Hikari Tsushin, Inc.

  • Market Cap: Large Cap
  • Industry: Retailing
  • ISIN: JP3783420007
JPY
41,990.00
90 (0.21%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Nextage Co., Ltd.
Komehyo Holdings Co., Ltd.
Sanrio Co., Ltd.
G-7 Holdings, Inc.
VT Holdings Co., Ltd.
IDOM, Inc.
Hikari Tsushin, Inc.
ITOCHU ENEX CO., LTD.
KU Holdings Co., Ltd.
Mie Kotsu Group Holdings, Inc.
Nitori Holdings Co., Ltd.

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%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Hikari Tsushin, Inc. should be less than 10%
  2. 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%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

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%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

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%
stock-recommendationTechnicals

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
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

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 years
MOJO Watch
Company is distributing higher dividend from profits generated

DPS (JPY)

Operating Profit
Highest at JPY 34,606 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin
Highest at 19.14 %
in the last five periods
MOJO 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 periods
MOJO 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 years
MOJO 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 periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio