Hirose Tusyo, Inc. (7185) AI Stock Analysis

• Market Cap: ¥27.04B
• Dividend Yield: 0.96%
• Average Volume (3M): 7.31K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.54
• Revenue Growth: -5.85%
• EPS Growth: -31.62%
• Country: JP
• Employees: 87
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Capital Markets
• EPS (TTM): 88.53
• Shares Outstanding: 6,858,500
• 10 Day Avg. Volume: 10,230
• 30 Day Avg. Volume: 7,313
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥4,544.00
• Price Target Upside: 11.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ¥4,544.00 ▲(11.37% Upside)

The overall stock score is primarily influenced by strong financial performance with robust profitability and a solid balance sheet. However, weak technical indicators and recent revenue and cash flow declines raise concerns. Valuation is reasonable, but the stock may lack appeal due to low dividend yield.

Hirose Tusyo, Inc. Business Overview & Revenue Model

Company Description

Hirose Tusyo, Inc. is a Japanese financial services company primarily engaged in providing online trading services. The company operates in the securities industry, offering retail investors access to various financial products, including foreign exchange (Forex), commodities, stock indices, and other derivatives. Hirose Tusyo is known for its user-friendly trading platforms and competitive pricing, catering to both novice and experienced traders.

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 stable balance sheet. However, recent revenue decline and negative cash flow raise concerns about future growth and cash generation capabilities.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.20B	10.71B	10.32B	8.72B	8.73B
Gross Profit	10.09B	10.67B	10.23B	8.67B	8.73M
EBITDA	3.12B	4.30B	3.64B	2.76B	2.97B
Net Income	2.23B	2.93B	2.41B	1.84B	1.94B
Balance Sheet
Total Assets	117.62B	119.07B	103.72B	95.46B	91.01B
Cash, Cash Equivalents and Short-Term Investments	13.59B	11.96B	11.69B	12.86B	13.38B
Total Debt	7.40B	7.60B	6.30B	6.20B	7.00B
Total Liabilities	97.86B	101.56B	88.51B	81.43B	78.83B
Stockholders Equity	19.77B	17.51B	15.22B	14.03B	12.18B
Cash Flow
Free Cash Flow	-1.83B	-350.35M	98.42M	90.81M	4.28B
Operating Cash Flow	-1.83B	-306.00M	126.80M	147.15M	4.33B
Investing Cash Flow	-53.52M	-314.04M	-32.97M	441.86M	-302.33M
Financing Cash Flow	-476.85M	546.99M	-1.14B	-827.69M	-2.12B

Hirose Tusyo, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4080.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 4080 is below the 20-day moving average (MA) of 4168.25, below the 50-day MA of 4263.10, and above the 200-day MA of 4049.08, indicating a neutral trend. The MACD of -42.62 indicates Positive momentum. The RSI at 26.09 is Positive, neither overbought nor oversold. The STOCH value of 18.59 is Positive, 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	77 Outperform	¥27.67B	6.22		3.38%	20.01%	19.98%
8699	74 Outperform	¥43.17B	2.58		0.91%	16.02%	20.35%
8614	71 Outperform	¥36.21B	13.32		5.81%	11.72%	158.52%
8622	71 Outperform	€31.08B	17.06	4.96%	5.58%	-8.54%	-18.90%
8708	69 Neutral	¥42.63B	17.17		7.00%	0.74%	-5.46%
Sector *	67 Neutral	¥836.32B	13.01	9.24%	3.02%	7.93%	10.80%
7185	64 Neutral	¥27.04B	12.92		0.96%	-5.85%	-31.62%