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HIRAGA CO., LTD. (7863) AI Stock Analysis

JP:7863

HIRAGA CO., LTD.

(TSE/TYO:7863)

Select Model
Rating:50Neutral
Price Target:JPY 933.00â–¼(-0.64% Downside)
Action:reiterated
Date:08/18/26

The overall score is constrained by a significant deterioration in profitability and weak cash flows, which are the most critical factors. The company's strong, low-debt balance sheet provides a floor, and the high dividend yield offers some appeal. However, the bearish technical trend confirms negative market sentiment, making the stock unattractive until fundamentals show signs of stabilization.

Positive Factors
Balance Sheet ResilienceConservative leverage and a growing equity base strengthen financial resilience. This gives HIRAGA greater flexibility to absorb operating volatility, fund ongoing customer projects, and maintain business continuity without relying heavily on additional borrowing.
Negative Factors
Margin CompressionSustained margin pressure weakens current earnings power and may indicate rising costs, unfavorable project mix, or limited pricing power. Unless reversed, lower margins can constrain reinvestment, reduce returns, and weaken the profitability of future campaigns.

HIRAGA CO., LTD. (7863) vs. iShares MSCI Japan ETF (EWJ)

-10%-5%0%5%10%15%20%25%30%JP:7863-4.97%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 2.70B
Dividend Yield
4.25%
Average Volume (3M)
702
Price to Earnings (P/E)
14.3
Beta (1Y)
0.07
Revenue Growth
-1.09%
EPS Growth
-24.59%
Country
Japan
Employees
346
Sector
Industrials
Sector Strength
63
Industry
Specialty Business Services

HIRAGA CO., LTD. Business Overview & Revenue Model

Company Description

Hiraga Co.,Ltd., established in 1956 and headquartered in Tokyo, Japan, primarily offers printing services. Beyond its core print operations, the company provides comprehensive sales promotion solutions, encompassing the strategic planning and operat...

How the Company Makes Money

HIRAGA CO., LTD. generates revenue primarily by supplying sales-promotion and merchandising-related goods and services to corporate customers (e.g., retailers, consumer-goods manufacturers, and other businesses conducting in-store promotions). Its re...

HIRAGA CO., LTD. Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet is a clear strength with low leverage (D/E 0.19) and growing equity. However, this is offset by a significant decline in profitability (net margin from 5.7% to 1.9%) and weak, volatile cash flow generation with poor cash conversion. The overall trend in earnings is a major concern.

Income Statement

38Negative

Balance Sheet

72Positive

Cash Flow

35Negative
Financial statement breakdown
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue9.97B9.79B9.95B9.01B8.51B
Gross Profit1.94B1.89B2.04B1.89B1.97B
EBITDA505.36M645.66M680.45M633.46M717.15M
Net Income188.55M311.89M565.05M395.85M386.13M
Balance Sheet
Total Assets7.50B7.35B8.21B6.59B7.10B
Cash, Cash Equivalents and Short-Term Investments2.34B2.26B2.45B2.32B2.69B
Total Debt842.20M592.44M682.95M723.46M1.44B
Total Liabilities3.06B3.21B4.08B3.22B4.05B
Stockholders Equity4.44B4.14B4.14B3.37B3.06B
Cash Flow
Free Cash Flow72.72M25.91M216.53M333.44M-274.57M
Operating Cash Flow352.30M548.50M600.11M470.33M238.41M
Investing Cash Flow-293.92M-532.85M-343.05M-93.23M-518.27M
Financing Cash Flow23.86M-205.73M-126.17M-755.31M-145.11M

HIRAGA CO., LTD. Technical Analysis

Technical Analysis SentimentNeutral
Last Price939.00

Price Trends

50DMA939.24Negative
100DMA949.05Negative
200DMA959.43Negative

Market Momentum

MACD-2.27Negative
RSI51.88Neutral
STOCH84.40Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7863, the sentiment is Neutral. The current price of 939.00 is above the 20-day moving average (MA) of 935.80, below the 50-day MA of 939.24, and below the 200-day MA of 959.43, indicating a neutral trend. The MACD of -2.27 indicates Negative momentum. The RSI at 51.88 is Neutral, neither overbought nor oversold. The STOCH value of 84.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7863.

HIRAGA CO., LTD. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

JP:7863 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7914JP:791473OutperformJPY 42.68B10.57―4.85%-1.79%10.53%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
JP:3948JP:394863NeutralJPY 6.73B17.32―4.26%1.99%114.51%
JP:7916JP:791657NeutralJPY 5.60B31.54―2.71%-3.93%11.47%
JP:7919JP:791956NeutralJPY 3.56B5.29―3.77%-1.46%43.56%
JP:3958JP:395853NeutralJPY 3.18B15.57―3.64%-2.64%-19.41%
JP:7863JP:786350NeutralJPY 2.72B14.33―4.25%-1.09%-24.59%

* Industrials Sector Average

Performance Comparison

-20%0%20%JP:7863JP:3948JP:3958JP:7914JP:7916JP:7919Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:7863 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7863HIRAGA CO., LTD.939.00-49.13-4.97%
JP:3948Hikari Business Form Co., Ltd.1173.00-45.09-3.70%
JP:3958Sasatoku Printing Co.,Ltd.549.004.250.78%
JP:7914Kyodo Printing Co., Ltd.1650.00215.7315.04%
JP:7916Mitsumura Printing Co., Ltd.1848.00374.1725.39%
JP:7919Nozaki Insatsu Shigyo Co., Ltd.204.0019.7310.71%
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: Aug 18, 2026