Hirogin Holdings, Inc. (7337) AI Stock Analysis

• Market Cap: ¥433.92B
• Dividend Yield: 3.12%
• Average Volume (3M): 849.99K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.19
• Revenue Growth: 14.20%
• EPS Growth: 29.96%
• Country: JP
• Employees: 3,682
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 38.84
• Shares Outstanding: 305,327,900
• 10 Day Avg. Volume: 664,490
• 30 Day Avg. Volume: 849,986
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,563.00
• Price Target Upside: 9.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ¥1,563.00 ▲(9.57% Upside)

Hirogin Holdings, Inc. benefits from strong technical momentum and reasonable valuation, making it attractive for investors seeking growth and income. However, financial performance is hindered by high leverage and negative cash flow, which could pose risks if not addressed.

Positive Factors

Revenue Growth

The strong revenue growth indicates robust business expansion and effective market penetration, which are crucial for sustaining long-term profitability and competitiveness.

Profitability

A healthy net profit margin suggests effective cost control and operational efficiency, which are vital for maintaining financial health and shareholder value over the long term.

Diversified Revenue Model

A diversified revenue model reduces dependency on any single income stream, enhancing resilience against market volatility and supporting stable long-term growth.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, especially in downturns, potentially impacting the company's ability to invest in growth opportunities.

Negative Cash Flow

Negative cash flow can hinder the company's ability to fund operations and growth initiatives, posing a risk to long-term financial stability and liquidity.

Low Equity Ratio

A low equity ratio indicates reliance on debt financing, which can elevate financial risk and limit the company's ability to absorb economic shocks or invest in new projects.

Hirogin Holdings, Inc. Business Overview & Revenue Model

Company Description

Hirogin Holdings, Inc. (7337) is a Japanese financial services group that primarily operates in the banking sector. The company is involved in various financial activities, including commercial banking, investment services, and asset management. It caters to both individual and corporate clients, providing a wide range of products such as loans, deposits, and financial advisory services. Hirogin Holdings also engages in securities and insurance services, positioning itself as a comprehensive financial institution in Japan.

How the Company Makes Money

Hirogin Holdings generates revenue primarily through interest income from its banking operations, which includes loans provided to customers and businesses. The company also earns fees from various financial services such as asset management and investment advisory. Additional revenue streams come from its securities trading and insurance operations. Strategic partnerships with other financial institutions and corporate clients enhance its service offerings and contribute to its earnings. The diversified revenue model helps the company mitigate risks associated with fluctuations in any single sector.

Hirogin Holdings, Inc. Financial Statement Overview

Summary

Hirogin Holdings, Inc. shows strong revenue growth and profitability with a net profit margin of 18.58%. However, the company faces challenges with high leverage, indicated by a 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	161.97B	187.79B	140.18B	147.64B	130.11B	99.71B
Gross Profit	168.54B	148.84B	140.18B	131.68B	129.43B	99.71B
EBITDA	35.50B	49.92B	46.65B	24.51B	39.11B	35.64B
Net Income	35.84B	35.84B	27.69B	12.51B	22.91B	21.57B
Balance Sheet
Total Assets	12.13T	12.13T	12.79T	11.50T	11.60T	11.01T
Cash, Cash Equivalents and Short-Term Investments	1.73T	1.73T	2.84T	2.19T	2.58T	2.58T
Total Debt	2.00T	2.00T	2.70T	1.06T	1.20T	1.02T
Total Liabilities	11.63T	11.63T	12.26T	11.00T	11.11T	10.49T
Stockholders Equity	504.54B	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: 1426.50
• 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 1426.5 is above the 20-day moving average (MA) of 1407.98, above the 50-day MA of 1329.84, and above the 200-day MA of 1207.83, indicating a bullish trend. The MACD of 24.52 indicates Positive momentum. The RSI at 62.02 is Neutral, neither overbought nor oversold. The STOCH value of 77.06 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
7337	70 Outperform	¥433.92B	11.69		3.12%	14.20%	29.96%
Sector *	68 Neutral	$18.10B	11.66	9.93%	3.76%	9.70%	1.14%
KYUNF	―	$2.62B	5.22	4.96%	―	―	―
YFGSF	―	$2.37B	11.50	5.35%	7.02%	―	―
7327	78 Outperform	¥375.90B	11.44		3.06%	6.67%	51.21%
8377	71 Outperform	¥468.87B	10.42		1.05%	33.00%	80.88%
5832	63 Neutral	¥392.66B	13.82		2.87%	10.60%	20.32%

Hirogin Holdings, Inc. Corporate Events

Hirogin Holdings Reports Strong Financial Growth Amidst Stable Market Position

Hirogin Holdings, Inc. reported a 6% increase in ordinary revenues and a notable 26% rise in ordinary profit for the nine months ended December 31, 2024, compared to the same period the previous year. The company’s financial position remains stable with a slight decrease in total assets and an improved capital adequacy ratio. Despite a decline in comprehensive income, the company has maintained its dividend forecast, signaling confidence in its financial health and ongoing strategic initiatives.