Hankyu Hanshin Holdings (9042) AI Stock Analysis

• Market Cap: ¥988.68B
• Dividend Yield: 1.42%
• Average Volume (3M): 563.00K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.45
• Revenue Growth: 7.83%
• EPS Growth: 24.89%
• Country: JP
• Employees: 22,811
• Sector: Industrials
• Sector Strength: 78
• Industry: Conglomerates
• EPS (TTM): 304.78
• Shares Outstanding: 253,008,760
• 10 Day Avg. Volume: 459,320
• 30 Day Avg. Volume: 562,996
• PEG Ratio: 0.54
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: ¥4,193.55
• Price Target Upside: 1.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Hankyu Hanshin Holdings shows strong financial performance with consistent growth and solid margins. However, high debt and zero free cash flow present challenges. The technical indicators reveal mixed momentum, with the stock trading below its short-term averages. Valuation metrics suggest potential undervaluation, with a reasonable P/E ratio and a modest dividend yield. These factors combine to give a balanced overall score.

Hankyu Hanshin Holdings Business Overview & Revenue Model

Company Description

Hankyu Hanshin Holdings, Inc. is a leading Japanese conglomerate headquartered in Osaka, operating primarily in the transportation, real estate, entertainment, and retail sectors. The company was formed through the merger of Hankyu Holdings, Inc. and Hanshin Electric Railway Co., Ltd., and it operates a comprehensive network of railways, buses, and commercial facilities in the Kansai region. Additionally, Hankyu Hanshin Holdings is involved in the development and management of commercial properties, leisure and entertainment services, and various retail operations.

How the Company Makes Money

Hankyu Hanshin Holdings generates revenue through multiple streams, primarily from its transportation operations, which include railway and bus services across the Kansai region. The company's extensive rail network is a major income source, catering to daily commuters and tourists. Revenue is also derived from its real estate business, which involves the development and leasing of commercial and residential properties, contributing significantly to its earnings. Furthermore, the company capitalizes on its entertainment and leisure services, operating hotels, theaters, and sports facilities, which also attract substantial patronage. Retail operations, including department stores and shopping centers, further augment its income. Strategic partnerships and investments in various sectors enhance the company's competitive edge and financial performance.

Hankyu Hanshin Holdings Financial Statement Overview

Summary

Hankyu Hanshin Holdings demonstrates a strong financial position with consistent revenue and profit growth, supported by healthy margins and a solid equity base. However, high debt levels and negative free cash flow highlight potential challenges in managing financial flexibility and coping with economic fluctuations. The company should focus on improving cash flow generation to enhance its financial robustness.

Income Statement

Hankyu Hanshin Holdings shows a strong financial performance with consistent revenue growth marked by a TTM (Trailing-Twelve-Months) revenue of JPY 1,065.6 billion, up from JPY 997.6 billion annually. Their gross profit margin is robust at 13.2% TTM, and net profit margin improved to 6.9% TTM. The company has a solid EBIT margin of 10.1% TTM. However, the slight decline in EBITDA margin in the latest TTM period indicates some cost pressures.

Balance Sheet

The balance sheet of Hankyu Hanshin Holdings reflects a stable financial position with a debt-to-equity ratio of 1.24, which is reasonable for a conglomerate. The equity ratio stands at 32.5% TTM, showing a strong equity base. However, the high level of total debt at JPY 1,276.4 billion poses a potential risk if interest rates rise or cash flows decrease.

Cash Flow

The cash flow statement reveals challenges in generating free cash flow, which stands at zero for the TTM period. Although operating cash flow was healthy at JPY 123.5 billion last annual period, the capital expenditures are high, impacting free cash flow. The lack of positive free cash flow may limit financial flexibility in the short term.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
997.61B	968.30B	746.22B	568.90B	762.65B
	Gross Profit
138.46B	119.16B	66.35B	26.74B	122.21B
	EBIT
105.69B	89.35B	39.21B	2.07B	95.17B
	EBITDA
159.50B	148.33B	109.42B	27.88B	154.98B
	Net Income Common Stockholders
67.80B	46.95B	21.42B	-36.70B	54.86B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
59.61B	42.88B	31.33B	27.55B	25.02B
	Total Assets
3.05T	2.87T	2.72T	2.62T	2.49T
	Total Debt
1.17T	1.11T	1.10T	1.06T	903.48B
	Net Debt
1.11T	1.06T	1.06T	1.04T	878.45B
	Total Liabilities
1.98T	1.88T	1.81T	1.71T	1.55T
	Stockholders Equity
978.24B	906.80B	870.35B	867.15B	905.65B
Cash Flow		Free Cash Flow
-14.76B	39.32B	-49.65B	-169.46B	27.06B
	Operating Cash Flow
123.51B	132.09B	81.84B	-32.50B	123.09B
	Investing Cash Flow
-141.32B	-113.22B	-96.44B	-102.15B	-128.50B
	Financing Cash Flow
28.46B	-8.98B	15.14B	134.63B	964.00M

Hankyu Hanshin Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4125.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9042, the sentiment is Positive. The current price of 4125 is above the 20-day moving average (MA) of 4099.65, above the 50-day MA of 3991.69, and above the 200-day MA of 4074.36, indicating a bullish trend. The MACD of 39.23 indicates Positive momentum. The RSI at 53.85 is Neutral, neither overbought nor oversold. The STOCH value of 32.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9042.

Hankyu Hanshin Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9001	75 Outperform	$535.46B	10.58	9.22%	2.14%	-0.71%	8.85%
9007	74 Outperform	¥572.87B	6.07	21.33%	1.89%	9.04%	57.29%
9008	70 Outperform	¥446.89B	11.17	10.52%	2.45%	15.47%	67.47%
9009	67 Neutral	¥756.29B	6.54	23.77%	0.84%	7.90%	186.89%
9042	66 Neutral	¥988.68B	13.53	7.12%	1.42%	7.83%	24.89%
Sector *	64 Neutral	$4.27B	11.80	5.31%	249.79%	4.07%	-9.02%
9005	63 Neutral	¥1.07T	12.87	10.20%	1.23%	10.61%	60.71%

Hankyu Hanshin Holdings Corporate Events

Hankyu Hanshin Holdings Reports Strong Financial Performance for 2024

Hankyu Hanshin Holdings reported a positive financial performance for the nine months ending December 31, 2024, with a notable increase in operating revenue and profit compared to the previous year. The company’s financial position remains strong, with an increased equity ratio, and it forecasts continued growth for the fiscal year ending March 2025, reflecting stable and strategic management, which may positively impact stakeholders.