Conservative Balance SheetLow leverage and steadily building equity (debt/equity ~0.13x in 2024) provide durable financial flexibility for a cyclical steel business. Healthy ROE (~10–11%) supports quality earnings, limits refinancing risk, and enables steadier capital allocation over months ahead.

Sustained Revenue GrowthA multi-year upward revenue trend with clear acceleration in 2025 suggests improving demand or market share gains. Persistent top-line growth helps absorb fixed costs, supports continued reinvestment, and underpins longer-term margin recovery if cost trends normalize.

Improved Cash Generation In 2025A pronounced step-up in operating and free cash flow in 2025 materially strengthens liquidity and optionality. If sustained, higher cash conversion enables capex, working-capital resilience, and consistent shareholder distributions, reducing reliance on external financing.

Bears Say

Margin PressureNet income fell in 2025 despite higher sales, signaling margin compression from rising costs or adverse mix. Persistent margin pressure can erode returns and limit reinvestment capacity, making profitability recovery dependent on sustained pricing power or cost control.

Volatile Cash Flow HistoryHistoric swings in free cash flow (notably a sharp 2023 drop) reduce predictability for capital allocation. Even with a 2025 rebound, volatility complicates budgeting for capex and dividends and increases execution risk if working-capital or investment demands re-emerge.

Flat Assets And Softened ProfitabilityStagnant or declining assets alongside weakened profitability may reflect underinvestment or efficiency headwinds. That limits capacity to scale and capture growth, potentially constraining margin expansion and operational leverage over the medium term if not addressed.

7425 FAQ

What was Hatsuho Shouji Co., Ltd.’s price range in the past 12 months?

Hatsuho Shouji Co., Ltd. lowest stock price was ¥1442.00 and its highest was ¥2374.00 in the past 12 months.

What is Hatsuho Shouji Co., Ltd.’s market cap?

Hatsuho Shouji Co., Ltd.’s market cap is ¥7.90B.

When is Hatsuho Shouji Co., Ltd.’s upcoming earnings report date?

Hatsuho Shouji Co., Ltd.’s upcoming earnings report date is May 13, 2026 which is in 83 days.

How were Hatsuho Shouji Co., Ltd.’s earnings last quarter?

Hatsuho Shouji Co., Ltd. released its earnings results on Feb 13, 2026. The company reported ¥65.86 earnings per share for the quarter, beating the consensus estimate of N/A by ¥65.86.

Is Hatsuho Shouji Co., Ltd. overvalued?

According to Wall Street analysts Hatsuho Shouji Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Hatsuho Shouji Co., Ltd. pay dividends?

Hatsuho Shouji Co., Ltd. pays a Annually dividend of ¥75 which represents an annual dividend yield of 2.89%. See more information on Hatsuho Shouji Co., Ltd. dividends here

What is Hatsuho Shouji Co., Ltd.’s EPS estimate?

Hatsuho Shouji Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Hatsuho Shouji Co., Ltd. have?

Hatsuho Shouji Co., Ltd. has 3,480,660 shares outstanding.

What happened to Hatsuho Shouji Co., Ltd.’s price movement after its last earnings report?

Hatsuho Shouji Co., Ltd. reported an EPS of ¥65.86 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 1.163%.

Which hedge fund is a major shareholder of Hatsuho Shouji Co., Ltd.?

Currently, no hedge funds are holding shares in JP:7425

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Hatsuho Shouji Co., Ltd.

Hatsuho Shouji Co., Ltd. (7425) is a Japanese trading company that primarily operates in the textile and apparel sector. The company engages in the import and export of various textile products, including fabrics, garments, and related materials. Hatsuho Shouji also provides services related to product development and supply chain management, catering to both domestic and international markets.