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HENNGE K.K.
(4475)
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Rating:77Outperform
Price Target:
¥2,803.00
▲(68.45% Upside)
Action:Reiterated
Date:10/24/26
The score is driven primarily by strong financial performance (high margins, improving profitability, low leverage, and cash-backed earnings). Technicals are supportive with strong momentum and a clear uptrend, but elevated RSI/Stoch suggest near-term overextension risk. Valuation is the main offset given the high P/E and low dividend yield.
Positive Factors
High and improving margins
Very high gross margins and expanding EBIT and net margins indicate strong software economics and improving operating leverage. This profitability profile can support continued investment in product development, customer acquisition, and security capabilities while preserving earnings resilience over the next several quarters.
Negative Factors
Growth variability
The slowdown in 2024 shows that revenue growth has not been uniformly consistent across the historical period. If this variability persists, it could make near-term planning less predictable, reduce operating leverage benefits, and delay the pace at which HENNGE compounds its recurring customer and revenue base.
Read all positive and negative factors
Positive Factors
Negative Factors
High and improving margins
Very high gross margins and expanding EBIT and net margins indicate strong software economics and improving operating leverage. This profitability profile can support continued investment in product development, customer acquisition, and security capabilities while preserving earnings resilience over the next several quarters.
Read all positive factors
HENNGE K.K. (4475) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥82.12B
Dividend Yield0.45%
Average Volume (3M)1.31M
Price to Earnings (P/E)44.0
Beta (1Y)0.21
Revenue Growth19.17%
EPS Growth46.29%
CountryJP
Employees390
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)52.83
Shares Outstanding33,600,600
10 Day Avg. Volume2,337,120
30 Day Avg. Volume1,307,376
Financial Highlights & Ratios
PEG Ratio0.58
Price to Book (P/B)13.26
Price to Sales (P/S)4.72
P/FCF Ratio19.12
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)54.9
Revenue Forecast (FY)¥12.85B
HENNGE K.K. Business Overview & Revenue Model
Company Description
Operating on a global scale, HENNGE K.K. specializes in providing various cloud-based security services. Their core product, HENNGE One, serves as a cloud-native identity and access management (IAM) platform, enabling streamlined single sign-on (S...
HENNGE K.K. Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.30B | 10.92B | 8.36B | 6.78B | 5.65B | 4.84B |
| Gross Profit | 10.65B | 9.45B | 7.04B | 5.68B | 4.77B | 4.02B |
| EBITDA | 2.19B | 1.93B | 1.22B | 748.78M | 501.42M | 392.90M |
| Net Income | 1.66B | 1.36B | 827.41M | 508.83M | 321.17M | 223.84M |
Balance Sheet | ||||||
| Total Assets | 12.15B | 10.74B | 8.29B | 6.29B | 5.21B | 4.49B |
| Cash, Cash Equivalents and Short-Term Investments | 7.83B | 7.32B | 6.33B | 4.59B | 4.05B | 3.39B |
| Total Debt | 161.64M | 148.15M | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 8.03B | 6.90B | 5.30B | 3.88B | 3.11B | 2.65B |
| Stockholders Equity | 4.28B | 3.89B | 2.99B | 2.42B | 2.09B | 1.84B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 2.70B | 1.87B | 1.14B | 748.20M | 505.20M |
| Operating Cash Flow | 0.00 | 2.73B | 1.93B | 1.23B | 776.74M | 526.93M |
| Investing Cash Flow | 0.00 | -1.34B | -34.83M | -425.16M | -119.78M | -25.36M |
| Financing Cash Flow | 0.00 | -417.51M | -150.98M | -270.31M | -100.00K | 17.83M |
HENNGE K.K. Technical Analysis
Positive
1664.00
Price Trends
1737.00
Positive
1473.01
Positive
1263.35
Positive
Market Momentum
162.69
Negative
74.25
Negative
87.60
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4475, the sentiment is Positive. The current price of 1664 is below the 20-day moving average (MA) of 1923.15, below the 50-day MA of 1737.00, and above the 200-day MA of 1263.35, indicating a bullish trend. The MACD of 162.69 indicates Negative momentum. The RSI at 74.25 is Negative, neither overbought nor oversold. The STOCH value of 87.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4475.
HENNGE K.K. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥59.60B | 18.76 | 23.79% | 1.80% | 12.25% | 84.46% | |
79 Outperform | ¥35.18B | 35.99 | ― | 0.14% | 22.65% | 74.18% | |
77 Outperform | ¥82.12B | 43.97 | ― | 0.45% | 19.17% | 46.29% | |
74 Outperform | ¥29.70B | 14.60 | ― | 0.70% | 19.19% | 93.45% | |
72 Outperform | ¥993.26B | 28.46 | 28.87% | 2.45% | 6.86% | 14.89% | |
69 Neutral | ¥116.05B | 70.59 | ― | 0.56% | 25.26% | 52.87% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:4475
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HENNGE K.K. Corporate Events
HENNGE Upgrades TSE Listing to Prime Market, Eyes Next Growth Stage
Oct 19, 2026
HENNGE K.K. announced that its shares have transitioned from the Tokyo Stock Exchange Growth Market to the Prime Market, marking a significant upgrade in listing status and signaling confidence in its maturity and market presence. The move is expe...
HENNGE Sets Terms for Share Offering to Fund Brand and Talent Investment
Oct 13, 2026
HENNGE K.K. has set the issue and selling prices for a new share issuance and secondary offering, including an over-allotment and third-party allotment, following a resolution by its board on October 2, 2026. The transactions, involving shares pri...
HENNGE Launches Share Offering to Fund Growth and Prime Market Shift
Oct 2, 2026
HENNGE K.K. has approved the issuance of 1,100,000 new shares through a public offering and a secondary offering to fund its growth strategy centered on HENNGE One. The proceeds will be directed toward advertising and brand-strengthening initiativ...
HENNGE Wins Approval to Shift Listing to TSE Prime Market
Oct 2, 2026
HENNGE K.K., a Japanese cloud security specialist best known for its HENNGE One platform, develops technologies that help corporate customers safely adopt cloud services without sacrificing convenience. The company positions itself as an enabler o...
HENNGE Completes Interim Review and Hikes Dividend Forecast for FY 2026
Oct 2, 2026
HENNGE K.K. has announced the completion of an interim review by certified public accountants of its quarterly consolidated financial statements for the nine months ended June 30, 2026, conducted in connection with a new share issuance and seconda...
HENNGE Doubles Annual Dividend Forecast on Solid Business Performance
Oct 2, 2026
HENNGE K.K. announced that its Board of Directors has approved a significant upward revision to the year-end dividend forecast for the fiscal year ended September 30, 2026. The planned year-end dividend per share has been raised from JPY 3.00 to J...
HENNGE Delivers Double-Digit Profit Growth and Raises Shareholder Returns
Aug 4, 2026
HENNGE K.K. reported consolidated net sales of ¥9.39 billion for the nine months ended June 30, 2026, up 17.1% year-on-year, with operating profit rising 17.4% to ¥1.85 billion and profit attributable to owners of parent jumping 28.7% to...
HENNGE Outlines Q3 FY2026 Results and Growth Strategy
Aug 4, 2026
HENNGE K.K. reported its consolidated financial results for the third quarter of fiscal year ending September 2026, outlining the company’s performance and progress toward its full-year forecast. The release also highlighted its ongoing grow...
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.