HIRAYAMA HOLDINGS Co.Ltd. (7781) AI Stock Analysis

• Market Cap: ¥8.91B
• Dividend Yield: 4.28%
• Average Volume (3M): 9.11K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.72
• Revenue Growth: 2.63%
• EPS Growth: 9.81%
• Country: JP
• Employees: 3,096
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 23.78
• Shares Outstanding: 8,156,400
• 10 Day Avg. Volume: 5,910
• 30 Day Avg. Volume: 9,106
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,274.00
• Price Target Upside: 13.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: ¥1,274.00 ▲(13.95% Upside)

HIRAYAMA HOLDINGS Co.Ltd. receives a strong overall stock score driven by robust financial performance and attractive valuation metrics. The technical analysis supports a positive outlook with bullish trends. The absence of earnings call and corporate events data does not detract from the favorable assessment.

HIRAYAMA HOLDINGS Co.Ltd. Business Overview & Revenue Model

Company Description

HIRAYAMA HOLDINGS Co., Ltd. is a Japan-based company primarily engaged in the provision of human resource services. The company operates in various sectors, offering staffing and outsourcing solutions, including temporary staff placement, contract staffing, and business process outsourcing. HIRAYAMA HOLDINGS also provides engineering services and technical support, catering to a diverse range of industries such as manufacturing, logistics, and IT services.

How the Company Makes Money

HIRAYAMA HOLDINGS generates revenue primarily through its comprehensive human resource services. The company earns money by charging fees for temporary and contract staffing solutions, which constitute a significant portion of its income. It also profits from outsourcing services, where it provides business process outsourcing and engineering support to various industries. Additionally, the company may have strategic partnerships with businesses requiring specialized staffing solutions, contributing to its earnings. The company's diverse service offerings allow it to cater to a wide range of clients, which is a crucial factor in its revenue generation.

HIRAYAMA HOLDINGS Co.Ltd. Financial Statement Overview

Summary

HIRAYAMA HOLDINGS Co.Ltd. demonstrates strong financial performance with consistent revenue growth and solid profitability metrics. The balance sheet is well-managed with a healthy equity base and controlled leverage. Cash flow generation is robust, although some volatility in free cash flow growth warrants attention.

Income Statement

HIRAYAMA HOLDINGS Co.Ltd. exhibits strong revenue growth with a consistent upward trajectory over the years, highlighted by a 1.58% growth in the latest period. The company maintains healthy profit margins, with a gross profit margin of 18.15% and a net profit margin of 2.37% for the most recent year. EBIT and EBITDA margins also show stability, indicating efficient operational management. However, the net profit margin remains relatively low, suggesting room for improvement in cost management or pricing strategies.

Balance Sheet

The balance sheet reflects a solid financial position with a manageable debt-to-equity ratio of 0.25, indicating prudent leverage use. The return on equity is robust at 17.17%, showcasing effective utilization of shareholder funds. The equity ratio of 40.45% suggests a strong capital structure, though there is potential risk if debt levels increase significantly.

Cash Flow

Cash flow analysis reveals a remarkable free cash flow growth, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 1.15, demonstrating efficient conversion of earnings into cash. The free cash flow to net income ratio of 1.08 further supports the company's ability to generate cash relative to its net income, although fluctuations in free cash flow growth rates suggest potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.91B	36.22B	35.29B	31.67B	27.98B	23.04B
Gross Profit	6.38B	6.57B	5.97B	5.23B	4.80B	4.01B
EBITDA	1.39B	1.39B	1.26B	1.00B	799.51M	768.63M
Net Income	849.56M	858.16M	757.11M	549.13M	409.36M	413.46M
Balance Sheet
Total Assets	12.26B	12.36B	12.29B	10.11B	8.71B	8.17B
Cash, Cash Equivalents and Short-Term Investments	5.82B	6.06B	5.95B	4.33B	3.41B	3.88B
Total Debt	1.34B	1.24B	1.67B	843.23M	217.83M	565.86M
Total Liabilities	7.42B	7.35B	7.83B	6.13B	5.13B	4.98B
Stockholders Equity	4.83B	5.00B	4.46B	3.99B	3.58B	3.19B
Cash Flow
Free Cash Flow	0.00	923.57M	882.91M	504.68M	63.89M	847.06M
Operating Cash Flow	0.00	989.12M	1.00B	561.34M	244.95M	893.33M
Investing Cash Flow	0.00	-95.19M	70.14M	-100.29M	-350.49M	70.67M
Financing Cash Flow	0.00	-764.69M	534.19M	472.73M	-371.24M	-393.29M

HIRAYAMA HOLDINGS Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1118.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7781, the sentiment is Neutral. The current price of 1118 is below the 20-day moving average (MA) of 1138.55, below the 50-day MA of 1118.50, and above the 200-day MA of 1026.95, indicating a neutral trend. The MACD of 1.00 indicates Positive momentum. The RSI at 47.50 is Neutral, neither overbought nor oversold. The STOCH value of 17.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7781.

HIRAYAMA HOLDINGS Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7781	80 Outperform	¥8.91B	9.95	―	4.28%	2.63%	9.81%
9346	79 Outperform	¥6.86B	12.01	―	2.54%	10.88%	5.40%
7367	72 Outperform	¥7.12B	13.23	―	4.66%	16.16%	-8.50%
2410	67 Neutral	¥11.27B	10.64	―	4.61%	4.17%	12.22%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
151A	62 Neutral	¥5.82B	12.62	―	―	11.47%	40.24%