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Hokkaido Gas Co., Ltd. (JP:9534)
:9534
Japanese Market

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

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JP

Hokkaido Gas Co., Ltd.

(9534)

Rating:76Outperform
Price Target:
¥635.00
▲(14.41%Upside)
Hokkaido Gas Co., Ltd. exhibits solid financial health with stable profitability and strong cash flow generation, although revenue growth remains a challenge. The stock's technical outlook is positive, supported by favorable momentum indicators. Additionally, the stock is attractively valued with a low P/E ratio and a healthy dividend yield, enhancing its overall investment appeal.

Hokkaido Gas Co., Ltd. (9534) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionHokkaido Gas Co., Ltd. is a Japanese utility company primarily engaged in the production, supply, and sale of gas, as well as the provision of related services. The company operates within the energy sector, focusing on delivering natural gas and other energy solutions to residential, commercial, and industrial customers throughout the Hokkaido region. Hokkaido Gas Co., Ltd. also engages in the sale of liquefied natural gas (LNG) and offers energy-related consulting services.
How the Company Makes MoneyHokkaido Gas Co., Ltd. generates revenue through several key streams. The primary source of income is the sale of natural gas to residential, commercial, and industrial customers. The company supplies gas directly to consumers through an established network of pipelines, ensuring a consistent and reliable energy supply. Additionally, Hokkaido Gas Co., Ltd. earns money by selling liquefied natural gas (LNG) to other businesses and energy providers. The company also provides energy-related consulting services, which include advising on energy efficiency and solutions for optimizing energy consumption. Partnerships with local governments and other utility providers can enhance service offerings and expand market reach, contributing to the company's overall earnings.

Hokkaido Gas Co., Ltd. Financial Statement Overview

Summary
Hokkaido Gas Co., Ltd. presents a robust financial profile with stable profitability margins and solid cash flow generation. While the company faces challenges in revenue growth, it maintains a healthy balance sheet with manageable leverage. The overall financial health positions the company well for future stability in the regulated gas industry.
Income Statement
72
Positive
The income statement shows a stable gross profit margin of around 30% over the years, with a net profit margin improving to about 6.1% for 2025. However, revenue slightly declined by 2.1% from 2024 to 2025. EBIT and EBITDA margins indicate stable operational performance, with EBITDA margin around 17.5% for 2025.
Balance Sheet
65
Positive
The balance sheet reflects a solid equity ratio of 44.2% in 2025, indicating a strong equity base. The debt-to-equity ratio is 0.72, suggesting manageable leverage. However, total debt levels remain high, posing a potential risk in a volatile interest rate environment.
Cash Flow
78
Positive
Cash flow analysis reveals strong free cash flow generation with a significant improvement from a negative position in 2023 to 14.7 billion in 2025. Operating cash flow has been consistently positive, supporting the company's ability to cover capital expenditures and debt obligations.
Breakdown
Mar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
170.29B173.88B174.84B126.96B118.16B
Gross Profit
50.37B49.09B44.94B37.00B34.29B
EBIT
14.33B15.60B13.34B7.05B5.09B
EBITDA
29.81B29.58B26.95B21.25B19.97B
Net Income Common Stockholders
10.40B11.63B9.96B5.24B4.29B
Balance SheetCash, Cash Equivalents and Short-Term Investments
11.32B9.47B2.72B9.57B6.14B
Total Assets
195.43B186.37B183.80B160.43B151.22B
Total Debt
62.60B75.16B67.78B58.51B69.50B
Net Debt
51.28B65.69B65.06B48.94B63.36B
Total Liabilities
106.94B107.37B115.80B101.24B96.99B
Stockholders Equity
86.35B76.89B65.89B57.12B52.19B
Cash FlowFree Cash Flow
14.73B15.86B-14.60B8.22B11.66B
Operating Cash Flow
29.83B31.68B6.70B19.71B22.40B
Investing Cash Flow
-20.06B-16.75B-22.56B-11.11B-10.25B
Financing Cash Flow
-7.92B-8.17B9.03B-5.18B-7.55B

