bullish trend. The MACD of 394.79 indicates Negative momentum. The RSI at 66.50 is Neutral, neither overbought nor oversold. The STOCH value of 69.23 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	―	¥33.14B	12.77	―	5.21%	-4.88%	-8.72%
6806	―	$649.71B	20.31	8.68%	2.45%	13.89%	11.34%
6928	―	¥12.76B	18.34	―	3.74%	8.68%	859.21%
6908	―	¥69.38B	23.47	―	3.27%	6.60%	-36.94%
6919	―	¥9.99B	54.14	―	5.82%	-2.65%	-74.99%
6807	―	$180.63B	18.60	5.91%	2.12%	-3.24%	-25.21%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

HIROSE ELECTRIC CO Corporate Events

HIROSE ELECTRIC CO., LTD. Updates on Share Buyback Progress

HIROSE ELECTRIC CO., LTD. announced the progress of its share buyback program, initially resolved by the Board of Directors on August 4, 2025. As of September 30, 2025, the company repurchased 91,400 shares for approximately 1.76 billion yen, with the buyback conducted through the Tokyo Stock Exchange. This initiative is part of a larger plan to repurchase up to 1.05 million shares by March 31, 2026, reflecting the company’s strategy to enhance shareholder value and optimize its capital structure.

The most recent analyst rating on (JP:6806) stock is a Buy with a Yen22800.00 price target. To see the full list of analyst forecasts on HIROSE ELECTRIC CO stock, see the JP:6806 Stock Forecast page.

HIROSE ELECTRIC CO., LTD. Updates on Share Buyback Program

HIROSE ELECTRIC CO., LTD. has announced the status of its share buyback program, which was resolved by the Board of Directors on August 4, 2025. The company repurchased 255,300 shares for approximately 4.82 billion yen between August 5 and August 29, 2025, as part of a larger plan to buy back up to 1.05 million shares by March 31, 2026. This move is expected to enhance shareholder value and demonstrates the company’s commitment to returning capital to its investors.

The most recent analyst rating on (JP:6806) stock is a Hold with a Yen19700.00 price target. To see the full list of analyst forecasts on HIROSE ELECTRIC CO stock, see the JP:6806 Stock Forecast page.

HIROSE ELECTRIC 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.