Hirogin Holdings, Inc. (7337) AI Stock Analysis

• Market Cap: ¥478.64B
• Dividend Yield: 3.27%
• Average Volume (3M): 730.89K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 1.23
• Revenue Growth: 19.82%
• EPS Growth: 29.59%
• Country: JP
• Employees: 3,682
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 28.93
• Shares Outstanding: 305,327,900
• 10 Day Avg. Volume: 707,000
• 30 Day Avg. Volume: 730,886
• PEG Ratio: 0.33
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 1.95
• P/FCF Ratio: -19.83
• 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): 22,216.16
• Revenue Forecast (FY): ¥18.87T

• Rating: 70 Outperform
• Price Target: ¥1,698.00 ▲(7.91% Upside)

Hirogin Holdings, Inc. scores well due to strong technical indicators and a reasonable valuation. However, financial performance is hindered by high leverage and negative cash flow, which are significant risks. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

The strong revenue growth indicates robust business expansion, suggesting effective market penetration and demand for services.

Profitability

A healthy net profit margin demonstrates the company's ability to manage costs effectively, contributing to sustainable profitability.

Diversified Revenue Model

A diversified revenue model reduces dependency on a single income stream, enhancing stability and resilience against sector-specific downturns.

Negative Factors

High Debt Levels

High leverage can increase financial risk, limiting flexibility and potentially impacting long-term financial health if not managed well.

Negative Cash Flow

Negative cash flow suggests potential liquidity issues, which could affect the company's ability to fund operations and growth initiatives.

Low Equity Ratio

A low equity ratio indicates reliance on debt financing, which can increase financial vulnerability and limit future capital raising options.

Hirogin Holdings, Inc. Business Overview & Revenue Model

Company Description

Hirogin Holdings, Inc. operates as a bank holding company for The Hiroshima Bank, Ltd. that provides various financial services in Hiroshima, Okayama, Yamaguchi, and Ehime prefectures. It offers deposits and loans, financial instruments, leasing and auto leasing, receivables management, asset management, and consulting services, as well as IT-related services. The company was founded in 1878 and is headquartered in Hiroshima, Japan.

How the Company Makes Money

Hirogin Holdings generates revenue through multiple key streams, including interest income from loans and mortgages, fees from banking services, and commissions from asset management and insurance products. The company earns interest by lending to customers and businesses, with a portion of deposits used to fund these loans. Additionally, Hirogin Holdings collects service fees for account maintenance, transaction processing, and investment advisory services. Significant partnerships with other financial institutions and technology firms also enhance its service offerings and contribute to its earnings, enabling the company to leverage innovative solutions and expand its market reach.

Hirogin Holdings, Inc. Financial Statement Overview

Summary

Hirogin Holdings, Inc. exhibits strong revenue growth and profitability with a net profit margin of 18.58%. However, the company faces challenges due to a high debt-to-equity ratio of 3.97 and negative cash flow, which could impact long-term financial stability.

Income Statement

Hirogin Holdings, Inc. has demonstrated strong revenue growth of 21% in the most recent year, indicating robust business expansion. The net profit margin of 18.58% is healthy, reflecting efficient cost management. However, the EBIT margin has decreased compared to previous years, suggesting potential challenges in operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 3.97, indicating significant leverage, which could pose risks if not managed properly. Return on equity is moderate at 7.10%, showing decent profitability relative to shareholder equity. The equity ratio of 4.16% suggests a low proportion of equity financing, which may impact financial stability.

Cash Flow

The negative operating cash flow and free cash flow indicate cash management challenges. The free cash flow to net income ratio is strong at 1.28, suggesting that the company is generating cash relative to its net income. However, the negative growth in free cash flow is a concern for future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	161.19B	187.79B	173.80B	147.64B	133.40B	106.02B
Gross Profit	161.19B	148.84B	140.22B	126.81B	129.43B	101.43B
EBITDA	50.29B	58.30B	46.65B	24.51B	39.11B	35.64B
Net Income	36.87B	35.84B	27.69B	12.51B	22.91B	21.57B
Balance Sheet
Total Assets	12.32T	12.13T	12.79T	11.50T	11.60T	11.01T
Cash, Cash Equivalents and Short-Term Investments	0.00	1.73T	2.84T	2.19T	2.58T	2.58T
Total Debt	2.10T	2.00T	2.70T	1.06T	1.20T	1.02T
Total Liabilities	11.80T	11.63T	12.26T	11.00T	11.11T	10.49T
Stockholders Equity	524.32B	504.54B	535.11B	498.47B	496.06B	516.76B
Cash Flow
Free Cash Flow	0.00	-18.47B	661.83B	-478.07B	208.88B	1.46T
Operating Cash Flow	0.00	-14.42B	673.40B	-468.74B	216.89B	1.49T
Investing Cash Flow	0.00	-202.52B	-119.39B	65.83B	-198.33B	-370.40B
Financing Cash Flow	0.00	57.39B	94.02B	-8.10B	-22.64B	-9.31B

