HIRAYAMA HOLDINGS Co.Ltd. (7781) AI Stock Analysis

• Market Cap: ¥8.26B
• Dividend Yield: 4.82%
• Average Volume (3M): 11.40K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.68
• Revenue Growth: 4.33%
• EPS Growth: 31.92%
• Country: JP
• Employees: 3,096
• Sector: Industrials
• Sector Strength: 88
• Industry: Staffing & Employment Services
• EPS (TTM): 24.11
• Shares Outstanding: 8,149,200
• 10 Day Avg. Volume: 5,860
• 30 Day Avg. Volume: 11,403
• PEG Ratio: 3.57
• Price to Book (P/B): 1.64
• 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: 72 Outperform
• Price Target: ―

HIRAYAMA HOLDINGS Co.Ltd. has a solid financial foundation with strong growth and low leverage, although cash flow management needs improvement. The technical analysis indicates potential short-term weakness, but the stock's valuation is attractive, with a low P/E ratio and high dividend yield. Overall, the stock presents a balanced risk-reward profile, making it a moderately attractive investment.

HIRAYAMA HOLDINGS Co.Ltd. Business Overview & Revenue Model

Company Description

HIRAYAMA HOLDINGS Co., Ltd. is a Japan-based company primarily engaged in the provision of human resource services. The company operates in various sectors, offering staffing and outsourcing solutions, including temporary staff placement, contract staffing, and business process outsourcing. HIRAYAMA HOLDINGS also provides engineering services and technical support, catering to a diverse range of industries such as manufacturing, logistics, and IT services.

How the Company Makes Money

HIRAYAMA HOLDINGS generates revenue primarily through its comprehensive human resource services. The company earns money by charging fees for temporary and contract staffing solutions, which constitute a significant portion of its income. It also profits from outsourcing services, where it provides business process outsourcing and engineering support to various industries. Additionally, the company may have strategic partnerships with businesses requiring specialized staffing solutions, contributing to its earnings. The company's diverse service offerings allow it to cater to a wide range of clients, which is a crucial factor in its revenue generation.

HIRAYAMA HOLDINGS Co.Ltd. Financial Statement Overview

Summary

HIRAYAMA HOLDINGS Co.Ltd. demonstrates strong financial performance with robust revenue and profit growth, supported by healthy EBIT and EBITDA margins. The balance sheet is solid with low leverage and strong equity utilization. However, there are concerns about cash flow management as the latest TTM data indicates zero cash flows, although historically, cash flow has been positive.

Income Statement

The company shows a strong financial performance with a consistent increase in total revenue over the years. The TTM data indicates a gross profit margin of 17.35% and a net profit margin of 2.23%, both of which reflect solid profitability. Revenue growth is robust, with a significant increase from previous periods, demonstrating strong demand and market position. EBIT and EBITDA margins are healthy, at 3.34% and 3.58% respectively, showcasing efficient operational management. Overall, the company exhibits positive growth trends and stable profitability.

Balance Sheet

The balance sheet reflects a sound financial position with a healthy equity base. The debt-to-equity ratio is very favorable, indicating low leverage and financial risk. Return on equity is strong at 16.75% for TTM, highlighting effective utilization of shareholders' equity to generate profits. The equity ratio stands at 37.69%, showing a balanced capital structure. However, there might be a concern with the declining cash position in certain periods, though overall liquidity remains solid.

Cash Flow

Cash flow analysis shows mixed results. While free cash flow has been positive in the past, the latest TTM data reports zero cash flows across all categories. This could indicate concerns in cash flow management or timing issues with cash receipts and payments. Historically, the company has maintained a positive operating cash flow to net income ratio, which is a good indicator of cash-generating efficiency. However, the current lack of cash flow data hinders a comprehensive assessment.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	35.29B	31.67B	27.98B	23.04B	22.97B
Gross Profit	5.97B	5.23B	4.80B	4.01B	3.76B
EBITDA	1.26B	1.00B	799.51M	768.63M	733.87M
Net Income	757.11M	549.13M	409.36M	413.46M	293.93M
Balance Sheet
Total Assets	12.29B	10.11B	8.71B	8.17B	7.37B
Cash, Cash Equivalents and Short-Term Investments	5.95B	4.33B	3.41B	3.88B	3.51B
Total Debt	1.67B	843.23M	217.83M	565.86M	855.53M
Total Liabilities	7.83B	6.13B	5.13B	4.98B	4.49B
Stockholders Equity	4.46B	3.99B	3.58B	3.19B	2.87B
Cash Flow
Free Cash Flow	882.91M	504.68M	63.89M	847.06M	467.22M
Operating Cash Flow	1.00B	561.34M	244.95M	893.33M	499.17M
Investing Cash Flow	70.14M	-100.29M	-350.49M	70.67M	-39.17M
Financing Cash Flow	534.19M	472.73M	-371.24M	-393.29M	-532.21M

HIRAYAMA HOLDINGS Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1037.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7781, the sentiment is Positive. The current price of 1037 is above the 20-day moving average (MA) of 1029.65, above the 50-day MA of 1025.80, and above the 200-day MA of 999.49, indicating a bullish trend. The MACD of 2.26 indicates Negative momentum. The RSI at 55.76 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7781.

HIRAYAMA HOLDINGS Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7367	79 Outperform	¥7.26B	13.90		5.44%	9.06%	-7.82%
151A	78 Outperform	¥8.12B	16.44		―	―	―
9346	76 Outperform	¥5.69B	9.84		2.86%	12.46%	10.03%
7781	72 Outperform	¥8.26B	9.26		4.82%	4.33%	31.92%
2410	67 Neutral	¥10.16B	9.60		4.64%	2.50%	-7.87%
Sector *	62 Neutral	kr40.62B	11.19	-0.45%	2.36%	0.39%	0.26%