Higashi Twenty One Co., Ltd. (9029) AI Stock Analysis

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Higashi Twenty One Co., Ltd.

(TSE/TYO:9029)

Select Model

Rating:66Neutral

Price Target:JPY 1,955.00▲(11.40% Upside)

Action:reiterated

Date:10/27/26

The score is driven primarily by improving financial performance (strong growth and better profitability) but is held back by higher leverage and uneven historical free-cash-flow consistency. Technically, the stock shows a weak trend below key moving averages, partially offset by attractive valuation (low P/E and solid dividend yield).

Positive Factors

Revenue Growth and ProfitabilityRevenue has grown at a strong multi-year pace, reaching about 15.8% annual growth in 2026, while net margin improved to about 4.5%. This combination indicates expanding demand and better operating leverage, supporting reinvestment and more durable earnings capacity even though profitability remains modest.

Negative Factors

Rising LeverageTotal debt rose and debt-to-equity increased to about 0.63 in 2026 from 0.28 in 2022. Higher leverage reduces financial flexibility and makes the company more sensitive to funding costs or a downturn, potentially limiting room for investment when operating conditions weaken.

Higashi Twenty One Co., Ltd. (9029) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 22.95B
Dividend Yield: 3.42%
Average Volume (3M): 6,810
Price to Earnings (P/E): 8.3
Beta (1Y): 0.73
Revenue Growth: 15.62%
EPS Growth: 18.27%
Country: Japan
Employees: 1,744
Sector: Industrials
Sector Strength: 63
Industry: Integrated Freight & Logistics

Higashi Twenty One Co., Ltd. Business Overview & Revenue Model

Company Description

Higashi Twenty One Co., Ltd. is a comprehensive Japanese logistics provider headquartered in Osaka. The company's diverse services span transportation, delivery, and extensive distribution center and warehouse storage, along with logistics processing...

How the Company Makes Money

The company primarily makes money by charging fees for logistics services provided to customers. Key revenue streams typically include (1) transportation and delivery services (freight/route delivery and related distribution work) where revenue is ea...

Higashi Twenty One Co., Ltd. Financial Statement Overview

Summary

Strong multi-year revenue growth with improving operating and net margins supports a solid operating profile. However, rising leverage (higher debt-to-equity) and historically volatile free cash flow reduce financial flexibility and consistency, keeping the score in the mid range.

Income Statement

78Positive

Balance Sheet

63Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	61.22B	57.97B	48.13B	40.64B	34.81B	27.95B
Gross Profit	11.77B	11.10B	9.03B	7.78B	7.01B	5.81B
EBITDA	5.83B	5.56B	4.04B	3.21B	2.68B	2.28B
Net Income	2.76B	2.60B	1.81B	1.51B	1.27B	1.12B
Balance Sheet
Total Assets	35.33B	36.62B	31.60B	25.54B	21.23B	18.14B
Cash, Cash Equivalents and Short-Term Investments	6.13B	9.14B	4.68B	4.06B	3.49B	3.51B
Total Debt	10.08B	10.20B	9.47B	5.93B	3.98B	2.75B
Total Liabilities	18.26B	20.50B	18.09B	13.22B	10.36B	8.28B
Stockholders Equity	17.07B	16.11B	13.51B	12.31B	10.87B	9.86B
Cash Flow
Free Cash Flow	0	4.38B	-1.20B	163.47M	328.25M	874.93M
Operating Cash Flow	0	4.99B	2.37B	3.03B	665.05M	1.48B
Investing Cash Flow	0	-668.90M	-4.53B	-3.27B	-1.34B	-1.00B
Financing Cash Flow	0	172.04M	2.75B	818.57M	714.62M	-107.72M

Higashi Twenty One Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1755.00

Price Trends

50DMA1870.36Negative

100DMA1891.98Negative

200DMA1903.98Negative

Market Momentum

MACD-19.24Positive

RSI33.78Neutral

STOCH1.98Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9029, the sentiment is Negative. The current price of 1755.00 is below the 20-day moving average (MA) of 1873.00, below the 50-day MA of 1870.36, and below the 200-day MA of 1903.98, indicating a bearish trend. The MACD of -19.24 indicates Positive momentum. The RSI at 33.78 is Neutral, neither overbought nor oversold. The STOCH value of 1.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9029.

Higashi Twenty One Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:9029 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:9025	83Outperform	JPY 156.10B	11.63	―	3.73%	1.34%	9.01%
JP:9304	80Outperform	JPY 122.39B	15.12	―	4.23%	1.86%	50.49%
JP:9034	73Outperform	JPY 16.23B	11.22	―	4.92%	3.09%	5.46%
JP:9351	66Neutral	JPY 14.78B	9.69	―	4.69%	7.78%	20.28%
JP:9029	66Neutral	JPY 22.91B	8.32	―	3.42%	15.62%	18.27%
JP:9306	65Neutral	JPY 13.32B	10.23	―	3.78%	4.34%	-13.81%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

JP:9029 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9029	Higashi Twenty One Co., Ltd.	1755.00	-117.34	-6.27%
JP:9025	Konoike Transport Co., Ltd.	2950.00	-127.36	-4.14%
JP:9034	Nanso Transport Co., Ltd.	1626.00	170.51	11.72%
JP:9304	Shibusawa Warehouse Co., Ltd.	2011.00	951.97	89.89%
JP:9306	Toyo Logistics Co., Ltd.	1982.00	95.64	5.07%
JP:9351	Toyo Wharf & Warehouse Co., Ltd.	1919.00	372.29	24.07%

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: Oct 27, 2026

Higashi Twenty One Co., Ltd. AI Stock Analysis

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