halmek holdings Co.,Ltd. (7119) AI Stock Analysis

• Market Cap: ¥17.57B
• Dividend Yield: 2.71%
• Average Volume (3M): 32.68K
• Price to Earnings (P/E): 4.1
• Beta (1Y): 0.34
• Revenue Growth: 2.13%
• EPS Growth: 135.50%
• Country: JP
• Employees: 386
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 78.47
• Shares Outstanding: 11,045,488
• 10 Day Avg. Volume: 11,120
• 30 Day Avg. Volume: 32,676
• PEG Ratio: 0.65
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 5.39
• 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: 69 Neutral
• Price Target: ¥1,782.00 ▲(40.54% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven by improved financial stability (healthier leverage and decent cash conversion) and supportive technical trend signals. This is tempered by cooled top-line momentum and compressed operating/net margins, while valuation (mid P/E and a ~2.6% dividend yield) provides an additional, moderate tailwind.

Positive Factors

Improved leverage

Debt-to-equity falling to roughly 0.54 and a stronger equity base materially reduces financial risk. This durable improvement increases flexibility for capex, acquisitions or dividend support, and makes capital structure more resilient to shocks over the next 2–6 months.

Cash conversion quality

Free cash flow tracking nearly one-for-one with net income signals earnings quality and real cash generation. Positive operating cash flow supports internal funding of operations and dividends, helping sustain operations and strategic initiatives despite growth headwinds.

High gross margins

A structurally high gross margin (~54%) indicates pricing power or low direct costs in core offerings to older adults. This margin buffer gives management room to invest in services or marketing while protecting operating profitability against moderate cost pressures.

Negative Factors

Stagnant revenue

Top-line momentum has cooled to near-flat growth, limiting organic scale and making it harder to leverage fixed costs. Without renewed revenue drivers, growth reliance shifts to execution risk in new initiatives or M&A, constraining durable expansion over coming quarters.

Compressed profitability

Operating margins around 3.9% and net near 2.3% are thin for long-term reinvestment and leave earnings sensitive to input cost swings. Persistently compressed margins reduce retained earnings and limit ability to scale or absorb adverse shocks without cutting investment or returns.

Volatile FCF growth

Negative and volatile free cash flow growth undermines predictable funding for capex, debt servicing, and dividends. Variability in FCF increases financing risk for strategic projects and may force external financing or curtailed investment during downturns.

halmek holdings Co.,Ltd. Business Overview & Revenue Model

Company Description

halmek holdings Co.,Ltd. engages in the content, mail order, store, consulting and advertising agency, and healthcare businesses in Japan. The company offers magazines, websites, courses, and events to support adult women; engages in the mail order and sale of health and life, and fashion products; and operates retail stores that provide fashion products, shoes, cosmetics, food products, health foods, health care products, daily necessities, and underwears. It also offers consulting and advertising agency services, such as media sales, customer attraction support, CRM consulting, new business development support, mail order startup, and senior research; and at home and cognitive function check, and hospital referral and health consultation services. The company was founded in 1989 and is headquartered in Tokyo, Japan.

How the Company Makes Money

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halmek holdings Co.,Ltd. Financial Statement Overview

Summary

Overall fundamentals are stable but not strong: revenue is roughly flat in TTM (+0.9%) and profitability is modest (EBIT ~3.9%, net ~2.3%) versus stronger years. Offsetting this, the balance sheet has improved materially (debt-to-equity ~0.54) and free cash flow conversion is decent (~0.93x net income), though free cash flow growth is negative (~-9%) and has been volatile historically.

Income Statement

TTM (Trailing-Twelve-Months) revenue is essentially flat (+0.9%) after stronger growth in prior annual periods, indicating momentum has cooled. Profitability is mixed: gross margin remains strong (~54%), but operating and net margins are modest in TTM (EBIT ~3.9%, net ~2.3%) and are well below the higher levels seen in 2022–2023. The positive is that earnings improved versus FY2025, but overall margin compression versus earlier years keeps the score in the middle range.

Balance Sheet

Leverage has improved meaningfully versus earlier years: debt-to-equity has come down from very high levels (2021–2022) to ~0.54 in TTM (Trailing-Twelve-Months), alongside higher equity. Returns on equity are moderate in TTM (~9.5%), down from prior peaks but more sustainable given the stronger capital base. Overall, the balance sheet looks healthier and less risky than it did historically, though returns are not standout.

Cash Flow

TTM (Trailing-Twelve-Months) free cash flow is solid and broadly tracks earnings (free cash flow is ~0.93x net income), supporting earnings quality. However, free cash flow growth is negative (about -9%), and cash generation has shown volatility historically (including weak/negative free cash flow in FY2024). Operating cash flow remains positive in TTM, but the uneven trajectory tempers the score.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	33.79B	33.93B	31.41B	28.74B	25.23B	15.13B
Gross Profit	17.87B	17.99B	16.84B	15.46B	13.66B	7.97B
EBITDA	2.90B	2.39B	2.34B	2.71B	1.97B	990.00M
Net Income	1.08B	623.00M	476.00M	1.25B	796.00M	301.00M
Balance Sheet
Total Assets	22.88B	20.89B	20.11B	23.10B	18.30B	17.83B
Cash, Cash Equivalents and Short-Term Investments	2.73B	2.39B	938.00M	5.04B	964.00M	1.83B
Total Debt	4.40B	4.81B	4.94B	8.12B	7.72B	8.24B
Total Liabilities	13.74B	12.70B	12.56B	16.61B	16.48B	16.80B
Stockholders Equity	9.13B	8.20B	7.55B	6.48B	1.82B	1.03B
Cash Flow
Free Cash Flow	1.69B	2.24B	48.00M	2.23B	778.00M	832.00M
Operating Cash Flow	1.81B	2.40B	152.00M	2.26B	881.00M	870.00M
Investing Cash Flow	-400.00M	-344.00M	-414.00M	-464.00M	-773.00M	-215.00M
Financing Cash Flow	-941.00M	-593.00M	-3.84B	2.27B	-978.00M	-438.00M

halmek holdings Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1268.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7119, the sentiment is Positive. The current price of 1268 is below the 20-day moving average (MA) of 1441.20, below the 50-day MA of 1380.70, and above the 200-day MA of 1265.47, indicating a bullish trend. The MACD of 70.53 indicates Negative momentum. The RSI at 82.17 is Negative, neither overbought nor oversold. The STOCH value of 76.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7119.

halmek holdings Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3106	75 Outperform	¥133.36B	9.78	―	2.66%	-1.63%	67.13%
3512	73 Outperform	¥16.23B	23.32	―	2.41%	-4.23%	-5.96%
4206	73 Outperform	¥233.83B	9.23	―	3.90%	2.65%	7.16%
5355	72 Outperform	¥4.44B	6.43	―	2.79%	3.32%	18.84%
7119	69 Neutral	¥17.57B	4.12	―	2.71%	2.13%	135.50%
3105	65 Neutral	¥230.14B	14.72	8.35%	2.73%	3.35%	810.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%