H.I.S.Co. (9603) AI Stock Analysis

• Market Cap: ¥106.69B
• Dividend Yield: 1.37%
• Average Volume (3M): 498.87K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.23
• Revenue Growth: 17.20%
• EPS Growth: 44.52%
• Country: JP
• Employees: 10,664
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Leisure
• EPS (TTM): 3.81
• Shares Outstanding: 79,860,940
• 10 Day Avg. Volume: 527,640
• 30 Day Avg. Volume: 498,866
• 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: ¥1,544.37
• Price Target Upside: 7.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 66 Neutral
• Price Target: ¥1,554.00 ▲(7.69% Upside)

H.I.S.Co. demonstrates a strong recovery in financial performance, with improved profitability and cash flow. Technical indicators show positive momentum, supporting a bullish outlook. The valuation is reasonable, making the stock attractive for potential investors. However, high leverage remains a risk that needs to be managed.

H.I.S.Co. Business Overview & Revenue Model

Company Description

H.I.S.Co. (9603) is a diversified company operating predominantly in the travel and tourism sector. It offers a wide range of services including travel agency operations, hotel management, and theme park management. The company is known for providing comprehensive travel solutions and experiences, catering to both individual and corporate clients. In addition, H.I.S.Co. has expanded its business interests into other sectors such as energy, retail, and insurance, reflecting its strategy of diversification and growth.

How the Company Makes Money

H.I.S.Co. generates revenue primarily through its travel agency operations, which include the sale of airline tickets, hotel bookings, and package tours. The company earns commissions and service fees from these transactions. Additionally, its hotel and theme park management segments contribute to its revenue by attracting visitors and offering hospitality services. The company's diversification into sectors like energy and retail further supplements its income, with strategic partnerships and investments enhancing its earnings potential. H.I.S.Co.'s ability to leverage its brand and extensive network in the travel industry plays a crucial role in maintaining and expanding its revenue streams.

H.I.S.Co. Financial Statement Overview

Summary

H.I.S.Co. is on a recovery trajectory with improved profitability and cash flow generation. While revenue and margins have improved significantly, the company faces challenges with high leverage. Continued focus on debt management and operational efficiency will be crucial for sustained stability and growth.

Income Statement

H.I.S.Co. has shown a significant recovery in revenue with a 36.3% growth rate year-over-year (YOY) in 2024. Gross profit margin improved to 32.2%, and net profit margin turned positive at 2.5% after a negative period, showcasing a turnaround in profitability. However, historical volatility in EBIT and EBITDA margins highlights past operational challenges.

Balance Sheet

The debt-to-equity ratio stands at 4.05, indicating high leverage, which poses financial risk. However, the equity ratio of 12.7% and positive return on equity of 16.7% in 2024 reflect improved financial health, although the company needs to manage its debt levels to ensure stability.

Cash Flow

Free cash flow increased by 20.8% YOY, driven by improved operating cash flows. The operating cash flow to net income ratio is robust at 3.36, indicating strong cash generation relative to profit. However, historical fluctuations in free cash flow highlight potential volatility in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	325.47B	343.33B	251.87B	142.79B	118.56B	430.28B
Gross Profit	106.29B	110.62B	82.74B	28.26B	16.38B	69.90B
EBITDA	21.78B	22.37B	11.95B	6.95B	-36.42B	-18.32B
Net Income	6.90B	8.72B	-2.62B	-9.55B	-50.05B	-25.04B
Balance Sheet
Total Assets	457.89B	412.20B	441.35B	414.98B	411.45B	414.60B
Cash, Cash Equivalents and Short-Term Investments	164.34B	138.17B	157.59B	145.01B	101.42B	95.23B
Total Debt	245.91B	211.86B	266.15B	276.75B	277.36B	248.56B
Total Liabilities	390.75B	349.86B	383.20B	358.35B	347.30B	316.18B
Stockholders Equity	57.59B	52.25B	48.98B	47.82B	40.78B	74.13B
Cash Flow
Free Cash Flow	6.10B	21.05B	24.59B	-23.83B	-44.96B	-124.28B
Operating Cash Flow	6.10B	29.25B	31.07B	-14.91B	-28.40B	-57.72B
Investing Cash Flow	0.00	45.61B	-46.39B	53.52B	-7.09B	-47.90B
Financing Cash Flow	0.00	-55.16B	-11.79B	5.46B	40.71B	-5.60B

H.I.S.Co. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1443.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9603, the sentiment is Positive. The current price of 1443 is above the 20-day moving average (MA) of 1404.95, above the 50-day MA of 1425.90, and below the 200-day MA of 1538.31, indicating a neutral trend. The MACD of 11.38 indicates Negative momentum. The RSI at 57.04 is Neutral, neither overbought nor oversold. The STOCH value of 68.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9603.

H.I.S.Co. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7458	74 Outperform	¥188.75B	9.90		3.46%	5.69%	48.81%
4680	73 Outperform	$437.12B	26.41	22.21%	1.09%	11.92%	33.70%
9166	69 Neutral	¥168.57B	61.15		―	77.47%	-45.82%
6412	69 Neutral	¥213.05B	13.64	6.63%	3.72%	31.75%	-9.71%
7906	68 Neutral	$268.25B	22.05	18.19%	0.68%	23.05%	31.52%
Sector *	67 Neutral	¥266.29B	13.56	6.53%	2.54%	5.06%	-16.31%
9603	66 Neutral	¥106.69B	12.60	16.85%	1.37%	17.20%	44.52%

H.I.S.Co. Corporate Events

H.I.S. Co., Ltd Reports Strong Semi-Annual Financial Performance

H.I.S. Co., Ltd reported a 12.7% increase in net sales to 181,313 million yen for the six months ending April 30, 2025, with operating profit rising by 21.6% to 6,721 million yen. The company also announced a dividend of 10 yen per share for the fiscal year ending October 31, 2025, reflecting a positive outlook despite excluding three subsidiaries from consolidation.

