ScoreWhy is Hikari Tsushin, Inc. ?
1
High Debt Company with a Debt to Equity ratio (avg) at times
- High Debt Company with a Debt to Equity ratio (avg) at times
2
Positive results in Jun 25
- NET SALES(HY) At JPY 354,911 MM has Grown at 17.75%
- DIVIDEND PER SHARE(HY) Highest at JPY 2.41
- DIVIDEND PAYOUT RATIO(Y) Highest at 28.19%
3
With ROCE of 7.60%, it has a expensive valuation with a 1.65 Enterprise value to Capital Employed
- 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 21.01%, its profits have fallen by -2%
4
Underperformed the market in the last 1 year
- The stock has generated a return of 21.01% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.59%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Hikari Tsushin, Inc. should be less than 10%
- Overall Portfolio exposure to Retailing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Hikari Tsushin, Inc. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Hikari Tsushin, Inc.
-100.0%
2.26
24.80%
Japan Nikkei 225
38.59%
1.45
26.59%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.53%
EBIT Growth (5y)
9.25%
EBIT to Interest (avg)
6.06
Debt to EBITDA (avg)
3.00
Net Debt to Equity (avg)
0.51
Sales to Capital Employed (avg)
0.39
Tax Ratio
22.20%
Dividend Payout Ratio
24.75%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
9.19%
ROE (avg)
16.03%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
1.98
EV to EBIT
21.73
EV to EBITDA
19.15
EV to Capital Employed
1.65
EV to Sales
3.31
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
7.60%
ROE (Latest)
13.26%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
NET SALES(HY)
At JPY 354,911 MM has Grown at 17.75%
DIVIDEND PER SHARE(HY)
Highest at JPY 2.41
DIVIDEND PAYOUT RATIO(Y)
Highest at 28.19%
-22What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at JPY 83,204 MM
ROCE(HY)
Lowest at 10.99%
INTEREST(Q)
At JPY 13,295 MM has Grown at 109.17%
PRE-TAX PROFIT(Q)
At JPY 31,320 MM has Fallen at -49.91%
RAW MATERIAL COST(Y)
Grown by 5.26% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 58.59 %
NET PROFIT(Q)
Fallen at -38.63%
Here's what is working for Hikari Tsushin, Inc.
Net Sales
At JPY 354,911 MM has Grown at 17.75%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Dividend per share
Highest at JPY 2.41 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Dividend Payout Ratio
Highest at 28.19%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Depreciation
Highest at JPY 4,253 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Hikari Tsushin, Inc.
Interest
At JPY 13,295 MM has Grown at 109.17%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Pre-Tax Profit
At JPY 31,320 MM has Fallen at -49.91%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Operating Cash Flow
Lowest at JPY 83,204 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (JPY MM)
Net Profit
Fallen at -38.63%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
Debt-Equity Ratio
Highest at 58.59 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 5.26% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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