ScoreWhy is HENNGE KK ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 22.35%
- Healthy long term growth as Net Sales has grown by an annual rate of 21.35% and Operating profit at 37.95%
- Company has very low debt and has enough cash to service the debt requirements
2
The company declared negative results in Jun'26 after positive results in Mar'26
- INTEREST(9M) At JPY 5.78 MM has Grown at inf%
- NET SALES(HY) At JPY 3,113.09 MM has Grown at -43.46%
- ROCE(HY) Lowest at 0%
3
With ROE of 34.53%, it has a fair valuation with a 8.82 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 4.09%, its profits have risen by 12.3% ; the PEG ratio of the company is 2.1
4
Underperformed the market in the last 1 year
- The stock has generated a return of 4.09% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 45.04%
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, High Return
Absolute
Risk Adjusted
Volatility
HENNGE KK
4.09%
1.74
49.71%
Japan Nikkei 225
45.04%
1.53
29.44%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
21.35%
EBIT Growth (5y)
37.95%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-1.50
Sales to Capital Employed (avg)
2.80
Tax Ratio
32.68%
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
26
Industry P/E
Price to Book Value
8.82
EV to EBIT
14.45
EV to EBITDA
13.90
EV to Capital Employed
-13.53
EV to Sales
2.37
PEG Ratio
2.08
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
34.53%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
ROCE(HY)
Highest at 42.51%
DEBTORS TURNOVER RATIO(HY)
Highest at 64.82 times
NET SALES(Q)
Highest at JPY 3,260.89 MM
RAW MATERIAL COST(Y)
Fallen by 1.14% (YoY
NET PROFIT(9M)
Higher at JPY 1,359.96 MM
CASH AND EQV(HY)
Highest at JPY 13,920.16 MM
-22What is not working for the Company
INTEREST(9M)
At JPY 5.78 MM has Grown at inf%
NET SALES(HY)
At JPY 3,113.09 MM has Grown at -43.46%
ROCE(HY)
Lowest at 0%
RAW MATERIAL COST(Y)
Grown by 101.17% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 0 times
OPERATING PROFIT(Q)
Lowest at JPY 48.01 MM
PRE-TAX PROFIT(Q)
Lowest at JPY 0 MM
EPS(Q)
Lowest at JPY 0
Here's what is working for HENNGE KK
Net Sales
Highest at JPY 3,260.89 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Debtors Turnover Ratio
Highest at 64.82 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Cash and Eqv
Highest at JPY 13,920.16 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Net Profit
Higher at JPY 1,359.96 MM
than preceding 12 month period ended Jun 2026MOJO 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 1.14% (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 48.01 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 48.01 MM has Grown at 264.98%
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)
Here's what is not working for HENNGE KK
Interest
At JPY 5.78 MM has Grown at inf%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Pre-Tax Profit
At JPY 0 MM has Fallen at -100%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Operating Profit
Lowest at JPY 48.01 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Pre-Tax Profit
Lowest at JPY 0 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
EPS
Lowest at JPY 0
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Debtors Turnover Ratio
Lowest at 0 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 101.17% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
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