Why is Hiroshima Gas Co., Ltd. ?
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
- The company has been able to generate a Return on Equity (avg) of 4.94% signifying low profitability per unit of shareholders funds
2
High Debt company with Weak Long Term Fundamental Strength
3
With a growth in Operating Profit of 30.78%, the company declared Very Positive results in Dec 25
- PRE-TAX PROFIT(Q) At JPY 110 MM has Grown at 128.95%
- NET PROFIT(Q) At JPY 141 MM has Grown at 174.6%
- RAW MATERIAL COST(Y) Fallen by -12.28% (YoY)
4
With ROCE of 1.37%, it has a very attractive valuation with a 0.52 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 14.08%, its profits have fallen by -28.6%
- At the current price, the company has a high dividend yield of 0.1
5
Underperformed the market in the last 1 year
- The stock has generated a return of 14.08% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.30%
How much should you hold?
- Overall Portfolio exposure to Hiroshima Gas Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Gas should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gas)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Hiroshima Gas Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Hiroshima Gas Co., Ltd.
14.08%
0.33
17.30%
Japan Nikkei 225
40.96%
1.35
28.28%
Quality key factors
Factor
Value
Sales Growth (5y)
2.17%
EBIT Growth (5y)
-15.86%
EBIT to Interest (avg)
18.93
Debt to EBITDA (avg)
2.13
Net Debt to Equity (avg)
0.34
Sales to Capital Employed (avg)
0.81
Tax Ratio
23.32%
Dividend Payout Ratio
48.77%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.17%
ROE (avg)
4.94%
Valuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
0.35
EV to EBIT
37.96
EV to EBITDA
5.40
EV to Capital Employed
0.52
EV to Sales
0.52
PEG Ratio
NA
Dividend Yield
0.14%
ROCE (Latest)
1.37%
ROE (Latest)
2.52%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Movement
12What is working for the Company
PRE-TAX PROFIT(Q)
At JPY 110 MM has Grown at 128.95%
NET PROFIT(Q)
At JPY 141 MM has Grown at 174.6%
RAW MATERIAL COST(Y)
Fallen by -12.28% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 32.6 %
-1What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 10.4 times
Here's what is working for Hiroshima Gas Co., Ltd.
Pre-Tax Profit
At JPY 110 MM has Grown at 128.95%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 141 MM has Grown at 174.6%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Debt-Equity Ratio
Lowest at 32.6 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -12.28% (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 Hiroshima Gas Co., Ltd.
Debtors Turnover Ratio
Lowest at 10.4 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Non Operating Income
Highest at JPY 3.13 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income






