ScoreWhy is Hikari Tsushin, Inc. ?
1
The company is Net-Debt Free
- The company is Net-Debt Free
2
High Debt company with Weak Long Term Fundamental Strength
3
Flat results in Jun 26
- OPERATING CASH FLOW(Y) Lowest at JPY 24,559 MM
- INTEREST(Q) At JPY 10,520 MM has Grown at 94.96%
- RAW MATERIAL COST(Y) Grown by 7.39% (YoY)
4
With ROCE of 6.06%, it has a fair valuation with a 1.24 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 -9.76%, its profits have fallen by -14.9%
5
Majority shareholders : Non Institution
6
Underperformed the market in the last 1 year
- Even though the market (Japan Nikkei 225) has generated returns of 43.52% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -9.76% returns
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, Medium Return
Absolute
Risk Adjusted
Volatility
Hikari Tsushin, Inc.
-9.76%
1.42
27.34%
Japan Nikkei 225
43.52%
1.48
29.43%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.20%
EBIT Growth (5y)
7.35%
EBIT to Interest (avg)
5.69
Debt to EBITDA (avg)
3.33
Net Debt to Equity (avg)
0.48
Sales to Capital Employed (avg)
0.37
Tax Ratio
24.88%
Dividend Payout Ratio
21.83%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
8.22%
ROE (avg)
16.03%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
1.38
EV to EBIT
20.53
EV to EBITDA
17.87
EV to Capital Employed
1.24
EV to Sales
3.02
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
6.06%
ROE (Latest)
11.63%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bearish
Moving Averages
Bearish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
NET PROFIT(HY)
At JPY 74,999 MM has Grown at 74.79%
INVENTORY TURNOVER RATIO(HY)
Highest at 183.83 times
DIVIDEND PER SHARE(HY)
Highest at JPY 2.09
-9What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at JPY 24,559 MM
INTEREST(Q)
At JPY 10,520 MM has Grown at 94.96%
RAW MATERIAL COST(Y)
Grown by 7.39% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.09 times
Here's what is working for Hikari Tsushin, Inc.
Net Profit
At JPY 74,999 MM has Grown at 74.79%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Inventory Turnover Ratio
Highest at 183.83 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend per share
Highest at JPY 2.09 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Depreciation
Highest at JPY 4,415 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.
Operating Cash Flow
Lowest at JPY 24,559 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (JPY MM)
Interest
At JPY 10,520 MM has Grown at 94.96%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debtors Turnover Ratio
Lowest at 2.09 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 7.39% (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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