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Hikari Tsushin, Inc.
(9435)
Select Model
Select Model
Rating:66Neutral
Price Target:
¥41,666.00
▲(11.32% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by financial performance: strong margins and improving leverage are meaningful positives, but they are offset by a major concern in TTM cash conversion and sharply lower free cash flow. Valuation is supportive (low P/E and ~2% yield), while technical indicators are broadly neutral with mixed moving-average positioning.
Positive Factors
Strong Profitability
High gross and net margins indicate strong economics in the sales and distribution model. Sustained profitability gives Hikari Tsushin resources to invest in channels, support recurring services, and absorb operating volatility.
Negative Factors
Weak Cash Conversion
Cash generation is materially weaker than reported profitability, limiting the earnings quality of the business. Persistently low conversion could constrain reinvestment, dividends, debt reduction, and the ability to fund growth internally.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability
High gross and net margins indicate strong economics in the sales and distribution model. Sustained profitability gives Hikari Tsushin resources to invest in channels, support recurring services, and absorb operating volatility.
Read all positive factors
Hikari Tsushin, Inc. (9435) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.72T
Dividend Yield1.91%
Average Volume (3M)69.76K
Price to Earnings (P/E)11.1
Beta (1Y)0.45
Revenue Growth7.44%
EPS Growth60.02%
CountryJP
Employees4,012
SectorGeneral
Sector StrengthN/A
IndustryConglomerates
Share Statistics
EPS (TTM)3634.98
Shares Outstanding43,989,643
10 Day Avg. Volume74,800
30 Day Avg. Volume69,756
Financial Highlights & Ratios
PEG Ratio0.40
Price to Book (P/B)1.47
Price to Sales (P/S)2.37
P/FCF Ratio46.29
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2,829.72
Revenue Forecast (FY)¥821.51B
Hikari Tsushin, Inc. Business Overview & Revenue Model
Company Description
Hikari Tsushin, Inc. specializes in providing a diverse range of communication hardware, including corporate telephony systems, office automation equipment, network security solutions (UTMs), and servers. Beyond its product offerings, the company ...
How the Company Makes Money
Hikari Tsushin makes money mainly by acting as a sales agent/distributor for third-party service providers and earning consideration tied to customer acquisition and ongoing contracts. Key revenue streams typically include: (1) sales commissions o...
Hikari Tsushin, Inc. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 760.18B | 734.79B | 686.55B | 601.95B | 643.98B | 573.03B |
| Gross Profit | 369.91B | 363.96B | 343.30B | 315.17B | 297.33B | 299.95B |
| EBITDA | 220.38B | 237.96B | 178.02B | 193.41B | 144.53B | 134.39B |
| Net Income | 159.50B | 151.01B | 117.52B | 122.23B | 91.35B | 87.54B |
Balance Sheet | ||||||
| Total Assets | 2.88T | 2.85T | 2.37T | 2.08T | 1.69T | 1.45T |
| Cash, Cash Equivalents and Short-Term Investments | 433.61B | 539.85B | 483.27B | 542.61B | 396.00B | 343.49B |
| Total Debt | 1.11T | 1.09T | 934.32B | 822.49B | 721.77B | 612.62B |
| Total Liabilities | 1.60T | 1.64T | 1.43T | 1.26T | 1.09T | 951.93B |
| Stockholders Equity | 1.25T | 1.19T | 914.77B | 790.48B | 571.01B | 468.68B |
Cash Flow | ||||||
| Free Cash Flow | 7.07B | 37.67B | 63.28B | 111.92B | 36.46B | 33.04B |
| Operating Cash Flow | 24.56B | 57.07B | 84.84B | 130.20B | 54.80B | 51.03B |
| Investing Cash Flow | -99.94B | -103.79B | -176.44B | -106.53B | -81.88B | -105.87B |
| Financing Cash Flow | 161.45B | 104.38B | 65.90B | 67.14B | 71.74B | 59.97B |
Hikari Tsushin, Inc. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥7.14B | 4.96 | ― | 3.35% | 5.55% | 21.45% | |
74 Outperform | ¥34.54B | 9.24 | ― | 2.70% | -3.52% | 5.44% | |
74 Outperform | ¥68.56B | 12.52 | ― | 2.95% | 8.73% | 20.36% | |
70 Outperform | ¥322.69B | 17.88 | ― | 0.99% | 17.25% | 11.55% | |
67 Neutral | ¥15.48B | 5.81 | ― | 4.00% | 8.74% | ― | |
66 Neutral | ¥1.72T | 11.06 | ― | 2.04% | 7.44% | 60.02% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
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Hikari Tsushin, Inc. Corporate Events
Hikari Tsushin Lifts Quarterly Dividend and Raises Full-Year Payout Forecast
Aug 13, 2026
Hikari Tsushin, Inc. has approved a first-quarter dividend of 200 yen per share with a record date of June 30, 2026, up from 181 yen in the same period a year earlier, resulting in total dividends of 8.75 billion yen funded from retained earnings....
Hikari Tsushin Builds Earnings on Core Growth and Expanding Investment Income
Aug 13, 2026
Hikari Tsushin reported steady expansion over the past five fiscal years, with revenue, operating profit and recurring operating profit all rising and supported by a five-year compound annual growth rate of around 7% for revenue and double-digit C...
Hikari Tsushin Delivers Strong Q1 Profit Growth and Hikes Dividend Outlook
Aug 13, 2026
Hikari Tsushin, Inc. reported strong consolidated results for the quarter ended June 30, 2026, with revenue up 15.2% year on year to ¥192.6 billion and operating profit rising 6.1% to ¥29.2 billion. Profit before tax surged 40.5% and pro...
Hikari Tsushin Announces Disclosure of Financial Results for Delisted Subsidiary FTGroup
Aug 12, 2026
Hikari Tsushin, Inc. has announced that it has issued a timely disclosure concerning the financial results of its delisted subsidiary, FTGroup CO., LTD. The company has directed investors and stakeholders to the Japanese-language disclosure for fu...
Hikari Tsushin Begins ¥10 Billion Share Buyback on TSE
Aug 3, 2026
Hikari Tsushin, Inc. has repurchased 60,700 of its common shares on the Tokyo Stock Exchange between July 1 and July 31, 2026, for a total consideration of ¥2,270,901,000. The buyback was executed under a Board resolution passed on May 13, 20...
Hikari Tsushin Weighs Investment Unit Reduction to Broaden Investor Base
Jun 30, 2026
Hikari Tsushin, Inc. announced it views a reduction in its investment unit as an effective tool to broaden its shareholder base and make its stock more accessible to a wider range of investors. The company indicated that such measures are under co...
Hikari Tsushin Completes Nearly Full ¥10 Billion Share Buyback
Jun 10, 2026
Hikari Tsushin, Inc. has completed a share buyback program authorized by its board in November 2025, acquiring an additional 36,900 common shares on the Tokyo Stock Exchange between June 1 and June 9, 2026. The latest tranche cost approximately &#...
Hikari Tsushin Advances Share Buyback, Spending ¥8.67 Billion to Date
Jun 1, 2026
Hikari Tsushin, Inc. has disclosed the latest progress of its share buyback program, acquiring 27,800 of its own common shares on the Tokyo Stock Exchange between May 1 and May 29, 2026 for approximately ¥1.04 billion. This move is part of a ...
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.