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Hochiki Corporation (6745) AI Stock Analysis

JP:6745

Hochiki Corporation

(TSE/TYO:6745)

Select Model
Rating:83Outperform
Price Target:JPY 2,361.00â–²(14.78% Upside)
Action:reiterated
Date:08/21/26

Hochiki Corporation earns a strong overall score of 83, driven primarily by its pristine balance sheet, expanding profit margins, and robust free cash flow. Supporting this fundamental foundation is a reasonable P/E valuation and a healthy technical setup indicating sustained bullish momentum. With earnings call and corporate event data excluded, the score relies on the company's deeply solid financial and technical positioning.

Positive Factors
Steady growth and margin expansionSteady revenue growth alongside improving operating profit, net income, and gross margin indicates stronger underlying earnings power. This combination can support reinvestment, improve resilience across commercial and public-sector demand cycles, and provide a durable base for profitability over the next several quarters.
Negative Factors
Historically volatile free cash flowNegative free cash flow in two earlier years shows that accounting profitability has not translated into consistently available cash. Such variability can complicate investment planning and capital allocation, and it leaves future funding capacity more dependent on the durability of the recent rebound.

Hochiki Corporation (6745) vs. iShares MSCI Japan ETF (EWJ)

-20%0%20%40%60%80%JP:6745+62.38%EWJ+17.00%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 157.12B
Dividend Yield
2.22%
Average Volume (3M)
169.76K
Price to Earnings (P/E)
16.1
Beta (1Y)
1.06
Revenue Growth
4.83%
EPS Growth
23.76%
Country
Japan
Employees
2,722
Sector
General
Sector Strength
55
Industry
Security & Protection Services

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 secur...

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, noti...

Hochiki Corporation Financial Statement Overview

Summary

Hochiki Corporation showcases exceptional financial health with steady revenue growth, expanding profit margins, and a virtually debt-free balance sheet. Robust free cash flow generation of 9.3 billion in 2026 demonstrates excellent earnings quality and strong cash conversion.

Income Statement

88Very Positive

Balance Sheet

92Very Positive

Cash Flow

82Very Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue105.86B105.86B100.90B93.48B85.46B81.25B
Gross Profit41.67B41.67B37.15B32.25B27.83B26.22B
EBITDA13.61B14.02B11.66B8.88B7.00B6.92B
Net Income9.38B9.38B7.65B5.66B4.42B4.12B
Balance Sheet
Total Assets97.94B97.94B89.66B85.23B77.82B73.91B
Cash, Cash Equivalents and Short-Term Investments27.97B27.97B21.16B11.63B15.31B18.62B
Total Debt1.23B1.23B1.27B1.14B666.00M513.00M
Total Liabilities29.46B29.46B30.33B32.32B31.47B31.05B
Stockholders Equity68.40B68.40B59.12B52.74B46.18B42.69B
Cash Flow
Free Cash Flow09.36B10.37B-685.00M-1.62B7.25B
Operating Cash Flow010.79B12.04B907.00M516.00M7.86B
Investing Cash Flow0-1.83B-826.00M-2.69B-2.32B-760.00M
Financing Cash Flow0-2.65B-1.71B-2.49B-1.60B-1.20B

Hochiki Corporation Technical Analysis

Technical Analysis SentimentPositive
Last Price2057.00

Price Trends

50DMA1965.26Positive
100DMA1961.55Positive
200DMA1939.98Positive

Market Momentum

MACD39.74Negative
RSI58.58Neutral
STOCH64.79Neutral

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 2057.00 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

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:6745 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6745JP:674583OutperformJPY 163.57B16.10―2.22%4.83%23.76%
JP:5930JP:593080OutperformJPY 127.09B10.7310.85%3.91%3.01%2.30%
JP:1979JP:197969NeutralJPY 225.19B15.439.29%3.33%-1.29%32.72%
JP:5936JP:593664NeutralJPY 5.48B8.75―4.86%-3.27%-4.23%
JP:6367JP:636763NeutralJPY 6.16T22.358.84%1.69%10.88%-2.59%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:5938JP:593846NeutralJPY 478.16B2409.420.03%5.41%2.42%-97.84%

* General Sector Average

Performance Comparison

0%20%40%60%JP:6745JP:6367JP:5938JP:1979JP:5930JP:5936Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:6745 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6745Hochiki Corporation2106.00820.4563.82%
JP:6367Daikin Industries,Ltd.21060.003306.7918.63%
JP:5938LIXIL Group Corp1662.5025.131.53%
JP:1979Taikisha 3605.00652.4222.10%
JP:5930Bunka Shutter Co., Ltd.1892.00-37.22-1.93%
JP:5936Toyo Shutter Co., Ltd.865.0016.992.00%

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 rul...

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 company...

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 21, 2026