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

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halmek holdings Co.,Ltd.

(TSE/TYO:7119)

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Rating:44Neutral

Price Target:JPY 1,804.00▼(-2.75% Downside)

Action:reiterated

Date:11/13/26

The overall score is low, driven primarily by a severe deterioration in operational performance and cash flow generation, which overshadows a strong balance sheet. The company's revenue is in steep decline and profits are not converting to cash, creating a high-risk profile. Technicals are weak in the short-term, and the valuation does not offer a sufficient margin of safety to compensate for these fundamental risks.

Positive Factors

Improving Balance SheetLower leverage and growing equity improve the company’s financial resilience and reduce balance-sheet pressure. This gives management greater flexibility to maintain operations, absorb weaker trading conditions, and fund strategic priorities over the next several quarters.

Negative Factors

Sharp Revenue ContractionA roughly 46% TTM revenue decline is a substantial challenge to the company’s operating model and customer monetization capacity. Prolonged top-line weakness could reduce scale benefits, limit investment resources, and make recovery in absolute earnings more difficult.

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

Market Cap: JPY 20.49B
Dividend Yield: 2.10%
Average Volume (3M): 18.19K
Price to Earnings (P/E): 17.3
Beta (1Y): 0.21
Revenue Growth: -1.37%
EPS Growth: 48.83%
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

Financial performance is severely bifurcated. The balance sheet is a fortress (Score 72) with low leverage, but this is overshadowed by a collapsing income statement (Score 28) and critically weak cash flow (Score 15). The steep revenue decline and inability to convert profits to cash are major red flags.

Income Statement

28Negative

Balance Sheet

72Positive

Cash Flow

15Very Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	33.32B	33.81B	33.93B	31.41B	28.74B	25.23B
Gross Profit	17.70B	17.93B	17.99B	16.84B	15.46B	13.66B
EBITDA	3.18B	2.88B	2.39B	2.34B	2.71B	1.97B
Net Income	1.19B	1.05B	623.00M	476.00M	1.25B	796.00M
Balance Sheet
Total Assets	21.04B	21.16B	20.89B	20.11B	23.10B	18.30B
Cash, Cash Equivalents and Short-Term Investments	2.02B	2.78B	2.39B	938.00M	5.04B	964.00M
Total Debt	4.53B	4.54B	4.81B	4.94B	8.12B	7.72B
Total Liabilities	11.75B	12.27B	12.70B	12.56B	16.61B	16.48B
Stockholders Equity	9.28B	8.89B	8.20B	7.55B	6.48B	1.82B
Cash Flow
Free Cash Flow	425.00M	1.59B	2.24B	48.00M	2.23B	778.00M
Operating Cash Flow	469.00M	1.70B	2.40B	152.00M	2.26B	881.00M
Investing Cash Flow	-90.00M	-380.00M	-344.00M	-414.00M	-464.00M	-773.00M
Financing Cash Flow	-1.09B	-934.00M	-593.00M	-3.84B	2.27B	-978.00M

halmek holdings Co.,Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price1855.00

Price Trends

50DMA1923.34Negative

100DMA1797.52Positive

200DMA1635.02Positive

Market Momentum

MACD-12.05Negative

RSI46.83Neutral

STOCH56.68Neutral

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 1855.00 is below the 20-day moving average (MA) of 1870.65, below the 50-day MA of 1923.34, and above the 200-day MA of 1635.02, indicating a neutral trend. The MACD of -12.05 indicates Negative momentum. The RSI at 46.83 is Neutral, neither overbought nor oversold. The STOCH value of 56.68 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:3106	80Outperform	JPY 184.95B	11.36	―	9.34%	1.96%	32.98%
JP:4206	79Outperform	JPY 271.44B	13.66	―	3.52%	11.84%	7.92%
JP:3105	67Neutral	JPY 311.81B	10.99	9.06%	1.85%	3.85%	34.29%
JP:3512	67Neutral	JPY 17.62B	22.61	―	2.87%	-4.43%	71.22%
JP:5355	64Neutral	JPY 4.44B	8.81	―	2.72%	7.56%	38.72%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:7119	44Neutral	JPY 20.67B	17.30	―	2.10%	-1.37%	48.83%

* 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.	1855.00	560.19	43.26%
JP:3105	Nisshinbo Holdings	1941.00	735.34	60.99%
JP:3106	KURABO INDUSTRIES LTD.	2133.00	778.41	57.46%
JP:3512	Nippon Felt Company Limited	977.00	388.31	65.96%
JP:4206	Aica Kogyo Company, Limited	4094.00	785.05	23.72%
JP:5355	Nippon Crucible Co., Ltd.	662.00	74.25	12.63%

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: Nov 13, 2026

halmek holdings Co.,Ltd. AI Stock Analysis