Hioki E.E.Corporation (6866) AI Stock Analysis

• Market Cap: ¥83.38B
• Dividend Yield: 3.23%
• Average Volume (3M): 26.70K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.79
• Revenue Growth: 7.28%
• EPS Growth: 4.16%
• Country: JP
• Employees: 1,098
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 93.38
• Shares Outstanding: 14,024,365
• 10 Day Avg. Volume: 37,830
• 30 Day Avg. Volume: 26,700
• PEG Ratio: -10.25
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 2.61
• P/FCF Ratio: 19.15
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 82 Outperform
• Price Target: ¥7,169.00 ▲(15.44% Upside)

The score is driven primarily by strong financial quality (high margins, strong ROE, and a zero-debt balance sheet). Technicals add support with price above key moving averages and positive MACD, while valuation is balanced by a reasonable P/E and a solid dividend yield. The main offset is historical cash flow variability.

Positive Factors

Balance Sheet Health

A zero-debt balance sheet provides substantial financial flexibility and lowers solvency risk, allowing the company to navigate economic fluctuations effectively.

Profitability

Strong profitability with high margins indicates efficient operations and pricing power, supporting sustainable long-term growth and competitive positioning.

Cash Generation

Improved cash generation enhances the company's ability to invest in growth opportunities, return capital to shareholders, and maintain financial stability.

Negative Factors

Growth Volatility

Growth volatility can hinder long-term planning and investor confidence, as inconsistent revenue trends may reflect market challenges or operational issues.

Cash Flow Variability

Variable cash flow performance can limit the company's ability to fund new projects or weather downturns, impacting long-term strategic initiatives.

Limited Debt Utilization

While a zero-debt policy reduces risk, it may also limit potential return enhancements from leveraging, potentially slowing growth compared to peers using strategic debt.

Hioki E.E.Corporation Business Overview & Revenue Model

Company Description

Hioki E.E. Corporation, together with its subsidiaries, engages in the development, manufacture, sale, and service of electrical measuring instruments in Japan and internationally. The company offers data acquisition, oscilloscopes, and memory recorders, as well as multichannel, compact, and temperature data loggers; power meters, analyzers, quality analyzers, and loggers; LCR meters, impedance analyzers, capacitance and resistance meters, battery testers, super megohmmeters, electrometers, Pico ammeters, and benchtop digital multimeters; and current probes/sensors, voltage probes, and CAN sensors. It also provides RGB laser/LED optical meters, LAN cable testers, and solar panel/photovoltaic system maintenance products; magnetic field, temperature, sound level, lux, and rotation measuring products; and electrical safety testers, hipot/insulation/leakage testers, signal generators, and calibrators. In addition, the company offers testers and handheld digital multimeters; insulation testers and megohmmeters; clamp meters and multimeters; ground resistance, phase rotation, and voltage detection products; IoT/specialized solutions, meter relays, CTs, and shunts; and bare board, package, and populated board testing products, as well as calibration and repair services. Its products are used in the mobility, battery, energy, electronic components, and infrastructure industries. The company was founded in 1935 and is headquartered in Ueda, Japan.

How the Company Makes Money

Hioki E.E. Corporation generates revenue primarily through the sale of its electrical measuring instruments. The company's key revenue streams include direct sales to end-users, distribution through a global network of distributors and resellers, and long-term contracts with industrial clients in sectors such as electronics, automotive, and renewable energy. Hioki's emphasis on innovation and quality allows it to maintain competitive pricing and strong customer loyalty, contributing to its earnings. Additionally, the company invests in research and development to continuously enhance its product offerings, ensuring alignment with industry standards and technological advancements.

Hioki E.E.Corporation Financial Statement Overview

Summary

Hioki E.E. Corporation shows strong financial performance with solid revenue and profit growth. The balance sheet is particularly strong with zero debt and high equity ratio, indicating financial stability and low risk. Cash flow is stable but could improve in free cash flow conversion.

Income Statement

Hioki E.E. Corporation demonstrates strong financial performance with a consistent increase in total revenue over the past years and solid profitability metrics. The gross profit margin stands at around 50%, indicating effective cost management. The net profit margin is robust at approximately 15.8%, reflecting healthy bottom-line performance. The company has achieved positive revenue growth, signaling a growing business. EBIT and EBITDA margins are also strong, showing operational efficiency.

Balance Sheet

The company maintains a very stable balance sheet with zero debt, highlighting strong financial health. The debt-to-equity ratio is 0, indicating no leverage risk. Return on equity is impressive at 15.5%, showing efficient use of shareholders' equity to generate profits. The equity ratio is high at 82.7%, indicating a strong equity base relative to total assets, which provides financial stability and low risk.

Cash Flow

Hioki E.E. Corporation has a solid cash flow position with a strong operating cash flow to net income ratio, indicating good cash generation relative to profits. The free cash flow has shown growth, reflecting good cash management. However, the free cash flow to net income ratio indicates room for improvement in cash flow conversion. Overall, the cash flow situation is stable but could benefit from enhanced free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.15B	39.27B	39.15B	34.37B	29.32B	21.66B
Gross Profit	20.47B	19.56B	18.27B	15.87B	13.64B	9.31B
EBITDA	9.43B	9.67B	9.67B	8.44B	7.13B	3.89B
Net Income	5.86B	6.19B	6.33B	5.33B	4.52B	2.07B
Balance Sheet
Total Assets	45.82B	48.16B	45.25B	40.61B	36.39B	30.44B
Cash, Cash Equivalents and Short-Term Investments	16.46B	18.32B	16.53B	13.62B	16.02B	13.32B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	5.14B	8.34B	8.13B	7.83B	6.94B	4.43B
Stockholders Equity	40.68B	39.82B	37.12B	32.78B	29.45B	26.01B
Cash Flow
Free Cash Flow	0.00	5.35B	5.43B	-50.90M	4.05B	3.40B
Operating Cash Flow	0.00	8.87B	8.44B	1.24B	4.70B	4.21B
Investing Cash Flow	0.00	-3.75B	-3.35B	-1.48B	-826.26M	-1.02B
Financing Cash Flow	0.00	-3.60B	-2.32B	-2.46B	-1.43B	-885.51M

Hioki E.E.Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6210.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6866, the sentiment is Positive. The current price of 6210 is above the 20-day moving average (MA) of 6062.32, above the 50-day MA of 5891.79, and above the 200-day MA of 5812.37, indicating a bullish trend. The MACD of 58.26 indicates Positive momentum. The RSI at 56.20 is Neutral, neither overbought nor oversold. The STOCH value of 46.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6866.

Hioki E.E.Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6866	82 Outperform	¥83.38B	14.46	―	3.23%	7.28%	4.16%
6590	80 Outperform	¥280.84B	24.18	―	1.49%	18.20%	28.13%
6814	76 Outperform	¥266.84B	16.47	―	1.88%	6.56%	106.55%
6859	75 Outperform	¥74.50B	13.31	―	3.12%	2.78%	-5.32%
6957	75 Outperform	¥109.98B	33.78	―	2.12%	3.95%	-32.30%
6914	71 Outperform	¥89.42B	12.90	―	1.68%	2.72%	33.10%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%