Hikari Tsushin, Inc. (9435) AI Stock Analysis

• Market Cap: ¥1.69T
• Dividend Yield: 1.72%
• Average Volume (3M): 82.22K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.90
• Revenue Growth: 16.38%
• EPS Growth: -25.80%
• Country: JP
• Employees: 4,149
• Sector: Industrials
• Sector Strength: 73
• Industry: Conglomerates
• EPS (TTM): 641.83
• Shares Outstanding: 44,269,640
• 10 Day Avg. Volume: 83,400
• 30 Day Avg. Volume: 82,223
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥43,200.00
• Price Target Upside: 10.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ¥41,641.00 ▲(6.50% Upside)

Hikari Tsushin, Inc. has a strong financial foundation with consistent revenue growth and profitability, which is the most significant factor supporting the stock score. However, bearish technical indicators and moderate valuation metrics suggest caution. The lack of earnings call data and notable corporate events limits additional insights.

Hikari Tsushin, Inc. Business Overview & Revenue Model

Company Description

Hikari Tsushin, Inc. (9435) is a diversified holding company based in Japan, primarily engaged in the sale of office automation equipment and mobile phones. The company operates across various sectors including telecommunications, insurance, and office solutions. It provides a wide range of services, including the distribution of mobile phones, office automation equipment, and insurance products, catering to both individual consumers and corporate clients.

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 strong financial health with consistent revenue growth and profitability. The company maintains a balanced capital structure with effective leverage management. While cash flow generation remains robust, monitoring of profitability trends and cash flow sustainability is essential to ensure continued financial stability.

Income Statement

Hikari Tsushin, Inc. shows strong financial performance with a consistent revenue growth rate of 3.06% in the TTM period. The company maintains a healthy gross profit margin of 50% and a net profit margin of 17.12%, indicating efficient cost management and profitability. The EBIT margin of 26.86% and EBITDA margin of 23.58% further highlight operational efficiency. However, the slight decline in net income compared to the previous annual report suggests a need for cautious monitoring of profitability trends.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.02, indicating a balanced approach to leveraging. The return on equity (ROE) of 13.38% demonstrates effective utilization of shareholder funds, although it has slightly decreased from previous periods. The equity ratio of 40.85% suggests a solid capital structure, but the company should remain vigilant about maintaining equity levels amidst increasing total assets.

Cash Flow

Cash flow analysis reveals a robust free cash flow growth rate of 120.7% in the TTM period, showcasing strong cash generation capabilities. The operating cash flow to net income ratio of 0.83 indicates efficient conversion of earnings into cash. The free cash flow to net income ratio of 0.75 suggests a healthy cash flow position, although the decline in operating cash flow compared to previous periods warrants attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	707.57B	686.55B	601.95B	643.98B	573.03B	559.43B
Gross Profit	350.11B	343.30B	315.17B	297.33B	300.01B	295.55B
EBITDA	178.53B	162.51B	172.55B	128.21B	121.37B	101.23B
Net Income	99.79B	117.52B	122.22B	91.34B	87.54B	54.61B
Balance Sheet
Total Assets	2.35T	2.37T	2.08T	1.69T	1.45T	1.26T
Cash, Cash Equivalents and Short-Term Investments	325.35B	470.27B	547.05B	409.57B	349.15B	329.08B
Total Debt	886.97B	934.32B	822.49B	721.77B	612.62B	514.13B
Total Liabilities	1.36T	1.43T	1.26T	1.09T	952.36B	827.81B
Stockholders Equity	958.53B	914.77B	790.48B	571.01B	467.39B	393.44B
Cash Flow
Free Cash Flow	64.05B	63.28B	111.92B	36.46B	33.04B	42.80B
Operating Cash Flow	83.20B	84.84B	130.20B	54.80B	51.03B	58.12B
Investing Cash Flow	-211.01B	-176.44B	-94.72B	-79.35B	-95.99B	-96.64B
Financing Cash Flow	-26.91B	66.72B	55.32B	69.22B	50.09B	89.81B

Hikari Tsushin, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39100.00
• 50DMA: Negative
• 100DMA: Negative
• 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:9435, the sentiment is Negative. The current price of 39100 is below the 20-day moving average (MA) of 40969.00, below the 50-day MA of 41299.46, and above the 200-day MA of 38006.87, indicating a neutral trend. The MACD of -712.53 indicates Positive momentum. The RSI at 33.87 is Neutral, neither overbought nor oversold. The STOCH value of 22.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9435.

Hikari Tsushin, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$10.73B	15.74	7.60%	2.01%	2.75%	-15.09%
9435	61 Neutral	¥1.69T	17.21		1.72%	16.38%	-25.80%
SSUMF	―	$35.39B	8.56	13.26%	3.09%	―	―
SZHFF	―	$5.19B	8.21	11.52%	4.13%	―	―
TYHOF	―	$28.81B	11.72	14.15%	2.93%	―	―
3167	68 Neutral	¥138.33B	14.06		3.22%	4.99%	8.84%
9418	61 Neutral	¥368.15B	23.14		0.69%	20.94%	1.95%

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.