HROEY (Hirose Electric Co) Financial Strength: 8 (As of Jun. 2026) — 20% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

HROEY Hirose Electric Co Ltd HROEY
84 GF Score
Price $16.07
GF Value $15.71
Valuation Fairly Valued
! 5 Warning Signs
View Full Analysis

What is Hirose Electric Co Financial Strength?

Hirose Electric Co HROEY 84 Financial Strength is 8 as of Jun. 2026, which is 20% below its 10-year median of 10.00. GuruFocus rates HROEY with a GF Score™ of 84/100 and a GF Value™ of $15.71 (Fairly Valued). The stock has 5 warning signs investors should review.

Hirose Electric Co has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Hirose Electric Co Ltd shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Hirose Electric Co's Interest Coverage for the quarter that ended in Jun. 2026 was 79.39. Hirose Electric Co's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.03. As of today, Hirose Electric Co's Altman Z-Score is 11.50.


Hirose Electric Co  (OTCPK:HROEY) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Hirose Electric Co has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Hirose Electric Co Financial Strength Related Terms


HROEY vs APH, GLW, TEL: Financial Strength Comparison

For the Electronic Components subindustry, Hirose Electric Co's Financial Strength, along with its competitors' market caps and Financial Strength 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.


Hirose Electric Co Financial Strength vs Hardware Industry

For the Hardware industry and Technology sector, Hirose Electric Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Hirose Electric Co's Financial Strength falls into.


HROEY
84GF Score
Hirose Electric Co Ltd HROEY
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hirose Electric Co Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Hirose Electric Co's Interest Expense for the months ended in Jun. 2026 was $-1 Mil. Its Operating Income for the months ended in Jun. 2026 was $83 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was $35 Mil.

Hirose Electric Co's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*82.963/-1.045
=79.39

The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Hirose Electric Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

2. Debt to revenue ratio. The lower, the better.

Hirose Electric Co's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(6.649 + 35.268) / 1544.692
=0.03

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Hirose Electric Co has a Z-score of 11.50, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 11.5 is strong.

* 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 8 mean?
Hirose Electric Co (HROEY) has a Financial Strength of 8 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Hirose Electric Co and its competitors. This is 20% below median its historical median of 10.00. Over the past decade, Hirose Electric Co's Financial Strength has ranged from 8.00 to 10.00.
Is Hirose Electric Co's Financial Strength too high?
Hirose Electric Co's current Financial Strength of 8 is 20% below median its 10-year median of 10.00. Over the past 10 years, this metric has ranged from a low of 8.00 to a high of 10.00. Overall, Hirose Electric Co has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hirose Electric Co's Financial Strength compare to APH and GLW?
Hirose Electric Co's Financial Strength of 8 can be compared against companies in the Hardware industry. Historically, Hirose Electric Co's own Financial Strength has ranged from 8.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Hardware company?
A good Financial Strength depends on the Hardware industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Hirose Electric Co and its competitors. Hirose Electric Co's current Financial Strength is 8, which is 20% below median its own 10-year median of 10.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hirose Electric Co stock overvalued right now?
Based on GuruFocus' analysis, Hirose Electric Co (HROEY) is currently considered Fairly Valued. The stock's GF Value™ is $15.71, compared to a current price of $16.07 — trading 2.3% above its estimated fair value. The current Financial Strength is 8, which is 20% below median its 10-year median of 10.00. Hirose Electric Co's overall GF Score™ is 84/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Hirose Electric Co (HROEY), the current Financial Strength is 8 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 Hirose Electric Co (HROEY) Overvalued in 2026?

Based on GuruFocus' analysis, Hirose Electric Co stock appears to be overvalued. The current stock price of $16.07 is trading 2.3% above its estimated GF Value™ of $15.71. GuruFocus considers Hirose Electric Co to be Fairly Valued.

Key valuation signals for HROEY:

  • Financial Strength: 8 (20% below median its 10-year median of 10.00)
  • GF Value™: $15.71 vs. price of $16.07 (2.3% above fair value)
  • GF Score™: 84/100 with 5 warning signs

No single metric tells the full story. See the HROEY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hirose Electric Co Business Description

Other Exchanges 6806:Japan
Address 2-6-3 Nakagawa Chuoh, Tsuzuki-ku, Kanagawa Prefecture, Yokohama, JPN, 224-8540
Hirose Electric Co Ltd is engaged in the production and sale of connectors and related products. The company's operations are organized into two reportable segments: Multipole connectors and Coaxial connectors. Multipole connectors include circular, rectangular, ribbon cable, printed circuit board, and flexible printed circuit connectors, while Coaxial connectors are high-performance connectors for high-frequency and optical signal transmission. It generates the majority of its revenue from the Multipole connector segment.
84GF Score

Get the complete analysis for HROEY

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$16.07
Price
$15.71
GF Value