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Hochiki Corporation
(6745)
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Rating:77Outperform
Price Target:
¥2,301.00
▼(-48.18% Downside)
Action:Reiterated
Date:08/21/26
The score is primarily driven by strong financial performance—especially the very low leverage balance sheet and improving profitability—partly tempered by historically inconsistent cash-flow generation. Technicals are mildly positive with neutral momentum, and valuation looks fair with a moderate P/E and a ~2% dividend yield.
Positive Factors
Very low leverage
Hochiki’s exceptionally low leverage provides substantial financial resilience and limits interest burden. A balance sheet funded primarily by equity gives the company flexibility to sustain investment, withstand weaker periods, and pursue growth without relying heavily on refinancing or additional debt.
Negative Factors
Historically volatile free cash flow
Negative free cash flow in two consecutive years demonstrates that accounting earnings have not always translated into available cash. Although the later rebound is encouraging, this history makes cash generation less predictable and could constrain internally funded investment during another weak period.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
Hochiki’s exceptionally low leverage provides substantial financial resilience and limits interest burden. A balance sheet funded primarily by equity gives the company flexibility to sustain investment, withstand weaker periods, and pursue growth without relying heavily on refinancing or additional debt.
Read all positive factors
Hochiki Corporation (6745) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥163.57B
Dividend Yield2.22%
Average Volume (3M)138.73K
Price to Earnings (P/E)16.1
Beta (1Y)1.06
Revenue Growth4.83%
EPS Growth23.76%
CountryJP
Employees2,722
SectorGeneral
Sector StrengthN/A
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)125.68
Shares Outstanding79,200,000
10 Day Avg. Volume148,740
30 Day Avg. Volume138,730
Financial Highlights & Ratios
PEG Ratio0.73
Price to Book (P/B)2.24
Price to Sales (P/S)1.45
P/FCF Ratio16.40
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)127.3
Revenue Forecast (FY)¥110.00B
Hochiki Corporation Business Overview & Revenue Model
Company Description
Hochiki Corporation engages in the research and development, manufacture, sale, consulting, engineering, design, and maintenance of fire alarm systems, information and communication, fire extinguishing, crime prevention systems, and network and se...
How the Company Makes Money
Hochiki makes money primarily by selling fire detection and alarm products and associated system components for use in commercial, industrial, and public buildings. Its revenue model is centered on product sales (e.g., detectors, control panels, n...
Hochiki Corporation Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
62
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 105.86B | 100.90B | 93.48B | 85.46B | 81.25B |
| Gross Profit | 41.67B | 37.15B | 32.25B | 27.83B | 26.22B |
| EBITDA | 14.02B | 11.66B | 8.88B | 7.00B | 6.92B |
| Net Income | 9.38B | 7.65B | 5.66B | 4.42B | 4.12B |
Balance Sheet | |||||
| Total Assets | 97.94B | 89.66B | 85.23B | 77.82B | 73.91B |
| Cash, Cash Equivalents and Short-Term Investments | 27.97B | 21.16B | 11.63B | 15.31B | 18.62B |
| Total Debt | 1.23B | 1.27B | 1.14B | 666.00M | 513.00M |
| Total Liabilities | 29.46B | 30.33B | 32.32B | 31.47B | 31.05B |
| Stockholders Equity | 68.40B | 59.12B | 52.74B | 46.18B | 42.69B |
Cash Flow | |||||
| Free Cash Flow | 9.36B | 10.37B | -685.00M | -1.62B | 7.25B |
| Operating Cash Flow | 10.79B | 12.04B | 907.00M | 516.00M | 7.86B |
| Investing Cash Flow | -1.83B | -826.00M | -2.69B | -2.32B | -760.00M |
| Financing Cash Flow | -2.65B | -1.71B | -2.49B | -1.60B | -1.20B |
Hochiki Corporation Technical Analysis
Positive
4440.00
Price Trends
1965.26
Positive
1961.55
Positive
1939.98
Positive
Market Momentum
39.74
Negative
58.58
Neutral
64.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6745, the sentiment is Positive. The current price of 4440 is above the 20-day moving average (MA) of 2025.55, above the 50-day MA of 1965.26, and above the 200-day MA of 1939.98, indicating a bullish trend. The MACD of 39.74 indicates Negative momentum. The RSI at 58.58 is Neutral, neither overbought nor oversold. The STOCH value of 64.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6745.
Hochiki Corporation Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥127.09B | 10.73 | 10.85% | 3.91% | 3.01% | 2.30% | |
77 Outperform | ¥163.57B | 16.10 | ― | 2.22% | 4.83% | 23.76% | |
65 Neutral | ¥225.19B | 15.43 | 9.29% | 3.33% | -1.29% | 32.72% | |
64 Neutral | ¥5.48B | 8.75 | ― | 4.86% | -3.27% | -4.23% | |
63 Neutral | ¥6.16T | 22.35 | 8.84% | 1.69% | 10.88% | -2.59% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
46 Neutral | ¥478.16B | 2,409.42 | 0.03% | 5.41% | 2.42% | -97.84% |
* General Sector Average
JP:6745
Hochiki Corporation
2,106.00
848.15
67.43%
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Hochiki Corporation Corporate Events
Hochiki Boosts Capital in Asia Subsidiary After Taiwan Integration
Oct 9, 2026
Hochiki Corporation has resolved to significantly increase the paid-in capital of its wholly owned subsidiary Hochiki Asia Pacific Pte. Ltd., lifting it to US$2,997,900 and thereby qualifying it as a specified subsidiary under Japanese disclosure ...
Hochiki Delivers Strong Quarterly Profit Growth but Guides Softer Earnings Ahead
Aug 5, 2026
Hochiki Corporation, a Japan-based manufacturer of fire detection and safety systems listed on the Tokyo Stock Exchange, supplies fire alarms and related safety equipment to building safety and fire protection markets at home and abroad. The compa...
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.