Hirogin Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1573.50
• 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:7337, the sentiment is Positive. The current price of 1573.5 is above the 20-day moving average (MA) of 1518.95, above the 50-day MA of 1458.07, and above the 200-day MA of 1283.08, indicating a bullish trend. The MACD of 28.03 indicates Positive momentum. The RSI at 66.90 is Neutral, neither overbought nor oversold. The STOCH value of 62.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7337.

Hirogin Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7327	79 Outperform	¥449.00B	11.40	―	3.19%	12.71%	71.94%
8418	77 Outperform	$356.41B	9.48	6.09%	2.92%	5.87%	50.22%
8377	75 Outperform	¥467.28B	10.45	―	1.46%	28.83%	105.24%
7180	75 Outperform	$413.85B	11.16	4.93%	2.06%	12.96%	44.62%
7337	70 Outperform	¥478.64B	12.52	―	3.27%	19.82%	29.59%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
5832	63 Neutral	¥433.96B	13.99	―	3.07%	9.27%	19.72%

Hirogin Holdings, Inc. Corporate Events

Hirogin Holdings Announces Acquisition of Own Shares

Hirogin Holdings, Inc. announced the acquisition of 913,500 of its own common shares through market purchases on the Tokyo Stock Exchange, amounting to 1,336,158,000 yen. This is part of a broader strategy approved by its Board of Directors to acquire up to 6,000,000 shares by March 2026, aiming to enhance shareholder value and optimize capital structure.

Hirogin Holdings Announces Issuance of Unsecured Bonds

Hirogin Holdings, Inc. has announced the issuance conditions for its 1st and 2nd unsecured bonds, targeting institutional and individual investors respectively. The bonds, with a total issue amount of 30 billion yen, have been rated AA- and A+ by Japanese credit agencies, reflecting a strong credit position, and are expected to enhance the company’s financial flexibility and market presence.

Hirogin Holdings Establishes New Subsidiary to Boost Urban Development Efforts

Hirogin Holdings, Inc. announced the establishment of a new subsidiary, Hirogin Regional Advisors Co., Ltd., to advance its urban development initiatives. This move aligns with their Mid-Term Management Plan 2024, focusing on creating a sustainable society by enhancing regional appeal and convenience, thereby fostering job creation and community growth. The subsidiary will focus on investment advisory services related to private placement real estate funds, with minimal impact expected on the company’s financial performance.

Hirogin Holdings Reports Strong Financial Growth for H1 2025

Hirogin Holdings, Inc. reported a significant increase in its financial performance for the six months ended September 30, 2025, with ordinary income rising by 15.2% and comprehensive income surging by 399.6% compared to the previous year. The company’s strong financial results indicate a robust operational performance, enhancing its market position and potentially benefiting its stakeholders.

Hirogin Holdings to Issue Bonds and Revise KPIs for Strategic Growth

Hirogin Holdings, Inc. announced the issuance of unsecured bonds to enhance the capital of its subsidiary, Hiroshima Bank, aiming to boost financial intermediary functions and regional solutions. The company also revised its KPIs under the Mid-Term Plan 2024, maintaining a focus on achieving a consolidated ROE of 9.5% or higher by March 2029, while balancing growth investment and shareholder returns.

Hirogin Holdings Enhances Shareholder Value with Share Buyback

Hirogin Holdings, Inc. has announced the acquisition of 722,900 of its own shares through market purchases on the Tokyo Stock Exchange, amounting to over 1 billion yen. This move is part of a broader strategy approved by the Board of Directors to acquire up to 6 million shares, aiming to optimize capital structure and enhance shareholder returns.

Hirogin Holdings Announces Acquisition of Own Shares

Hirogin Holdings, Inc. announced the acquisition of 537,500 of its own common shares, amounting to 759,902,039 yen, through market purchases on the Tokyo Stock Exchange. This move is part of a broader strategy authorized by the Board of Directors to acquire up to 6,000,000 shares by March 31, 2026, reflecting the company’s commitment to managing its capital structure effectively.