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Hikari Tsushin, Inc (HKTGF) Fair Value & Analysis

Industrials · US · Market cap $9.8B

HT Hikari Tsushin, Inc logo Hikari Tsushin, Inc HKTGF · US
Price$225.00
Fair Value$278.33
Upside+23.7%
Quality51/100
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Mixed Growth
Highly profitable · 20.6% net margin
Moderate debt · generates free cash flow
2.20% dividend yield
Ranks above peers (9/11)
Moderate moat 57/100
Evidence: High Range $208.75 – $347.91 Share as image

Fair value as of: Jul 26, 2026

From 11 valuation models · updated 15 days ago

Fair value updated Jul 26, 2026, revised from $282.89 to $278.33 (−1.6%) since Jun 26, 2026. Share price +5.1% over the past month.

A solid business, screening 24% undervalued on our models.

What matters now

  • Solid quality (51/100) at a price below fair value, the discount is the argument here, not the business quality.
  • Our model range runs from $208.75 (bear) to $347.91 (bull), base $278.33. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 51/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

$286.11 $95.75 Fair Value $278.33 Apr 2021 Jul 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 26, 2026.

How to read this chart

60‑month range $95.75 – $286.11 · fair‑value band $208.75 – $347.91 · the $225.00 price screens below the $278.33 fair value. Dashed = 300-day average. As of Jul 26, 2026.

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Analysis

Hikari Tsushin, Inc (HKTGF) currently trades at $225.00, while our model-based Fair Value estimate is $278.33, implying the stock looks roughly 23.7% undervalued today. The Quality Score stands at 51/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Hikari Tsushin, Inc generated revenue of $735B at a net margin of 20.6%. Revenue grew 2.4% year over year. It earns a return on equity of 14.5%. Net debt stands at $464B. Fundamentals as of Jul 26, 2026

Our scenario range runs from $208.75 (bear case) to $347.91 (bull case); at $225.00, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 22% below its 52-week high and 10% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -14% fair-value upside, at 24%, HKTGF screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $9,823 $19,149 $33,158 80
Rev-Margin DCF $11,524 $23,571 $37,936 74
P/E Multiple $42,273 $56,364 $70,455 63
All 11 models by family
DCF Models
Owner Earnings $21,691 $38,454 $64,044 31
5Y P/E Exit $23,781 $47,354 $72,943 38
10Y P/E Exit $18,423 $37,334 $61,973 35
Earnings-Based
Graham-Dodd $18,251 $65,347 $88,041 54
Lynch FV $15,406 $22,009 $28,612 50
Multiples
P/E Multiple $42,273 $56,364 $70,455 63
P/B Multiple $34,221 $45,628 $57,035 55
Asset-Based
NCAV (Graham) $10,775 $14,438 $21,549 50
Growth DCF
Growth DCF $9,823 $19,149 $33,158 80
Rev-Margin DCF $11,524 $23,571 $37,936 74
Economic Profit
Residual Income $19,884 $23,556 $47,304 61

Widest divergence: Multiples ($45,628) versus Asset-Based ($14,438). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $735B
Revenue growth (YoY) +2.4%
Net margin 20.6%
Return on equity 14.5%
Free cash flow $63.3B FY2025
P/E ratio 10.4
More key figures
Operating margin 14.6%
EPS (TTM) $21.49
Dividend yield 2.2%
EPS growth (YoY) +160%
Net debt $464B FY2025

Figures from reported company fundamentals · as of Jul 26, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 51/100

Of which business quality 49 · Market factors (momentum, volatility) 45

Profitability 41
Margins and returns on capital today
Quality Growth 45
Are margins and returns improving?
Cashflow 45
Earnings quality: real cash, not paper profit
Fin. Strength 44
Balance sheet, leverage, solvency risk
Investment 35
Disciplined investing over empire-building
Low Volatility 75
Calm price path (market factor)
Momentum 32
Price trend over the last 3–12 months (market factor)
52W Momentum 33
Distance to the 52-week high (market factor)
Net Issuance 89
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Hikari Tsushin, Inc., together with its subsidiaries, engages in the provision and sale of gas and electricity in Japan and internationally. It operates through Electricity and Gas, Telecommunication, Beverage, Insurance, Finance, Solution, and Commission-based Sales segments.

