Hikari Tsushin, Inc.
Hikari Tsushin, Inc. Fundamental Analysis
Hikari Tsushin, Inc. (HKTGF) shows moderate financial fundamentals with a PE ratio of 15.23, profit margin of 17.46%, and ROE of 12.60%. The company generates $733.2B in annual revenue with strong year-over-year growth of 14.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 74.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze HKTGF's fundamental strength across five key dimensions:
Efficiency Score
WeakHKTGF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHKTGF trades at attractive valuation levels.
Growth Score
ModerateHKTGF shows steady but slowing expansion.
Financial Health Score
ExcellentHKTGF maintains a strong and stable balance sheet.
Profitability Score
ModerateHKTGF maintains healthy but balanced margins.
Key Financial Metrics
Is HKTGF Expensive or Cheap?
P/E Ratio
HKTGF trades at 15.23 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HKTGF's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values Hikari Tsushin, Inc. at 1.72 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.31 times EBITDA. This is generally considered low.
How Well Does HKTGF Make Money?
Net Profit Margin
For every $100 in sales, Hikari Tsushin, Inc. keeps $17.46 as profit after all expenses.
Operating Margin
Core operations generate 14.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.60 in profit for every $100 of shareholder equity.
ROA
Hikari Tsushin, Inc. generates $4.71 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hikari Tsushin, Inc. generates limited operating cash flow of $51.79B, signaling weaker underlying cash strength.
Free Cash Flow
Hikari Tsushin, Inc. produces free cash flow of $41.36B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $941.94 in free cash annually.
FCF Yield
HKTGF converts 2.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.23
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.91
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.74
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How HKTGF Stacks Against Its Sector Peers
| Metric | HKTGF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.23 | 24.85 | Better (Cheaper) |
| ROE | 12.60% | 1165.00% | Weak |
| Net Margin | 17.46% | 749.00% | Weak |
| Debt/Equity | 0.91 | 0.76 | Neutral |
| Current Ratio | 1.74 | 9.23 | Neutral |
| ROA | 4.71% | 1271.00% | Weak |
HKTGF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hikari Tsushin, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
36.51%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
137.24%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
1.62%
Industry Style: Cyclical, Growth, Discretionary
Growing