Hikari Tsushin, Inc. (9435) AI Stock Analysis

• Market Cap: ¥1.83T
• Dividend Yield: 1.6%
• Average Volume (3M): 73.32K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.88
• Revenue Growth: 16.38%
• EPS Growth: -25.80%
• Country: JP
• Employees: 4,149
• Sector: Industrials
• Sector Strength: 75
• Industry: Conglomerates
• EPS (TTM): 641.83
• Shares Outstanding: 44,269,640
• 10 Day Avg. Volume: 94,540
• 30 Day Avg. Volume: 73,320
• 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: ¥45,631.00
• Price Target Upside: 8.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: ¥48,062.00 ▲(13.81% Upside)

Hikari Tsushin, Inc. shows strong financial performance with consistent revenue growth and solid profit margins. The technical indicators suggest a positive trend, although caution is advised due to nearing overbought levels. The stock's valuation appears fair, with a moderate P/E ratio and a modest dividend yield.

Hikari Tsushin, Inc. Business Overview & Revenue Model

Company Description

Hikari Tsushin, Inc. engages in the sale of communication-related products, such as business phones, OA equipment, UTMs, and servers. The company also provides Internet communication line, content, electricity, industry-specific IT solutions, water delivery services, etc., as well as insurance products and agency sales services. The company was founded in 1988 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Hikari Tsushin, Inc. generates revenue through several key streams. The primary source of income is the wholesale and retail distribution of mobile phones and office automation products. The company leverages its extensive sales network to provide these products to a broad customer base. Additionally, Hikari Tsushin earns revenue from its insurance brokerage services, offering a variety of insurance products to their clients. The company also benefits from strategic partnerships and investments in affiliate companies, which contribute to its overall earnings. These diversified revenue streams enable Hikari Tsushin to maintain a robust financial position in the market.

Hikari Tsushin, Inc. Financial Statement Overview

Summary

Hikari Tsushin, Inc. demonstrates solid financial health with consistent revenue growth and strong profit margins. Despite increased leverage, the company maintains a robust equity position and efficient cash flow generation.

Income Statement

Hikari Tsushin, Inc. has demonstrated consistent revenue growth, with a notable increase from 2024 to 2025. The gross profit margin remains solid, indicating effective cost management. Despite a slight decrease in net income, the net profit margin is robust. EBIT and EBITDA margins show operational efficiency, although EBITDA margin has slightly decreased compared to the previous year.

Balance Sheet

The company maintains a strong equity base with a healthy equity ratio. However, the debt-to-equity ratio has increased, signaling higher leverage, which could pose risks if not managed carefully. Return on equity is strong, reflecting efficient use of shareholder funds despite the increased leverage.

Cash Flow

Operating cash flow remains strong, though it has decreased compared to the previous year. Free cash flow growth is positive, indicating good cash generation. The free cash flow to net income ratio is healthy, supporting the company’s ability to fund operations and investments from cash generated.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	686.55B	601.95B	643.98B	578.27B	559.43B
Gross Profit	343.30B	315.17B	297.33B	300.01B	295.55B
EBITDA	162.51B	172.55B	86.64B	92.20B	83.95B
Net Income	117.52B	122.22B	91.34B	87.54B	54.61B
Balance Sheet
Total Assets	2.37T	2.08T	1.69T	1.45T	1.26T
Cash, Cash Equivalents and Short-Term Investments	470.27B	547.05B	409.57B	349.15B	329.08B
Total Debt	934.32B	822.49B	721.77B	612.62B	514.13B
Total Liabilities	1.43T	1.26T	1.09T	952.36B	827.81B
Stockholders Equity	914.77B	790.48B	571.01B	467.39B	393.44B
Cash Flow
Free Cash Flow	63.28B	111.92B	36.46B	33.04B	42.80B
Operating Cash Flow	84.84B	130.20B	54.80B	51.03B	58.12B
Investing Cash Flow	-176.44B	-94.72B	-79.35B	-95.99B	-96.64B
Financing Cash Flow	65.90B	55.32B	69.22B	50.09B	89.81B