Full company description

Hikari Tsushin, Inc., together with its subsidiaries, engages in the provision and sale of gas and electricity in Japan and internationally. It operates through Electricity and Gas, Telecommunication, Beverage, Insurance, Finance, Solution, and Commission-based Sales segments. The company also offers communication line and supplementary services; life and non-life insurance products, and warranty services; and microfinance. In addition, it manufactures, sells, and delivers natural mineral water; provides industry-specific solutions, such as customer and payment management systems; and operates as a sales agency for various telecommunication products. The company serves individual and corporate customers. Hikari Tsushin, Inc. was incorporated in 1952 and is headquartered in Toshima, Japan.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hikari Tsushin, Inc reported revenue of $687B in FY2025 versus $559B in FY2021, a compound +5.3%/yr. Reported net income was $118B in FY2025, compounding +21.1%/yr from FY2021.

Growth Quality 65/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
$687B
Latest YoY
+14.1%
Avg. growth/yr (3Y)
+6.2%
Avg. growth/yr (9Y)
+2.0%
Revenue +5.3%/yr
FY21 $559B
FY22 $573B
FY23 $644B
FY24 $602B
FY25 $687B
Net income +21.1%/yr
FY21 $54.6B
FY22 $87.5B
FY23 $91.3B
FY24 $122B
FY25 $118B

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Cite: Fair Value Calculator (2026). "Hikari Tsushin, Inc Fair Value". https://www.fairvalue-calculator.com/stock/HKTGF

Peer Group

Conglomerates · 370 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 51 · Above median
Fair Value upside +24% · Above median
Return on equity (TTM) 14% · Top 25%
Return on assets 3% · Above median
Net margin (TTM) 21% · Top 25%
Operating margin (TTM) 15% · Top 25%
Revenue growth 2% · Below median
Dividend yield (TTM) 2.2% · Above median
Debt / equity 0.80× · Higher than 75% of peers

Valuation Multiples vs Conglomerates median · lower = cheaper

P/E (TTM) 10.4× · Cheaper than median
P/FCF 0.2× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 65 · sector 21
FUTURE 12 · sector 16
PAST 58 · sector 20
HEALTH 60 · sector 88
DIVIDEND 44 · sector 39

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Conglomerates stocks, each showing price versus our Fair Value estimate (as of Jul 26, 2026).

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The Siam Cement Public Company SCC 254.00 THB 199.40 THB -21%
SRF Limited SRF ₹2,875 ₹1,053 -63%
Empresas Copec S.A COPEC 6,330 CLP 10,879 CLP +72%
Posco International Corporation 047050 50,900 KRW 61,248 KRW +20%
Tube Investments of India Limited TIINDIA ₹2,940 ₹559.30 -81%
Doosan Corporation 000155 464,000 KRW 75,620 KRW -84%
Thermax Limited THERMAX ₹4,809 ₹1,087 -77%

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Frequently asked questions

Is Hikari Tsushin, Inc (HKTGF) overvalued or undervalued?
As of Jul 26, 2026, our model estimates a fair value of $278.33 versus a price of $225.00, about +24% (undervalued).
What is the fair value of HKTGF?
Our model-based fair value for Hikari Tsushin, Inc is $278.33 (as of Jul 26, 2026), built from audited fundamentals. The current price is $225.00.
What is the quality score of HKTGF?
Hikari Tsushin, Inc has a Quality Score of 51/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Hikari Tsushin, Inc (HKTGF)?
Hikari Tsushin, Inc reported trailing-twelve-month revenue of about $735B (latest available figure, as of Jul 26, 2026).
What is the net profit margin of HKTGF?
The net profit margin of Hikari Tsushin, Inc is about 20.6%, meaning it keeps roughly 20.6% of revenue as net income. Based on the latest reported figures.
Does Hikari Tsushin, Inc pay a dividend?
Hikari Tsushin, Inc currently shows a dividend yield of about 2.20% relative to its recent price (as of Jul 26, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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