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Hikari Business Form Co., Ltd. (JP:3948)
:3948
Japanese Market
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Hikari Business Form Co., Ltd. (3948) AI Stock Analysis

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JP:3948

Hikari Business Form Co., Ltd.

(3948)

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Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
¥1,230.00
▲(8.08% Upside)
Action:Reiterated
Date:08/17/26
The score is held back primarily by weakening operating performance and cash flow (compressed margins, declining revenue, and lower free cash flow), despite a strong low-debt balance sheet that limits financial risk. Technicals are modestly positive, and valuation is supported by a reasonable P/E and a relatively high dividend yield.
Positive Factors
Very Low Leverage
Minimal debt reduces interest and refinancing risk, preserving financial flexibility during weaker earnings periods. The sizeable equity base also provides downside protection and capacity to fund operations or selective business investment.
Negative Factors
Multi-Year Revenue Decline
A sustained revenue contraction signals weakening demand, customer volume, or competitive positioning in the company’s core business-form market. Continued decline would reduce scale benefits and make fixed costs harder to absorb.
Read all positive and negative factors
Positive Factors
Negative Factors
Very Low Leverage
Minimal debt reduces interest and refinancing risk, preserving financial flexibility during weaker earnings periods. The sizeable equity base also provides downside protection and capacity to fund operations or selective business investment.
Read all positive factors

Hikari Business Form Co., Ltd. (3948) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Hikari Business Form Co., Ltd., headquartered in Hachioji, Japan, has been delivering a diverse range of printing and document management solutions since its inception in 1968. The company's offerings encompass data printing, direct mail services,...
How the Company Makes Money
The company primarily makes money by selling business forms and other printed materials to business customers, generating revenue from orders for the design/planning, printing/manufacturing, and delivery of these products. Revenue is typically ear...

Hikari Business Form Co., Ltd. Financial Statement Overview

Summary
Financials are mixed: a very conservative balance sheet (low leverage) provides stability, but profitability has weakened materially (net margin ~2% in 2025 vs. ~10.6% in 2022) alongside three years of revenue decline. Cash generation has also cooled, with sharply lower free cash flow in 2025, which raises execution risk if the trend persists.
Income Statement
52
Neutral
Balance Sheet
82
Very Positive
Cash Flow
45
Neutral
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue7.74B7.92B9.88B11.99B9.57B
Gross Profit1.64B1.61B2.71B3.43B2.51B
EBITDA396.89M541.29M1.51B2.26B1.51B
Net Income151.74M161.25M748.02M1.27B819.21M
Balance Sheet
Total Assets11.56B11.22B11.46B11.98B10.89B
Cash, Cash Equivalents and Short-Term Investments3.31B3.81B4.01B4.13B3.18B
Total Debt319.27M186.84M198.14M334.98M529.15M
Total Liabilities2.18B1.88B2.03B3.07B2.98B
Stockholders Equity9.37B9.34B9.43B8.92B7.91B
Cash Flow
Free Cash Flow58.47M124.57M386.88M1.51B1.07B
Operating Cash Flow257.64M224.51M471.31M1.59B1.10B
Investing Cash Flow-239.84M32.73M2.04M-252.46M250.46M
Financing Cash Flow-520.30M-430.77M-574.55M-403.67M-371.08M

Hikari Business Form Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1138.00
Price Trends
50DMA
1130.46
Positive
100DMA
1133.95
Positive
200DMA
1178.63
Negative
Market Momentum
MACD
8.73
Negative
RSI
65.44
Neutral
STOCH
20.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3948, the sentiment is Positive. The current price of 1138 is below the 20-day moving average (MA) of 1149.05, above the 50-day MA of 1130.46, and below the 200-day MA of 1178.63, indicating a neutral trend. The MACD of 8.73 indicates Negative momentum. The RSI at 65.44 is Neutral, neither overbought nor oversold. The STOCH value of 20.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3948.

Hikari Business Form Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥45.02B11.173.71%-1.79%10.53%
66
Neutral
¥3.70B9.221.70%1.54%0.12%
65
Neutral
¥3.88B7.963.69%-3.57%-2.36%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
¥6.69B17.254.39%1.99%114.51%
55
Neutral
¥5.88B32.422.72%-3.93%11.47%
53
Neutral
¥3.18B15.723.30%-2.64%-18.75%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3948
Hikari Business Form Co., Ltd.
1,168.00
-40.50
-3.35%
JP:3958
Sasatoku Printing Co.,Ltd.
554.00
26.66
5.06%
JP:7805
PRINTNET INC.
731.00
18.00
2.52%
JP:7914
Kyodo Printing Co., Ltd.
1,741.00
264.03
17.88%
JP:7916
Mitsumura Printing Co., Ltd.
1,900.00
473.84
33.22%
JP:7919
Nozaki Insatsu Shigyo Co., Ltd.
227.00
39.90
21.32%
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: Aug 17, 2026