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

• Market Cap: ¥85.77B
• Dividend Yield: 1.52%
• Average Volume (3M): 457.66K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.35
• Revenue Growth: 8.75%
• EPS Growth: -43.89%
• Country: JP
• Employees: 10,664
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 39.30
• Shares Outstanding: 79,860,940
• 10 Day Avg. Volume: 489,090
• 30 Day Avg. Volume: 457,656
• PEG Ratio: -0.45
• Price to Book (P/B): 1.75
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 6.95
• 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): 113.19
• Revenue Forecast (FY): ¥403.19B

• Rating: 64 Neutral
• Price Target: ¥1,238.00 ▼(-6.64% Downside)
• Action: Reiterated Date: 12/18/25
• Date: Action: Reiterated 12/18/25

The overall stock score is driven primarily by strong technical momentum and moderate valuation. Financial performance is a concern due to high leverage and cash flow volatility, which slightly offsets the positive technical indicators.

Positive Factors

Revenue Growth

Sustained high top-line growth (27.7% latest year) signals recovering travel demand and successful commercialization of offerings. Over 2-6 months this supports durable revenue base expansion, helps absorb fixed costs and underpins reinvestment capacity into products, distribution and hotels.

Gross Margin Strength

A 31.6% gross margin indicates structural pricing power or effective supplier/contract management in travel and hospitality segments. Persistently healthy gross margins provide a buffer for investing in service quality and supporting EBITDA recovery even if market volumes fluctuate seasonally.

Operating Cash Generation

A high operating cash flow to net income ratio (4.5x) shows the business converts accounting profits into actual cash effectively, improving liquidity and funding for capex or debt service. This durable cash-generating ability supports operational resilience across cycles.

Negative Factors

High Leverage

A debt-to-equity ratio of 3.21 denotes substantial leverage and limited equity cushion. Over the medium term this raises interest and refinancing risk, reduces strategic flexibility for M&A or capex, and makes the company more vulnerable to demand shocks in travel and hospitality.

Free Cash Flow Volatility

A substantial decline in free cash flow growth and lower FCF-to-net-income conversion suggest profits aren't reliably turning into discretionary cash. Persisting FCF volatility impairs debt reduction, dividends, and reinvestment plans, magnifying the impact of high leverage.

Low Net Profitability

A 1.3% net margin signals thin bottom-line profitability despite healthy gross margins. Structural pressure on operating or SG&A costs, or heavy finance charges, limits retained earnings and ROE expansion, constraining long-term shareholder returns and balance-sheet repair.

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. shows strong revenue growth and improving profitability, but faces challenges with high leverage and cash flow volatility. The company needs to focus on enhancing profitability and managing debt levels to ensure sustainable growth.

Income Statement

H.I.S. Co. has shown a significant revenue growth rate of 27.7% in the latest year, indicating a strong recovery trajectory. The gross profit margin stands at 31.6%, reflecting efficient cost management. However, the net profit margin is relatively low at 1.3%, suggesting that profitability is still a challenge. The EBIT and EBITDA margins are moderate, indicating room for operational improvements.

Balance Sheet

The company's debt-to-equity ratio is high at 3.21, indicating significant leverage, which could pose financial risks. The return on equity is modest at 8.5%, showing moderate efficiency in generating returns on shareholders' equity. The equity ratio is 14.5%, suggesting a relatively low proportion of equity financing compared to total assets.

Cash Flow

H.I.S. Co. experienced a substantial decline in free cash flow growth, which is a concern for liquidity. The operating cash flow to net income ratio is favorable at 4.5, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio is lower, reflecting challenges in converting profits into free cash flow.

Breakdown	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	373.11B	343.33B	251.87B	142.79B	118.56B
Gross Profit	117.97B	110.62B	82.74B	28.26B	16.38B
EBITDA	20.68B	22.37B	11.95B	6.95B	-36.42B
Net Income	4.72B	8.72B	-2.62B	-11.50B	-50.05B
Balance Sheet
Total Assets	386.33B	412.20B	441.35B	414.98B	411.45B
Cash, Cash Equivalents and Short-Term Investments	113.93B	138.17B	157.59B	145.01B	101.42B
Total Debt	179.07B	211.86B	266.15B	276.75B	277.36B
Total Liabilities	319.12B	349.86B	383.20B	358.35B	347.30B
Stockholders Equity	55.84B	52.25B	48.98B	47.82B	40.78B
Cash Flow
Free Cash Flow	14.06B	21.05B	24.59B	-23.83B	-44.96B
Operating Cash Flow	21.22B	29.25B	31.07B	-14.91B	-28.40B
Investing Cash Flow	-11.14B	45.61B	-46.39B	53.52B	-7.09B
Financing Cash Flow	-36.33B	-55.16B	-11.79B	5.46B	40.71B

H.I.S.Co. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1326.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 1326 is above the 20-day moving average (MA) of 1266.45, above the 50-day MA of 1296.90, and below the 200-day MA of 1366.99, indicating a bearish trend. The MACD of -32.31 indicates Positive momentum. The RSI at 24.68 is Positive, neither overbought nor oversold. The STOCH value of 11.94 is Positive, 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
4680	67 Neutral	¥281.06B	29.55	―	1.51%	11.92%	33.70%
9166	67 Neutral	¥116.60B	20.09	―	―	62.69%	-37.72%
9603	64 Neutral	¥85.77B	20.72	8.65%	1.52%	8.75%	-43.89%
2340	62 Neutral	¥15.35B	59.29	―	―	14.37%	-44.67%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
4661	59 Neutral	¥4.51T	23.18	13.17%	0.48%	10.59%	13.93%
4343	52 Neutral	¥49.00B	49.41	―	―	6.00%	-184.09%

H.I.S.Co. Corporate Events

H.I.S. exits robotics unit hapi-robo st in governance-focused portfolio reshuffle

H.I.S. Co., Ltd. has resolved to transfer all of its shares in consolidated subsidiary hapi-robo st, Inc., a Tokyo-based developer and seller of robots and advanced technologies. The buyer is hapi-robo st president and representative director Naomi Tomita, who will acquire H.I.S.’s entire 67.67% stake for 1,035,000 yen.

