Horiba (6856) AI Stock Analysis

• Market Cap: $528.75B
• Dividend Yield: 0.73%
• Average Volume (3M): 172.52K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 1.41
• Revenue Growth: 7.09%
• EPS Growth: 6.00%
• Country: JP
• Employees: 8,955
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 184.52
• Shares Outstanding: 42,233,253
• 10 Day Avg. Volume: 174,960
• 30 Day Avg. Volume: 172,520
• PEG Ratio: -0.71
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 1.21
• P/FCF Ratio: 17.34
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 1.18
• Enterprise Value/Gross Profit: 2.71
• Enterprise Value/Ebitda: 5.77
• 1Y Price Target: $15,470.65
• Price Target Upside: 7.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥14,687.00 ▲(2.24% Upside)

Horiba's strong financial performance and positive technical indicators are the primary drivers of its overall score. The company's solid revenue growth and profitability margins, along with a stable balance sheet, provide a strong foundation. Technical analysis supports a positive trend, though valuation metrics suggest the stock is fairly priced, limiting upside potential.

Horiba Business Overview & Revenue Model

Company Description

HORIBA, Ltd. manufactures and sells instruments and systems for various applications. It operates in five segments: Automotive, Process & Environmental, Medical-Diagnostic, Semiconductor, and Scientific. The Automotive segment offers automotive emission analyzers, emission measurement systems, drive line test systems, engine test and fuel cell test systems, and battery test systems; test systems for engines, chassis, powertrains, brakes, and catalysts; and vehicle development engineering and testing engineering services, as well as leases and manages R&D facilities. The Process & Environmental segment provides stack gas analyzers, industrial water quality analyzers, water quality analysis and examination systems, air pollution analyzers, environmental radiation meters, and process measurement equipment. The Medical-Diagnostic segment offers hematology and CRP, immunology, clinical chemistry, and blood glucose analyzers. The Semiconductor Instruments & Systems segment provides mass flow controllers, chemical concentration monitors, reticle/mask particle detection systems, residual gas analyzers, and vaporizers. The Scientific segment offers Raman spectrometers, pH meters, particle-size distribution analyzers, X-Ray fluorescence analyzers, elemental analyzers, fluorescence spectroscopy/fluorescence lifetime spectroscopy, optical components, spectrometers and detectors, and gratings. The company was founded in 1945 and is headquartered in Kyoto, Japan.

How the Company Makes Money

Horiba generates revenue through multiple streams, primarily through the sale of its analytical and measuring instruments, which cater to various industries, including automotive, semiconductor, and healthcare. The company earns income from product sales, service contracts, and maintenance agreements, with a significant portion of its revenue stemming from ongoing support and calibration services. Additionally, Horiba benefits from strategic partnerships with other technology companies and research institutions that enhance its product offerings and market reach. The company's ability to provide integrated solutions, along with its focus on R&D, positions it favorably in competitive markets, thereby contributing to its overall earnings.

Horiba Financial Statement Overview

Summary

Horiba demonstrates robust financial performance with strong revenue growth and solid profitability margins. The balance sheet is stable with a high equity ratio and manageable debt levels. However, a recent decline in net income and fluctuations in capital expenditures slightly dampen the overall strong performance.

Income Statement

Horiba demonstrates strong financial performance with a consistently increasing revenue trend, growing from ¥187.08 billion in 2020 to ¥317.37 billion in 2024. The gross profit margin maintains a robust level, averaging around 43%, while the net profit margin hovers at approximately 10.5% in the latest year. EBIT and EBITDA margins are also healthy, indicating efficient operational management. However, there was a slight decline in net income from 2023 to 2024, which slightly dampens the overall strong performance.

Balance Sheet

Horiba's balance sheet shows a strong equity base with an equity ratio of nearly 65.3% in 2024, indicating solid financial stability. The debt-to-equity ratio is manageable at 0.20, reflecting prudent financial leverage. Return on equity remains attractive, supporting profitability. The company has a growing asset base, enhancing its capacity for growth. However, the relatively high level of total liabilities requires ongoing monitoring to ensure it remains within a comfortable range.

