Horiba (6856) AI Stock Analysis

• Market Cap: $767.36B
• Dividend Yield: 0.65%
• Average Volume (3M): 206.28K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 1.37
• Revenue Growth: 8.50%
• EPS Growth: 14.06%
• Country: JP
• Employees: 8,955
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 196.12
• Shares Outstanding: 42,233,253
• 10 Day Avg. Volume: 261,620
• 30 Day Avg. Volume: 206,283
• PEG Ratio: -0.71
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 1.21
• P/FCF Ratio: 17.34
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 2.10
• Enterprise Value/Gross Profit: 4.81
• Enterprise Value/Ebitda: 10.24
• 1Y Price Target: $18,099.66
• Price Target Upside: -1.18% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥20,599.00 ▲(12.47% Upside)

The score is primarily supported by strong financial performance (growth, margins, and a stable balance sheet). Technicals add support via a clear uptrend, but overbought signals raise near-term pullback risk. Valuation is reasonable but not compelling given the P/E and modest dividend yield.

Positive Factors

Sustained revenue growth

Revenue nearly doubled from 2020–2024, reflecting durable demand across automotive testing, scientific and industrial measurement. Large installed base, recurring consumables and service revenue create stickiness, supporting multi‑year topline resilience versus one‑off cycles.

Healthy profit margins

Sustained gross margins (~43%) and mid‑single digit+ net margins indicate structural pricing power and operational efficiency in instrument sales and services. High margins in regulated, quality‑driven end markets tend to be more defensible over years versus commodity pressures.

Strong balance sheet and low leverage

High equity ratio and low D/E provide durable financial flexibility to fund R&D, capex for advanced instruments, and M&A without stressing liquidity. Low leverage reduces refinancing risk and supports resilient cash allocation through business cycles.

Negative Factors

Slight net income decline

A year‑over‑year net income dip interrupts an otherwise strong trend and could signal margin pressure, mix shifts toward lower‑margin segments, or one‑off costs. If sustained, it would weaken EPS momentum and reduce room for reinvestment or payouts.

Free cash flow growth volatility

Free cash flow remains positive but growth slowed and is sensitive to capex timing. Volatile FCF impairs predictable funding for dividends, buybacks or strategic investments and raises execution risk when large system projects or equipment upgrades spike spending.

Elevated total liabilities need monitoring

Despite strong equity metrics, rising absolute liabilities can reflect working capital, deferred revenue or pension exposures. If liabilities grow faster than assets, financial flexibility and credit metrics could deteriorate, constraining long‑term strategic options.

Horiba Business Overview & Revenue Model

Company Description

HORIBA, Ltd. manufactures and sells instruments and systems for various applications. It operates in five segments: Automotive, Process & Environmental, Medical-Diagnostic, Semiconductor, and Scientific. The Automotive segment offers automotive emission analyzers, emission measurement systems, drive line test systems, engine test and fuel cell test systems, and battery test systems; test systems for engines, chassis, powertrains, brakes, and catalysts; and vehicle development engineering and testing engineering services, as well as leases and manages R&D facilities. The Process & Environmental segment provides stack gas analyzers, industrial water quality analyzers, water quality analysis and examination systems, air pollution analyzers, environmental radiation meters, and process measurement equipment. The Medical-Diagnostic segment offers hematology and CRP, immunology, clinical chemistry, and blood glucose analyzers. The Semiconductor Instruments & Systems segment provides mass flow controllers, chemical concentration monitors, reticle/mask particle detection systems, residual gas analyzers, and vaporizers. The Scientific segment offers Raman spectrometers, pH meters, particle-size distribution analyzers, X-Ray fluorescence analyzers, elemental analyzers, fluorescence spectroscopy/fluorescence lifetime spectroscopy, optical components, spectrometers and detectors, and gratings. The company was founded in 1945 and is headquartered in Kyoto, Japan.

How the Company Makes Money

Horiba generates revenue through multiple streams, primarily through the sale of its analytical and measuring instruments, which cater to various industries, including automotive, semiconductor, and healthcare. The company earns income from product sales, service contracts, and maintenance agreements, with a significant portion of its revenue stemming from ongoing support and calibration services. Additionally, Horiba benefits from strategic partnerships with other technology companies and research institutions that enhance its product offerings and market reach. The company's ability to provide integrated solutions, along with its focus on R&D, positions it favorably in competitive markets, thereby contributing to its overall earnings.

