Happinet Corporation (7552) AI Stock Analysis

• Market Cap: ¥140.86B
• Dividend Yield: 2.03%
• Average Volume (3M): 93.41K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.69
• Revenue Growth: 7.84%
• EPS Growth: 3.99%
• Country: JP
• Employees: 1,081
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Specialty Retail
• EPS (TTM): 151.21
• Shares Outstanding: 24,050,000
• 10 Day Avg. Volume: 120,710
• 30 Day Avg. Volume: 93,413
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ―

Happinet Corporation's strong financial performance, characterized by robust revenue growth and a debt-free balance sheet, underpins its solid position in the specialty retail industry. The technical analysis suggests mixed signals with short-term bearish pressure but long-term upward potential. Its valuation is reasonable, supported by a fair P/E ratio and an attractive dividend yield. The lack of recent cash flow data is a minor concern, but overall, the stock presents a good investment opportunity.

Happinet Corporation Business Overview & Revenue Model

Company Description

Happinet Corporation (7552) is a Japanese company primarily engaged in the entertainment industry. The company operates through several business segments, including Toys, Visual & Music, and Amusement. Happinet offers a wide range of products and services such as toys, video games, DVDs, CDs, and other entertainment-related goods. The company also engages in the planning, development, and sales of various amusement products and equipment.

How the Company Makes Money

Happinet Corporation generates revenue through the sale of toys and entertainment products, including video games, DVDs, and CDs. The company's key revenue streams include wholesale distribution to retailers and direct sales through its own channels. Additionally, Happinet benefits from partnerships with major entertainment companies for the distribution of their products in Japan. The company also earns income through its amusement business segment, which involves the planning and development of amusement equipment and facilities. These diversified revenue streams allow Happinet to capitalize on various sectors within the entertainment industry.

Happinet Corporation Financial Statement Overview

Summary

Happinet Corporation exhibits a strong financial position with impressive growth in revenue and profitability, backed by a healthy balance sheet free of debt. Despite strong historical cash flow performance, the lack of recent cash flow data presents a potential area for improvement. Overall, the company is well-positioned in the specialty retail industry with a solid financial foundation.

Income Statement

Happinet Corporation demonstrates strong performance with a consistent increase in revenue and profitability over the years. The TTM revenue of ¥361.25 billion shows a growth from the previous period, indicating robust demand and market presence. Gross profit margin improved to 12.05%, and the net profit margin stands at 1.70%. The EBITDA margin is healthy at 3.43%, reflecting operational efficiency. Overall, the income statement reveals a positive growth trajectory with stable margins.

Balance Sheet

The balance sheet is notably strong, with a debt-free position enhancing financial stability. The equity ratio is robust at 37.76%, indicating a solid capital structure. The return on equity (ROE) is 11.45%, showcasing effective utilization of shareholders' funds to generate profits. The company's liquidity position is sound with a significant cash reserve, providing a cushion for potential risks.

Cash Flow

While the free cash flow has shown growth over the years, the recent TTM data indicates a lack of available figures, highlighting potential volatility in cash flow management. Historically, operating cash flow has been positive, aligning well with net income, indicating efficient conversion of revenues into cash. However, the absence of current period cash flow data suggests a need for monitoring future cash flow trends.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	364.42B	350.46B	307.25B	282.44B	259.31B
Gross Profit	43.06B	38.88B	32.41B	29.36B	26.07B
EBITDA	12.99B	11.43B	7.51B	6.72B	5.13B
Net Income	6.76B	6.58B	3.56B	3.55B	2.59B
Balance Sheet
Total Assets	121.45B	113.42B	94.28B	85.33B	82.96B
Cash, Cash Equivalents and Short-Term Investments	41.01B	29.68B	27.87B	23.36B	21.77B
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	65.78B	62.12B	49.06B	41.83B	41.99B
Stockholders Equity	55.67B	51.30B	45.21B	43.49B	40.97B
Cash Flow
Free Cash Flow	15.99B	6.97B	5.73B	3.13B	9.26B
Operating Cash Flow	18.12B	8.36B	6.74B	3.71B	10.26B
Investing Cash Flow	-2.80B	-5.08B	-773.00M	-1.24B	-1.53B
Financing Cash Flow	-3.99B	-1.48B	-1.45B	-1.10B	-1.22B

Happinet Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6350.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7552, the sentiment is Positive. The current price of 6350 is above the 20-day moving average (MA) of 5850.50, above the 50-day MA of 5622.00, and above the 200-day MA of 4911.93, indicating a bullish trend. The MACD of 219.72 indicates Negative momentum. The RSI at 69.76 is Neutral, neither overbought nor oversold. The STOCH value of 71.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7552.

Happinet Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9602	77 Outperform	¥1.63T	42.88	8.33%	0.86%	5.73%	-19.25%
9672	76 Outperform	¥147.31B	13.73		2.05%	5.85%	9.30%
7832	75 Outperform	$3.60T	27.14	18.09%	1.08%	14.04%	18.44%
7956	75 Outperform	¥210.44B	22.33		4.32%	9.02%	46.48%
7552	73 Outperform	¥140.86B	18.27		2.03%	7.84%	3.99%
7867	70 Neutral	¥303.29B	17.59		1.59%	17.05%	66.00%
Sector *	67 Neutral	¥277.48B	14.88	6.81%	2.50%	5.07%	-22.68%

Happinet Corporation Corporate Events

Happinet Corporation Announces Shareholder Benefits for Fiscal Year 2025

Happinet Corporation has announced the details of its shareholder benefits program for the fiscal year ending March 31, 2025. Shareholders will receive a selection of the company’s original products based on the number of shares they hold, with additional gift certificates for those holding 500 shares or more. This initiative aims to enhance shareholder engagement and loyalty by offering exclusive items from Happinet’s diverse product range.

Happinet Corporation Announces Executive Leadership Changes

Happinet Corporation has announced a series of executive changes, including the appointment of Toshiyuki Mizutani as the new Representative Director, President, and Chief Operating Officer, effective after the June 2025 shareholders meeting. These changes are part of a strategic move to enhance the company’s leadership and global operations, potentially impacting its market position and stakeholder relations.