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

• Market Cap: ¥97.67B
• Dividend Yield: 1.52%
• Average Volume (3M): 457.66K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.27
• 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: 0.00
• 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: 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: ¥1,411.00 ▲(6.41% Upside)

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

The strong revenue growth rate indicates a robust recovery trajectory and expanding market presence, which can drive future profitability and market share.

Strategic Partnerships

These partnerships enhance competitive advantage by offering attractive pricing and bundled offers, potentially increasing customer base and loyalty.

Digital Expansion

Expanding into the online travel market allows H.I.S.Co. to reach a wider audience, increase direct bookings, and improve revenue streams through digital channels.

Negative Factors

High Leverage

High leverage can pose financial risks, limit financial flexibility, and increase vulnerability to economic downturns, impacting long-term financial stability.

Cash Flow Volatility

Volatile cash flow can challenge liquidity management and hinder the company's ability to invest in growth opportunities or manage debt effectively.

Low Net Profit Margin

A low net profit margin indicates challenges in translating revenue growth into bottom-line profitability, which may affect long-term financial health and shareholder returns.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	372.08B	373.11B	343.33B	251.87B	142.79B	118.56B
Gross Profit	117.98B	117.97B	110.62B	82.74B	28.26B	16.38B
EBITDA	21.86B	20.68B	22.37B	11.95B	6.95B	-36.42B
Net Income	6.61B	4.72B	8.72B	-2.62B	-11.50B	-50.05B
Balance Sheet
Total Assets	394.51B	386.33B	412.20B	441.35B	414.98B	411.45B
Cash, Cash Equivalents and Short-Term Investments	117.78B	113.93B	138.17B	157.59B	145.01B	101.42B
Total Debt	180.15B	179.07B	211.86B	266.15B	276.75B	277.36B
Total Liabilities	333.50B	319.12B	349.86B	383.20B	358.35B	347.30B
Stockholders Equity	49.90B	55.84B	52.25B	48.98B	47.82B	40.78B
Cash Flow
Free Cash Flow	-2.28B	14.06B	21.05B	24.59B	-23.83B	-44.96B
Operating Cash Flow	1.37B	21.22B	29.25B	31.07B	-14.91B	-28.40B
Investing Cash Flow	-3.99B	-11.14B	45.61B	-46.39B	53.52B	-7.09B
Financing Cash Flow	-15.49B	-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: Positive
• 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 1326 is above the 20-day moving average (MA) of 1321.85, above the 50-day MA of 1299.82, and below the 200-day MA of 1421.66, indicating a neutral trend. The MACD of 6.30 indicates Positive momentum. The RSI at 51.35 is Neutral, neither overbought nor oversold. The STOCH value of 59.17 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	72 Outperform	¥175.88B	12.01	―	3.40%	6.12%	-3.75%
4680	67 Neutral	¥325.16B	19.60	―	1.51%	11.92%	33.70%
9166	67 Neutral	¥158.05B	55.53	―	―	62.69%	-37.72%
9603	64 Neutral	¥97.67B	20.92	8.65%	1.52%	8.75%	-43.89%
6412	63 Neutral	¥205.16B	16.47	5.03%	4.02%	45.31%	-36.42%
7906	62 Neutral	¥290.83B	24.87	15.93%	0.72%	20.06%	17.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

H.I.S.Co. Corporate Events

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.

H.I.S. Co., Ltd. Acquires Majority Stake in Southwing Co., Ltd. to Boost Okinawa Tourism Presence

H.I.S. Co., Ltd. has announced the acquisition of an 80% stake in Southwing Co., Ltd., a company known for its souvenir stores in Okinawa’s popular tourist spots. This acquisition is part of H.I.S.’s strategy to diversify its business and strengthen its presence in the Okinawa tourism market by leveraging Southwing’s local expertise and the Group’s extensive network.

The most recent analyst rating on (JP:9603) stock is a Hold with a Yen1421.00 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. Announces Organizational Restructuring and New Appointments

H.I.S. Co., Ltd. announced organizational changes and new officer appointments effective November 1, 2025, as part of its Medium-Term Management Plan and Vision2030. The restructuring includes the creation of new divisions such as the AI Innovation Division and the HIS Global Destination Management Company, aimed at optimizing management resources and expanding global business. These changes are expected to strengthen the company’s position in the travel industry and improve governance and customer experience.

The most recent analyst rating on (JP:9603) stock is a Hold with a Yen1421.00 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. Announces Leadership Restructuring for Future Growth

H.I.S. Co., Ltd. has announced significant changes in its leadership structure to drive sustainable growth and enhance corporate value. The company aims to strengthen its governance and risk management while transitioning to a management model that embraces AI and technology for future growth. These changes, effective January 28, 2026, include new appointments and retirements among its directors and executive officers, reflecting a strategic shift to adapt to the changing business environment.

The most recent analyst rating on (JP:9603) stock is a Hold with a Yen1421.00 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

H.I.S. Co., Ltd reported a 12.2% increase in net sales for the nine months ending July 31, 2025, compared to the previous year. Despite the rise in sales, the profit attributable to owners of the parent decreased by 50.2%, indicating challenges in maintaining profitability. The company has revised its earnings forecasts for the fiscal year ending October 31, 2025, reflecting a cautious outlook amid changes in its consolidation scope and accounting policies.

The most recent analyst rating on (JP:9603) stock is a Hold with a Yen1421.00 price target. To see the full list of analyst forecasts on H.I.S.Co. stock, see the JP:9603 Stock Forecast page.