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HENNGE K.K. (4475) AI Stock Analysis

JP:4475

HENNGE K.K.

(TSE/TYO:4475)

Select Model
Rating:78Outperform
Price Target:JPY 2,305.00â–²(14.00% Upside)
Action:reiterated
Date:10/24/26

The overall score of 78 is driven primarily by the company's outstanding financial performance, characterized by high growth, debt-free balance sheet, and strong cash generation. This is tempered by a stretched valuation with a high P/E ratio and overbought technical signals, which introduce near-term risk despite the strong underlying business fundamentals.

Positive Factors
High Margins and Improving ProfitabilityGross margins of roughly 82%–86%, alongside EBIT margin improvement to about 17% and net margin to about 12.4% in 2025, indicate strong SaaS economics and operating leverage. These levels provide a durable buffer to fund product investment while supporting resilient earnings conversion.
Negative Factors
Periodic Revenue Growth VariabilityThe notably softer growth recorded in 2024 shows that demand has not been uniformly consistent across reporting periods. Even with renewed acceleration in the latest year, this variability can make forward planning less predictable and create occasional pressure on investment and operating leverage.

HENNGE K.K. (4475) vs. iShares MSCI Japan ETF (EWJ)

-50%-25%0%25%50%75%JP:4475+39.36%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 65.26B
Dividend Yield
0.54%
Average Volume (3M)
1.15M
Price to Earnings (P/E)
38.3
Beta (1Y)
0.15
Revenue Growth
19.17%
EPS Growth
46.29%
Country
Japan
Employees
390
Sector
Technology
Sector Strength
61
Industry
Software - Infrastructure

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 (SSO)...

HENNGE K.K. Financial Statement Overview

Summary

Exceptional financial health. Revenue growth exceeds 30% with expanding margins (86.5% gross, 17.0% operating). The balance sheet is virtually debt-free (D/E 0.04) with a stellar 34.9% ROE. Cash flow is robust, with FCF growing 44% and near 100% conversion of net income, indicating high-quality earnings.

Income Statement

92Very Positive

Balance Sheet

98Very Positive

Cash Flow

95Very Positive
Financial statement breakdown
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 Debt161.64M148.15M0000
Total Liabilities8.03B6.90B5.30B3.88B3.11B2.65B
Stockholders Equity4.28B3.89B2.99B2.42B2.09B1.84B
Cash Flow
Free Cash Flow02.70B1.87B1.14B748.20M505.20M
Operating Cash Flow02.73B1.93B1.23B776.74M526.93M
Investing Cash Flow0-1.34B-34.83M-425.16M-119.78M-25.36M
Financing Cash Flow0-417.51M-150.98M-270.31M-100.00K17.83M

HENNGE K.K. Technical Analysis

Technical Analysis SentimentNeutral
Last Price2022.00

Price Trends

50DMA1807.15Positive
100DMA1522.53Positive
200DMA1285.60Positive

Market Momentum

MACD118.93Positive
RSI51.32Neutral
STOCH31.77Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4475, the sentiment is Neutral. The current price of 2022.00 is below the 20-day moving average (MA) of 2023.90, above the 50-day MA of 1807.15, and above the 200-day MA of 1285.60, indicating a neutral trend. The MACD of 118.93 indicates Positive momentum. The RSI at 51.32 is Neutral, neither overbought nor oversold. The STOCH value of 31.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4475.

HENNGE K.K. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:4475 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4493JP:449387OutperformJPY 29.87B30.76―0.17%22.65%74.18%
JP:3915JP:391586OutperformJPY 28.19B13.64―0.74%19.19%93.45%
JP:4704JP:470479OutperformJPY 959.91B26.5028.87%2.59%6.86%14.89%
JP:4475JP:447578OutperformJPY 70.26B38.27―0.54%19.17%46.29%
JP:3040JP:304077OutperformJPY 56.08B17.2223.79%1.97%12.25%84.46%
JP:4417JP:441769NeutralJPY 126.92B58.50―0.51%25.18%85.59%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%

* Technology Sector Average

Performance Comparison

0%50%100%JP:4475JP:3040JP:4704JP:3915JP:4417JP:4493Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:4475 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4475HENNGE K.K.2022.00586.0240.81%
JP:3040Soliton Systems KK2942.001291.0078.20%
JP:4704Trend Micro7154.00-549.42-7.13%
JP:3915TerraSky Co., Ltd.2162.0090.354.36%
JP:4417Global Security Experts Inc.8470.004943.34140.17%
JP:4493Cyber Security Cloud, Inc.2880.00985.2452.00%

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 expecte...

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 priced...

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 initiatives,...

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 of 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 secondary...

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 JPY...

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 growth...

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