ScoreWhy is HENNGE KK ?
1
High Management Efficiency with a high ROE of 22.35%
2
Company has very low debt and has enough cash to service the debt requirements
3
Healthy long term growth as Net Sales has grown by an annual rate of 21.07% and Operating profit at 39.81%
4
The company has declared Positive results for the last 8 consecutive quarters
- ROCE(HY) Highest at 36.22%
- NET SALES(Q) Highest at JPY 2,810.64 MM
- RAW MATERIAL COST(Y) Fallen by -2.95% (YoY)
5
With ROE of 31.81%, it has a attractive valuation with a 13.77 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -34.43%, its profits have risen by 53.7% ; the PEG ratio of the company is 0.8
6
Below par performance in long term as well as near term
- Along with generating -34.43% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to HENNGE KK should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is HENNGE KK for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
HENNGE KK
-100.0%
0.05
46.81%
Japan Nikkei 225
38.59%
1.45
26.59%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
21.07%
EBIT Growth (5y)
39.81%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-1.50
Sales to Capital Employed (avg)
2.74
Tax Ratio
30.01%
Dividend Payout Ratio
11.79%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
22.35%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
43
Industry P/E
Price to Book Value
13.77
EV to EBIT
30.78
EV to EBITDA
29.81
EV to Capital Employed
-24.54
EV to Sales
4.73
PEG Ratio
0.81
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
31.81%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
Bullish
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
ROCE(HY)
Highest at 36.22%
NET SALES(Q)
Highest at JPY 2,810.64 MM
RAW MATERIAL COST(Y)
Fallen by -2.95% (YoY
NET PROFIT(9M)
Higher at JPY 1,040.6 MM
CASH AND EQV(HY)
Highest at JPY 12,623.67 MM
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for HENNGE KK
Net Sales
Highest at JPY 2,810.64 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Net Sales
At JPY 2,810.64 MM has Grown at 29.77%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Cash and Eqv
Highest at JPY 12,623.67 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Net Profit
Higher at JPY 1,040.6 MM
than preceding 12 month period ended Jun 2025MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (JPY MM)
Raw Material Cost
Fallen by -2.95% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at JPY 35.69 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Depreciation
At JPY 35.69 MM has Grown at 181.82%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (JPY MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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