Horiba (6856) AI Stock Analysis

• Market Cap: $419.61B
• Dividend Yield: 2.28%
• Average Volume (3M): 153.07K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 1.43
• Revenue Growth: 8.15%
• EPS Growth: 3.41%
• Country: JP
• Employees: 8,955
• Sector: Technology
• Sector Strength: 77
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 193.39
• Shares Outstanding: 42,233,253
• 10 Day Avg. Volume: 204,560
• 30 Day Avg. Volume: 153,073
• PEG Ratio: 11.44
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: $12,999.43
• Price Target Upside: 29.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ―

Horiba scores well overall, driven by strong financial performance with robust revenue and profitability margins, supported by a solid balance sheet. The technical analysis is mixed, with indicators suggesting potential volatility. Valuation metrics are favorable, indicating the stock may be undervalued. The absence of recent earnings call data or significant corporate events leaves the stock's future direction primarily dependent on its financial fundamentals.

Horiba Business Overview & Revenue Model

Company Description

Horiba Ltd. (6856) is a Japanese multinational corporation specializing in the development and manufacture of precision instruments for measurement and analysis. The company operates in several sectors, including automotive, process and environmental, medical, semiconductor, and scientific sectors. Its core products and services include automotive test systems, environmental monitoring equipment, medical diagnostic instruments, semiconductor manufacturing tools, and scientific instruments for research and quality control.

How the Company Makes Money

Horiba makes money primarily through the sale of its measurement and analytical instruments across various sectors. Key revenue streams include automotive test systems, which are used by car manufacturers and suppliers for emission testing, fuel efficiency analysis, and other vehicle assessments. The process and environmental segment offers products for monitoring air and water quality, contributing to revenue from industrial and municipal clients. In the medical sector, Horiba sells diagnostic instruments used in laboratories and clinical settings. The semiconductor segment generates income from equipment used in semiconductor manufacturing processes. Finally, the scientific segment provides instruments for research and development, serving academic and industrial clients. The company's earnings are significantly supported by its global presence and strategic partnerships, which enhance its access to diverse markets and clients.

Horiba Financial Statement Overview

Summary

Horiba demonstrates strong financial health with significant revenue and margin growth. The income statement reveals consistent revenue increase and healthy profit margins despite a slight decline in net income. The balance sheet shows solid financial stability with a strong equity base and manageable debt levels. The cash flow statement highlights efficient cash conversion although capital expenditure fluctuations impact free cash flow growth.

Income Statement

Horiba demonstrates strong financial performance with a consistently increasing revenue trend, growing from ¥187.08 billion in 2020 to ¥317.37 billion in 2024. The gross profit margin maintains a robust level, averaging around 43%, while the net profit margin hovers at approximately 10.5% in the latest year. EBIT and EBITDA margins are also healthy, indicating efficient operational management. However, there was a slight decline in net income from 2023 to 2024, which slightly dampens the overall strong performance.

Balance Sheet

Horiba's balance sheet shows a strong equity base with an equity ratio of nearly 65.3% in 2024, indicating solid financial stability. The debt-to-equity ratio is manageable at 0.20, reflecting prudent financial leverage. Return on equity remains attractive, supporting profitability. The company has a growing asset base, enhancing its capacity for growth. However, the relatively high level of total liabilities requires ongoing monitoring to ensure it remains within a comfortable range.

Cash Flow

Horiba's cash flow statement highlights substantial free cash flow generation, although there was a slowdown in growth from 2023 to 2024. The operating cash flow to net income ratio is strong, indicating effective cash conversion from earnings. The free cash flow to net income ratio also supports the company's profitability profile. However, fluctuations in capital expenditure affect free cash flow growth rates, reflecting potential volatility in cash allocation strategies.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
317.37B	290.56B	270.13B	224.31B	187.08B
	Gross Profit
136.85B	127.38B	116.67B	93.22B	76.43B
	EBIT
48.34B	47.30B	45.84B	32.05B	19.69B
	EBITDA
61.40B	67.03B	57.19B	42.49B	29.31B
	Net Income Common Stockholders
33.59B	40.30B	34.07B	21.31B	13.19B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
146.33B	134.78B	141.35B	137.03B	116.50B
	Total Assets
481.62B	449.03B	416.74B	371.58B	328.07B
	Total Debt
64.40B	60.39B	67.20B	80.18B	77.07B
	Net Debt
-79.87B	-72.38B	-72.65B	-54.84B	-37.47B
	Total Liabilities
166.91B	165.30B	175.89B	167.09B	149.40B
	Stockholders Equity
314.69B	283.71B	240.83B	204.48B	178.66B
Cash Flow		Free Cash Flow
22.18B	7.48B	21.88B	22.70B	17.21B
	Operating Cash Flow
40.34B	16.65B	33.97B	35.27B	32.25B
	Investing Cash Flow
-17.56B	-7.32B	-10.74B	-14.66B	-14.02B
	Financing Cash Flow
-15.93B	-20.96B	-22.45B	-4.04B	843.00M

