Hiroshima Gas Co., Ltd. (9535) AI Stock Analysis

• Market Cap: ¥26.05B
• Dividend Yield: 3.17%
• Average Volume (3M): 100.56K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.45
• Revenue Growth: 2.11%
• EPS Growth: -9.10%
• Country: JP
• Employees: 1,667
• Sector: Energy
• Sector Strength: 49
• Industry: Oil & Gas Integrated
• EPS (TTM): 8.34
• Shares Outstanding: 68,737,430
• 10 Day Avg. Volume: 84,100
• 30 Day Avg. Volume: 100,560
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥438.00
• Price Target Upside: 15.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥438.00 ▲(15.57% Upside)

Hiroshima Gas Co., Ltd. scores 71, primarily driven by positive technical indicators showing strong upward momentum, despite being in an overbought state. Financial performance is stable, with challenges in revenue and cash flow that require strategic focus. Valuation metrics suggest the stock is fairly valued with a good dividend yield.

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

Company Description

Hiroshima Gas Co., Ltd. is a utility company based in Japan, primarily engaged in the supply and distribution of natural gas. The company operates in the energy sector, focusing on delivering gas to residential, commercial, and industrial customers within its service area. It also offers related services such as gas equipment sales and maintenance, energy solutions, and consulting services to optimize energy use.

How the Company Makes Money

Hiroshima Gas Co., Ltd. generates revenue primarily through the sale and distribution of natural gas to its customers, which include residential households, commercial businesses, and industrial enterprises. The company charges customers based on their gas consumption, using a tiered pricing model that reflects usage levels and market conditions. Additionally, Hiroshima Gas earns income from the sale and maintenance of gas appliances and equipment, providing installation services and conducting safety inspections. The company may also engage in energy solutions and consulting services aimed at improving energy efficiency for its clients, further diversifying its revenue streams. Significant partnerships with other energy providers and infrastructure investments can enhance its service offerings and expand its market reach, contributing to overall earnings.

Hiroshima Gas Co., Ltd. Financial Statement Overview

Summary

Hiroshima Gas Co., Ltd. is experiencing revenue decline and compressed profit margins. Despite a robust equity base, the company's cash flow management poses challenges with negative free cash flow. The overall financial stability is maintained, but attention is needed for profitability and cash flow improvements.

Income Statement

Hiroshima Gas Co., Ltd. has shown a decline in revenue from the previous year, with the latest annual revenue at ¥91.595 billion, down from ¥95.219 billion the prior year. Gross profit margin is 28.64%, and the net profit margin stands at 1.84%, both reflecting some compression over the year. Despite these challenges, the EBITDA margin remains robust at 10.93%, indicating decent operational efficiency.

Balance Sheet

The company maintains a healthy equity base with an equity ratio of 52.68%. However, the debt-to-equity ratio has increased slightly to 0.65, indicating a moderate level of financial leverage. Return on equity is relatively low at 2.47%, suggesting room for improvement in profitability relative to shareholder equity.

Cash Flow

Operating cash flow decreased considerably, leading to a negative free cash flow of ¥-3.517 billion. The operating cash flow to net income ratio of 3.48 indicates strong cash generation relative to profits, but the free cash flow to net income ratio is negative, highlighting issues with cash flow management.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	91.59B	90.67B	95.22B	76.80B	73.25B
Gross Profit	26.23B	28.81B	32.52B	28.21B	28.25B
EBITDA	10.01B	10.97B	14.34B	10.63B	10.65B
Net Income	1.69B	2.33B	5.22B	3.66B	5.27B
Balance Sheet
Total Assets	129.59B	137.63B	142.00B	123.80B	115.48B
Cash, Cash Equivalents and Short-Term Investments	20.61B	27.71B	35.64B	20.20B	15.58B
Total Debt	44.10B	47.63B	56.12B	38.62B	33.88B
Total Liabilities	58.00B	67.12B	74.14B	58.74B	55.67B
Stockholders Equity	68.26B	67.13B	64.54B	61.87B	56.77B
Cash Flow
Free Cash Flow	-3.52B	5.37B	405.00M	743.00M	6.81B
Operating Cash Flow	5.87B	14.83B	8.95B	7.91B	13.97B
Investing Cash Flow	-9.26B	-9.68B	-7.06B	-7.14B	-13.32B
Financing Cash Flow	-3.65B	-13.17B	13.61B	3.80B	715.00M

Hiroshima Gas Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 379.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9535, the sentiment is Positive. The current price of 379 is above the 20-day moving average (MA) of 377.00, above the 50-day MA of 363.86, and above the 200-day MA of 357.62, indicating a bullish trend. The MACD of 6.30 indicates Positive momentum. The RSI at 56.10 is Neutral, neither overbought nor oversold. The STOCH value of 7.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9535.

Hiroshima Gas Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6239	78 Outperform	¥9.84B	10.05		2.51%	-6.19%	-17.05%
8131	78 Outperform	¥120.75B	9.94		2.57%	9.10%	92.69%
8174	78 Outperform	¥319.28B	25.27	20.08%	3.13%	4.94%	38.06%
Sector *	72 Outperform	¥397.21B	20.42	8.76%	3.27%	-2.84%	-12.43%
9535	71 Outperform	¥26.05B	16.46		3.17%	2.11%	-9.10%
8132	68 Neutral	¥71.26B	21.46		1.35%	-6.97%	―
8133	63 Neutral	¥222.04B	13.00		3.15%	-4.47%	37.38%

Hiroshima Gas Co., Ltd. Corporate Events

Hiroshima Gas Reports Decline in Profits Amid Slight Sales Growth

Hiroshima Gas Co., Ltd. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a slight increase in net sales by 1% to ¥91,595 million. However, the company experienced a significant decline in operating profit by 60.7% and ordinary profit by 43.4%, reflecting challenges in maintaining profitability. The financial results indicate a cautious outlook for the upcoming fiscal year with a forecasted decrease in net sales and profit attributable to owners of the parent. The company maintains its dividend payout, signaling a commitment to shareholder returns despite the financial downturn.