HS Holdings Co.,Ltd. (8699) AI Stock Analysis

HS Holdings Co.,Ltd.

(TSE/TYO:8699)

Select Model

Rating:65Neutral

Price Target:JPY 1,203.00▲(15.01% Upside)

Action:reiterated

Date:08/04/26

The score is driven primarily by mixed financial performance: a materially improved, low-leverage balance sheet and solid reported profitability are tempered by volatile results, weak operating profit in the latest year, and inconsistent cash flow. Valuation is a major positive due to the very low P/E, while technicals weigh on the score given weak momentum and trading below key moving averages.

Positive Factors

Conservative balance sheetMaterial equity growth and minimal leverage materially improve financial resilience for a regional bank. With equity near ¥100B and debt negligible, the firm gains flexibility to absorb shocks, support lending/operations and fund strategic initiatives without costly refinancing risks.

Negative Factors

Inconsistent cash generationVolatile operating cash flow and weak conversion relative to net income raise concerns about earnings quality and funding durability. Persistent cash volatility can constrain loan growth, capex, or dividends and may force reliance on external funding during stress, limiting strategic optionality.

HS Holdings Co.,Ltd. (8699) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 31.48B
Dividend Yield: 0.96%
Average Volume (3M): 57.88K
Price to Earnings (P/E): 2.3
Beta (1Y): 0.51
Revenue Growth: 54.53%
EPS Growth: -2.37%
Country: Japan
Employees: 706
Sector: General
Sector Strength: 55
Industry: Banks - Regional

HS Holdings Co.,Ltd. Business Overview & Revenue Model

Company Description

HS Holdings Co., Ltd. provides merger and acquisition intermediary services in Japan. The company offers business succession consulting, business investment management, venture investment, and business revitalization consulting services. It also impo...

How the Company Makes Money

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HS Holdings Co.,Ltd. Financial Statement Overview

Summary

Overall fundamentals are mixed. Profitability is solid on reported net income and margins, and the balance sheet has strengthened materially with low current leverage and rising equity. Offsetting this, results have been volatile (including prior losses and revenue swings), operating profit turned slightly negative in the latest year despite high net income, and cash flow has been inconsistent with large outflows in 2024 and uneven cash conversion.

Income Statement

62Positive

Balance Sheet

78Positive

Cash Flow

44Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	65.48B	58.16B	38.71B	50.48B	78.28B	62.49B
Gross Profit	10.74B	9.27B	36.99B	42.20B	55.39B	40.66B
EBITDA	10.39B	19.28B	16.06B	17.04B	34.58B	21.21B
Net Income	14.18B	14.69B	12.10B	9.46B	11.37B	6.54B
Balance Sheet
Total Assets	137.98B	132.00B	115.33B	98.77B	621.73B	577.45B
Cash, Cash Equivalents and Short-Term Investments	19.29B	19.16B	18.05B	18.40B	149.69B	88.14B
Total Debt	2.15B	2.23B	1.31B	1.14B	78.04B	63.64B
Total Liabilities	33.86B	31.36B	28.63B	26.36B	540.32B	503.02B
Stockholders Equity	103.56B	100.10B	86.37B	71.87B	59.63B	52.54B
Cash Flow
Free Cash Flow	0	1.73B	2.71B	-26.63B	15.12B	-7.47B
Operating Cash Flow	0	2.18B	4.53B	-25.59B	18.50B	-4.79B
Investing Cash Flow	0	-115.00M	-6.05B	-8.10B	-17.94B	-7.66B
Financing Cash Flow	0	-399.00M	-287.00M	12.13B	2.58B	-1.72B

HS Holdings Co.,Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1046.00

Price Trends

50DMA1116.98Negative

100DMA1136.38Negative

200DMA1176.55Negative

Market Momentum

MACD-18.19Positive

RSI26.50Positive

STOCH30.24Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8699, the sentiment is Negative. The current price of 1046.00 is below the 20-day moving average (MA) of 1094.85, below the 50-day MA of 1116.98, and below the 200-day MA of 1176.55, indicating a bearish trend. The MACD of -18.19 indicates Positive momentum. The RSI at 26.50 is Positive, neither overbought nor oversold. The STOCH value of 30.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8699.

HS Holdings Co.,Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:8699 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8707	89Outperform	JPY 89.14B	7.34	―	6.06%	33.17%	48.82%
JP:8628	76Outperform	JPY 260.91B	13.49	23.59%	5.22%	46.94%	77.06%
JP:8609	72Outperform	JPY 223.43B	7.53	―	3.96%	35.90%	141.44%
JP:8708	69Neutral	JPY 46.57B	12.69	―	3.14%	9.78%	35.19%
JP:8699	65Neutral	JPY 41.47B	2.31	―	0.96%	54.53%	-2.37%
JP:8698	64Neutral	JPY 155.30B	14.19	8.82%	4.97%	16.13%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:8699 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:8699	HS Holdings Co.,Ltd.	1046.00	51.08	5.13%
JP:8698	Monex Group	620.00	-59.72	-8.79%
JP:8628	Matsui Securities Co	1015.00	284.58	38.96%
JP:8609	Okasan Securities Group Inc.	1011.00	357.53	54.71%
JP:8707	IwaiCosmo Holdings, Inc.	3795.00	1132.00	42.51%
JP:8708	AIZAWA SECURITIES GROUP CO. LTD.	1499.00	286.50	23.63%

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: Aug 04, 2026

HS Holdings Co.,Ltd. AI Stock Analysis