Harima B.Stem Corporation (9780) AI Stock Analysis

• Market Cap: ¥9.18B
• Dividend Yield: 3.05%
• Average Volume (3M): 5.12K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.50
• Revenue Growth: 7.38%
• EPS Growth: 4.58%
• Country: JP
• Employees: 1,701
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 32.67
• Shares Outstanding: 9,624,490
• 10 Day Avg. Volume: 5,860
• 30 Day Avg. Volume: 5,116
• PEG Ratio: 0.59
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 8.66
• 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: 73 Outperform
• Price Target: ¥1,066.00 ▲(20.86% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

Harima B.Stem Corporation exhibits strong financial performance with robust revenue and profit growth, efficient cost management, and solid cash flow generation. The valuation is attractive with a low P/E ratio and a good dividend yield. However, technical analysis indicates short-term bearish momentum, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Revenue & profit growth

Consistent revenue and profit growth shown in the financial summary signals durable demand and an ability to scale operations. Over 2–6 months this underpins reinvestment capacity, supports operating leverage, and reduces execution risk versus peers dependent on one-off gains.

Improving margins

Sustained margin expansion across gross, EBIT and net metrics reflects structural cost control and pricing power. Higher margins improve cash conversion and ROE, allowing the company to better fund capex, dividends, or strategic initiatives without relying on external financing.

Strong balance sheet

Lower leverage and a stronger equity base increase resilience to cyclical shocks and provide flexibility for M&A or investments. A sound balance sheet supports long-term operations, reduces refinancing risk, and enables disciplined capital allocation over the next several quarters.

Negative Factors

Thin net margins

Despite improvement, a ~3% net margin offers limited buffer against cost inflation or demand shocks. This constrained profitability limits retained earnings for growth, increases sensitivity to input cost swings, and forces reliance on continued efficiency gains to sustain returns.

Modest recent revenue growth

Single-digit top-line growth suggests gradual expansion rather than rapid market share gains. Over the medium term, modest growth increases pressure on margins and cash generation to drive EPS improvement and may require strategic initiatives to materially accelerate scale.

Limited forward guidance

Absence of explicit guidance or earnings highlights reduces forward visibility for investors and partners. Over months this can hinder external planning, make capital allocation harder to assess, and raise uncertainty about management's near-term targets and operational priorities.

Harima B.Stem Corporation Business Overview & Revenue Model

Company Description

Harima B.Stem Corporation provides building maintenance and management services in Japan. It offers cleaning services to public facilities, office buildings, stores, medical facilities, etc.; facility maintenance and management services; security services, such as crime prevention and disaster prevention; inspection and construction work maintenance services for elevators, air conditioning equipment, firefighting equipment, etc.; training services; telephone switching services; building diagnosis and repair services; environmental solutions; and condominiums, buildings, and office management works. The company also engages in real estate business; sale of firefighting equipment; construction and design of firefighting disaster prevention equipment; and maintenance and management of museum and hotels. In addition, it operates restaurants, coffee shops, souvenir shops, and parking lots; and provides reception services. Harima B.Stem Corporation was incorporated in 1961 and is headquartered in Yokohama, Japan.

How the Company Makes Money

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Harima B.Stem Corporation Financial Statement Overview

Summary

Harima B.Stem Corporation demonstrates robust financial health with strong revenue and profit growth, efficient cost management, and solid cash flow generation. The balance sheet reflects reduced leverage and a strong equity position, contributing to financial stability. The company's performance across income statements, balance sheets, and cash flows indicates a well-managed business with growth potential and reduced financial risk.

Income Statement

The company shows a strong financial performance with consistent revenue growth and improved profit margins over the years. The gross profit margin has increased from 11.6% in 2020 to 13.8% in 2025, indicating better cost management. The net profit margin also improved from 1.9% to 3.1% during the same period, showing enhanced profitability. Revenue growth has been steady, with a growth rate of 5.3% from 2024 to 2025. EBIT and EBITDA margins have also shown positive trends, reflecting efficient operations.

Balance Sheet

The balance sheet reflects a stable financial position with a sound equity base. The debt-to-equity ratio has decreased over the years, indicating reduced leverage and financial risk. The equity ratio has improved, highlighting a strong asset base supported by equity. The ROE has remained healthy, reflecting good returns on shareholders' investments. Overall, the company has managed its liabilities well while increasing its equity position.

Cash Flow

Cash flow analysis shows a positive trajectory with consistent operating cash flows. The free cash flow has shown significant improvement, indicating better cash management. The operating cash flow to net income ratio is strong, suggesting efficient conversion of earnings into cash. The free cash flow to net income ratio also supports the company's ability to generate cash relative to its income. The company's cash flow management strategies have contributed positively to its financial health.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	28.38B	28.03B	26.62B	25.32B	25.00B	24.18B
Gross Profit	3.95B	3.86B	3.46B	3.13B	3.15B	2.89B
EBITDA	1.30B	1.32B	1.09B	928.23M	1.02B	795.39M
Net Income	855.74M	860.27M	756.83M	736.50M	788.69M	642.14M
Balance Sheet
Total Assets	16.59B	14.79B	14.23B	12.55B	12.30B	12.10B
Cash, Cash Equivalents and Short-Term Investments	6.23B	4.77B	4.21B	3.94B	3.93B	3.95B
Total Debt	2.03B	843.40M	738.35M	664.45M	1.15B	1.40B
Total Liabilities	7.31B	5.60B	5.70B	4.78B	5.24B	5.58B
Stockholders Equity	9.28B	9.19B	8.46B	7.70B	7.01B	6.46B
Cash Flow
Free Cash Flow	0.00	740.61M	534.22M	475.60M	602.01M	671.15M
Operating Cash Flow	0.00	850.13M	1.18B	966.52M	665.75M	760.39M
Investing Cash Flow	0.00	-35.55M	-849.86M	-359.09M	-59.90M	-229.81M
Financing Cash Flow	0.00	-235.41M	-58.16M	-595.95M	-627.72M	371.19M

Harima B.Stem Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 882.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9780, the sentiment is Neutral. The current price of 882 is below the 20-day moving average (MA) of 994.35, below the 50-day MA of 963.16, and above the 200-day MA of 873.65, indicating a neutral trend. The MACD of -0.72 indicates Positive momentum. The RSI at 41.76 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9780.

Harima B.Stem Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9780	73 Outperform	¥9.18B	6.76	―	3.05%	7.38%	4.58%
3958	70 Outperform	¥3.27B	5.78	―	3.30%	-3.41%	-24.95%
7914	68 Neutral	¥41.21B	7.42	―	3.71%	-0.04%	93.95%
7919	66 Neutral	¥3.61B	6.84	―	3.69%	0.62%	-24.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.60B	-22.35	―	2.72%	-1.30%	―
3948	53 Neutral	¥6.78B	45.76	―	2.94%	-2.81%	57.37%