Hokkaido Gas Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price555.00
Price Trends
50DMA
528.56
Positive
100DMA
523.36
Positive
200DMA
547.49
Positive
Market Momentum
MACD
6.17
Positive
RSI
57.20
Neutral
STOCH
75.14
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 555 is above the 20-day moving average (MA) of 548.25, above the 50-day MA of 528.56, and above the 200-day MA of 547.49, indicating a bullish trend. The MACD of 6.17 indicates Positive momentum. The RSI at 57.20 is Neutral, neither overbought nor oversold. The STOCH value of 75.14 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
€66.91B10.526.29%4.00%-0.74%3.35%
76
Outperform
¥49.15B4.70
3.42%-2.06%-10.54%
72
Outperform
¥39.96B12.15
1.77%0.03%
71
Outperform
¥16.95B8.42
2.26%0.59%
69
Neutral
€80.10B8.847.82%3.78%4.77%44.40%
66
Neutral
$394.83B15.975.51%1.86%3.64%-3.56%
64
Neutral
$8.53B10.344.24%4.37%4.14%-13.04%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9534
Hokkaido Gas Co., Ltd.
555.00
-115.93
-17.28%
JP:9537
Hokuriku Gas Co., Ltd.
3,535.00
179.19
5.34%
JP:9539
Keiyo Gas Co., Ltd.
1,246.00
336.55
37.01%
JP:9543
SHIZUOKA GAS CO. LTD.
1,086.00
181.72
20.10%
JP:9536
SAIBU GAS HOLDINGS CO. LTD.
1,788.00
-127.90
-6.68%
JP:9533
TOHO GAS Co
4,069.00
141.89
3.61%

Hokkaido Gas Co., Ltd. Corporate Events

Hokkaido Gas Co., Ltd. Revamps Officer Remuneration System
May 19, 2025

Hokkaido Gas Co., Ltd. has announced a revision of its officer remuneration system, introducing a new structure that includes basic remuneration, performance-linked remuneration, and restricted stock remuneration. This change aims to provide greater incentives for directors to enhance corporate performance and value over the short, medium, and long term. The introduction of a restricted stock remuneration system is intended to further align directors’ interests with the company’s long-term growth objectives, with a proposal for this system to be presented at the upcoming Annual General Meeting of Shareholders.

Hokkaido Gas Boosts Year-End Dividend Amid Strong Performance
May 19, 2025

Hokkaido Gas Co., Ltd. has announced a decision to increase its year-end dividend to ¥10.00 per share, up from ¥9.00 the previous year, reflecting strong performance due to expanded sales volume and business reforms. This adjustment results in a total annual dividend of ¥19.00 per share, marking a ¥3.00 increase from the prior fiscal year, and highlights the company’s commitment to rewarding shareholders while balancing future growth investments and financial stability.

Hokkaido Gas Reports Decline in Fiscal Year 2025 Results
May 16, 2025

Hokkaido Gas Co., Ltd. reported a decline in its financial performance for the fiscal year ended March 31, 2025, with net sales decreasing by 2.1% to ¥170,295 million and a 10.5% drop in profit attributable to owners of the parent. Despite the challenging year, the company maintained a solid equity-to-asset ratio of 44.1% and increased its annual dividend payout, reflecting a commitment to shareholder returns. The company’s forecast for the next fiscal year anticipates a slight decrease in net sales but a modest increase in operating profit, indicating a cautious yet optimistic outlook.

Hokkaido Gas Finalizes Stock Compensation Details for Executives
May 13, 2025

Hokkaido Gas Co., Ltd. has finalized the issuance details of stock compensation-type share options for its Directors and Executive Officers, as resolved in a recent board meeting. This move is part of the company’s strategy to align the interests of its leadership with shareholder value, potentially impacting its operational dynamics and market positioning.

Hokkaido Gas Co., Ltd. Reports Decline in Fiscal Year 2025 Financial Results
Apr 28, 2025

Hokkaido Gas Co., Ltd. reported a decline in its financial performance for the fiscal year ended March 31, 2025, with net sales, operating profit, and ordinary profit all experiencing decreases compared to the previous year. Despite these declines, the company managed to increase its total assets and net assets, indicating a strong financial position. The company also announced a stock split and adjusted its dividend payments, reflecting its commitment to shareholder value.

Hokkaido Gas Co. Revises Year-End Dividend Forecast Upward
Apr 28, 2025

Hokkaido Gas Co., Ltd. has announced a revision to its year-end dividend forecast, increasing it from ¥9.00 to ¥10.00 per share. This decision reflects the company’s strong performance, driven by sales volume expansion and successful business reforms, and aims to balance future growth investments with financial strength.

Hokkaido Gas Issues Stock Options to Boost Executive Motivation
Apr 28, 2025

Hokkaido Gas Co., Ltd. announced the issuance of stock compensation-type share options for its Directors and Executive Officers to enhance their motivation and align their interests with shareholders. This move aims to improve business performance and corporate value over the medium to long term, potentially impacting the company’s operational efficiency and shareholder relations positively.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.