Hokkaido Gas Co., Ltd. (9534) AI Stock Analysis

• Market Cap: ¥65.09B
• Dividend Yield: 2.93%
• Average Volume (3M): 103.80K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.63
• Revenue Growth: 2.77%
• EPS Growth: 10.64%
• Country: JP
• Employees: 1,536
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 6.72
• Shares Outstanding: 88,689,030
• 10 Day Avg. Volume: 105,400
• 30 Day Avg. Volume: 103,796
• PEG Ratio: -0.41
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 3.03
• 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: 81 Outperform
• Price Target: ¥852.00 ▲(24.93% Upside)

Hokkaido Gas Co., Ltd. receives a strong overall score due to its attractive valuation and robust technical indicators. The low P/E ratio and solid dividend yield highlight its value proposition, while technical analysis shows strong upward momentum. Financial performance is stable, though the decline in free cash flow is a minor concern. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Stable Profitability

Stable profitability indicates effective cost management and operational efficiency, ensuring the company can sustain its operations and growth over the long term.

Strong Equity Position

A strong equity position reflects the company's ability to effectively utilize shareholder capital, supporting future growth and financial stability.

Revenue Growth

Positive revenue growth indicates increasing demand and market presence, which can lead to enhanced profitability and competitive positioning.

Negative Factors

Decline in Free Cash Flow

A decline in free cash flow may limit the company's ability to invest in growth opportunities and manage financial obligations, potentially impacting long-term sustainability.

Modest Net Profit Margin

A modest net profit margin suggests limited profitability relative to revenue, which may constrain the company's ability to reinvest in business expansion and innovation.

Free Cash Flow Efficiency

Moderate cash flow efficiency indicates that the company may not be fully optimizing its cash generation, potentially affecting its capacity to fund operations and growth initiatives.

Hokkaido Gas Co., Ltd. Business Overview & Revenue Model

Company Description

Hokkaido Gas Co., Ltd. (9534) is a leading energy company based in Hokkaido, Japan, primarily engaged in the distribution and supply of natural gas. The company operates in various sectors including residential, commercial, and industrial gas supply, as well as energy-related services. Hokkaido Gas focuses on providing clean and efficient energy solutions, with a commitment to environmental sustainability and the development of renewable energy sources.

How the Company Makes Money

Hokkaido Gas Co., Ltd. generates revenue primarily through the sale and distribution of natural gas to residential, commercial, and industrial customers. The company charges customers for the volume of gas consumed, which is measured in cubic meters. In addition to gas sales, Hokkaido Gas also earns income from related services, such as installation and maintenance of gas appliances and infrastructure. Strategic partnerships with local governments and businesses enhance their market reach and customer base. The company's revenue is influenced by factors such as natural gas prices, regulatory changes, and demand fluctuations in the energy market.

Hokkaido Gas Co., Ltd. Financial Statement Overview

Summary

Hokkaido Gas Co., Ltd. demonstrates solid financial health with stable profitability and a strong equity position. Revenue growth and margins are favorable, although the decline in free cash flow warrants attention. Overall, the company is well-positioned in the regulated gas industry, with a balanced approach to leverage and capital management.

Income Statement

Hokkaido Gas Co., Ltd. shows a stable gross profit margin of approximately 29.6% in TTM, indicating efficient cost management. The net profit margin is modest at 6.1%, reflecting steady profitability. Revenue growth is positive at 3.5% TTM, recovering from a slight decline in the previous year. EBIT and EBITDA margins are healthy, suggesting strong operational performance.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.72 TTM, indicating a balanced leverage position. Return on equity is strong at 12.8%, showcasing effective use of equity capital. The equity ratio stands at 49.9%, reflecting a solid equity base relative to total assets.

