Why 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 Dec 25
- DIVIDEND PER SHARE(HY) Highest at JPY 2.09
- RAW MATERIAL COST(Y) Fallen by -0.28% (YoY)
- INVENTORY TURNOVER RATIO(HY) Highest at 149.23 times
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 6.55%, its profits have fallen by -2%
4
Majority shareholders : Non Institution
5
Underperformed the market in the last 1 year
- The stock has generated a return of 6.55% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.94%
How 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.
6.55%
1.98
25.84%
Japan Nikkei 225
38.94%
1.38
28.28%
Quality 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%
Valuation 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%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
6What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at JPY 2.09
RAW MATERIAL COST(Y)
Fallen by -0.28% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 149.23 times
OPERATING PROFIT(Q)
Highest at JPY 34,606 MM
OPERATING PROFIT MARGIN(Q)
Highest at 19.14 %
-6What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at JPY 65,907 MM
INTEREST(Q)
At JPY 5,611 MM has Grown at inf%
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.09 times
Here's what is working for Hikari Tsushin, Inc.
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)
Operating Profit
Highest at JPY 34,606 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 19.14 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Inventory Turnover Ratio
Highest at 149.23 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -0.28% (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
Here's what is not working for Hikari Tsushin, Inc.
Operating Cash Flow
Lowest at JPY 65,907 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 5,611 MM has Grown at inf%
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






