Hikari Tsushin, Inc. (9435) AI Stock Analysis

• Market Cap: ¥1.92T
• Dividend Yield: 1.57%
• Average Volume (3M): 69.76K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.94
• Revenue Growth: 14.45%
• EPS Growth: 29.21%
• Country: JP
• Employees: 4,149
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 960.25
• Shares Outstanding: 44,269,640
• 10 Day Avg. Volume: 74,800
• 30 Day Avg. Volume: 69,756
• PEG Ratio: -4.82
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 2.47
• P/FCF Ratio: 26.80
• 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: 76 Outperform
• Price Target: ¥48,789.00 ▲(13.52% Upside)

Hikari Tsushin, Inc. scores well due to strong financial performance and attractive valuation. The technical analysis supports a positive outlook with bullish momentum. However, the decline in free cash flow growth and increasing debt levels are potential risks that should be monitored.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a robust demand for services and effective market penetration, supporting long-term business expansion.

Profitability Margins

Strong profitability margins reflect efficient operations and cost management, enhancing the company's ability to reinvest in growth opportunities.

Diversified Revenue Streams

Diversified revenue streams reduce dependency on a single market, providing stability and resilience against sector-specific downturns.

Negative Factors

Rising Debt Levels

Increasing debt levels may strain financial flexibility and elevate risk, potentially impacting future investment and growth capabilities.

Decline in Free Cash Flow

A decline in free cash flow can limit the company's ability to fund operations and growth initiatives, affecting long-term financial health.

Cost Pressures

Decreasing gross profit margins suggest rising costs, which could erode profitability if not managed effectively, impacting future earnings.

Hikari Tsushin, Inc. Business Overview & Revenue Model

Company Description

Hikari Tsushin, Inc. (9435) is a prominent telecommunications and information technology company based in Japan. The company operates primarily in the telecommunications sector, providing a wide range of services including mobile communications, broadband internet, and various IT solutions. Hikari Tsushin also offers cloud services, data center services, and consulting, catering to both individual consumers and businesses. With a focus on enhancing connectivity and digital transformation, the company leverages advanced technologies to deliver innovative solutions to its clients.

How the Company Makes Money

Hikari Tsushin generates revenue through multiple streams, primarily by offering telecommunications services, including mobile and fixed-line voice services, broadband internet, and data services. The company also earns significant income from its IT solutions and consulting services, which include cloud computing and data center operations. Additionally, Hikari Tsushin benefits from partnerships with various businesses, enhancing its service offerings and expanding its customer base. The combination of subscription fees from telecommunications services, project-based revenue from IT consulting, and recurring revenue from cloud services contributes to the overall profitability of the company.

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	722.47B	686.55B	601.95B	643.98B	573.03B	559.43B
Gross Profit	357.91B	343.30B	315.17B	297.33B	300.01B	295.55B
EBITDA	196.42B	162.51B	172.55B	128.21B	121.37B	101.23B
Net Income	139.65B	117.52B	122.22B	91.34B	87.54B	54.61B
Balance Sheet
Total Assets	2.58T	2.37T	2.08T	1.69T	1.45T	1.26T
Cash, Cash Equivalents and Short-Term Investments	436.04B	470.27B	547.05B	409.57B	349.15B	329.08B
Total Debt	977.14B	934.32B	822.49B	721.77B	612.62B	514.13B
Total Liabilities	1.49T	1.43T	1.26T	1.09T	952.36B	827.81B
Stockholders Equity	1.06T	914.77B	790.48B	571.01B	467.39B	393.44B
Cash Flow
Free Cash Flow	58.73B	63.28B	111.92B	36.46B	33.04B	42.80B
Operating Cash Flow	76.93B	84.84B	130.20B	54.80B	51.03B	58.12B
Investing Cash Flow	-224.94B	-176.44B	-94.72B	-79.35B	-95.99B	-96.64B
Financing Cash Flow	106.07B	66.72B	55.32B	69.22B	50.09B	89.81B

Hikari Tsushin, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42980.00
• 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:9435, the sentiment is Positive. The current price of 42980 is above the 20-day moving average (MA) of 42550.50, above the 50-day MA of 42088.80, and above the 200-day MA of 40509.45, indicating a bullish trend. The MACD of 380.75 indicates Negative momentum. The RSI at 62.85 is Neutral, neither overbought nor oversold. The STOCH value of 91.33 is Negative, 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
8015	77 Outperform	¥5.62T	15.22	13.49%	2.13%	5.32%	9.73%
8053	77 Outperform	¥6.53T	10.71	12.86%	2.50%	3.19%	72.26%
9435	76 Outperform	¥1.92T	14.00	―	1.57%	14.45%	29.21%
2768	76 Outperform	$925.85B	9.22	11.17%	3.24%	2.12%	18.93%
3167	70 Outperform	¥140.82B	13.45	―	3.16%	3.99%	20.63%
9418	67 Neutral	¥351.55B	19.11	―	0.82%	19.48%	19.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Hikari Tsushin, Inc. Corporate Events

Hikari Tsushin Announces Share Buyback Strategy

Hikari Tsushin, Inc. announced the acquisition of 20,100 shares of its own common stock, amounting to 867,134,000 yen, as part of a resolution made by its Board of Directors. This strategic move, conducted through open market trading on the Tokyo Stock Exchange, is part of a larger plan to acquire up to 350,000 shares by June 2026, potentially impacting the company’s market positioning and shareholder value.

Hikari Tsushin Announces Share Repurchase and Cancellation Plan

Hikari Tsushin, Inc. has announced a strategic move to repurchase up to 350,000 of its common stock shares, which represents 0.79% of its total issued shares, with a budget of up to 10 billion yen. Additionally, the company plans to cancel 280,000 treasury shares by December 29, 2025, as part of its efforts to enhance shareholder returns and implement a flexible capital policy.

Hikari Tsushin Increases Dividend Forecast Amid Strong Performance

Hikari Tsushin, Inc. announced a revision to its dividend forecast, increasing the dividend per share to 185 yen for the second and third quarters, and projecting an annual dividend of 736 yen per share. This decision reflects the company’s strong performance and commitment to shareholder returns, indicating a positive outlook for its financial health and stakeholder confidence.

Hikari Tsushin Reports Strong Financial Growth and Increases Dividend Forecast

Hikari Tsushin, Inc. reported a significant increase in its financial performance for the six months ended September 30, 2025, with revenue rising by 11% and profit attributable to owners of the parent increasing by 45.9%. The company also announced an upward revision in its cash dividend forecast, reflecting confidence in its continued growth and financial stability.

Hikari Tsushin Issues 54th Unsecured Corporate Bond

Hikari Tsushin, Inc. has announced the issuance of its 54th unsecured corporate bond, valued at 15 billion yen, with a coupon rate of 2.656% per annum. This strategic financial move is aimed at funding bond redemption, potentially strengthening the company’s financial position and market credibility.

Hikari Tsushin, Inc. Announces New Bond Issuance for Strategic Financial Management

Hikari Tsushin, Inc. has announced the issuance of its 52nd and 53rd unsecured straight corporate bonds, each valued at 10 billion yen. The bonds, with maturities of three and five years respectively, are aimed at funding bond redemption and are backed by a strong credit rating, reflecting the company’s stable financial standing and strategic growth plans.