Cash Flow

Operating cash flow is robust, but free cash flow has decreased by 28.7% TTM, which could be a concern for future investments. The operating cash flow to net income ratio is 0.65, indicating adequate cash generation relative to earnings. The free cash flow to net income ratio is 0.49, suggesting moderate cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	172.06B	170.29B	173.88B	174.84B	126.96B	118.16B
Gross Profit	51.78B	50.37B	49.09B	44.94B	37.00B	34.29B
EBITDA	30.84B	29.81B	30.28B	27.77B	21.25B	19.97B
Net Income	11.04B	10.40B	11.63B	9.96B	5.24B	4.29B
Balance Sheet
Total Assets	180.63B	195.43B	186.37B	183.80B	160.43B	151.22B
Cash, Cash Equivalents and Short-Term Investments	2.65B	11.32B	9.47B	2.72B	9.57B	6.14B
Total Debt	62.36B	62.60B	75.16B	67.78B	58.51B	73.66B
Total Liabilities	88.31B	106.94B	107.37B	115.80B	101.24B	96.99B
Stockholders Equity	90.17B	86.35B	76.89B	65.89B	57.12B	52.19B
Cash Flow
Free Cash Flow	10.50B	14.73B	15.86B	-14.60B	8.22B	11.66B
Operating Cash Flow	26.31B	29.83B	31.68B	6.70B	19.71B	22.40B
Investing Cash Flow	-19.14B	-20.06B	-16.75B	-22.56B	-11.11B	-10.25B
Financing Cash Flow	-8.34B	-7.92B	-8.17B	9.03B	-5.18B	-7.55B

Hokkaido Gas Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 682.00
• 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:9534, the sentiment is Positive. The current price of 682 is below the 20-day moving average (MA) of 726.85, below the 50-day MA of 696.16, and above the 200-day MA of 593.19, indicating a bullish trend. The MACD of 18.34 indicates Negative momentum. The RSI at 66.76 is Neutral, neither overbought nor oversold. The STOCH value of 74.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9534.

Hokkaido Gas Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9534	81 Outperform	¥65.09B	5.48	―	2.93%	2.77%	10.64%
9533	73 Outperform	¥469.37B	16.68	6.03%	1.78%	7.08%	43.50%
9543	70 Outperform	€88.48B	9.02	8.29%	4.06%	1.08%	37.11%
9537	69 Neutral	¥17.28B	5.74	―	2.23%	6.66%	―
9536	68 Neutral	€69.16B	7.71	9.07%	3.69%	9.39%	77.24%
9539	68 Neutral	¥38.10B	11.69	―	1.82%	0.93%	1212.45%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

Hokkaido Gas Co., Ltd. Corporate Events

Hokkaido Gas Reports Strong Financial Growth and Revised Dividend Policy

Hokkaido Gas Co., Ltd. reported a significant increase in its financial performance for the six months ending September 30, 2025, with net sales rising by 4.9% and operating profit increasing by 39.2% compared to the previous year. The company also announced a revision in its dividend policy, reflecting a positive outlook for the fiscal year ending March 31, 2026, with a forecasted slight increase in profits and stable earnings per share.

The most recent analyst rating on (JP:9534) stock is a Buy with a Yen795.00 price target. To see the full list of analyst forecasts on Hokkaido Gas Co., Ltd. stock, see the JP:9534 Stock Forecast page.

Hokkaido Gas Reports Strong Financial Growth and Revised Dividend Policy

Hokkaido Gas Co., Ltd. reported a significant increase in its financial performance for the six months ended September 30, 2025, with net sales rising by 4.9% and profits attributable to owners increasing by 40.6% compared to the previous year. The company also announced a revision to its dividend policy, reflecting a positive outlook and a commitment to returning value to shareholders.

The most recent analyst rating on (JP:9534) stock is a Buy with a Yen795.00 price target. To see the full list of analyst forecasts on Hokkaido Gas Co., Ltd. stock, see the JP:9534 Stock Forecast page.

Hokkaido Gas Co., Ltd. Revises Dividend Policy and Increases Dividend Forecast

Hokkaido Gas Co., Ltd. has revised its dividend policy to focus on progressive dividends, aiming for a 2.5% consolidated dividend on equity ratio. This change reflects the company’s commitment to long-term investments in infrastructure, renewable energy, and digital transformation, ensuring stable dividends and financial soundness. The company has also increased its interim and year-end dividend forecasts, highlighting a positive outlook on its financial performance and commitment to shareholder returns.

The most recent analyst rating on (JP:9534) stock is a Buy with a Yen795.00 price target. To see the full list of analyst forecasts on Hokkaido Gas Co., Ltd. stock, see the JP:9534 Stock Forecast page.