<div id="readability-page-1"><div><p>Hirose ElectricLtd (TSE:6806) has reported its FY 2026 results with fourth quarter revenue of ¥54,715 million and basic EPS of ¥253.67, alongside trailing 12 month revenue of ¥211.3 billion and EPS of ¥991.91. Over recent periods, revenue has moved from ¥44,998 million in FY 2025 Q4 to ¥54,715 million in FY 2026 Q4, while quarterly basic EPS has ranged from ¥161.08 to ¥297.09. This provides a clearer sense of how the top line and per share profits have tracked into the latest print. With trailing net margins at 15.7% compared with 17.4% a year earlier, the focus now is on how investors weigh these solid headline numbers alongside pressure on profitability.</p> <p>See our full analysis for Hirose ElectricLtd.</p><p>With the figures on the table, the next step is to see how this earnings profile lines up with the most common narratives around Hirose ElectricLtd and where those views might need updating.</p> <p>Curious how numbers become stories that shape markets? Explore Community Narratives</p>  <h2>TTM revenue tops ¥211.3b while quarterly growth steadies</h2> <ul> <li>On a trailing 12 month basis, revenue sits at ¥211.3b, compared with quarterly revenue between ¥48,972 million and ¥54,715 million in FY 2026. This shows the latest quarter fitting into a fairly tight recent range rather than breaking from it.</li> <li>Consensus narrative notes Hirose ElectricLtd as a broad supplier tied to multiple end markets, and the figures line up with that steady picture. Trailing 12 month revenue has moved from ¥184,769 million in FY 2025 Q3 to ¥211,264 million in FY 2026 Q4, while quarterly revenue has stayed within roughly a ¥5,700 million band during FY 2026, which neither strongly reinforces a bullish push for rapid expansion nor clearly backs a bearish view of sharp contraction.     <ul> <li>Supporters of a more bullish angle can point to the gradual step up in trailing revenue from ¥184,769 million to ¥211,264 million, which fits a story of a connector supplier participating across several end markets.</li> <li>More cautious investors can highlight that within FY 2026, revenue has moved from ¥48,972 million in Q1 to ¥54,715 million in Q4 without a clear breakout quarter, so the data leans toward measured progress rather than a surge.</li> </ul> </li> </ul> <p>For a fuller picture of how these sales trends fit into the long term story, it helps to see how other investors are interpreting them in context of valuation and growth expectations, so it is worth checking the consensus view on Hirose ElectricLtd in more depth <strong>📊 Read the what the Community is saying about Hirose ElectricLtd.</strong></p> <h2>Margins at 15.7% bring mixed signals for profitability</h2> <ul> <li>Trailing 12 month net profit margin is reported at 15.7%, compared with 17.4% a year earlier. Over the same period, trailing net income went from ¥33,349 million in FY 2025 Q3 to ¥33,142 million in FY 2026 Q4, which shows profits holding near the ¥33,000 million mark even as margin has eased.</li> <li>Bears argue that pressure on profitability weakens the appeal of only modest growth, and the numbers partly back that, since net income over the last six trailing quarters has hovered between ¥30,262 million and ¥33,349 million while the margin figure has declined. Yet what is notable is that quarterly net income in FY 2026 still ranges from ¥7,227 million to ¥9,289 million, so the business is consistently generating earnings even if each yen of sales now converts into slightly less profit than a year earlier.     <ul> <li>Critics highlight the shift from a 17.4% margin to 15.7% as evidence that costs or pricing have become more of a headwind, especially when one year earnings growth is quoted at 0.3%, below the 3.5% five year average.</li> <li>At the same time, the stability of trailing net income around the ¥33,000 million level suggests the bearish concern about a sharp deterioration in profit has not materialized in the reported figures.</li> </ul> </li> </ul> <h2>P/E of 23.8x and DCF fair value of ¥15,925.46 set a valuation gap</h2> <ul> <li>The stock trades on a P/E of 23.8x, above the JP Electronic industry average of 16.8x but below a peer average of 49.4x. Compared with a DCF fair value of ¥15,925.46 and a current share price of ¥24,145, there is a clear gap between this valuation model and where the market is currently pricing the stock.</li> <li>What stands out for investors weighing a more bullish storyline is that forecast earnings growth of about 7.32% per year and revenue growth of roughly 5% sit alongside that DCF fair value of ¥15,925.46 being below the market price. While the growth profile may support paying a higher multiple than the 16.8x industry average, the combination of a 23.8x P/E, trailing 12 month earnings of ¥991.91 per share and an unstable dividend history means the data set also leaves room for more cautious views that question how much upside is already reflected in the ¥24,145 share price.     <ul> <li>Supporters of the growth angle can point out that earnings growth forecasts above 7% are higher than the 3.5% five year average, which may help justify a P/E premium to the broader industry.</li> <li>More conservative investors may give weight to the discounted cash flow estimate being below the current share price and the description of the dividend track record as unstable, using those concrete markers as reasons to be selective about valuation.</li> </ul> </li> </ul> <h2>Next Steps</h2> <p>Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Hirose ElectricLtd's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.</p> <p>With a mix of solid earnings and some pressure on profitability in mind, this is a good moment to look through the numbers yourself and decide how you feel about the balance of opportunity and risk. To see a concise summary of what the data currently suggests on both sides, review the 2 key rewards and 1 important warning sign</p> <h2>See What Else Is Out There</h2> <p>Hirose ElectricLtd shows pressure on profitability, an unstable dividend record and a valuation gap where the quoted P/E and DCF estimate do not fully align.</p> <p>If you are concerned about paying up for earnings when profitability and dividends look uncertain, now is a good time to check out 11 high quality undervalued stocks.</p> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data         and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your         financial situation. We aim to bring you long-term focused analysis driven by fundamental data.         Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.         Simply Wall St has no position in any stocks mentioned.</em></p></div></div>

6806

<p>Hirose Electric (TSE:6806) reported FY 2026 results with Q4 revenue of ¥54,715 million and basic EPS of ¥253.67. Trailing 12-month revenue reached ¥211.3 billion, but net margins declined to 15.7% from 17.4% a year earlier. While revenue growth appears steady, profitability pressures raise concerns among investors. The stock trades at a P/E of 23.8x, above the industry average, with a DCF fair value of ¥15,925.46, indicating a valuation gap. Despite stable net income, the decline in margins and modest growth may challenge the bullish narrative surrounding the company.</p>

Hirose Electric (TSE:6806) Margin Decline Challenges Bullish Steady‑Growth Narrative