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

• Market Cap: ¥25.57B
• Dividend Yield: 3.23%
• Average Volume (3M): 48.07K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.41
• Revenue Growth: 1.15%
• EPS Growth: 129.52%
• Country: JP
• Employees: 1,667
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): -3.60
• Shares Outstanding: 68,737,430
• 10 Day Avg. Volume: 47,970
• 30 Day Avg. Volume: 48,066
• PEG Ratio: -0.50
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -6.67
• 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: 64 Neutral
• Price Target: ¥392.00 ▲(6.81% Upside)

Hiroshima Gas Co., Ltd. scores moderately due to stable financial performance with areas needing improvement, particularly in cash flow management. The technical analysis indicates a bearish trend, which impacts the stock's attractiveness. However, the valuation is fair with a reasonable P/E ratio and an attractive dividend yield, providing some support to the stock's overall score.

Positive Factors

Solid Equity Base

A strong equity base provides financial stability and resilience, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Operational Efficiency

A strong EBITDA margin indicates effective cost management and operational efficiency, which can support profitability even during revenue fluctuations.

Cash Generation Ability

Strong cash generation relative to profits enhances the company's ability to fund operations, service debt, and invest in future growth without relying heavily on external financing.

Negative Factors

Declining Revenue

Declining revenue can signal weakening demand or competitive pressures, potentially impacting long-term growth and profitability if not addressed.

Negative Free Cash Flow

Negative free cash flow indicates challenges in covering capital expenditures and dividends, which may limit financial flexibility and investment capacity.

Low Profitability

Low return on equity suggests inefficiencies in generating profits from shareholder investments, which could hinder long-term shareholder value creation.

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

Company Description

Hiroshima Gas Co., Ltd. (9535) is a leading utility company based in Japan, primarily engaged in the supply and distribution of natural gas. The company also offers related services, including the provision of energy solutions, gas appliances, and engineering services. Hiroshima Gas plays a crucial role in the energy sector, serving residential, commercial, and industrial customers in the Hiroshima region, while focusing on sustainable energy practices and innovation.

How the Company Makes Money

Hiroshima Gas Co., Ltd. generates revenue primarily through the sale of natural gas to residential, commercial, and industrial customers. The company charges customers based on their consumption of gas, which is metered for accurate billing. Additional revenue streams include the sale of gas appliances and installation services, as well as energy consulting and engineering services to businesses looking to optimize their energy use. Strategic partnerships with local government and industry stakeholders further enhance its revenue potential by enabling the company to engage in joint projects and initiatives aimed at improving energy efficiency and sustainability in the region.

Hiroshima Gas Co., Ltd. Financial Statement Overview

Summary

Hiroshima Gas Co., Ltd. faces challenges with declining revenue and profitability margins, though it maintains a solid equity base. The increase in financial leverage is manageable but worth monitoring. Cash flow management requires attention, with free cash flow turning negative. Overall, the company demonstrates stability with areas needing strategic focus, particularly in improving operational profitability and cash flow generation.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	90.89B	91.59B	90.67B	95.22B	76.80B	73.25B
Gross Profit	25.67B	26.23B	28.81B	32.52B	28.21B	28.25B
EBITDA	7.89B	10.01B	10.97B	14.98B	10.63B	10.65B
Net Income	1.58B	1.69B	2.33B	5.22B	3.66B	5.27B
Balance Sheet
Total Assets	123.34B	129.59B	137.63B	142.00B	123.80B	115.48B
Cash, Cash Equivalents and Short-Term Investments	18.16B	20.61B	27.71B	35.64B	20.20B	15.58B
Total Debt	40.51B	44.10B	47.63B	56.12B	38.62B	40.07B
Total Liabilities	51.60B	58.00B	67.12B	74.14B	58.74B	55.67B
Stockholders Equity	68.37B	68.26B	67.13B	64.54B	61.87B	56.77B
Cash Flow
Free Cash Flow	0.00	-3.52B	5.37B	405.00M	743.00M	6.81B
Operating Cash Flow	0.00	5.87B	14.83B	8.95B	7.91B	13.97B
Investing Cash Flow	0.00	-9.26B	-9.68B	-7.06B	-7.14B	-13.32B
Financing Cash Flow	0.00	-3.65B	-13.17B	13.61B	3.80B	715.00M

Hiroshima Gas Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 367.00
• 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:9535, the sentiment is Positive. The current price of 367 is below the 20-day moving average (MA) of 368.85, below the 50-day MA of 368.22, and above the 200-day MA of 358.75, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 59.55 is Neutral, neither overbought nor oversold. The STOCH value of 92.50 is Negative, 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
8174	76 Outperform	¥324.26B	24.39	21.07%	3.28%	4.45%	53.88%
8131	74 Outperform	¥120.69B	9.11	―	2.57%	7.46%	153.98%
8133	70 Neutral	¥213.57B	13.20	―	3.45%	-4.87%	26.27%
6239	68 Neutral	¥9.82B	12.59	―	2.51%	-17.41%	-32.14%
8132	67 Neutral	¥64.86B	20.62	―	1.37%	-5.02%	186.97%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
9535	64 Neutral	¥25.57B	12.05	―	3.23%	1.15%	129.52%

Hiroshima Gas Co., Ltd. Corporate Events

Hiroshima Gas Reports Improved Profitability Despite Sales Decline

Hiroshima Gas Co., Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing a slight decline in net sales by 2.9% compared to the previous year. However, the company achieved a substantial increase in ordinary profit by 437.5%, reflecting improved operational efficiency and profitability. The company’s equity-to-asset ratio also improved, indicating a stronger financial position, and it maintained its dividend forecast, signaling stability for stakeholders.