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Hochiki Corporation (6745) AI Stock Analysis

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JP:6745

Hochiki Corporation

(TSE/TYO:6745)

Select Model
Rating:77Outperform
Price Target:JPY 2,301.00â–²(6.09% Upside)
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
Improving profitabilityConsistent profit growth alongside expanding margins indicates stronger earnings power and improving operating efficiency. This combination can support reinvestment, strengthen resilience across commercial and public-sector demand cycles, and provide a durable foundation for shareholder returns over the coming quarters.
Negative Factors
Historically volatile cash generationThe swing from negative free cash flow to a recent rebound shows that cash conversion has not been consistently aligned with accounting earnings. Such volatility can complicate investment planning and weaken certainty around internally funded growth, even though recent performance has improved.

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

-20%0%20%40%60%80%JP:6745+63.54%EWJ+14.42%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 158.46B
Dividend Yield
2.15%
Average Volume (3M)
168.56K
Price to Earnings (P/E)
15.7
Beta (1Y)
1.07
Revenue Growth
4.99%
EPS Growth
20.86%
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

Strong fundamentals overall: steady revenue growth and consistent operating/net income improvement with margin expansion through 2025, plus an exceptionally low-debt balance sheet with improving ROE. The main offset is cash-flow volatility (negative free cash flow in 2023–2024 before rebounding in 2025–2026), which reduces confidence in consistency.

Income Statement

82Very Positive

Balance Sheet

90Very Positive

Cash Flow

62Positive
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 Price2169.00

Price Trends

50DMA1973.23Positive
100DMA1969.71Positive
200DMA1959.48Positive

Market Momentum

MACD24.87Negative
RSI60.78Neutral
STOCH71.15Neutral

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 2169.00 is above the 20-day moving average (MA) of 2050.25, above the 50-day MA of 1973.23, and above the 200-day MA of 1959.48, indicating a bullish trend. The MACD of 24.87 indicates Negative momentum. The RSI at 60.78 is Neutral, neither overbought nor oversold. The STOCH value of 71.15 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:5930JP:593080OutperformJPY 125.89B10.7910.36%4.00%4.35%-10.47%
JP:6745JP:674577OutperformJPY 163.80B15.67―2.15%4.99%20.86%
JP:6367JP:636772OutperformJPY 6.71T23.159.28%1.53%14.96%7.34%
JP:1979JP:197965NeutralJPY 207.39B14.888.68%3.57%-1.29%13.79%
JP:5936JP:593664NeutralJPY 5.30B7.47―5.00%-3.27%-4.23%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:5938JP:593846NeutralJPY 486.07B2429.710.03%5.42%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 '26Nov '26
JP:6745 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6745Hochiki Corporation2169.00868.7966.82%
JP:6367Daikin Industries,Ltd.23235.003001.0614.83%
JP:5938LIXIL Group Corp1659.50-21.01-1.25%
JP:1979Taikisha 3365.00320.6110.53%
JP:5930Bunka Shutter Co., Ltd.1849.00-161.05-8.01%
JP:5936Toyo Shutter Co., Ltd.840.00-15.67-1.83%

Hochiki Corporation Corporate Events

Hochiki Approves 20-Yen Interim Dividend

Nov 5, 2026

Hochiki Corporation, listed on the Tokyo Stock Exchange Prime Market, approved an interim dividend of 20 yen per share for shareholders of record on September 30, 2026. The company will distribute a total of 1.504 billion yen from retained earnings,...

Hochiki Reports Strong First-Half Profit Growth

Nov 5, 2026

Hochiki reported six-month net sales of ¥51.894 billion, up 6.8% year on year, while operating profit increased 26.1% to ¥5.432 billion. Ordinary profit rose 23.7% to ¥5.412 billion, and profit attributable to owners of the parent climbed 24.9% to ¥3...

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...

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