Hennge KK Intrinsic Valuation and Fundamental Analysis - Hennge KK - Alpha Spread

Hennge KK
TSE:4475

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Hennge KK
TSE:4475
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Price: 1 154 JPY 6.75%
Market Cap: 37.4B JPY
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Intrinsic Value

The intrinsic value of one Hennge KK stock under the Base Case scenario is 1 394.58 JPY. Compared to the current market price of 1 154 JPY, Hennge KK is Undervalued by 17%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

Intrinsic Value
1 394.58 JPY
Undervaluation 17%
Intrinsic Value
Price
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Base Case
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Hennge KK

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Hennge KK

Current Assets 6.5B
Cash & Short-Term Investments 5.9B
Receivables 229.7m
Other Current Assets 382.4m
Non-Current Assets 1.3B
PP&E 299.2m
Intangibles 44.7m
Other Non-Current Assets 987.6m
Current Liabilities 4.8B
Accounts Payable 74.6m
Accrued Liabilities 115.1m
Other Current Liabilities 4.6B
Non-Current Liabilities 211.7m
Other Non-Current Liabilities 211.7m
Efficiency

Earnings Waterfall
Hennge KK

Revenue
7.9B JPY
Cost of Revenue
-1.2B JPY
Gross Profit
6.7B JPY
Operating Expenses
-5.6B JPY
Operating Income
1.1B JPY
Other Expenses
-189.9m JPY
Net Income
876.7m JPY

Free Cash Flow Analysis
Hennge KK

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

In the third quarter of FY 2024, HENNGE saw a significant increase in ARPU and ARR due to a price revision. The company's consolidated net sales and gross profit margins also grew, despite higher infrastructure and R&D costs. HENNGE is on track with its annual forecast but faces recruiting challenges. The firm aims to invest JPY 100 million in recruitment advertising. For FY 2025, HENNGE aims to exceed JPY 10 billion in ARR, maintaining a mid-20% growth rate by continuously enhancing product value and expanding customer contracts.

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Fundamental Scores

Profitability Score
Profitability Due Diligence

Hennge KK's profitability score is 73/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Exceptional 3-Year Average ROIC
Exceptional ROIC
Positive Free Cash Flow
73/100
Profitability
Score

Hennge KK's profitability score is 73/100. The higher the profitability score, the more profitable the company is.

Solvency Score
Solvency Due Diligence

Hennge KK's solvency score is 68/100. The higher the solvency score, the more solvent the company is.

High Altman Z-Score
Low D/E
Long-Term Solvency
Short-Term Solvency
68/100
Solvency
Score

Hennge KK's solvency score is 68/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

Price Targets Summary
Hennge KK

There are no price targets for Hennge KK.
Lowest
Price Target
Not Available
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Price Target
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Price Target
Not Available
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Dividends

Hennge KK
does not pay dividends
Shareholder Yield

Current shareholder yield for Hennge KK is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
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Profile

Hennge KK Logo
Hennge KK

Country

Japan

Industry

Technology

Market Cap

34.7B JPY

Dividend Yield

0%

Description

HENNGE KK develops and distributes enterprise security and software solutions. The company is headquartered in Shibuya-Ku, Tokyo-To and currently employs 213 full-time employees. The company went IPO on 2019-10-08. is a Japan-based company engaged in the provision of packaged software as a cloud service. The group mainly provides services to customers in the form of software as a service (SaaS). The HENNGE One business develops HENNGE One, which is Identity as a Service (IDaaS) that enables secure access and single sign-on across various cloud services used by companies. The professional services and other businesses develops on-premises mail distribution package software that delivers large volumes of mail securely and at high speed.

Contact

TOKYO-TO
Shibuya-Ku
11F, Daiwa Shibuya Square, 16-28, Nampeidai-cho
+81364153660.0
hennge.com

IPO

2019-10-08

Employees

213

Officers

See Also

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What is the Intrinsic Value of one Hennge KK stock?

The intrinsic value of one Hennge KK stock under the Base Case scenario is 1 394.58 JPY.

Is Hennge KK stock undervalued or overvalued?

Compared to the current market price of 1 154 JPY, Hennge KK is Undervalued by 17%.

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