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

• Market Cap: ¥46.94B
• Dividend Yield: 3.54%
• Average Volume (3M): 124.16K
• Price to Earnings (P/E): 4.5
• Beta (1Y): 0.71
• Revenue Growth: -2.06%
• EPS Growth: -10.54%
• Country: JP
• Employees: 1,536
• Sector: Utilities
• Sector Strength: 82
• Industry: Regulated Gas
• EPS (TTM): 118.07
• Shares Outstanding: 88,689,030
• 10 Day Avg. Volume: 89,170
• 30 Day Avg. Volume: 124,163
• PEG Ratio: -0.06
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.28
• 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

Hokkaido Gas Co., Ltd. scores well due to its solid financial performance, characterized by stable profit margins and strong cash flow. The company benefits from a low P/E ratio and attractive dividend yield, indicating good valuation. While technical indicators show positive momentum, the stock has yet to surpass its 200-day moving average, suggesting some caution. Overall, the company is well-positioned in the regulated gas industry, offering stability and potential value to investors.

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 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

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

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

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 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
170.29B	173.88B	174.84B	126.96B	118.16B
	Gross Profit
50.37B	49.09B	44.94B	37.00B	34.29B
	EBIT
14.33B	15.60B	13.34B	7.05B	5.09B
	EBITDA
29.81B	29.58B	26.95B	21.25B	19.97B
	Net Income Common Stockholders
10.40B	11.63B	9.96B	5.24B	4.29B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.32B	9.47B	2.72B	9.57B	6.14B
	Total Assets
195.43B	186.37B	183.80B	160.43B	151.22B
	Total Debt
62.60B	75.16B	67.78B	58.51B	69.50B
	Net Debt
51.28B	65.69B	65.06B	48.94B	63.36B
	Total Liabilities
106.94B	107.37B	115.80B	101.24B	96.99B
	Stockholders Equity
86.35B	76.89B	65.89B	57.12B	52.19B
Cash Flow		Free Cash Flow
14.73B	15.86B	-14.60B	8.22B	11.66B
	Operating Cash Flow
29.83B	31.68B	6.70B	19.71B	22.40B
	Investing Cash Flow
-20.06B	-16.75B	-22.56B	-11.11B	-10.25B
	Financing Cash Flow
-7.92B	-8.17B	9.03B	-5.18B	-7.55B

Hokkaido Gas Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 537.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 537 is above the 20-day moving average (MA) of 532.70, above the 50-day MA of 517.81, and below the 200-day MA of 552.01, indicating a neutral trend. The MACD of 7.29 indicates Positive momentum. The RSI at 50.58 is Neutral, neither overbought nor oversold. The STOCH value of 28.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	70 Outperform	¥46.94B	4.55		3.54%	-2.06%	-10.54%
9535	64 Neutral	¥23.67B	14.02		3.45%	-4.73%	-81.56%
Sector *	63 Neutral	$8.53B	10.12	4.66%	4.41%	3.73%	-14.17%

Hokkaido Gas Co., Ltd. Corporate Events

Hokkaido Gas Reports Decline in Fiscal Year 2025 Results

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

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

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

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

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.