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Hikari Tsushin (TSE:9435) Profitability Rank : 8 (As of Dec. 2023)


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What is Hikari Tsushin Profitability Rank?

Hikari Tsushin has the Profitability Rank of 8. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

Hikari Tsushin's Operating Margin % for the quarter that ended in Dec. 2023 was 15.98%. As of today, Hikari Tsushin's Piotroski F-Score is 7.


Competitive Comparison of Hikari Tsushin's Profitability Rank

For the Conglomerates subindustry, Hikari Tsushin's Profitability Rank, along with its competitors' market caps and Profitability Rank 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's Profitability Rank Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Hikari Tsushin's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Hikari Tsushin's Profitability Rank falls into.



Hikari Tsushin Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Hikari Tsushin has the Profitability Rank of 8. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Hikari Tsushin's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=24003 / 150209
=15.98 %

* 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.

2. Piotroski F-Score

Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Hikari Tsushin has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

Hikari Tsushin Inc operating margin has been in a 5-year decline. The average rate of decline per year is -2%.

4. Consistency of the profitability

5. Predictability Rank


Hikari Tsushin Profitability Rank Related Terms

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Hikari Tsushin (TSE:9435) Business Description

Traded in Other Exchanges
Address
Hikari West Gate Building, 1-4-10, Nishi Ikebukuro, Toshima-ku, Tokyo, JPN, 171-0021
Hikari Tsushin Inc is a Japanese company that provides services such networking and automation products offers individual insurance plans for small and medium-size enterprises. The company has three reporting segments: corporate, shop and insurance. The corporate segment offers products such as Wi-Fi routers, SIM cards, water coolers and LED lighting. Revenue is evenly split between the corporate and shop segments with insurance adding a small portion. The company earns the vast majority of its revenue in Japan.

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