Hiroshima Gas Co., Ltd. (9535) AI Stock Analysis

Hiroshima Gas Co., Ltd.

(TSE/TYO:9535)

Select Model

Rating:66Neutral

Price Target:JPY 448.00▲(10.62% Upside)

Action:downgraded

Date:08/17/26

The overall score reflects a balance of strong balance sheet fundamentals, fair valuation, and an intact technical uptrend. However, the rating is heavily constrained by ongoing struggles with top-line revenue contraction and very narrow profit margins, which limit broader upside potential.

Positive Factors

Utility Network and Recurring DemandThe core city-gas network provides an established customer base and recurring demand across residential, commercial, and industrial users, supporting business continuity over the medium term despite volume and tariff variability.

Negative Factors

Material Profitability CompressionThe sustained decline in net and EBIT margins signals weaker earnings conversion and reduced operating cushion, making future profitability more sensitive to procurement costs, pricing, volumes, and operating expenses.

Hiroshima Gas Co., Ltd. (9535) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 27.84B
Dividend Yield: 2.96%
Average Volume (3M): 92.50K
Price to Earnings (P/E): 14.5
Beta (1Y): 0.36
Revenue Growth: -1.78%
EPS Growth: 21.11%
Country: Japan
Employees: 1,676
Sector: General
Sector Strength: 55
Industry: Regulated Gas

Hiroshima Gas Co., Ltd. Business Overview & Revenue Model

Company Description

HIROSHIMA GAS Co.,Ltd. operates as a Japanese energy firm, predominantly focusing on the gas sector. Its diverse operations are categorized into three primary divisions: Gas, LPG, and various auxiliary services. In its core Gas segment, the company i...

How the Company Makes Money

Hiroshima Gas primarily generates revenue by selling city gas to end users through its regulated/utility distribution network. Revenue is largely volume- and tariff-driven: customers are billed based on gas consumption (and typically a fixed/basic ch...

Hiroshima Gas Co., Ltd. Financial Statement Overview

Summary

Strong balance sheet management with consistent deleveraging is offset by narrow profit margins and contracting revenues. Recent improvements in cash flow generation provide a solid liquidity cushion, though historical volatility remains a factor.

Income Statement

40Negative

Balance Sheet

80Positive

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	89.28B	88.40B	91.59B	90.67B	95.22B	76.80B
Gross Profit	26.26B	26.36B	25.84B	23.07B	31.57B	22.41B
EBITDA	9.00B	9.19B	8.81B	10.54B	14.34B	10.63B
Net Income	1.92B	2.10B	1.69B	2.33B	5.22B	3.66B
Balance Sheet
Total Assets	125.56B	131.83B	129.59B	137.63B	142.00B	123.80B
Cash, Cash Equivalents and Short-Term Investments	14.98B	18.51B	20.61B	27.71B	35.64B	20.20B
Total Debt	35.62B	40.45B	38.91B	44.90B	59.77B	45.49B
Total Liabilities	50.57B	57.02B	58.00B	67.11B	74.13B	58.73B
Stockholders Equity	71.65B	71.50B	68.26B	67.13B	64.54B	61.87B
Cash Flow
Free Cash Flow	0	3.95B	-3.52B	5.37B	405.00M	743.00M
Operating Cash Flow	0	11.67B	5.87B	14.83B	8.95B	7.91B
Investing Cash Flow	0	-8.43B	-9.26B	-9.68B	-7.06B	-7.14B
Financing Cash Flow	0	-5.41B	-3.65B	-13.17B	13.61B	3.80B

Hiroshima Gas Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price405.00

Price Trends

50DMA419.05Negative

100DMA410.24Negative

200DMA394.76Positive

Market Momentum

MACD-5.06Negative

RSI44.85Neutral

STOCH66.97Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9535, the sentiment is Neutral. The current price of 405.00 is below the 20-day moving average (MA) of 405.40, below the 50-day MA of 419.05, and above the 200-day MA of 394.76, indicating a neutral trend. The MACD of -5.06 indicates Negative momentum. The RSI at 44.85 is Neutral, neither overbought nor oversold. The STOCH value of 66.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9535.

Hiroshima Gas Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:9535 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:5019	76Outperform	JPY 1.85T	4.71	21.79%	2.42%	-2.72%	3087.62%
JP:5020	72Outperform	JPY 3.79T	5.49	20.51%	2.42%	2.30%	437.64%
JP:5021	70Outperform	JPY 700.43B	4.21	―	3.94%	-0.10%	446.81%
JP:8132	67Neutral	JPY 73.34B	14.81	―	2.68%	-2.76%	56.84%
JP:8133	67Neutral	JPY 244.95B	10.18	―	3.22%	1.89%	46.71%
JP:9535	66Neutral	JPY 27.89B	14.51	―	2.96%	-1.78%	21.11%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:9535 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9535	Hiroshima Gas Co., Ltd.	405.00	47.26	13.21%
JP:5019	Idemitsu Kosan Co	1488.00	422.26	39.62%
JP:5020	Eneos Holdings, Inc.	1407.00	441.06	45.66%
JP:5021	Cosmo Energy Holdings Co., Ltd.	4186.00	759.06	22.15%
JP:8132	SINANEN HOLDINGS CO.LTD.	7090.00	762.00	12.04%
JP:8133	ITOCHU ENEX CO., LTD.	2141.00	411.77	23.81%

Hiroshima Gas Co., Ltd. Corporate Events

Hiroshima Gas Profit Slumps Despite Higher Sales, Keeps Dividend and Forecasts Intact

Aug 7, 2026

Hiroshima Gas Co., Ltd. reported consolidated net sales of ¥22.35 billion for the three months ended June 30, 2026, up 4.1% year on year, while operating profit fell 22.6% to ¥704 million and profit attributable to owners of parent declined...

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 17, 2026

Hiroshima Gas Co., Ltd. AI Stock Analysis