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Hikari TsushinFRA:HIK -3.64%82 Debt-to-Equity is 0.86 as of Jun. 2026, which is 28% below its 10-year median of 1.19. GuruFocus rates FRA:HIK with a GF Score™ of 82/100 and a GF Value™ of €220.72 (Fairly Valued). The stock has 5 warning signs investors should review. Among 504 Conglomerates companies, Hikari Tsushin ranks worse than 62.9% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Hikari Tsushin's Debt-to-Equity or its related term are showing as below:
FRA:HIK'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.77 Med: 1.19 Max: 1.4
Current: 0.88
During the past 13 years, the highest Debt-to-Equity Ratio of Hikari Tsushin was 1.40. The lowest was 0.77. And the median was 1.19.
FRA:HIK's Debt-to-Equity is ranked worse than 62.9% of 504
companies
in the Conglomerates industry
Industry Median: 0.52
vs FRA:HIK: 0.88
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Hikari Tsushin Debt-to-Equity Related Terms
Hikari Tsushin Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Hikari Tsushin's Debt-to-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Conglomerates subindustry, Hikari Tsushin's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hikari Tsushin Debt-to-Equity vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Hikari Tsushin's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Hikari Tsushin's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Hikari Tsushin (FRA:HIK) has a Debt-to-Equity of 0.86 as of Jun. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Hikari Tsushin and its competitors. This is 28% below median its historical median of 1.19. Over the past decade, Hikari Tsushin's Debt-to-Equity has ranged from 0.77 to 1.40. According to the industry distribution chart, Hikari Tsushin ranks #317 out of 504 companies in the Conglomerates industry, placing it in the top 62.9%.
Is Hikari Tsushin's Debt-to-Equity too high?
Hikari Tsushin's current Debt-to-Equity of 0.86 is 28% below median its 10-year median of 1.19. Over the past 10 years, this metric has ranged from a low of 0.77 to a high of 1.40. The Conglomerates industry median Debt-to-Equity is 0.52. Hikari Tsushin's value of 0.86 is 65.4% above this industry median. Based on the distribution chart, Hikari Tsushin ranks #317 out of 504 companies in the Conglomerates industry, which is below the industry midpoint. Overall, Hikari Tsushin has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hikari Tsushin's Debt-to-Equity compare to MMM and HON?
According to the Conglomerates industry distribution chart, Hikari Tsushin ranks #317 out of 504 companies for Debt-to-Equity. This places Hikari Tsushin in the lower half of its industry. The industry median Debt-to-Equity is 0.52. Hikari Tsushin's value of 0.86 is 65.4% above this benchmark. Historically, Hikari Tsushin's own Debt-to-Equity has ranged from 0.77 to 1.40 over the past decade. While the company's 10-year median is 1.19 vs. the industry median of 0.52, Hikari Tsushin has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Conglomerates company?
The median Debt-to-Equity among Conglomerates companies is 0.52, based on 504 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hikari Tsushin's current Debt-to-Equity of 0.86 is 65.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Hikari Tsushin and its competitors. For the Conglomerates industry, the median Debt-to-Equity is 0.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hikari Tsushin's current Debt-to-Equity is 0.86, which is 28% below median its own 10-year median of 1.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hikari Tsushin stock overvalued right now?
Based on GuruFocus' analysis, Hikari Tsushin (FRA:HIK) is currently considered Fairly Valued. The stock's GF Value™ is €220.72, compared to a current price of €212.00 — trading 4% below its estimated fair value. The current Debt-to-Equity is 0.86, which is 28% below median its 10-year median of 1.19 and 65.4% above the Conglomerates industry median of 0.52. Hikari Tsushin's overall GF Score™ is 82/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Hikari Tsushin (FRA:HIK), the current Debt-to-Equity is 0.86 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hikari Tsushin (FRA:HIK) Overvalued in 2026?
Based on GuruFocus' analysis, Hikari Tsushin stock appears to be undervalued.
The current stock price of €212.00 is trading 4% below its estimated GF Value™ of €220.72.
GuruFocus considers Hikari Tsushin to be Fairly Valued.
Key valuation signals for FRA:HIK:
Debt-to-Equity: 0.86 (28% below median its 10-year median of 1.19)
GF Value™: €220.72 vs. price of €212.00 (4% below fair value)
Industry Position: 65.4% above the Conglomerates median (#317 of 504)
No single metric tells the full story. See the FRA:HIK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hikari Tsushin Inc operates as a holding company engaged in diversified businesses through seven segments: Electricity and Gas, Telecommunications, Beverages, Insurance, Finance, Solutions, and Agency Sales. The group provides electricity and gas supply, communication services, natural mineral water, non-life insurance, and warranty services, as well as financial services such as microfinance, industry-specific solution platforms, and agency sales of various products from telecommunications carriers and manufacturers. It generates the majority of its revenue from the Electricity and Gas segment.
82GF Score
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