Hikari Business Form Co., Ltd. (3948) AI Stock Analysis

• Market Cap: ¥7.38B
• Dividend Yield: 3.15%
• Average Volume (3M): 2.21K
• Price to Earnings (P/E): 40.6
• Beta (1Y): 0.44
• Revenue Growth: -3.04%
• EPS Growth: -10.38%
• Country: JP
• Employees: 392
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 11.50
• Shares Outstanding: 5,815,294
• 10 Day Avg. Volume: 1,960
• 30 Day Avg. Volume: 2,210
• PEG Ratio: -0.32
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 32.01
• 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

• Rating: 57 Neutral
• Price Target: ¥1,329.00 ▲(6.32% Upside)

Hikari Business Form Co., Ltd. receives a moderate score due to stable financial health but faces challenges in profitability and revenue growth. Technical indicators suggest mixed momentum, and the valuation appears high, limiting potential upside. The absence of earnings call data and corporate events further emphasizes the need for strategic improvements to enhance future performance.

Hikari Business Form Co., Ltd. Business Overview & Revenue Model

Company Description

Hikari Business Form Co., Ltd. (3948) is a leading company in the manufacturing of business forms and printing solutions, primarily serving the Japanese market. The company specializes in producing a wide range of printed materials, including invoices, shipping labels, and custom forms tailored to various industries. Hikari Business Form is committed to providing high-quality products that enhance operational efficiency for businesses, leveraging advanced printing technology and innovative design.

How the Company Makes Money

Hikari Business Form Co., Ltd. generates revenue primarily through the sale of its printed business forms and related products. The company's revenue model is based on direct sales to businesses, including both large corporations and small to medium enterprises. Key revenue streams include bulk orders of customized forms, ongoing contracts for regular supplies, and value-added services such as design and printing consultations. Additionally, the company may benefit from strategic partnerships with other businesses in the supply chain, enhancing its distribution capabilities and expanding its customer base. Factors contributing to its earnings include the demand for efficient business operations that require printed documentation, as well as the company's reputation for reliability and quality in the printing industry.

Hikari Business Form Co., Ltd. Financial Statement Overview

Summary

Hikari Business Form Co., Ltd. exhibits stable financial health with strong equity but faces challenges in revenue growth and profitability. While leverage is low and financial stability is evident, declining margins and cash flow highlight areas for improvement. Strategic initiatives may be required to enhance revenue streams and optimize operational efficiency to ensure long-term success.

Income Statement

The income statement shows declining revenue and profitability over the years. Gross profit margin has decreased from 22.68% in 2019 to 20.39% in 2024. Similarly, net profit margin has dropped from 3.98% to 2.04% over the same period. Revenue growth has been negative in recent years, indicating challenges in maintaining sales levels. EBIT and EBITDA margins have also shown a downward trend. These figures suggest a need for strategic improvement to regain growth and profitability.

Balance Sheet

The balance sheet reflects a strong equity position, with a debt-to-equity ratio of 0.02 in 2024, indicating low leverage. Return on equity has decreased from 4.21% in 2019 to 1.73% in 2024, showing reduced profitability on equity. However, the equity ratio remains high at 84.12% in 2024, highlighting a solid financial structure. Despite challenges in profitability, the company maintains financial stability with substantial equity backing.

Cash Flow

Cash flow analysis indicates a notable decline in free cash flow from 2019 to 2024. Operating cash flow to net income ratio is healthy, suggesting good cash generation relative to net income. However, free cash flow growth rate is negative, reflecting reduced cash available for reinvestment and dividends. The company may need to focus on improving cash generation to support future initiatives.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.92B	9.88B	11.99B	9.57B	7.26B
Gross Profit	1.61B	2.72B	3.45B	2.53B	1.72B
EBITDA	632.79M	1.35B	2.17B	1.54B	801.43M
Net Income	161.25M	748.02M	1.27B	819.21M	354.54M
Balance Sheet
Total Assets	11.10B	11.38B	11.88B	10.80B	9.52B
Cash, Cash Equivalents and Short-Term Investments	3.81B	4.01B	4.13B	3.18B	2.18B
Total Debt	186.84M	198.14M	334.98M	529.15M	546.96M
Total Liabilities	1.76B	1.95B	2.96B	2.89B	2.32B
Stockholders Equity	9.34B	9.43B	8.92B	7.91B	7.20B
Cash Flow
Free Cash Flow	124.57M	381.68M	1.51B	1.07B	696.10M
Operating Cash Flow	224.51M	471.31M	1.59B	1.10B	750.44M
Investing Cash Flow	32.73M	2.04M	-252.46M	250.46M	137.41M
Financing Cash Flow	-430.77M	-574.55M	-403.67M	-371.08M	-352.52M

Hikari Business Form Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1250.00
• 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:3948, the sentiment is Neutral. The current price of 1250 is below the 20-day moving average (MA) of 1292.55, below the 50-day MA of 1282.44, and above the 200-day MA of 1016.97, indicating a neutral trend. The MACD of -4.84 indicates Positive momentum. The RSI at 46.37 is Neutral, neither overbought nor oversold. The STOCH value of 59.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3948.

Hikari Business Form Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7811	83 Outperform	¥15.81B	8.67	―	3.76%	7.07%	79.18%
7919	68 Neutral	¥3.26B	6.44	―	3.87%	2.39%	-8.65%
7805	64 Neutral	¥3.26B	7.32	―	1.99%	-1.00%	105.56%
7946	64 Neutral	¥1.05B	19.56	―	2.16%	3.75%	-61.56%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥4.59B	28.46	―	3.34%	-0.55%	―
3948	57 Neutral	¥7.38B	40.59	―	3.15%	-3.04%	-10.38%