The divestment is part of a broader reorganization of consolidated subsidiaries aimed at strengthening group governance, preserving the uniqueness of each business, and speeding up decision-making. H.I.S. also aims to remove structural hurdles that might deter foreign investors and potential partners, as hapi-robo st has recorded several years of losses, and the move may help refocus resources on core operations while giving the robotics unit more strategic autonomy under its existing management.

The most recent analyst rating on (JP:9603) stock is a Hold with a Yen1375.00 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. Completes Restricted Stock Compensation for Directors

H.I.S. Co., Ltd. has completed payment procedures for the disposal of 27,478 shares of its treasury stock as restricted stock compensation, effective February 26, 2026. The shares, priced at JPY 1,292 each for a total of JPY 35,501,576, were allotted to six internal directors through a monetary compensation claim in kind.

The move formalizes a previously announced equity-based compensation plan aimed at aligning management incentives with shareholder interests. By using restricted stock for director compensation, H.I.S. reinforces a governance framework that ties executive rewards more closely to the company’s long-term performance and share value.

The most recent analyst rating on (JP:9603) stock is a Hold with a Yen1375.00 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. Awards Restricted Treasury Shares to Directors Under Long-Term Incentive Plan

H.I.S. Co., Ltd.’s board has approved the disposal of 27,478 treasury shares, worth approximately ¥35.5 million at ¥1,292 per share, to six internal directors as restricted stock compensation, with payment made through in-kind contribution of monetary compensation claims. The grant is made under the company’s existing transfer-restricted stock compensation plan introduced in 2018 to align directors’ interests with shareholders and encourage sustained improvement in corporate value, featuring a 30-year transfer restriction period, conditional lifting of restrictions tied to continued board service, and provisions for the company to acquire any unreleased shares without cost, thereby reinforcing long-term governance and incentive structures for senior management.

The most recent analyst rating on (JP:9603) stock is a Hold with a Yen1375.00 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. Reshapes Executive Lineup to Bolster Global Travel and AI Strategy

H.I.S. Co., Ltd. announced a series of executive appointments and reassignments effective from February 1, 2026, with some changes phased in through March and April. The company promoted Yoshino Shinji, Takeshi Ogawa and Hiroshi Kajiki to Executive Officer roles overseeing leisure international travel, human resources and domestic travel contents purchasing, and corporate sales, respectively, while adjusting responsibilities for existing executives across global destination management, AI innovation, regional leadership in the Americas, Hawaii and Micronesia, and the Europe, Middle East and Africa business. The reshuffle consolidates global sales oversight, introduces a dedicated AI Innovation Division at executive level, and reallocates HR leadership, signaling an effort to strengthen H.I.S.’s international sales structure, enhance digital and AI capabilities, and optimize management resources across its regional and functional organizations.

The most recent analyst rating on (JP:9603) stock is a Hold with a Yen1375.00 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. Lifts Sales and Profit but Net Income Drops as It Resumes Dividends and Forecasts Strong FY2026

H.I.S. Co., Ltd. reported consolidated net sales of ¥373.1 billion for the fiscal year ended October 31, 2025, up 8.7% year on year, with operating profit rising 7.1% to ¥11.6 billion and ordinary profit up 8.9% to ¥11.4 billion, while profit attributable to owners of the parent dropped 45.9% to ¥4.7 billion. The company strengthened its financial base as total assets declined and the capital adequacy ratio improved to 14.4%, generated positive operating cash flow, resumed shareholder returns with a total annual dividend of ¥20 per share, and forecast further growth in FY2026 with net sales projected to rise 12.6% and profit attributable to owners of the parent expected to nearly double to ¥9.0 billion, supported in part by a streamlined consolidation scope following the exclusion of six subsidiaries and changes in accounting policies.

The most recent analyst rating on (JP:9603) stock is a Hold with a Yen1375.00 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. Strengthens Governance to Prevent Fraudulent Activities

H.I.S. Co., Ltd. has implemented a series of measures to prevent the recurrence of fraudulent activities related to employment adjustment subsidies within its group. These measures include 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. The company aims to restore stakeholder trust and enhance corporate value through sound business practices and sustainable growth.

The most recent analyst rating on (JP:9603) stock is a Hold with a Yen1277.00 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 Significant Extraordinary Losses for FY 2025

H.I.S. Co., Ltd. has announced the recording of extraordinary losses for the fiscal year ending October 31, 2025. These losses include a write-down of shares in subsidiaries due to business scale-backs, impairment losses from reduced asset values, and losses from business liquidations. The financial impact is significant, with non-consolidated losses amounting to 2,171 million yen and consolidated losses totaling 4,524 million yen. This development reflects the company’s strategic adjustments in response to underperforming business segments, potentially affecting its financial stability and market positioning.

The most recent analyst rating on (JP:9603) stock is a Hold with a Yen1277.00 price target. To see the full list of analyst forecasts on H.I.S.Co. stock, see the JP:9603 Stock Forecast page.