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

• Market Cap: ¥62.88B
• Dividend Yield: 2.84%
• Average Volume (3M): 104.94K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.65
• Revenue Growth: 2.77%
• EPS Growth: 10.62%
• Country: JP
• Employees: 1,536
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 6.73
• Shares Outstanding: 88,689,030
• 10 Day Avg. Volume: 126,260
• 30 Day Avg. Volume: 104,936
• 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: ¥795.00 ▲(16.57% Upside)

Hokkaido Gas Co., Ltd. receives a strong overall score due to its solid financial performance and attractive valuation. The technical analysis indicates strong bullish momentum, although the overbought condition warrants caution. The absence of earnings call and corporate events data does not impact the score significantly.

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: 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 688.30, above the 50-day MA of 675.31, and above the 200-day MA of 577.72, indicating a bullish trend. The MACD of 8.87 indicates Negative momentum. The RSI at 62.40 is Neutral, neither overbought nor oversold. The STOCH value of 93.49 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	81 Outperform	¥62.88B	5.30	―	2.84%	2.77%	10.62%
9533	73 Outperform	$443.15B	15.69	6.03%	1.92%	7.08%	44.03%
9543	70 Outperform	¥86.55B	8.83	8.29%	4.07%	1.08%	37.11%
9537	69 Neutral	¥17.19B	5.71	―	2.23%	6.66%	―
9536	68 Neutral	€69.16B	7.71	9.07%	3.79%	9.39%	77.56%
9539	68 Neutral	¥38.10B	11.69	―	1.83%	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 Q1 2025 Financial Performance

Hokkaido Gas Co., Ltd. reported a 4.8% increase in net sales and a 17.2% rise in profit attributable to owners of the parent for the three months ended June 30, 2025. The company’s financial position strengthened with an improved equity-to-asset ratio, and it maintains its dividend forecast for the fiscal year ending March 31, 2026, indicating stable financial health and positive growth momentum.

Hokkaido Gas Implements Employee-Focused Share Allotment System

Hokkaido Gas Co., Ltd. has announced the disposal of treasury shares through a restricted stock allotment system aimed at its employees, as part of a strategy to enhance employee engagement and corporate value. This initiative is expected to foster a stable shareholder base and improve the liquidity of the company’s shares over the medium to long term.

Hokkaido Gas Co., Ltd. Reports Strong Q1 Financial Performance

Hokkaido Gas Co., Ltd. reported a significant increase in its financial performance for the three months ending June 30, 2025, with net sales rising by 4.8% and profits showing substantial growth compared to the previous year. The company’s improved equity-to-asset ratio and stable dividend forecasts indicate a strong financial position, which may positively impact stakeholders and enhance its market positioning.

Hokkaido Gas Completes Treasury Share Disposal for Compensation

Hokkaido Gas Co., Ltd. announced the completion of payment for treasury shares disposed of as restricted stock compensation. This strategic move involves the disposal of 38,915 common shares at 596 yen per share, aimed at compensating directors and executive officers, which may impact the company’s financial structuring and stakeholder relations.