HIMACS, Ltd. (4299) AI Stock Analysis

HIMACS, Ltd.

(TSE/TYO:4299)

Select Model

Rating:81Outperform

Price Target:JPY 1,444.00▲(28.47% Upside)

Action:reiterated

Date:08/17/26

The score is driven primarily by strong financial quality (notably the debt-free balance sheet and solid free cash flow), supported by a constructive technical uptrend. Valuation also helps with a moderate P/E and a 3.68% dividend yield, while the key risk remains ongoing margin compression despite modest revenue growth.

Positive Factors

Debt-free balance sheetZero leverage reduces insolvency and interest-cost risk, preserving cash for operations, investment or shareholder returns. The sizable equity base and roughly 10% TTM ROE also indicate the company generates returns without relying on debt.

Negative Factors

Margin compressionLower operating and net margins indicate that costs or pricing pressure are absorbing part of the company’s revenue growth. If this persists, it could constrain earnings expansion and weaken the ability to convert sales growth into shareholder returns.

HIMACS, Ltd. (4299) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 11.72B
Dividend Yield: 4.00%
Average Volume (3M): 8,818
Price to Earnings (P/E): 11.0
Beta (1Y): 0.54
Revenue Growth: 3.81%
EPS Growth: -4.34%
Country: Japan
Employees: 967
Sector: General
Sector Strength: 55
Industry: Information Technology Services

HIMACS, Ltd. Business Overview & Revenue Model

Company Description

HIMACS, Ltd., headquartered in Yokohama, Japan, specializes in providing high-value, structured methodologies for the entire system development and operational lifecycle within the Japanese market. Since its establishment in 1976, the company has del...

How the Company Makes Money

null

HIMACS, Ltd. Financial Statement Overview

Summary

Overall financials are strong: a debt-free balance sheet (0.0 debt-to-equity) and solid free cash flow (¥1.34B, ~94% of net income) support stability. The main offset is modest revenue growth (+2.7% TTM) and margin compression (operating margin ~8.9% and net margin ~6.4%, both down versus prior years).

Income Statement

74Positive

Balance Sheet

90Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	18.89B	18.22B	18.07B	17.36B	17.33B	16.68B
Gross Profit	3.70B	3.53B	3.64B	3.54B	3.47B	3.31B
EBITDA	1.62B	1.60B	1.84B	1.77B	1.89B	1.77B
Net Income	1.13B	1.14B	1.29B	1.18B	1.29B	1.21B
Balance Sheet
Total Assets	13.56B	13.52B	14.43B	13.59B	12.88B	12.26B
Cash, Cash Equivalents and Short-Term Investments	7.81B	8.82B	9.47B	9.85B	8.47B	7.39B
Total Debt	0	0	0	0	0	0
Total Liabilities	2.74B	2.62B	2.65B	2.65B	2.56B	2.75B
Stockholders Equity	10.82B	10.90B	11.78B	10.94B	10.31B	9.51B
Cash Flow
Free Cash Flow	916.00M	1.34B	739.00M	1.39B	1.58B	902.00M
Operating Cash Flow	945.00M	1.39B	766.00M	1.39B	1.58B	948.00M
Investing Cash Flow	-36.00M	-59.00M	-32.00M	23.00M	15.00M	-76.00M
Financing Cash Flow	-1.71B	-1.98B	-510.00M	-640.00M	-507.00M	-347.00M

HIMACS, Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1124.00

Price Trends

50DMA1184.24Negative

100DMA1170.44Negative

200DMA1190.24Negative

Market Momentum

MACD-14.92Positive

RSI35.88Neutral

STOCH11.36Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4299, the sentiment is Negative. The current price of 1124.00 is below the 20-day moving average (MA) of 1167.60, below the 50-day MA of 1184.24, and below the 200-day MA of 1190.24, indicating a bearish trend. The MACD of -14.92 indicates Positive momentum. The RSI at 35.88 is Neutral, neither overbought nor oversold. The STOCH value of 11.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4299.

HIMACS, Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:4299 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4299	81Outperform	JPY 11.72B	11.02	―	4.00%	3.81%	-4.34%
JP:4448	72Outperform	JPY 14.50B	19.86	―	―	14.06%	―
JP:5033	66Neutral	JPY 7.96B	47.99	―	―	7.04%	-67.36%
JP:4397	61Neutral	JPY 6.01B	16.11	―	―	23.50%	2.72%
JP:4484	58Neutral	JPY 4.48B	45.92	―	0.72%	20.67%	-37.51%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:4446	50Neutral	JPY 9.71B	-17.50	―	―	-0.72%	-474.84%

* General Sector Average

Performance Comparison

JP:4299 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4299	HIMACS, Ltd.	1124.00	-63.45	-5.34%
JP:4397	TeamSpirit, Inc.	364.00	-143.00	-28.21%
JP:4446	Link-U Group Inc.	685.00	-366.00	-34.82%
JP:4448	Chatwork Co.Ltd.	340.00	-53.00	-13.49%
JP:4484	Lancers, Inc.	276.00	-13.09	-4.53%
JP:5033	Nulab Inc.	1228.00	465.00	60.94%

HIMACS, Ltd. Corporate Events

HIMACS Delivers Strong Q1 Sales Growth as Profit Margins Tighten

Aug 14, 2026

HIMACS reported consolidated net sales of ¥5,124 million for the three months ended June 30, 2026, up 15.0% year on year, while operating profit slipped 1.2% to ¥232 million and profit attributable to owners of parent declined 7.0% to &#165...

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

HIMACS, Ltd. AI Stock Analysis