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H.I.S.Co., Ltd. (JP:9603)
:9603
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H.I.S.Co. (9603) AI Stock Analysis

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JP

H.I.S.Co.

(OTC:9603)

Rating:59Neutral
Price Target:
¥1,464.00
▲(9.50%Upside)
The overall score reflects a mixed outlook. Financial performance shows positive trends with improving profitability and cash flow. However, high leverage and technical indicators suggest caution due to bearish momentum and oversold conditions. Valuation metrics are favorable, offering a reasonable entry point for long-term investors.

H.I.S.Co. (9603) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionH.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 MoneyH.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
65
Positive
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
58
Neutral
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue325.47B343.33B251.87B142.79B118.56B430.28B
Gross Profit106.29B110.62B82.74B28.26B16.38B69.90B
EBITDA21.78B22.37B11.95B6.95B-36.42B-18.32B
Net Income6.90B8.72B-2.62B-9.55B-50.05B-25.04B
Balance Sheet
Total Assets457.89B412.20B441.35B414.98B411.45B414.60B
Cash, Cash Equivalents and Short-Term Investments164.34B138.17B157.59B145.01B101.42B95.23B
Total Debt245.91B211.86B266.15B276.75B277.36B248.56B
Total Liabilities390.75B349.86B383.20B358.35B347.30B316.18B
Stockholders Equity57.59B52.25B48.98B47.82B40.78B74.13B
Cash Flow
Free Cash Flow6.10B21.05B24.59B-23.83B-44.96B-124.28B
Operating Cash Flow6.10B29.25B31.07B-14.91B-28.40B-57.72B
Investing Cash Flow0.0045.61B-46.39B53.52B-7.09B-47.90B
Financing Cash Flow0.00-55.16B-11.79B5.46B40.71B-5.60B

H.I.S.Co. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1337.00
Price Trends
50DMA
1490.22
Negative
100DMA
1512.01
Negative
200DMA
1560.53
Negative
Market Momentum
MACD
-39.99
Negative
RSI
35.51
Neutral
STOCH
54.93
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 1337 is below the 20-day moving average (MA) of 1355.65, below the 50-day MA of 1490.22, and below the 200-day MA of 1560.53, indicating a bearish trend. The MACD of -39.99 indicates Negative momentum. The RSI at 35.51 is Neutral, neither overbought nor oversold. The STOCH value of 54.93 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥178.04B9.44
3.56%4.28%47.52%
73
Outperform
¥425.82B25.7322.21%1.22%11.92%33.70%
68
Neutral
$260.27B24.3816.08%0.07%18.75%20.42%
67
Neutral
¥202.89B15.535.27%3.89%6.96%-21.35%
62
Neutral
$16.91B10.88-7.01%2.97%1.73%-25.16%
59
Neutral
¥100.41B11.8516.85%1.47%17.20%44.52%
57
Neutral
¥161.25B55.97
77.47%-45.82%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9603
H.I.S.Co.
1,337.00
-282.40
-17.44%
JP:7458
Daiichikosho Co., Ltd.
1,609.50
-64.04
-3.83%
JP:9166
GENDA Inc.
843.00
-210.00
-19.94%
JP:6412
Heiwa
2,038.00
-3.82
-0.19%
JP:4680
ROUND ONE
1,503.00
644.68
75.11%
JP:7906
Yonex Co
3,070.00
1,031.50
50.60%

H.I.S.Co. Corporate Events

H.I.S. Co., Ltd. Implements Measures to Prevent Subsidy Mismanagement
Jun 13, 2025

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
Jun 13, 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
Jun 5, 2025

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
Jun 4, 2025

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
May 23, 2025

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
May 23, 2025

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.
May 20, 2025

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.

H.I.S. Co., Ltd. Announces Disposal of Treasury Shares as Restricted Stock Compensation
Apr 25, 2025

H.I.S. Co., Ltd. has announced the disposal of 13,188 treasury shares as restricted stock compensation to its directors, aligning with its plan to incentivize directors to boost corporate value and shareholder alignment. The shares, valued at JPY 22,208,592, will be subject to a 30-year transfer restriction period, ensuring long-term commitment from the directors.

H.I.S. Co., Ltd. Enforces Disciplinary Actions Following Subsidy Misconduct
Apr 18, 2025

H.I.S. Co., Ltd. announced disciplinary actions against officers of its subsidiaries following an investigation revealing improper receipt of employment adjustment subsidies. The company has taken steps to address management responsibility, including the resignation of a subsidiary president and compensation reductions for involved officers, reflecting its commitment to ethical governance and compliance.

H.I.S. Co., Ltd. Strengthens Governance with New Committee
Apr 18, 2025

H.I.S. Co., Ltd. announced changes to its governance system, establishing a Subsidiary Governance Review Committee to address issues related to subsidies and strengthen group governance. This committee, chaired by an outside director, will work alongside the Risk Management and Compliance Committee, which has been repositioned to provide broader advisory support, ensuring effective governance and compliance across the company.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 17, 2025