Hankyu Hanshin Holdings, Inc. (9042.T) stock analysis

In our weekly check, Hankyu Hanshin Holdings, Inc. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 3, red flags: 8.

About Hankyu Hanshin Holdings, Inc.

Hankyu Hanshin Holdings, Inc. is an Industrials company (Conglomerates) based in Japan, listed on JPX as 9042.T.

What our checks show for 9042.T

Red flags

• Net debt is 6.7x a year of EBITDA (debt/equity 1.35). That limits room in a downturn and raises refinancing risk.
• Operating profit does not cover the interest bill (0x): interest is paid from cash or new debt.
• Free cash flow is negative (-4.8% of revenue): the business spends more cash than it brings in.
• The dividend takes 3842% of profit: little cushion if profit falls.
• The stock has fallen as much as 64% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 5.7 years.
• Return on capital (ROCE) is only 4.1%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Operating cash flow is only 0.66x net profit: part of the reported profit does not arrive as cash.
• Analysts expect only about 3.7% a year of growth in revenue.
• The net margin is only 6.5%: little room if costs rise.

Strengths

• The net margin rose by 3.7 points over 5 years, to 6.5%.
• The gross margin is 13.6% and has risen by 4.7 points: pricing power is holding.
• Earnings per share grew 19.2% a year over the last 3 years.
• Net profit grew 18.7% a year over the last 3 years.
• Beta 0.22: the stock usually moves less than the market.

Next earnings report: 2027-01-29

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Questions

What grade does Hankyu Hanshin Holdings, Inc. (9042.T) have?

In our weekly check, Hankyu Hanshin Holdings, Inc. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 3, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 9042.T stock?

This week's biggest flags for Hankyu Hanshin Holdings, Inc.: High debt, Weak interest cover, Weak free cash flow. In total 11 of 25 checks show a warning or a red flag.

What does Hankyu Hanshin Holdings, Inc. do?

Hankyu Hanshin Holdings, Inc. is an Industrials company (Conglomerates) based in Japan, listed on JPX as 9042.T.

When does Hankyu Hanshin Holdings, Inc. report earnings next?

The next earnings report is expected on 2027-01-29. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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