The most recent analyst rating on (JP:9603) stock is a Hold with a Yen1580.00 price target. To see the full list of analyst forecasts on H.I.S.Co. stock, see the JP:9603 Stock Forecast page.

H.I.S. Co., Ltd. Implements Measures to Prevent Subsidy Mismanagement

H.I.S. Co., Ltd. has announced a series of measures to address and prevent the recurrence of issues related to the improper receipt of employment adjustment subsidies. The company is focusing on fostering compliance awareness, strengthening group governance, revising internal controls for subsidy applications, enhancing labor management, promoting the whistleblowing system, and improving the internal audit system. These efforts are aimed at restoring confidence and ensuring effective risk management across the group.

The most recent analyst rating on (JP:9603) stock is a Buy with a Yen2100.00 price target. To see the full list of analyst forecasts on H.I.S.Co. stock, see the JP:9603 Stock Forecast page.

H.I.S. Co., Ltd Reports Increased Sales and Announces Dividend for 2025

H.I.S. Co., Ltd reported a 12.7% increase in net sales to 181,313 million yen for the six months ending April 30, 2025, with operating profit rising by 21.6% to 6,721 million yen. The company also announced a dividend of 10 yen per share for the fiscal year ending October 31, 2025, reflecting a positive outlook despite a decrease in comprehensive income and the exclusion of three subsidiaries from consolidation.

The most recent analyst rating on (JP:9603) stock is a Buy with a Yen2100.00 price target. To see the full list of analyst forecasts on H.I.S.Co. stock, see the JP:9603 Stock Forecast page.

H.I.S. Co., Ltd. Expands Global Reach with New Saudi Arabian Subsidiary

H.I.S. Co., Ltd. has announced the establishment of a new subsidiary, H.I.S. SAUDI ARABIA LLC, through its consolidated subsidiary, H.I.S. Management Consulting DMCC. This move is part of the company’s strategy to expand its sales channels and create new customers in the global market, particularly in Saudi Arabia, where tourism is becoming a key industry. The impact on the company’s business performance is expected to be minor, but it positions H.I.S. to capitalize on the growing tourism sector in Saudi Arabia.

The most recent analyst rating on (JP:9603) stock is a Buy with a Yen2100.00 price target. To see the full list of analyst forecasts on H.I.S.Co. stock, see the JP:9603 Stock Forecast page.

H.I.S. Co., Ltd. Updates on Subsidiary Share Transfer Notice

H.I.S. Co., Ltd. announced corrections to a previous notice regarding the transfer of shares of its subsidiary, NUMBER ONE TRAVEL SHIBUYA Co., Ltd. The corrections involve financial figures related to the subsidiary’s assets and net assets per share over the past three fiscal years. This adjustment may impact stakeholders’ understanding of the subsidiary’s financial health and the strategic decisions of H.I.S. Co., Ltd.

The most recent analyst rating on (JP:9603) stock is a Buy with a Yen2100.00 price target. To see the full list of analyst forecasts on H.I.S.Co. stock, see the JP:9603 Stock Forecast page.

H.I.S. Co., Ltd. Completes Treasury Stock Disposal for Compensation

H.I.S. Co., Ltd. has completed the payment procedures for the disposal of its treasury stock as restricted stock compensation, involving 13,188 shares at a price of JPY 1,684 per share, totaling JPY 22,208,592. This move is part of the company’s strategy to align the interests of its directors with those of its shareholders, potentially impacting its governance and stakeholder relations positively.

The most recent analyst rating on (JP:9603) stock is a Buy with a Yen2100.00 price target. To see the full list of analyst forecasts on H.I.S.Co. stock, see the JP:9603 Stock Forecast page.

H.I.S. Co., Ltd. Transfers Shares of Subsidiary for Strategic Reorganization

H.I.S. Co., Ltd. has decided to transfer its entire stake in its subsidiary, NUMBER ONE TRAVEL SHIBUYA Co., Ltd., as part of a strategic reorganization to enhance group governance. This move is based on the assessment that the subsidiary can sustain itself and continue its growth independently, potentially impacting the company’s operational focus and market strategy.

The most recent analyst rating on (JP:9603) stock is a Buy with a Yen2100.00 price target. To see the full list of analyst forecasts on H.I.S.Co. stock, see the JP:9603 Stock Forecast page.

H.I.S. Co., Ltd. Subsidiary to Acquire Kyoshin Densetsu Kogyo K.K.

H.I.S. Co., Ltd. announced that its subsidiary, Cross E Holdings Corporation Limited, has entered into a basic agreement to acquire Kyoshin Densetsu Kogyo K.K., a construction company with expertise in electrical and telecommunications work. This acquisition aims to expand Cross E’s market presence in Nagasaki Prefecture and create synergies within the group, enhancing its business operations and risk management capabilities.

The most recent analyst rating on (JP:9603) stock is a Buy with a Yen2100.00 price target. To see the full list of analyst forecasts on H.I.S.Co. stock, see the JP:9603 Stock Forecast page.