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

• Market Cap: ¥15.02B
• Dividend Yield: 2.71%
• Average Volume (3M): 32.68K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.44
• 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: 11,034,238
• 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: 5.40
• 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: ¥1,472.00 ▲(16.09% 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 and stronger capital base

Debt-to-equity falling to ~0.54 and a higher equity base materially reduces financial risk, giving the company durable flexibility to absorb shocks, fund organic investment or selective M&A, and support dividends without relying heavily on external financing.

Solid free cash flow conversion

Free cash flow tracking nearly 1x of net income indicates earnings are largely cash-backed, which supports sustainable capital allocation for capex, working capital and shareholder returns. This quality of cash generation underpins medium-term financial resilience despite growth volatility.

Focused on senior (older adult) market

A dedicated business model serving the senior demographic aligns with secular aging trends in Japan, creating stable demand for tailored products and services. This niche reduces direct mass-market competition and supports recurring, sticky revenue streams over the medium term.

Negative Factors

Stalled top-line momentum

Near-flat TTM revenue (+0.9%) signals cooled organic growth and limited expansion of the customer base. Over the next several months, weak top-line momentum constrains operating leverage, reduces upside from scale, and forces reliance on cost control or acquisitions to grow.

Compressed operating and net margins

Operating and net margins near 3.9% and 2.3% provide a thin profitability buffer against cost inflation or demand shocks. Lower margins reduce reinvestment capacity and sensitivity to revenue fluctuations, making sustained margin recovery essential for durable earnings improvement.

Negative and volatile free cash flow growth

While conversion is near parity with earnings, the -9% FCF growth and historical volatility (including FY2024 weakness) undermine predictability of available cash for reinvestment or payouts. Persistent volatility may force external funding or curtailment of strategic initiatives.

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

Halmak Holdings generates revenue through multiple streams. Primarily, the company earns income from its real estate ventures, which include rental income from commercial and residential properties it owns and manages. Additionally, Halmak Holdings engages in property development projects, earning profits from selling developed properties. The company also invests in technology startups, where it potentially earns returns through equity stakes and successful exits. Furthermore, its involvement in financial services may include advisory fees and transaction commissions, contributing to its overall revenue. Strategic partnerships with other firms in the real estate and tech industries enhance its market position and provide additional opportunities for growth and revenue generation.

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	17.75B	16.14B	14.29B	7.97B
EBITDA	2.92B	2.18B	1.77B	2.70B	1.99B	1.00B
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	6.32B	5.38B	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	-230.00M	1.85B	178.00M	682.00M
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: Neutral
• 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 1344.35, below the 50-day MA of 1326.66, and above the 200-day MA of 1232.77, indicating a bullish trend. The MACD of 4.94 indicates Negative momentum. The RSI at 62.08 is Neutral, neither overbought nor oversold. The STOCH value of 75.56 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
7521	80 Outperform	¥18.13B	11.15	―	2.50%	23.68%	80.23%
7119	69 Neutral	¥15.02B	13.90	―	2.71%	2.13%	135.50%
6554	69 Neutral	¥9.90B	10.30	―	3.90%	13.59%	52.99%
3420	67 Neutral	¥12.69B	13.70	―	3.28%	3.06%	5.71%
9564	65 Neutral	¥11.63B	16.15	―	1.11%	21.85%	13.02%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5721	48 Neutral	¥78.46B	-18.46	―	―	―	―