Human Creation Holdings, Inc. (7361) AI Stock Analysis

• Market Cap: ¥3.83B
• Dividend Yield: 2.34%
• Average Volume (3M): 6.71K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.51
• Revenue Growth: 18.92%
• EPS Growth: 1.22%
• Country: JP
• Employees: 854
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 29.55
• Shares Outstanding: 3,573,100
• 10 Day Avg. Volume: 7,630
• 30 Day Avg. Volume: 6,706
• PEG Ratio: -1.18
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 6.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥1,279.00 ▲(11.12% Upside)

The overall stock score is driven primarily by strong financial performance and attractive valuation. The company's solid revenue growth and low leverage contribute positively. However, technical indicators suggest weak short-term momentum, which slightly offsets the financial strengths. The absence of earnings call data and corporate events means these factors do not influence the score.

Human Creation Holdings, Inc. Business Overview & Revenue Model

Company Description

Human Creation Holdings, Inc., through its subsidiaries, operates in the information technology (IT) industry. The company engages in the system design/development, IT technology consultant, and network/server design, as well as construction, management, and operation activities; and system consultation and hardware design/development activities. It also provides consulting services in the areas of business and organizational reform, IT strategy, and solution selection; technology consulting services comprising requirements analysis, project management, and solution introduction support; and ICT-related help desk management, education, manual production/planning and operation of showrooms, service centers, etc.; and outsourcing services for government. In addition, the company dispatches engineers. Human Creation Holdings, Inc. was founded in 1974 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Human Creation Holdings, Inc. generates revenue through multiple key streams. Primarily, the company earns income by selling its proprietary medical devices and pharmaceuticals to hospitals, clinics, and healthcare providers. Additionally, the company engages in research partnerships with academic institutions and other organizations, allowing it to receive funding for specific projects and share in the commercialization of successful innovations. Furthermore, Human Creation Holdings, Inc. may also derive revenue from licensing agreements for its technologies, enabling other companies to utilize its intellectual property in exchange for royalties. These diversified revenue streams, combined with strategic partnerships in the healthcare sector, significantly contribute to the company's overall earnings.

Human Creation Holdings, Inc. Financial Statement Overview

Summary

Human Creation Holdings, Inc. exhibits strong financial health with consistent revenue growth and profitability. The company maintains a solid balance sheet with low leverage, supporting financial stability. Cash flow management is effective, though attention to improving free cash flow growth could enhance financial flexibility. Overall, the company's financials are strong, with minor areas for improvement.

Income Statement

The company has demonstrated strong revenue growth, with a consistent upward trend over the past years. Gross profit margin and EBIT margin are healthy, indicating efficient cost management. However, there is a slight decline in EBIT and EBITDA margins in the latest year, suggesting increased operational costs or competitive pressures.

Balance Sheet

The balance sheet reflects a solid financial position with a strong equity base and a low debt-to-equity ratio, indicating low financial leverage. The equity ratio is favorable, suggesting a stable capital structure. However, the decrease in total debt and liabilities over the years could indicate a cautious approach to leveraging growth opportunities.

Cash Flow

Operating cash flow remains robust, supporting the company's ability to generate cash from core operations. The free cash flow has decreased, reflecting higher capital expenditures or lower operating cash flow. The cash flow to net income ratios indicate efficient cash conversion, though there is room for improvement in free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.20B	7.17B	6.49B	5.80B	5.04B	4.57B
Gross Profit	2.39B	2.08B	1.96B	1.77B	1.43B	1.19B
EBITDA	793.11M	755.55M	822.20M	663.73M	545.43M	382.03M
Net Income	379.62M	404.03M	438.43M	343.00M	275.89M	210.27M
Balance Sheet
Total Assets	4.36B	2.98B	2.96B	2.54B	2.19B	1.86B
Cash, Cash Equivalents and Short-Term Investments	1.16B	1.00B	1.02B	672.86M	846.22M	586.02M
Total Debt	1.32B	375.84M	641.34M	546.01M	266.42M	359.61M
Total Liabilities	2.95B	1.63B	1.90B	1.62B	1.13B	1.22B
Stockholders Equity	1.41B	1.35B	1.06B	915.76M	1.06B	637.04M
Cash Flow
Free Cash Flow	0.00	474.16M	705.49M	370.36M	256.61M	320.00M
Operating Cash Flow	0.00	481.45M	722.94M	373.48M	267.53M	338.92M
Investing Cash Flow	0.00	-3.11M	-169.25M	-335.00M	-51.74M	-269.55M
Financing Cash Flow	0.00	-495.91M	-206.47M	-211.84M	44.41M	118.44M

Human Creation Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1151.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7361, the sentiment is Negative. The current price of 1151 is below the 20-day moving average (MA) of 1158.20, below the 50-day MA of 1166.32, and below the 200-day MA of 1151.71, indicating a bearish trend. The MACD of -3.11 indicates Positive momentum. The RSI at 44.76 is Neutral, neither overbought nor oversold. The STOCH value of 43.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7361.

Human Creation Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9344	75 Outperform	¥4.44B	13.70	―	4.02%	12.97%	-36.62%
6538	73 Outperform	¥6.22B	21.79	―	1.62%	12.93%	―
7361	72 Outperform	¥3.83B	9.85	―	2.34%	18.92%	1.22%
6563	67 Neutral	¥3.30B	28.84	―	―	11.07%	53.36%
4766	66 Neutral	¥3.04B	29.79	―	―	7.14%	185.13%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6198	56 Neutral	¥2.29B	126.56	―	2.32%	-7.36%	-93.85%