Human Creation Holdings, Inc. (7361) AI Stock Analysis

• Market Cap: ¥4.53B
• Dividend Yield: 2.09%
• Average Volume (3M): 6.71K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.55
• Revenue Growth: 24.84%
• EPS Growth: 2.56%
• Country: JP
• Employees: 854
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 42.61
• Shares Outstanding: 3,573,100
• 10 Day Avg. Volume: 7,630
• 30 Day Avg. Volume: 6,706
• PEG Ratio: 4.12
• Price to Book (P/B): 2.48
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 3.71
• 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: 79 Outperform
• Price Target: ¥1,477.00 ▲(8.68% Upside)

Human Creation Holdings, Inc. demonstrates strong financial performance and attractive valuation, which are the primary drivers of the stock's score. The technical analysis supports a positive outlook with bullish momentum. The absence of earnings call data and corporate events does not detract from the overall positive assessment.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates a strong market position and effective business model, supporting long-term expansion.

Cash Flow Management

Robust cash flow management enhances financial flexibility, enabling strategic investments and resilience against economic fluctuations.

Profitability Margins

Strong profitability margins reflect efficient operations and cost management, which are crucial for sustaining competitive advantage.

Negative Factors

Rising Debt Levels

Increasing debt levels may strain financial resources, potentially impacting future growth and operational flexibility.

Net Income Decline

A decline in net income suggests potential inefficiencies or increased costs, which could hinder long-term profitability.

Leverage Concerns

Moderate leverage requires careful management to avoid financial strain, especially in volatile market conditions.

Human Creation Holdings, Inc. Business Overview & Revenue Model

Company Description

Human Creation Holdings, Inc., through its subsidiaries, operates in the information technology (IT) industry. The company engages in the system design/development, IT technology consultant, and network/server design, as well as construction, management, and operation activities; and system consultation and hardware design/development activities. It also provides consulting services in the areas of business and organizational reform, IT strategy, and solution selection; technology consulting services comprising requirements analysis, project management, and solution introduction support; and ICT-related help desk management, education, manual production/planning and operation of showrooms, service centers, etc.; and outsourcing services for government. In addition, the company dispatches engineers. Human Creation Holdings, Inc. was founded in 1974 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Human Creation Holdings, Inc. generates revenue through multiple key streams, primarily from the sale of its medical technologies and devices to healthcare providers, hospitals, and clinics. Additionally, the company earns income from licensing its proprietary technologies to other firms in the healthcare sector. Strategic partnerships with research institutions and pharmaceutical companies also contribute to its revenue, as collaborative projects often lead to shared profits from new product developments. Furthermore, the company is involved in offering subscription-based health management services, which provide ongoing revenue through recurring fees. These diverse revenue streams ensure a robust financial model while enabling the company to capitalize on growth opportunities in the evolving healthcare landscape.

Human Creation Holdings, Inc. Financial Statement Overview

Summary

Human Creation Holdings, Inc. exhibits strong financial performance with consistent revenue growth and solid profitability margins. The balance sheet is stable, though the increase in debt warrants monitoring. Cash flow generation is robust, supporting the company's financial flexibility.

Income Statement

Human Creation Holdings, Inc. has demonstrated strong revenue growth with a 9.09% increase in the latest year. The company maintains healthy profitability margins, with a gross profit margin of 30.37% and a net profit margin of 4.45%. The EBIT and EBITDA margins are also solid at 8.74% and 9.69%, respectively, indicating efficient operational management. However, the slight decline in net income compared to the previous year suggests potential areas for cost optimization.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.75, indicating moderate leverage. The return on equity is robust at 26.04%, showcasing effective use of shareholder funds. The equity ratio stands at 34.04%, suggesting a balanced capital structure. However, the increase in total debt over the year could pose a risk if not managed carefully.

Cash Flow

The company has shown impressive cash flow management with a significant increase in operating cash flow. The operating cash flow to net income ratio is strong at 2.58, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also favorable at 2.57, highlighting the company's ability to generate cash after capital expenditures. The positive free cash flow growth rate of 115.66% further underscores the company's strong cash flow position.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.20B	8.95B	7.17B	6.49B	5.80B	5.04B
Gross Profit	2.39B	2.72B	2.08B	1.96B	1.77B	1.43B
EBITDA	793.11M	867.23M	755.55M	822.20M	663.73M	545.43M
Net Income	379.62M	398.48M	404.03M	438.43M	343.00M	275.89M
Balance Sheet
Total Assets	4.36B	4.50B	2.98B	2.96B	2.54B	2.19B
Cash, Cash Equivalents and Short-Term Investments	1.16B	1.42B	1.00B	1.02B	672.86M	846.22M
Total Debt	1.32B	1.14B	375.84M	641.34M	546.01M	266.42M
Total Liabilities	2.95B	2.97B	1.63B	1.90B	1.62B	1.13B
Stockholders Equity	1.41B	1.53B	1.35B	1.06B	915.76M	1.06B
Cash Flow
Free Cash Flow	0.00	1.02B	474.16M	705.49M	370.36M	256.61M
Operating Cash Flow	0.00	1.03B	481.45M	722.94M	373.48M	267.53M
Investing Cash Flow	0.00	-896.35M	-3.11M	-169.25M	-335.00M	-51.74M
Financing Cash Flow	0.00	281.51M	-495.91M	-206.47M	-211.84M	44.41M

Human Creation Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1359.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7361, the sentiment is Positive. The current price of 1359 is below the 20-day moving average (MA) of 1395.80, above the 50-day MA of 1339.68, and above the 200-day MA of 1197.07, indicating a neutral trend. The MACD of 13.69 indicates Positive momentum. The RSI at 51.79 is Neutral, neither overbought nor oversold. The STOCH value of 19.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7361.

Human Creation Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7361	79 Outperform	¥4.53B	10.92	―	2.09%	24.84%	2.56%
6538	76 Outperform	¥7.04B	18.11	―	1.32%	12.73%	―
4766	66 Neutral	¥2.90B	25.34	―	―	8.11%	255.15%
9344	66 Neutral	¥4.66B	-89.87	―	3.66%	13.47%	-108.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6563	59 Neutral	¥3.52B	37.81	―	―	5.06%	37.14%
6198	43 Neutral	¥2.08B	-13.81	―	2.66%	-10.61%	-160.10%