Hikari Tsushin, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42230.00
• 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:9435, the sentiment is Positive. The current price of 42230 is above the 20-day moving average (MA) of 41684.50, above the 50-day MA of 41559.09, and above the 200-day MA of 37290.27, indicating a bullish trend. The MACD of 332.09 indicates Negative momentum. The RSI at 54.75 is Neutral, neither overbought nor oversold. The STOCH value of 61.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9435.

Hikari Tsushin, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9435	76 Outperform	¥1.83T	18.67		1.60%	16.38%	-25.80%
Sector *	71 Outperform	¥267.81B	14.80	8.32%	2.78%	6.12%	11.24%
SSUMF	―	$32.82B	7.77	13.26%	3.32%	―	―
SZHFF	―	$5.19B	8.21	11.52%	4.13%	―	―
TYHOF	―	$27.10B	9.38	14.15%	4.05%	―	―
9418	71 Outperform	¥394.66B	24.81		1.05%	20.94%	1.95%
3167	69 Neutral	¥146.06B	14.84		3.01%	4.99%	8.84%

Hikari Tsushin, Inc. Corporate Events

Hikari Tsushin to Acquire Full Ownership of Zappallas

Hikari Tsushin, Inc. has announced a share exchange agreement to make Zappallas, Inc. a wholly owned subsidiary. This strategic move aims to strengthen collaboration and focus on existing businesses, addressing Zappallas’s growth strategy challenges and operational inefficiencies. The share exchange is expected to enhance corporate value for both companies, with Zappallas’s delisting anticipated to facilitate deeper integration and cost efficiencies.

The most recent analyst rating on (JP:9435) stock is a Hold with a Yen33400.00 price target. To see the full list of analyst forecasts on Hikari Tsushin, Inc. stock, see the JP:9435 Stock Forecast page.

Hikari Tsushin Announces Disposal of Treasury Shares for Employee Incentives

Hikari Tsushin, Inc. announced the disposal of 4,485 treasury shares as part of a restricted stock compensation plan aimed at incentivizing employees and aligning their interests with those of shareholders. This move is intended to enhance sustainable corporate value and involves a three-year transfer restriction period for the allocated shares, with specific conditions for lifting these restrictions.

The most recent analyst rating on (JP:9435) stock is a Hold with a Yen33400.00 price target. To see the full list of analyst forecasts on Hikari Tsushin, Inc. stock, see the JP:9435 Stock Forecast page.

Hikari Tsushin Announces Increased Dividend Amid Steady Performance

Hikari Tsushin, Inc. announced an increase in its fourth quarter-end dividend to 177 yen per share, reflecting a steady performance. This adjustment results in an annual dividend of 661 yen per share, up 23 yen from the previous year, emphasizing the company’s commitment to returning profits to shareholders.

The most recent analyst rating on (JP:9435) stock is a Hold with a Yen33400.00 price target. To see the full list of analyst forecasts on Hikari Tsushin, Inc. stock, see the JP:9435 Stock Forecast page.

Hikari Tsushin Reports FY2025 Financial Results with Revenue Growth

Hikari Tsushin, Inc. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 14.1% increase in revenue to 686,553 million yen. Despite the revenue growth, profit before tax and profit attributable to owners of the parent saw declines of 10.3% and 3.8% respectively. The company plans to hold its ordinary general shareholders’ meeting on June 28, 2025, and commence dividend payments on June 13, 2025. The company has also forecasted a 10.7% increase in revenue for the fiscal year ending March 31, 2026.

The most recent analyst rating on (JP:9435) stock is a Hold with a Yen33400.00 price target. To see the full list of analyst forecasts on Hikari Tsushin, Inc. stock, see the JP:9435 Stock Forecast page.