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

• Market Cap: $97.67B
• Dividend Yield: 0.74%
• Average Volume (3M): 581.15K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.25
• Revenue Growth: 14.32%
• EPS Growth: -4.49%
• Country: JP
• Employees: 10,664
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): -26.98
• Shares Outstanding: 79,860,940
• 10 Day Avg. Volume: 519,660
• 30 Day Avg. Volume: 581,146
• PEG Ratio: -0.03
• Price to Book (P/B): 2.51
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 6.22
• Enterprise Value/Market Cap: 1.85
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 1.53
• Enterprise Value/Ebitda: 8.26
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: ¥1,421.00 ▲(5.49% Upside)

The overall stock score is primarily influenced by the company's financial performance, which shows signs of recovery but is hindered by high leverage. Technical analysis indicates a bearish trend, while valuation metrics suggest moderate pricing. The absence of recent earnings call insights and corporate events means these factors did not impact the score.

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

Company Description

H.I.S. Co., Ltd. provides travel agency services worldwide. The company offers sports related tours, such as ski and diving tours; casual to luxury cruises; escort accompanied tours, honeymoons, and onboard weddings; and local tour services in Australia, Bali Island, Guam, Thailand, and South Korea. It also operates hotels and theme parks, as well as bus tours connecting Tokyo and the surrounding area to Kansai and Nagoya. In addition, the company offers business trips and various tours; and overseas travel insurance products. Further, it operates Hapi-robo st, a robot; generates and supplies electricity using renewable energy; provides hotel amenities, guest room facilities, and furniture and electronic appliances for offices and houses; sets and manages events; coordinates with Japan medial tourism; and offers direct sales support services. Additionally, the company provides a range of diploma and certificate programs in business, international trade, hospitality, information technology, and health care areas; and communication equipment and services. It operates Smrt English, an English learning platform; and GREEN OCEAN, a job placement agency that focus on agriculture and accommodation business. The company was formerly known as International Tours Co., Ltd. and changed its name to H.I.S. Co., Ltd. in 1990. H.I.S. Co., Ltd. was incorporated in 1980 and is headquartered in Tokyo, Japan.

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. Revenue and margins have improved significantly, but high leverage remains a challenge. Continued focus on debt management and operational efficiency is 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	372.08B	343.33B	251.87B	142.79B	118.56B	430.28B
Gross Profit	117.98B	110.62B	82.74B	28.26B	16.38B	69.90B
EBITDA	21.86B	22.37B	11.95B	6.95B	-36.42B	-18.32B
Net Income	6.61B	8.72B	-2.62B	-11.50B	-50.05B	-25.04B
Balance Sheet
Total Assets	394.51B	412.20B	441.35B	414.98B	411.45B	414.60B
Cash, Cash Equivalents and Short-Term Investments	117.78B	138.17B	157.59B	145.01B	101.42B	95.23B
Total Debt	180.15B	211.86B	266.15B	276.75B	277.36B	248.56B
Total Liabilities	333.50B	349.86B	383.20B	358.35B	347.30B	316.18B
Stockholders Equity	49.90B	52.25B	48.98B	47.82B	40.78B	74.13B
Cash Flow
Free Cash Flow	-2.28B	21.05B	24.59B	-23.83B	-44.96B	-124.28B
Operating Cash Flow	1.37B	29.25B	31.07B	-14.91B	-28.40B	-57.72B
Investing Cash Flow	-3.99B	45.61B	-46.39B	53.52B	-7.09B	-47.90B
Financing Cash Flow	-15.49B	-55.16B	-11.79B	5.46B	40.71B	-5.60B

H.I.S.Co. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1347.00
• 50DMA: Negative
• 100DMA: Negative
• 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:9603, the sentiment is Negative. The current price of 1347 is below the 20-day moving average (MA) of 1378.80, below the 50-day MA of 1432.10, and below the 200-day MA of 1468.95, indicating a bearish trend. The MACD of -29.16 indicates Positive momentum. The RSI at 40.84 is Neutral, neither overbought nor oversold. The STOCH value of 22.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥169.81B	9.38	―	3.47%	5.69%	48.81%
6412	68 Neutral	€200.72B	12.82	6.63%	3.93%	31.75%	-9.71%
7906	68 Neutral	$332.50B	27.34	18.19%	0.57%	23.05%	31.52%
9166	65 Neutral	¥151.41B	57.20	―	―	68.78%	-45.75%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
4680	61 Neutral	$324.77B	19.61	―	1.50%	11.92%	33.70%
9603	54 Neutral	$97.67B	14.93	13.31%	0.74%	14.32%	-4.49%

H.I.S.Co. Corporate Events

H.I.S. Co., Ltd. Addresses Wrongful Subsidy Receipt by Subsidiary

H.I.S. Co., Ltd. announced disciplinary actions following an investigation that revealed its subsidiary, Tour Wave Co., Ltd., wrongfully received an Employment Adjustment Subsidy. Tour Wave has repaid the subsidies, and the president’s compensation has been reduced. The incident is expected to have an insignificant impact on H.I.S.’s financial results, though investigations are ongoing.

The most recent analyst rating on (JP:9603) stock is a Hold with a Yen1579.00 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. Advances Measures to Prevent Recurrence of Compliance Issues

H.I.S. Co., Ltd. has announced progress in implementing measures to prevent the recurrence of issues related to fraudulent receipt of employment adjustment subsidies. The company is focusing on fostering compliance awareness, strengthening group governance, reviewing internal controls for public subsidy applications, improving labor management, promoting the whistleblowing system, and enhancing the internal audit system. These steps aim to restore trust and improve operational efficiency, impacting the company’s industry positioning and stakeholder confidence.

The most recent analyst rating on (JP:9603) stock is a Hold with a Yen1579.00 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 Extraordinary Income and Losses for Fiscal Year 2025

H.I.S. Co., Ltd. has reported extraordinary financial results for the first nine months of the fiscal year ending October 31, 2025, including both income and losses. The company recorded an extraordinary income of 1,366 million yen due to the reversal of allowance for doubtful accounts, attributed to improved earnings of its subsidiaries. Conversely, it also reported an extraordinary loss of 1,677 million yen due to the write-down of shares in its scaled-back subsidiary, HIS ULUSLARARASI TURIZM SEYAHAT ACENTASI LIMITED SIRKETI, impacting its non-consolidated financial results.

The most recent analyst rating on (JP:9603) stock is a Hold with a Yen1579.00 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. Revises Financial Forecast Amid Turkish Subsidiary Challenges

H.I.S. Co., Ltd. has revised its full-year financial forecast for the fiscal year ending October 31, 2025, due to significant changes in its Turkish subsidiary’s operations. The subsidiary experienced increased outbound business volume but faced challenges from the declining Turkish lira and inflation, leading to a decision to scale back operations and record extraordinary losses. This adjustment has resulted in a downward revision of the company’s profit forecast, impacting its financial outlook.

The most recent analyst rating on (JP:9603) stock is a Hold with a Yen1579.00 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 but Declining Profits for Nine Months Ending July 2025

H.I.S. Co., Ltd reported consolidated financial results for the nine months ending July 31, 2025, showing a 12.2% increase in net sales compared to the previous year. However, profit attributable to owners of the parent decreased by 50.2%. The company revised its full-year financial forecast, anticipating a 13.6% increase in net sales and a 25.4% decrease in profit attributable to owners of the parent. The company also announced changes in its scope of consolidation, excluding six subsidiaries.

The most recent analyst rating on (JP:9603) stock is a Hold with a Yen1579.00 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 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.