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

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Hikari Business Form Co., Ltd.

(TSE/TYO:3948)

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Rating:63Neutral

Price Target:JPY 1,230.00▲(5.49% 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 LeverageMinimal 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 DeclineA 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.

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

Market Cap: JPY 6.27B
Dividend Yield: 4.29%
Average Volume (3M): 2,010
Price to Earnings (P/E): 19.8
Beta (1Y): 0.41
Revenue Growth: 0.32%
EPS Growth: 67.81%
Country: Japan
Employees: 391
Sector: Industrials
Sector Strength: 63
Industry: Specialty Business Services

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, an...

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 earned...

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

52Neutral

Balance Sheet

82Very Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.74B	7.92B	9.88B	11.99B	9.57B
Gross Profit	1.64B	1.61B	2.71B	3.43B	2.51B
EBITDA	396.89M	541.29M	1.51B	2.26B	1.51B
Net Income	151.74M	161.25M	748.02M	1.27B	819.21M
Balance Sheet
Total Assets	11.56B	11.22B	11.46B	11.98B	10.89B
Cash, Cash Equivalents and Short-Term Investments	3.31B	3.81B	4.01B	4.13B	3.18B
Total Debt	319.27M	186.84M	198.14M	334.98M	529.15M
Total Liabilities	2.18B	1.88B	2.03B	3.07B	2.98B
Stockholders Equity	9.37B	9.34B	9.43B	8.92B	7.91B
Cash Flow
Free Cash Flow	58.47M	124.57M	386.88M	1.51B	1.07B
Operating Cash Flow	257.64M	224.51M	471.31M	1.59B	1.10B
Investing Cash Flow	-239.84M	32.73M	2.04M	-252.46M	250.46M
Financing Cash Flow	-520.30M	-430.77M	-574.55M	-403.67M	-371.08M

Hikari Business Form Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1166.00

Price Trends

50DMA1175.90Negative

100DMA1152.36Positive

200DMA1162.94Positive

Market Momentum

MACD-0.63Positive

RSI46.02Neutral

STOCH57.84Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3948, the sentiment is Negative. The current price of 1166.00 is below the 20-day moving average (MA) of 1173.50, below the 50-day MA of 1175.90, and above the 200-day MA of 1162.94, indicating a neutral trend. The MACD of -0.63 indicates Positive momentum. The RSI at 46.02 is Neutral, neither overbought nor oversold. The STOCH value of 57.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3948.

Hikari Business Form Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:3948 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7914	76Outperform	JPY 41.57B	8.38	―	4.89%	-0.61%	48.02%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:3948	63Neutral	JPY 6.72B	19.78	―	4.29%	0.32%	67.81%
JP:7916	57Neutral	JPY 5.51B	31.31	―	2.72%	-3.93%	11.47%
JP:3958	55Neutral	JPY 3.09B	15.52	―	3.66%	-2.64%	-19.41%
JP:7919	55Neutral	JPY 3.49B	5.32	―	3.79%	-1.46%	43.56%
JP:7805	54Neutral	JPY 3.05B	9.09	―	2.12%	-1.49%	-24.51%

* Industrials Sector Average

Performance Comparison

JP:3948 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3948	Hikari Business Form Co., Ltd.	1166.00	-90.45	-7.20%
JP:3958	Sasatoku Printing Co.,Ltd.	547.00	0.31	0.06%
JP:7805	PRINTNET INC.	614.00	-29.35	-4.56%
JP:7914	Kyodo Printing Co., Ltd.	1637.00	249.45	17.98%
JP:7916	Mitsumura Printing Co., Ltd.	1835.00	245.40	15.44%
JP:7919	Nozaki Insatsu Shigyo Co., Ltd.	203.00	17.76	9.59%

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

Hikari Business Form Co., Ltd. AI Stock Analysis