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HENNGE K.K. (JP:4475)
:4475
Japanese Market
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HENNGE K.K. (4475) AI Stock Analysis

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JP:4475

HENNGE K.K.

(4475)

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Outperform 77 (OpenAI - Gpt-5.6Sol)
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)

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
Strong overall financial quality supported by very high gross margins (~82%–86%), improving operating profitability (EBIT margin rising to ~17% in 2025), and better net margins (~12.4% in 2025). Balance sheet is conservatively positioned with minimal leverage (debt-to-equity ~0.04) and improving ROE (~35% in 2025). Cash flows are strong and largely back earnings (FCF to net income ~0.85–0.99), though growth was softer in 2024 and operating cash flow relative to revenue remains moderate (~0.21–0.42).
Income Statement
84
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
86
Very Positive
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue12.30B10.92B8.36B6.78B5.65B4.84B
Gross Profit10.65B9.45B7.04B5.68B4.77B4.02B
EBITDA2.19B1.93B1.22B748.78M501.42M392.90M
Net Income1.66B1.36B827.41M508.83M321.17M223.84M
Balance Sheet
Total Assets12.15B10.74B8.29B6.29B5.21B4.49B
Cash, Cash Equivalents and Short-Term Investments7.83B7.32B6.33B4.59B4.05B3.39B
Total Debt161.64M148.15M0.000.000.000.00
Total Liabilities8.03B6.90B5.30B3.88B3.11B2.65B
Stockholders Equity4.28B3.89B2.99B2.42B2.09B1.84B
Cash Flow
Free Cash Flow0.002.70B1.87B1.14B748.20M505.20M
Operating Cash Flow0.002.73B1.93B1.23B776.74M526.93M
Investing Cash Flow0.00-1.34B-34.83M-425.16M-119.78M-25.36M
Financing Cash Flow0.00-417.51M-150.98M-270.31M-100.00K17.83M

HENNGE K.K. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1664.00
Price Trends
50DMA
1737.00
Positive
100DMA
1473.01
Positive
200DMA
1263.35
Positive
Market Momentum
MACD
162.69
Negative
RSI
74.25
Negative
STOCH
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥59.60B18.7623.79%1.80%12.25%84.46%
79
Outperform
¥35.18B35.99―0.14%22.65%74.18%
77
Outperform
¥82.12B43.97―0.45%19.17%46.29%
74
Outperform
¥29.70B14.60―0.70%19.19%93.45%
72
Outperform
¥993.26B28.4628.87%2.45%6.86%14.89%
69
Neutral
¥116.05B70.59―0.56%25.26%52.87%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4475
HENNGE K.K.
2,444.00
1,007.03
70.08%
JP:3040
Soliton Systems KK
3,220.00
1,416.53
78.54%
JP:4704
Trend Micro
7,565.00
-31.02
-0.41%
JP:3915
TerraSky Co., Ltd.
2,300.00
269.98
13.30%
JP:4417
Global Security Experts Inc.
7,580.00
3,598.92
90.40%
JP:4493
Cyber Security Cloud, Inc.
3,470.00
1,481.50
74.50%

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.Date of analysis: Oct 24, 2026