Horiba Financial Statement Overview

Summary

Strong overall fundamentals driven by sustained revenue growth (¥187.08B in 2020 to ¥317.37B in 2024), healthy profitability (gross margin ~43%, net margin ~10.5%), and solid leverage/solvency (equity ratio ~65.3%, debt-to-equity ~0.20). Offsetting factors include a slight net income decline from 2023 to 2024 and slower free cash flow growth with capex-related volatility.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	323.59B	317.37B	290.56B	270.13B	224.31B	187.08B
Gross Profit	141.50B	136.85B	127.38B	116.67B	93.22B	76.43B
EBITDA	66.41B	61.40B	67.03B	57.19B	41.16B	29.04B
Net Income	36.30B	33.59B	40.30B	34.07B	21.31B	13.19B
Balance Sheet
Total Assets	478.91B	481.62B	449.03B	416.74B	371.58B	328.07B
Cash, Cash Equivalents and Short-Term Investments	153.20B	146.33B	134.78B	141.35B	137.03B	116.50B
Total Debt	64.05B	64.40B	60.39B	67.20B	80.18B	77.07B
Total Liabilities	165.00B	166.91B	165.30B	175.89B	167.09B	149.40B
Stockholders Equity	313.89B	314.69B	283.71B	240.83B	204.48B	178.66B
Cash Flow
Free Cash Flow	0.00	22.18B	7.48B	21.88B	22.70B	17.21B
Operating Cash Flow	0.00	40.34B	16.65B	33.97B	35.27B	32.25B
Investing Cash Flow	0.00	-17.56B	-7.32B	-10.74B	-14.66B	-14.02B
Financing Cash Flow	0.00	-15.93B	-20.96B	-22.45B	-4.04B	843.00M

Horiba Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18315.00
• 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:6856, the sentiment is Positive. The current price of 18315 is above the 20-day moving average (MA) of 17554.50, above the 50-day MA of 16158.25, and above the 200-day MA of 12456.53, indicating a bullish trend. The MACD of 720.89 indicates Negative momentum. The RSI at 65.87 is Neutral, neither overbought nor oversold. The STOCH value of 73.05 is Neutral, 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
6951	78 Outperform	¥316.67B	18.02	―	2.04%	-0.69%	-29.88%
6856	75 Outperform	$767.36B	20.35	11.99%	0.65%	8.50%	14.06%
6965	74 Outperform	$529.08B	36.18	4.19%	2.25%	3.97%	-41.76%
4186	73 Outperform	¥900.67B	30.01	14.01%	1.08%	19.45%	41.03%
6806	68 Neutral	$545.04B	18.08	8.09%	2.85%	11.18%	-0.75%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6645	60 Neutral	$770.98B	26.93	3.60%	2.62%	3.51%	―

Horiba Corporate Events

HORIBA Reports Strong Financial Growth and Strategic Adjustments

HORIBA, Ltd. reported a 6.7% increase in net sales to 230,245 million yen for the nine months ending September 30, 2025, with a notable 21% rise in net income attributable to shareholders. The company also announced a forecasted increase in dividends per share for the year, reflecting its strong financial performance and commitment to shareholder returns. The inclusion and exclusion of EtaMax Co., Ltd. in the scope of consolidation indicates strategic adjustments in its operations.

The most recent analyst rating on (JP:6856) stock is a Buy with a Yen14687.00 price target. To see the full list of analyst forecasts on Horiba stock, see the JP:6856 Stock Forecast page.

HORIBA Reports Strong Financial Growth and Dividend Increase

HORIBA, Ltd. reported a 6.7% increase in net sales and a 21% rise in net income attributable to shareholders for the nine months ending September 30, 2025. The company also announced a forecasted increase in dividends per share for the full year, indicating strong financial performance and positive outlook for stakeholders.

The most recent analyst rating on (JP:6856) stock is a Buy with a Yen14687.00 price target. To see the full list of analyst forecasts on Horiba stock, see the JP:6856 Stock Forecast page.