Hirose Tusyo, Inc. (7185) AI Stock Analysis

• Market Cap: ¥24.66B
• Dividend Yield: 1.04%
• Average Volume (3M): 13.43K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.51
• Revenue Growth: -11.70%
• EPS Growth: -38.42%
• Country: JP
• Employees: 87
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 23.99
• Shares Outstanding: 6,867,000
• 10 Day Avg. Volume: 10,230
• 30 Day Avg. Volume: 13,430
• PEG Ratio: -0.49
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 2.53
• P/FCF Ratio: -14.06
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥4,142.00 ▲(14.90% Upside)

The overall stock score reflects strong financial performance but is weighed down by negative technical indicators and concerns over cash flow. Valuation appears fair, but the lack of earnings call insights and corporate events limits additional context.

Positive Factors

Strong Profit Margins

High profit margins indicate efficient cost management and pricing power, contributing to sustained profitability and competitive advantage.

Stable Balance Sheet

A stable balance sheet with low debt levels enhances financial flexibility and resilience, supporting long-term strategic initiatives.

Effective Equity Utilization

Strong return on equity reflects efficient use of shareholder funds, driving value creation and investor confidence over time.

Negative Factors

Declining Revenue Growth

Negative revenue growth suggests challenges in market expansion and product adoption, potentially impacting future earnings and market position.

Negative Operating Cash Flow

Negative operating cash flow can strain liquidity and limit reinvestment capabilities, posing risks to financial health and growth potential.

Revenue Decline Concerns

Ongoing revenue and cash flow declines may hinder the company's ability to sustain operations and invest in growth, affecting long-term viability.

Hirose Tusyo, Inc. Business Overview & Revenue Model

Company Description

Hirose Tusyo Inc. engages in the foreign exchange margin trading business in Japan. The company was founded in 2004 and is headquartered in Osaka, Japan.

How the Company Makes Money

Hirose Tusyo, Inc. makes money through a combination of trading fees, spreads, and commissions charged to its clients. The company earns revenue by facilitating trading activities on its platforms, where it charges a spread on Forex and other financial products. This spread is the difference between the buying and selling price of a currency pair or other traded instrument. Additionally, Hirose Tusyo may charge commissions on certain trades, depending on the account type and trading volume. The company also benefits from interest income on client deposits held in trading accounts. Key partnerships with liquidity providers and financial institutions enhance Hirose Tusyo's ability to offer competitive pricing and access to a wide range of markets, contributing to its revenue generation.

Hirose Tusyo, Inc. Financial Statement Overview

Summary

Hirose Tusyo, Inc. shows strong profitability with high margins and a solid balance sheet, but recent revenue decline and negative cash flow raise concerns about future growth.

Income Statement

Hirose Tusyo, Inc. demonstrates strong profitability with high gross and net profit margins, consistently above 90% and around 20% respectively. However, there is a noticeable decline in revenue growth, with a negative growth rate of -4.76% in the latest year, indicating potential challenges in maintaining revenue momentum. Despite this, EBIT and EBITDA margins remain robust, reflecting efficient cost management.

Balance Sheet

The company's balance sheet is solid, with a debt-to-equity ratio around 0.37, indicating prudent use of debt. The equity ratio has improved over the years, showing increased financial strength. Return on equity remains strong at 11.28%, highlighting effective utilization of equity. The company's high cash reserves further enhance its financial stability.

Cash Flow

Cash flow analysis reveals significant fluctuations, with operating cash flow turning negative in the latest year, impacting free cash flow growth negatively. The free cash flow to net income ratio is unfavorable, suggesting challenges in converting earnings into cash flow. Despite this, past years have shown positive cash flow trends, indicating potential for recovery.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.94B	10.20B	10.71B	10.32B	8.72B	8.73B
Gross Profit	9.87B	10.15B	10.67B	10.23B	8.67B	8.67B
EBITDA	2.70B	3.12B	4.30B	3.64B	2.76B	2.91B
Net Income	1.93B	2.23B	2.93B	2.41B	1.84B	1.94B
Balance Sheet
Total Assets	120.45B	117.62B	119.07B	103.72B	95.46B	91.01B
Cash, Cash Equivalents and Short-Term Investments	15.81B	13.59B	11.96B	11.69B	12.86B	13.38B
Total Debt	7.82B	7.40B	7.60B	6.30B	6.20B	7.00B
Total Liabilities	100.36B	97.86B	101.56B	88.51B	81.43B	78.83B
Stockholders Equity	20.08B	19.77B	17.51B	15.22B	14.03B	12.18B
Cash Flow
Free Cash Flow	0.00	-1.83B	-350.35M	98.42M	90.81M	4.28B
Operating Cash Flow	0.00	2.24B	-306.00M	126.80M	147.15M	4.33B
Investing Cash Flow	0.00	-53.52M	-314.04M	-32.97M	441.86M	-302.33M
Financing Cash Flow	0.00	-476.85M	546.99M	-1.14B	-827.69M	-2.12B

Hirose Tusyo, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3605.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7185, the sentiment is Negative. The current price of 3605 is above the 20-day moving average (MA) of 3596.50, below the 50-day MA of 3748.00, and below the 200-day MA of 4043.92, indicating a bearish trend. The MACD of -42.77 indicates Negative momentum. The RSI at 38.77 is Neutral, neither overbought nor oversold. The STOCH value of 63.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7185.

Hirose Tusyo, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8704	72 Outperform	¥26.04B	7.03	―	3.35%	-11.56%	-26.01%
8622	71 Outperform	€30.43B	14.01	5.54%	5.69%	-1.80%	-1.02%
8699	68 Neutral	¥39.76B	2.16	―	0.92%	24.64%	33.45%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8614	66 Neutral	¥39.86B	14.66	―	5.08%	6.40%	41.18%
8708	64 Neutral	¥41.66B	15.76	―	4.54%	1.14%	-16.88%
7185	60 Neutral	¥24.66B	13.73	―	1.04%	-11.70%	-38.42%