halmek holdings Co.,Ltd. (7119) AI Stock Analysis

halmek holdings Co.,Ltd.

(TSE/TYO:7119)

Select Model

Rating:69Neutral

Price Target:JPY 2,041.00▲(11.65% Upside)

Action:downgraded

Date:09/19/26

The company's solid balance sheet and improving margins support a stable foundation, but negative TTM cash flows and stalled revenue growth are significant risks. Strong technical momentum and a fair valuation provide a counterbalance, resulting in a moderately positive overall score.

Positive Factors

Balance-sheet de-riskingThe move from very high leverage in FY2022 and FY2023 to debt at roughly half of equity provides greater financial resilience. A more conservative capital structure can preserve borrowing capacity and support continued investment through a softer operating period.

Negative Factors

Recent revenue contractionA sharp TTM revenue decline is a fundamental concern because it can signal weaker demand, reduced customer activity, or pressure on the company’s media and commerce channels. If sustained, lower scale would make it harder to absorb fixed costs and rebuild profit growth.

halmek holdings Co.,Ltd. (7119) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 20.59B
Dividend Yield: 2.09%
Average Volume (3M): 17.35K
Price to Earnings (P/E): 18.0
Beta (1Y): 0.19
Revenue Growth: -1.50%
EPS Growth: 83.80%
Country: Japan
Employees: 417
Sector: General
Sector Strength: 55
Industry: Conglomerates

halmek holdings Co.,Ltd. Business Overview & Revenue Model

Company Description

halmek holdings Co.,Ltd. is a diversified Japanese enterprise operating across multiple sectors, including content creation, direct marketing, retail, consulting, advertising, and healthcare services. Its content division specifically caters to adult...

How the Company Makes Money

The company makes money through its consolidated subsidiaries by monetizing senior-oriented audiences and customer relationships. Key revenue streams include: (1) Media/content-related monetization: generating revenue from senior-focused publications...

halmek holdings Co.,Ltd. Financial Statement Overview

Summary

The balance sheet is a clear strength with a debt-to-equity ratio of 0.5 and robust equity growth. The income statement shows recovering margins (EBIT margin 5.8% TTM) but stalled revenue growth. Cash flow is the primary concern, with TTM operating and free cash flow turning negative, indicating short-term liquidity pressure.

Income Statement

65Positive

Balance Sheet

85Very Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	33.48B	33.81B	33.93B	31.41B	28.74B	25.23B
Gross Profit	17.86B	17.93B	17.99B	16.84B	15.46B	13.66B
EBITDA	3.05B	2.88B	2.39B	2.34B	2.71B	1.97B
Net Income	1.15B	1.05B	623.00M	476.00M	1.25B	796.00M
Balance Sheet
Total Assets	21.57B	21.16B	20.89B	20.11B	23.10B	18.30B
Cash, Cash Equivalents and Short-Term Investments	1.31B	2.78B	2.39B	938.00M	5.04B	964.00M
Total Debt	4.51B	4.54B	4.81B	4.94B	8.12B	7.72B
Total Liabilities	12.38B	12.27B	12.70B	12.56B	16.61B	16.48B
Stockholders Equity	9.19B	8.89B	8.20B	7.55B	6.48B	1.82B
Cash Flow
Free Cash Flow	-266.00M	1.59B	2.24B	48.00M	2.23B	778.00M
Operating Cash Flow	-190.00M	1.70B	2.40B	152.00M	2.26B	881.00M
Investing Cash Flow	-147.00M	-380.00M	-344.00M	-414.00M	-464.00M	-773.00M
Financing Cash Flow	-960.00M	-934.00M	-593.00M	-3.84B	2.27B	-978.00M

halmek holdings Co.,Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price1828.00

Price Trends

50DMA1897.59Negative

100DMA1773.66Positive

200DMA1609.98Positive

Market Momentum

MACD-9.89Positive

RSI45.65Neutral

STOCH21.38Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7119, the sentiment is Neutral. The current price of 1828.00 is below the 20-day moving average (MA) of 1872.95, below the 50-day MA of 1897.59, and above the 200-day MA of 1609.98, indicating a neutral trend. The MACD of -9.89 indicates Positive momentum. The RSI at 45.65 is Neutral, neither overbought nor oversold. The STOCH value of 21.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7119.

halmek holdings Co.,Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7119 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4206	85Outperform	JPY 277.01B	14.61	―	3.29%	4.67%	9.51%
JP:3106	80Outperform	JPY 193.85B	16.21	―	14.39%	-3.25%	-0.51%
JP:7119	69Neutral	JPY 20.71B	17.97	―	2.09%	-1.50%	83.80%
JP:3105	67Neutral	JPY 352.94B	14.60	8.13%	1.60%	2.09%	95.69%
JP:3512	67Neutral	JPY 17.14B	22.75	―	2.85%	-4.43%	71.22%
JP:5355	64Neutral	JPY 4.47B	10.16	―	2.71%	8.83%	31.80%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:7119 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7119	halmek holdings Co.,Ltd.	1864.00	554.51	42.35%
JP:3105	Nisshinbo Holdings	2244.00	1050.10	87.95%
JP:3106	KURABO INDUSTRIES LTD.	2307.00	948.54	69.82%
JP:3512	Nippon Felt Company Limited	983.00	406.94	70.64%
JP:4206	Aica Kogyo Company, Limited	4377.00	877.15	25.06%
JP:5355	Nippon Crucible Co., Ltd.	665.00	78.23	13.33%

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: Sep 19, 2026

halmek holdings Co.,Ltd. AI Stock Analysis