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TOWA Hi SYSTEM Co., Ltd. (JP:4172)
:4172
Japanese Market
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TOWA Hi SYSTEM Co., Ltd. (4172) AI Stock Analysis

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JP:4172

TOWA Hi SYSTEM Co., Ltd.

(4172)

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Outperform 79 (OpenAI - 5.2)
Rating:79Outperform
Price Target:
¥2,553.00
▲(8.36% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by strong financial performance—particularly high and improving margins and a zero-debt balance sheet—supported by attractive valuation (low P/E and high dividend yield). Technicals are only moderately positive, with improving short-term momentum but lingering weakness versus longer-term moving averages.
Positive Factors
Zero-debt balance sheet
A zero-debt capital structure provides durable financial flexibility: it lowers bankruptcy risk, preserves borrowing capacity for strategic investments or M&A, and supports consistent dividend policy. This conservative position sustains resilience through industry cycles and funds opportunistic growth without leverage-driven strain.
Negative Factors
Uneven revenue trajectory
Top-line volatility undercuts predictability of earnings and makes margin gains more fragile if demand weakens. Reliance on episodic revenue recovery raises execution risk for sustaining profitability improvements and complicates long-range planning, capital allocation, and confidence in steady organic growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Zero-debt balance sheet
A zero-debt capital structure provides durable financial flexibility: it lowers bankruptcy risk, preserves borrowing capacity for strategic investments or M&A, and supports consistent dividend policy. This conservative position sustains resilience through industry cycles and funds opportunistic growth without leverage-driven strain.
Read all positive factors

TOWA Hi SYSTEM Co., Ltd. (4172) vs. iShares MSCI Japan ETF (EWJ)

TOWA Hi SYSTEM Co., Ltd. Business Overview & Revenue Model

Company Description
Hi-CRATES CO.,LTD. specializes in the creation, sale, and maintenance of comprehensive electronic medical record systems tailored for dental practices. Beyond its core EMR offerings, the company also develops and supports applications for iPads an...
How the Company Makes Money
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TOWA Hi SYSTEM Co., Ltd. Financial Statement Overview

Summary
Strong overall fundamentals: high and improving profitability (EBIT margin rising from ~11% in 2023 to ~27% in 2025) and a very conservative balance sheet with zero debt. Offsetting factors are uneven revenue growth and notable cash-flow volatility (including weak OCF and negative FCF in 2023), which reduces predictability.
Income Statement
83
Very Positive
Balance Sheet
91
Very Positive
Cash Flow
72
Positive
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue2.45B2.41B2.11B2.04B2.22B2.37B
Gross Profit1.90B1.85B1.60B1.46B1.63B1.78B
EBITDA707.89M739.43M500.83M299.00M527.25M575.05M
Net Income451.94M448.09M401.81M258.51M316.27M375.57M
Balance Sheet
Total Assets4.85B4.73B4.38B4.07B4.05B4.02B
Cash, Cash Equivalents and Short-Term Investments1.76B2.10B1.61B1.60B1.80B2.16B
Total Debt0.000.000.000.000.000.00
Total Liabilities491.55M531.10M447.10M333.70M455.95M521.73M
Stockholders Equity4.36B4.20B3.93B3.73B3.59B3.50B
Cash Flow
Free Cash Flow420.19M420.19M490.61M-115.80M243.93M122.69M
Operating Cash Flow461.22M461.22M504.44M61.07M342.68M248.00M
Investing Cash Flow-735.24M-735.24M186.01M-360.86M-481.22M-574.52M
Financing Cash Flow-227.34M-227.34M-178.24M-95.88M-222.74M444.72M

TOWA Hi SYSTEM Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2356.00
Price Trends
50DMA
2211.68
Positive
100DMA
2251.39
Positive
200DMA
2294.25
Positive
Market Momentum
MACD
29.44
Negative
RSI
68.87
Neutral
STOCH
72.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4172, the sentiment is Positive. The current price of 2356 is above the 20-day moving average (MA) of 2269.15, above the 50-day MA of 2211.68, and above the 200-day MA of 2294.25, indicating a bullish trend. The MACD of 29.44 indicates Negative momentum. The RSI at 68.87 is Neutral, neither overbought nor oversold. The STOCH value of 72.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4172.

TOWA Hi SYSTEM Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥5.14B10.033.94%12.40%26.63%
73
Outperform
¥3.10B6.982.82%5.48%13.46%
56
Neutral
¥2.51B29.682.56%-5.72%-73.78%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
49
Neutral
¥5.49B52.254.07%4.85%-85.27%
46
Neutral
¥4.06B12.401.41%14.91%-39.00%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4172
TOWA Hi SYSTEM Co., Ltd.
2,348.00
87.55
3.87%
JP:2373
Care Twentyone Corporation
407.00
4.65
1.16%
JP:2425
Care Service Co., Ltd.
660.00
-121.55
-15.55%
JP:7061
Japan Hospice Holdings Inc.
484.00
-801.84
-62.36%
JP:9220
FB CARE SERVICE CO.,LTD.
1,267.00
121.93
10.65%
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 06, 2026