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

• Market Cap: ¥66.24B
• Dividend Yield: 2.87%
• Average Volume (3M): 96.14K
• Price to Earnings (P/E): 5.6
• 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: 73,430
• 30 Day Avg. Volume: 96,140
• 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: 77 Outperform
• Price Target: ¥823.00 ▲(20.67% Upside)

Hokkaido Gas Co., Ltd. demonstrates strong financial performance with robust revenue growth and profitability, contributing significantly to the overall score. The valuation is also a positive factor, with a low P/E ratio and a solid dividend yield. Technical analysis presents a mixed picture, with short-term bearish signals but longer-term bullish momentum. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The company's impressive revenue growth of 91.8% in the TTM period indicates a strong upward trajectory, enhancing its market position and competitive edge.

Cash Generation

Robust cash generation ensures financial flexibility and supports future investments, enabling the company to capitalize on growth opportunities.

Profitability Margins

High profitability margins reflect efficient operational management, contributing to sustained financial health and competitive advantage.

Negative Factors

Debt Levels

While leverage is moderate, monitoring debt levels is crucial to maintain financial flexibility and avoid potential strain on cash flows.

Regulatory Changes

The absence of recent regulatory updates could imply potential uncertainties in the regulatory environment, impacting strategic planning.

Market Demand Fluctuations

Fluctuations in market demand and natural gas prices can lead to revenue volatility, affecting long-term financial stability and planning.

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

Company Description

Hokkaido Gas Co., Ltd. engages in gas, and heat and power supply businesses in Japan. The company is also involved in the purification and sale of gas by-products; production and sale of gas appliances, as well as related construction works; and other related works. It offers its services in Sapporo, Otaru, Hakodate, Chitose, Ishikari, Kitahiroshima, Eniwa, Hokuto, and Kitami. Hokkaido Gas Co., Ltd. was founded in 1911 and is headquartered in Sapporo, Japan.

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	173.64B	170.29B	173.88B	174.84B	126.96B	118.16B
Gross Profit	52.88B	50.37B	49.09B	44.94B	37.00B	34.29B
EBITDA	32.04B	29.81B	30.28B	27.77B	21.25B	19.97B
Net Income	11.82B	10.40B	11.63B	9.96B	5.24B	4.29B
Balance Sheet
Total Assets	183.84B	195.43B	186.37B	183.80B	160.43B	151.22B
Cash, Cash Equivalents and Short-Term Investments	9.38B	11.32B	9.47B	2.72B	9.57B	6.14B
Total Debt	51.22B	62.60B	75.16B	67.78B	58.51B	73.66B
Total Liabilities	90.60B	106.94B	107.37B	115.80B	101.24B	96.99B
Stockholders Equity	90.97B	86.35B	76.89B	65.89B	57.12B	52.19B
Cash Flow
Free Cash Flow	17.36B	14.73B	15.86B	-14.60B	8.22B	11.66B
Operating Cash Flow	32.04B	29.83B	31.68B	6.70B	19.71B	22.40B
Investing Cash Flow	-17.34B	-20.06B	-16.75B	-22.56B	-11.11B	-10.25B
Financing Cash Flow	-8.19B	-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: Negative

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 735.80, below the 50-day MA of 714.38, and above the 200-day MA of 610.50, indicating a bullish trend. The MACD of 5.59 indicates Negative momentum. The RSI at 55.38 is Neutral, neither overbought nor oversold. The STOCH value of 88.84 is Negative, 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	77 Outperform	¥66.24B	5.58	―	2.87%	2.77%	10.64%
9533	73 Outperform	¥463.97B	16.49	6.03%	1.80%	7.08%	43.50%
9543	70 Outperform	¥89.74B	9.15	8.29%	3.94%	1.08%	37.11%
9537	69 Neutral	¥17.67B	5.86	―	2.18%	6.66%	―
9536	68 Neutral	¥71.79B	8.01	9.07%	3.61%	9.39%	77.24%
9539	68 Neutral	¥38.04B	11.67	―	1.80%	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.

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.

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.