Horiba Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10015.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6856, the sentiment is Positive. The current price of 10015 is below the 20-day moving average (MA) of 10082.90, above the 50-day MA of 9788.24, and above the 200-day MA of 9416.83, indicating a neutral trend. The MACD of 153.10 indicates Positive momentum. The RSI at 51.07 is Neutral, neither overbought nor oversold. The STOCH value of 3.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6856.

Horiba Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6856	75 Outperform	$419.61B	12.12	11.49%	2.28%	8.15%	3.41%
4186	73 Outperform	$428.49B	15.70	13.63%	1.70%	24.52%	88.51%
6965	71 Outperform	$463.16B	24.97	5.58%	2.40%	-3.32%	-48.13%
6951	68 Neutral	¥204.04B	10.94		2.65%	25.91%	113.96%
6806	68 Neutral	¥551.62B	17.19	8.88%	2.78%	11.16%	29.73%
6645	66 Neutral	$743.62B	45.72	2.10%	2.64%	-6.57%	-76.15%
Sector *	61 Neutral	$11.29B	10.07	-7.05%	2.96%	7.47%	-10.75%

Horiba Corporate Events

HORIBA Reports Strong Q1 2025 Results and Upward Forecast

HORIBA, Ltd. reported a notable increase in its financial performance for the first quarter of 2025, with net sales rising by 2.3% and operating income increasing by 17.4% compared to the same period last year. The company also announced an upward revision in its full-year forecast, indicating expected growth in net sales and income, reflecting a positive outlook for its operations and potential benefits for stakeholders.

The most recent analyst rating on (JP:6856) stock is a Buy with a Yen13000.00 price target. To see the full list of analyst forecasts on Horiba stock, see the JP:6856 Stock Forecast page.

HORIBA, Ltd. Reports Positive Q1 2025 Financial Results and Upward Forecasts

HORIBA, Ltd. reported a 2.3% increase in net sales for the first quarter of 2025, alongside significant growth in operating and ordinary income compared to the previous year. The company has adjusted its business forecasts for the full year, anticipating a 5.6% increase in net sales and a 7.6% rise in operating income, reflecting a positive outlook despite economic uncertainties.

The most recent analyst rating on (JP:6856) stock is a Buy with a Yen13000.00 price target. To see the full list of analyst forecasts on Horiba stock, see the JP:6856 Stock Forecast page.

Horiba Completes Disposal of Treasury Stock as Restricted Stock

Horiba, Ltd. has completed the payment for the disposal of 17,076 shares of treasury stock as restricted stock, a decision made during the board meeting on March 29, 2025. This move involves a total transaction value of 174,687,480 JPY and is aimed at distributing shares among directors and corporate officers, potentially impacting the company’s governance and aligning interests with key stakeholders.

Horiba Considers Reducing Minimum Stock Trading Unit to Boost Liquidity

Horiba, Ltd. is considering reducing the minimum stock trading unit of its shares to attract a broader range of investors and enhance share liquidity in the stock market. The company is carefully evaluating market trends and shareholder composition to determine the necessity of such a reduction, aligning with Tokyo Stock Exchange’s regulations.

Horiba Announces Treasury Stock Disposal for Executive Incentive Plan

Horiba, Ltd. has announced a resolution to dispose of treasury stock as part of a restricted stock unit (RSU) grant plan for its directors and executive officers. This initiative aims to incentivize sustainable improvement in the company’s medium- to long-term corporate value and align the interests of its executives with those of shareholders. The disposal involves 14,221 common shares at a price of 10,230 JPY per share, with the total transaction valued at 145,480,830 JPY. The plan is designed to deliver company shares to eligible executives after a three-year service period, thereby fostering long-term commitment and value sharing within the company group.

Horiba Announces Treasury Stock Disposal as Part of Incentive Plan

Horiba, Ltd. has announced a resolution to dispose of its treasury stock as restricted stock, a decision made during the board of directors’ meeting on March 29, 2025. This move is part of a compensation plan aimed at incentivizing directors and corporate officers by aligning their interests with the company’s long-term value creation. The disposal involves 17,076 shares of common stock, with a total value of 174,687,480 JPY, and is intended to support sustainable corporate growth by tying compensation to stock performance.