Hikari Tsushin, Inc. (9435.T) stock analysis
In our weekly check, Hikari Tsushin, Inc. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 4, red flags: 7.
About Hikari Tsushin, Inc.
Hikari Tsushin, Inc. is an Industrials company (Conglomerates) based in Japan, listed on JPX as 9435.T.
What our checks show for 9435.T
Red flags
- The gross margin fell by 3.7 points, to 48.7%: costs are rising faster than prices.
- Operating cash flow is only 0.15x net profit: part of the reported profit does not arrive as cash.
- Analysts expect the net margin to shrink by 5.5 points from today's 21%.
- The stock has fallen as much as 81% from a peak. Would you have held through that?
- Recovering from its deepest fall took about 4.8 years.
- Thinly traded (about 94 thousand shares a day): buying and selling can move the price.
- Return on capital (ROCE) is only 4.8%.
Warning signs
- Net debt is 3.1x a year of EBITDA (debt/equity 0.88). That limits room in a downturn and raises refinancing risk.
- Analysts expect earnings per share to shrink about 2.6% a year.
- Free cash flow is only 0.9% of revenue.
- Free cash flow covers the dividend only 0.2 times.
Strengths
- The net margin rose by 5.7 points over 5 years, to 21%.
- Earnings per share grew 21.3% a year over the last 3 years.
- Net profit grew 20.4% a year over the last 3 years.
- The company keeps 21% of its revenue as net profit.
- The price is 10.3 times earnings (P/E), reasonable for its growth.
- A large company: market value $10.36 billion.
Next earnings report: 2026-11-11
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Questions
What grade does Hikari Tsushin, Inc. (9435.T) have?
In our weekly check, Hikari Tsushin, Inc. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 4, red flags: 7. The grade is a risk check, not a buy or sell recommendation.
What are the main risks of 9435.T stock?
This week's biggest flags for Hikari Tsushin, Inc.: Gross margin falling, Profits not backed by cash, Margins expected to shrink. In total 11 of 25 checks show a warning or a red flag.
What does Hikari Tsushin, Inc. do?
Hikari Tsushin, Inc. is an Industrials company (Conglomerates) based in Japan, listed on JPX as 9435.T.
When does Hikari Tsushin, Inc. report earnings next?
The next earnings report is expected on 2026-11-11. 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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