Higashi Twenty One Co., Ltd. (9029) AI Stock Analysis

• Market Cap: ¥23.07B
• Dividend Yield: 2.38%
• Average Volume (3M): 31.29K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.73
• Revenue Growth: 22.91%
• EPS Growth: 61.68%
• Country: JP
• Employees: 1,495
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): 54.85
• Shares Outstanding: 13,264,000
• 10 Day Avg. Volume: 15,120
• 30 Day Avg. Volume: 31,286
• PEG Ratio: 0.45
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.33
• P/FCF Ratio: -13.37
• 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: 75 Outperform
• Price Target: ¥1,869.00 ▲(11.58% Upside)

Higashi Twenty One Co., Ltd. is well-positioned with strong financial performance and attractive valuation metrics. The stock's technical indicators suggest strong momentum, though caution is advised due to overbought conditions. Monitoring cash flow management and debt levels will be important for future stability.

Positive Factors

Revenue Growth

Strong revenue growth indicates the company's expanding market presence and effective sales strategies, supporting long-term business sustainability.

Profitability

Improved profitability margins reflect efficient cost management and operational effectiveness, enhancing the company's financial health and competitive position.

Market Position

A strong market position with both physical and online presence allows the company to reach a wide customer base, driving sustained revenue and growth.

Negative Factors

Debt Levels

Rising debt levels can increase financial risk and limit future investment opportunities, potentially impacting long-term financial stability.

Cash Flow Management

Declining free cash flow suggests challenges in cash management, which could constrain the company's ability to invest in growth and manage debt.

EBITDA Margin

Limited improvement in EBITDA margin indicates potential inefficiencies in operations, which could hinder profitability and competitiveness over time.

Higashi Twenty One Co., Ltd. Business Overview & Revenue Model

Company Description

Higashi Twenty One Co., Ltd. provides logistics services in Japan. It engages in the transportation and delivery, distribution center/warehouse storage, logistics processing, and industrial waste management activities; provision of BPO solution, such as in-house document logistics management/mail room management, sorting/shipping of forms with personal information, confidential document storage and recycling under security management, etc.; and office relocation activities. The company also offers logistics services in the building; operates shops in the building under the Hills 21 name; PC kitting/IT related services; rents and sells welfare equipment comprising beds and wheelchairs; and sells hygiene products consisting of adult disposable diapers. In addition, it is involved in the temporary staffing and parking lot management activities. The company was formerly known as Eastern Transportation Service Co., Ltd. and changed its name to Higashi Twenty One Co., Ltd. in February 2002. Higashi Twenty One Co., Ltd. was incorporated in 1944 and is headquartered in Osaka, Japan.

How the Company Makes Money

Higashi Twenty One Co., Ltd. generates revenue through multiple streams including in-store sales, online sales through its e-commerce platform, and partnerships with suppliers for exclusive product offerings. The primary revenue stream comes from retail sales, which account for a significant portion of its earnings as the company operates numerous physical stores. Additionally, the company leverages special promotions and seasonal sales to drive traffic and boost sales. Its partnerships with various suppliers enable it to offer unique products, enhancing its market appeal and customer loyalty, which further contributes to its revenue.

Higashi Twenty One Co., Ltd. Financial Statement Overview

Summary

Higashi Twenty One Co., Ltd. exhibits strong financial performance with robust revenue and profit growth. The balance sheet is stable, though increased debt levels should be monitored. Cash flow management presents some challenges, particularly in terms of free cash flow generation.

Income Statement

Higashi Twenty One Co., Ltd. has demonstrated strong revenue growth, with a notable increase from 2024 to 2025. The gross profit margin is healthy, reflecting efficient cost management. Net profit margin and EBIT margin have also improved, indicating enhanced profitability. However, the EBITDA margin shows room for further improvement.

Balance Sheet

The company's balance sheet is stable, with a reasonable debt-to-equity ratio that suggests manageable leverage. Return on equity is strong, indicating effective use of shareholder funds. The equity ratio is solid, reflecting a healthy proportion of equity financing. However, the increase in total debt warrants monitoring.

Cash Flow

The cash flow statement reveals a decline in free cash flow, primarily due to increased capital expenditures. The operating cash flow to net income ratio is satisfactory, indicating good cash generation relative to profits. However, the negative free cash flow growth rate is a concern, suggesting potential cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.04B	48.13B	40.64B	34.81B	27.95B	24.44B
Gross Profit	9.43B	9.03B	7.78B	7.01B	5.81B	5.06B
EBITDA	4.48B	4.04B	3.21B	2.68B	2.28B	1.54B
Net Income	2.01B	1.81B	1.51B	1.27B	1.12B	666.53M
Balance Sheet
Total Assets	30.73B	31.60B	25.54B	21.23B	18.14B	15.81B
Cash, Cash Equivalents and Short-Term Investments	4.60B	4.68B	4.06B	3.49B	3.51B	3.11B
Total Debt	8.82B	9.47B	5.93B	3.98B	2.75B	2.11B
Total Liabilities	17.14B	18.09B	13.22B	10.36B	8.28B	6.90B
Stockholders Equity	13.58B	13.51B	12.31B	10.87B	9.86B	8.91B
Cash Flow
Free Cash Flow	0.00	-1.20B	152.31M	243.59M	804.93M	193.56M
Operating Cash Flow	0.00	2.37B	3.03B	665.05M	1.48B	508.96M
Investing Cash Flow	0.00	-4.53B	-3.27B	-1.34B	-1.00B	-534.41M
Financing Cash Flow	0.00	2.75B	818.57M	714.62M	-107.72M	-101.17M

Higashi Twenty One Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1675.00
• 50DMA: Negative
• 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:9029, the sentiment is Neutral. The current price of 1675 is below the 20-day moving average (MA) of 1878.05, below the 50-day MA of 1787.94, and above the 200-day MA of 1543.79, indicating a neutral trend. The MACD of -8.34 indicates Positive momentum. The RSI at 38.46 is Neutral, neither overbought nor oversold. The STOCH value of 4.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9029.

Higashi Twenty One Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9306	80 Outperform	¥13.12B	8.68	―	3.07%	4.45%	29.58%
9115	77 Outperform	¥21.71B	4.50	―	0.78%	-1.67%	18.47%
9034	77 Outperform	¥15.25B	11.55	―	3.60%	3.18%	-23.51%
9029	75 Outperform	¥23.07B	9.91	―	2.38%	22.91%	61.68%
9083	74 Outperform	¥23.07B	8.58	―	1.83%	6.55%	9.32%
9312	70 Outperform	¥17.62B	7.80	―	2.59%	7.13%	16.09%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%