Cash GenerationEfficient conversion of earnings into cash (OCF/net income 1.15; FCF/net income 1.08) supports durable funding for capex, working capital and dividends. Reliable cash conversion in a staffing model improves resilience through demand cycles and funds reinvestment without heavy external financing.

Prudent Leverage And Strong ROEA low debt-to-equity ratio (0.25) with strong ROE (17.17%) and a healthy equity ratio (40.45%) indicates disciplined capital deployment and balance-sheet flexibility. This structural financial strength supports strategic investment, potential M&A, and cushions the business against economic downturns.

Stable Margins And Steady Revenue TrendConsistent revenue trajectory and stable gross/EBITDA margins (gross margin 18.15%) point to operational efficiency in staffing and outsourcing services. Predictable margins and recurring client relationships support long-term cash flow visibility and scalable on-site service delivery.

Bears Say

Low Net Profit MarginA structural net margin of 2.37% leaves limited room to absorb cost inflation or pricing pressure and constrains retained earnings for reinvestment. In a labor-intensive staffing business, low net profitability reduces the buffer for adverse cycles and limits strategic flexibility over the medium term.

Volatile Free Cash Flow GrowthDespite solid conversion ratios, volatility in free cash flow growth introduces uncertainty in capital allocation and dividend planning. For a company reliant on client demand and project timing, FCF swings can hinder consistent reinvestment and impair ability to fund opportunistic initiatives.

Modest Revenue Growth RateModest top-line expansion (roughly mid-single-digit average and only 1.58% in the latest period) limits the pace at which the company can scale overhead absorption and improve margins. In a low-margin staffing model, slow revenue growth constrains long-term margin expansion and market share gains.

7781 FAQ

What was HIRAYAMA HOLDINGS Co.Ltd.’s price range in the past 12 months?

HIRAYAMA HOLDINGS Co.Ltd. lowest stock price was ¥871.00 and its highest was ¥1634.00 in the past 12 months.

What is HIRAYAMA HOLDINGS Co.Ltd.’s market cap?

HIRAYAMA HOLDINGS Co.Ltd.’s market cap is ¥12.52B.

When is HIRAYAMA HOLDINGS Co.Ltd.’s upcoming earnings report date?

The company’s upcoming earnings report date is not yet available.

How were HIRAYAMA HOLDINGS Co.Ltd.’s earnings last quarter?

Currently, no data Available

Is HIRAYAMA HOLDINGS Co.Ltd. overvalued?

According to Wall Street analysts HIRAYAMA HOLDINGS Co.Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does HIRAYAMA HOLDINGS Co.Ltd. pay dividends?

HIRAYAMA HOLDINGS Co.Ltd. pays a Semiannually dividend of ¥18 which represents an annual dividend yield of 3.74%. See more information on HIRAYAMA HOLDINGS Co.Ltd. dividends here

What is HIRAYAMA HOLDINGS Co.Ltd.’s EPS estimate?

HIRAYAMA HOLDINGS Co.Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does HIRAYAMA HOLDINGS Co.Ltd. have?

HIRAYAMA HOLDINGS Co.Ltd. has 8,156,400 shares outstanding.

What happened to HIRAYAMA HOLDINGS Co.Ltd.’s price movement after its last earnings report?

Currently, no data Available

Which hedge fund is a major shareholder of HIRAYAMA HOLDINGS Co.Ltd.?

Currently, no hedge funds are holding shares in JP:7781

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

HIRAYAMA HOLDINGS Co.Ltd.

HIRAYAMA HOLDINGS Co.,Ltd. provides in-sourcing and temporary staffing services. Its services include manufacturing outsourcing, manufacturing temporary staffing, and personnel placement services; and engineer placement and entrusted development engineer services, such as dispatching its engineer staff to the engineering section of its clients. It also offers GENBA KAIZEN consulting, and human resources education services. The company was formerly known as HIRAYAMA Co., Ltd. and changed its name to HIRAYAMA HOLDINGS Co.,Ltd. in March 2017. The company was founded in 1955 and is headquartered in Tokyo, Japan.