Cash Flow

Horiba's cash flow statement highlights substantial free cash flow generation, although there was a slowdown in growth from 2023 to 2024. The operating cash flow to net income ratio is strong, indicating effective cash conversion from earnings. The free cash flow to net income ratio also supports the company's profitability profile. However, fluctuations in capital expenditure affect free cash flow growth rates, reflecting potential volatility in cash allocation strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	323.59B	317.37B	290.56B	270.13B	224.31B	187.08B
Gross Profit	141.50B	136.85B	127.38B	116.67B	93.22B	76.43B
EBITDA	66.41B	61.40B	67.03B	57.19B	41.16B	29.04B
Net Income	36.30B	33.59B	40.30B	34.07B	21.31B	13.19B
Balance Sheet
Total Assets	478.91B	481.62B	449.03B	416.74B	371.58B	328.07B
Cash, Cash Equivalents and Short-Term Investments	153.20B	146.33B	134.78B	141.35B	137.03B	116.50B
Total Debt	64.05B	64.40B	60.39B	67.20B	80.18B	77.07B
Total Liabilities	165.00B	166.91B	165.30B	175.89B	167.09B	149.40B
Stockholders Equity	313.89B	314.69B	283.71B	240.83B	204.48B	178.66B
Cash Flow
Free Cash Flow	0.00	22.18B	7.48B	21.88B	22.70B	17.21B
Operating Cash Flow	0.00	40.34B	16.65B	33.97B	35.27B	32.25B
Investing Cash Flow	0.00	-17.56B	-7.32B	-10.74B	-14.66B	-14.02B
Financing Cash Flow	0.00	-15.93B	-20.96B	-22.45B	-4.04B	843.00M

Horiba Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14365.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6856, the sentiment is Positive. The current price of 14365 is above the 20-day moving average (MA) of 13253.75, above the 50-day MA of 12440.30, and above the 200-day MA of 10672.99, indicating a bullish trend. The MACD of 441.33 indicates Negative momentum. The RSI at 69.97 is Neutral, neither overbought nor oversold. The STOCH value of 93.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6856.

Horiba Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4186	78 Outperform	$615.50B	21.57	13.68%	1.13%	21.48%	65.56%
6951	76 Outperform	¥271.22B	13.56	―	1.94%	10.15%	-18.57%
6856	76 Outperform	$528.75B	14.59	11.91%	0.73%	7.09%	6.00%
6965	74 Outperform	$493.13B	33.82	4.46%	2.20%	0.66%	-52.50%
6806	73 Outperform	$649.71B	20.31	8.68%	2.37%	13.89%	11.34%
6645	68 Neutral	$832.00B	25.44	4.20%	2.41%	1.05%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Horiba Corporate Events

HORIBA Reports Strong Financial Growth and Strategic Acquisition in H1 2025

HORIBA, Ltd. reported a 4.4% increase in net sales for the first half of 2025, reaching 148,943 million yen, with a notable 20.6% rise in net income attributable to shareholders. The company also announced the acquisition of EtaMax Co., Ltd., which is expected to impact its consolidation scope. The financial results reflect a steady growth trajectory, with a forecasted 5.6% increase in net sales for the full year 2025, indicating strong market positioning and potential positive implications for stakeholders.

The most recent analyst rating on (JP:6856) stock is a Buy with a Yen13000.00 price target. To see the full list of analyst forecasts on Horiba stock, see the JP:6856 Stock Forecast page.

Horiba Ltd. Reports Strong First Half 2025 Results

Horiba Ltd. is a Japanese company specializing in the manufacture of precision instruments for measurement and analysis, primarily serving the automotive, environmental, medical, and semiconductor sectors. Known for its innovative solutions, Horiba operates globally with a strong focus on technological advancement.

HORIBA, Ltd. Reports Strong First Half 2025 Financial Results and Strategic Expansion

HORIBA, Ltd. reported a positive financial performance for the first half of 2025, with increases in net sales, operating income, and net income attributable to shareholders compared to the previous year. The company also announced the acquisition of a new company, EtaMax Co., Ltd., indicating a strategic expansion in its operations. Despite a slight decrease in total assets, the shareholders’ equity ratio improved marginally, reflecting a stable financial position. The company maintained its dividend forecast, signaling confidence in its ongoing financial health.

The most recent analyst rating on (JP:6856) stock is a Buy with a Yen13000.00 price target. To see the full list of analyst forecasts on Horiba stock, see the JP:6856 Stock Forecast page.