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

• Market Cap: ¥10.44B
• Dividend Yield: 3.96%
• Average Volume (3M): 6.31K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.68
• Revenue Growth: 2.96%
• EPS Growth: 14.65%
• Country: JP
• Employees: 3,096
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 40.44
• Shares Outstanding: 8,156,400
• 10 Day Avg. Volume: 9,400
• 30 Day Avg. Volume: 6,313
• PEG Ratio: 0.94
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 8.55
• 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: 78 Outperform
• Price Target: ¥1,379.00 ▲(5.27% Upside)

HIRAYAMA HOLDINGS Co.Ltd. demonstrates strong financial performance and attractive valuation, with positive technical indicators supporting a bullish outlook. The low P/E ratio and high dividend yield enhance its appeal, though caution is advised due to the RSI nearing overbought levels.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Generation

Strong cash generation enhances financial flexibility, enabling investment in growth opportunities and resilience against economic downturns.

Balance Sheet Health

A strong balance sheet with low leverage supports financial stability and provides a buffer against market volatility.

Negative Factors

Net Profit Margin

Low net profit margins may limit profitability, necessitating improved cost controls or pricing strategies to enhance financial performance.

Free Cash Flow Volatility

Volatility in free cash flow can impact financial planning and investment capacity, posing risks to sustained growth and stability.

Profit Margin Sustainability

While operational efficiency is stable, low net margins may challenge long-term profitability, requiring strategic adjustments.

HIRAYAMA HOLDINGS Co.Ltd. Business Overview & Revenue Model

Company Description

HIRAYAMA HOLDINGS Co., Ltd. (7781) is a Japanese company primarily engaged in the development and manufacturing of advanced healthcare and medical equipment. The company operates within the healthcare sector, focusing on innovative solutions that enhance patient care and improve clinical outcomes. HIRAYAMA's core products include medical devices, diagnostic tools, and healthcare software, catering to hospitals, clinics, and healthcare professionals globally.

How the Company Makes Money

HIRAYAMA HOLDINGS generates revenue through the sale of its medical devices and healthcare solutions. The company has established key revenue streams from the direct sale of its products to healthcare institutions and the provision of maintenance and support services. Additionally, HIRAYAMA may engage in partnerships with other medical technology firms to co-develop products or expand its market reach, further contributing to its earnings. The company also benefits from ongoing demand in the healthcare sector, driven by an aging population and increasing healthcare spending.

HIRAYAMA HOLDINGS Co.Ltd. Financial Statement Overview

Summary

HIRAYAMA HOLDINGS Co.Ltd. presents a strong financial profile with consistent revenue growth and solid profitability metrics. The balance sheet is well-managed with a healthy equity base and controlled leverage. Cash flow generation is robust, although some volatility in free cash flow growth warrants attention.

Income Statement

HIRAYAMA HOLDINGS Co.Ltd. exhibits strong revenue growth with a consistent upward trajectory over the years, highlighted by a 1.58% growth in the latest period. The company maintains healthy profit margins, with a gross profit margin of 18.15% and a net profit margin of 2.37% for the most recent year. EBIT and EBITDA margins also show stability, indicating efficient operational management. However, the net profit margin remains relatively low, suggesting room for improvement in cost management or pricing strategies.

Balance Sheet

The balance sheet reflects a solid financial position with a manageable debt-to-equity ratio of 0.25, indicating prudent leverage use. The return on equity is robust at 17.17%, showcasing effective utilization of shareholder funds. The equity ratio of 40.45% suggests a strong capital structure, though there is potential risk if debt levels increase significantly.

Cash Flow

Cash flow analysis reveals a remarkable free cash flow growth, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 1.15, demonstrating efficient conversion of earnings into cash. The free cash flow to net income ratio of 1.08 further supports the company's ability to generate cash relative to its net income, although fluctuations in free cash flow growth rates suggest potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.22B	36.22B	35.29B	31.67B	27.98B	23.04B
Gross Profit	6.57B	6.57B	5.97B	5.23B	4.80B	4.01B
EBITDA	1.35B	1.39B	1.26B	1.00B	799.51M	768.63M
Net Income	857.81M	858.16M	757.11M	549.13M	409.36M	413.46M
Balance Sheet
Total Assets	12.36B	12.36B	12.29B	10.11B	8.71B	8.17B
Cash, Cash Equivalents and Short-Term Investments	6.06B	6.06B	5.95B	4.33B	3.41B	3.88B
Total Debt	1.24B	1.24B	1.67B	843.23M	217.83M	565.86M
Total Liabilities	7.35B	7.35B	7.83B	6.13B	5.13B	4.98B
Stockholders Equity	5.00B	5.00B	4.46B	3.99B	3.58B	3.19B
Cash Flow
Free Cash Flow	0.00	923.57M	882.91M	504.68M	63.89M	847.06M
Operating Cash Flow	0.00	989.12M	1.00B	561.34M	244.95M	893.33M
Investing Cash Flow	0.00	-95.19M	70.14M	-100.29M	-350.49M	70.67M
Financing Cash Flow	0.00	-764.69M	534.19M	472.73M	-371.24M	-393.29M

HIRAYAMA HOLDINGS Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1310.00
• 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:7781, the sentiment is Positive. The current price of 1310 is above the 20-day moving average (MA) of 1259.75, above the 50-day MA of 1184.98, and above the 200-day MA of 1067.67, indicating a bullish trend. The MACD of 30.29 indicates Positive momentum. The RSI at 67.80 is Neutral, neither overbought nor oversold. The STOCH value of 48.98 is Neutral, 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
9346	79 Outperform	¥6.28B	11.06	―	2.78%	10.27%	-0.35%
7781	78 Outperform	¥10.44B	10.49	―	3.96%	2.96%	14.65%
7367	74 Outperform	¥7.17B	11.29	―	4.64%	27.01%	9.02%
2410	67 Neutral	¥12.25B	11.25	―	4.24%	5.14%	17.12%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
151A	63 Neutral	¥5.41B	11.08	―	―	9.09%	42.47%