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HIROSE ELECTRIC CO
(6806)
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Rating:70Outperform
Price Target:
¥28,595.00
▲(0.90% Upside)
Action:Reiterated
Date:08/19/26
The score is driven primarily by strong financial quality (high margins and exceptionally low leverage), tempered by uneven free-cash-flow conversion and weaker near-term technical momentum. Valuation is not cheap at ~25.9x earnings, with only modest support from a ~1.94% dividend yield.
Positive Factors
Sustained High Profitability
Hirose maintains strong gross, operating, and net margins, indicating product differentiation, pricing power, and efficient production. Although margins have softened from earlier peaks, their multi-year strength provides a durable earnings base through normal industry cycles.
Negative Factors
Uneven Free-Cash-Flow Conversion
Despite positive operating cash flow, only moderate conversion to free cash flow means capital spending and working-capital swings can reduce cash available for reinvestment or returns. Historical volatility makes cash generation less predictable than reported profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained High Profitability
Hirose maintains strong gross, operating, and net margins, indicating product differentiation, pricing power, and efficient production. Although margins have softened from earlier peaks, their multi-year strength provides a durable earnings base through normal industry cycles.
Read all positive factors
HIROSE ELECTRIC CO (6806) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥811.68B
Dividend Yield1.97%
Average Volume (3M)97.63K
Price to Earnings (P/E)26.0
Beta (1Y)1.23
Revenue Growth15.94%
EPS Growth6.46%
CountryJP
Employees5,110
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)1002.96
Shares Outstanding34,530,434
10 Day Avg. Volume106,790
30 Day Avg. Volume97,633
Financial Highlights & Ratios
PEG Ratio12.74
Price to Book (P/B)1.78
Price to Sales (P/S)3.19
P/FCF Ratio26.06
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥33,244.44Price Target Upside17.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)1,158.64
Revenue Forecast (FY)¥240.33B
HIROSE ELECTRIC CO Business Overview & Revenue Model
Company Description
Hirose Electric Co.,Ltd. is a global enterprise that manufactures and distributes a comprehensive range of connectors. Their product portfolio features multi-pin connectors, including both circular and rectangular varieties, along with specialized...
How the Company Makes Money
Hirose Electric primarily makes money by selling connectors and related interconnect components to equipment manufacturers and electronics suppliers. Revenue is generated from (1) product sales of connectors (e.g., board-to-board, wire-to-board, I...
HIROSE ELECTRIC CO Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 224.38B | 211.26B | 189.42B | 165.51B | 183.22B | 163.67B |
| Gross Profit | 94.23B | 89.00B | 85.37B | 72.50B | 88.19B | 74.94B |
| EBITDA | 69.86B | 66.54B | 64.97B | 55.70B | 65.64B | 59.56B |
| Net Income | 33.25B | 33.14B | 33.03B | 26.48B | 34.65B | 31.44B |
Balance Sheet | ||||||
| Total Assets | 439.27B | 431.18B | 416.87B | 403.45B | 401.36B | 394.78B |
| Cash, Cash Equivalents and Short-Term Investments | 110.30B | 87.33B | 85.67B | 90.34B | 88.03B | 68.39B |
| Total Debt | 6.74B | 6.22B | 5.20B | 5.93B | 5.48B | 4.97B |
| Total Liabilities | 59.82B | 53.10B | 45.90B | 38.76B | 50.97B | 52.15B |
| Stockholders Equity | 379.45B | 378.07B | 370.15B | 364.17B | 349.85B | 342.07B |
Cash Flow | ||||||
| Free Cash Flow | 26.77B | 25.86B | 29.00B | 8.98B | 27.14B | 30.47B |
| Operating Cash Flow | 46.23B | 45.88B | 55.68B | 41.05B | 45.65B | 44.32B |
| Investing Cash Flow | 17.13B | -9.25B | -42.95B | -13.94B | 6.40B | -10.88B |
| Financing Cash Flow | -38.33B | -37.92B | -16.67B | -28.19B | -34.17B | -25.25B |
HIROSE ELECTRIC CO Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ¥811.68B | 26.02 | 8.80% | 1.78% | 15.94% | 6.46% | |
68 Neutral | ¥427.44B | 17.15 | 6.28% | 2.86% | 2.28% | -22.89% | |
68 Neutral | ¥5.79T | 25.23 | ― | 1.20% | 21.98% | 57.54% | |
65 Neutral | ¥13.15T | 51.62 | 8.95% | 0.78% | 10.31% | 24.82% | |
62 Neutral | ¥88.46B | 16.67 | ― | 1.44% | 14.45% | 543.68% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
49 Neutral | ¥166.97B | 25.61 | 5.10% | 2.44% | 7.73% | -29.74% |
* Technology Sector Average
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HIROSE ELECTRIC CO Corporate Events
Hirose Electric Issues Q1 FY2026 Results with Caution on Forward-Looking Statements
Aug 5, 2026
Hirose Electric Co., Ltd. has released materials on its business results for the first quarter of fiscal year 2026, accompanied by a cautionary statement regarding the nature of certain disclosures. The company clarifies that portions of the mater...
Hirose Electric Launches ¥15 Billion Share Buyback to Boost Capital Efficiency
Aug 4, 2026
Hirose Electric Co., Ltd., a Tokyo Stock Exchange Prime Market-listed manufacturer of electronic components and connector systems, operates globally in industrial, automotive, and communications segments where reliable and high-performance interco...
Hirose Electric Partially Completes Authorized Share Buyback Program
Aug 4, 2026
Hirose Electric Co., Ltd. announced the results and completion of a board‑authorized treasury share acquisition program conducted under Japan’s Companies Act and its Articles of Incorporation. The initiative, approved on December 25, 2...
Hirose Electric Raises FY2027 Earnings Outlook on Strong Industrial Demand and FX Tailwinds
Aug 4, 2026
Hirose Electric has revised upward its consolidated earnings forecasts for the second quarter and full fiscal year ending March 31, 2027, reflecting stronger-than-expected performance in its general industrial business and favorable foreign exchan...
Hirose Electric Posts Strong Q1 FY2027 Results and Raises Full-Year Forecast
Aug 4, 2026
Hirose Electric reported strong financial results for the three months ended June 30, 2026, with revenue rising 26.8% year-on-year to ¥62.1 billion and operating profit climbing 35.6% to ¥13.3 billion. Profit attributable to owners of th...
Hirose Electric Updates Progress on Ongoing Share Buyback Program
Jul 1, 2026
Hirose Electric reported the latest status of its ongoing share buyback program authorized by its board in December 2025 under the Companies Act. During the most recent period from June 1 to June 30, 2026, the company did not repurchase any shares...
Hirose Electric Leaves Room in Ongoing ¥15 Billion Share Buyback Program
Jun 1, 2026
Hirose Electric has provided an update on its ongoing share buyback program authorized by its board in December 2025 under the Companies Act, covering up to 1,000,000 common shares and a maximum outlay of ¥15 billion between January 5 and Jul...
Hirose Electric to Cancel 1.16 Million Treasury Shares to Optimize Capital Structure
May 29, 2026
Hirose Electric has resolved to cancel a portion of its treasury shares in line with its previously announced basic policy on holding and cancelling such shares. The move reflects the company’s capital management approach of keeping treasury...
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.