Hokuto Corporation (1379) AI Stock Analysis

• Market Cap: ¥57.10B
• Dividend Yield: 2.73%
• Average Volume (3M): 67.41K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.17
• Revenue Growth: 6.12%
• EPS Growth: 344.71%
• Country: JP
• Employees: 4,117
• Sector: Consumer Defensive
• Sector Strength: 81
• Industry: Agricultural Farm Products
• EPS (TTM): 109.43
• Shares Outstanding: 33,359,040
• 10 Day Avg. Volume: 42,650
• 30 Day Avg. Volume: 67,410
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Hokuto Corporation's strong revenue growth and improved profitability are key strengths, contributing significantly to its score. However, cash flow volatility and zero operating cash flow pose risks that need addressing. The technical indicators suggest weak short-term momentum, moderated by a potential for future upward movement. The valuation metrics indicate an attractive price and a decent dividend yield, providing a balanced investment opportunity.

Hokuto Corporation Business Overview & Revenue Model

Company Description

Hokuto Corporation (1379) is a Japanese company primarily engaged in the production and distribution of fresh mushrooms. The company is a leader in mushroom cultivation, focusing on varieties such as enoki, bunashimeji, and eringi. Hokuto Corporation operates within the agricultural sector, emphasizing sustainable practices and leveraging advanced technology to ensure high-quality produce. In addition to mushroom cultivation, the company also ventures into the development of mushroom-related products, contributing to its diversified offerings.

How the Company Makes Money

Hokuto Corporation generates revenue primarily through the sale of its cultivated mushrooms, targeting both domestic and international markets. The company operates extensive cultivation facilities that enable it to maintain a steady supply of fresh produce. A significant portion of its revenue comes from partnerships with supermarkets, grocery chains, and food service companies that distribute its products to end consumers. Additionally, Hokuto Corporation invests in research and development to innovate new mushroom-based products, thereby expanding its market presence and creating additional revenue streams. The company's focus on sustainable and efficient production methods also helps optimize costs and enhance profitability.

Hokuto Corporation Financial Statement Overview

Summary

Overall, Hokuto Corporation demonstrates strong revenue growth and improved profitability, positioning it well within the agricultural sector. The balance sheet is stable, supported by a healthy equity ratio and manageable debt levels. However, cash flow volatility and zero operating cash flow in the TTM period pose potential risks that need to be addressed to ensure sustained financial health.

Income Statement

The income statement shows a strong recovery with an increase in gross profit margin and net profit margin in the TTM period. The gross profit margin improved to 28.0% from the previous year's 24.9%, while the net profit margin increased to 6.1% from 4.4%. Revenue growth has been robust with a 10.8% increase from the previous year, indicating a positive trajectory. However, the EBIT margin is moderate at 7.0%, highlighting some room for operational efficiency improvements.

Balance Sheet

The balance sheet exhibits a solid equity base with an equity ratio of 50.1%, indicating financial stability. The debt-to-equity ratio stands at 0.62, demonstrating moderate leverage. Return on equity improved to 9.0%, reflecting better profitability. However, there is a need to monitor the total debt levels which have increased over the year.

Cash Flow

Cash flow performance is mixed with operating cash flow at zero in the TTM period, indicating potential cash management issues. Although free cash flow was positive in the previous year, it has not been sustained, suggesting volatility in cash generation. The company needs to improve its cash conversion to support ongoing operations and growth initiatives.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
79.43B	72.98B	70.93B	73.89B	71.22B
	Gross Profit
19.79B	12.97B	17.39B	21.90B	19.96B
	EBIT
3.18B	-2.95B	2.01B	6.01B	3.92B
	EBITDA
11.34B	5.16B	8.99B	12.99B	11.13B
	Net Income Common Stockholders
3.52B	-2.04B	2.53B	4.04B	1.53B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.92B	16.03B	12.48B	13.89B	12.18B
	Total Assets
103.50B	104.90B	104.93B	100.24B	100.60B
	Total Debt
32.28B	39.70B	36.91B	32.03B	35.33B
	Net Debt
18.65B	23.67B	24.43B	18.14B	23.16B
	Total Liabilities
48.68B	53.94B	50.42B	46.10B	50.06B
	Stockholders Equity
54.82B	50.95B	54.51B	54.14B	50.54B
Cash Flow		Free Cash Flow
6.16B	3.10B	-4.54B	6.48B	8.05B
	Operating Cash Flow
8.38B	4.67B	5.85B	10.47B	10.78B
	Investing Cash Flow
1.05B	-4.15B	-11.61B	-4.33B	-2.90B
	Financing Cash Flow
-8.79B	888.00M	3.01B	-4.80B	-4.84B

Hokuto Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1833.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1379, the sentiment is Neutral. The current price of 1833 is below the 20-day moving average (MA) of 1843.20, below the 50-day MA of 1848.49, and above the 200-day MA of 1794.47, indicating a neutral trend. The MACD of -3.09 indicates Positive momentum. The RSI at 47.49 is Neutral, neither overbought nor oversold. The STOCH value of 20.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1379.

Hokuto Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1377	71 Outperform	¥144.78B	7.85		2.10%	15.82%	128.09%
1379	68 Neutral	¥57.10B	11.36		2.73%	6.12%	344.71%
1376	67 Neutral	¥16.50B	13.31		2.33%	5.36%	2.53%
Sector *	64 Neutral	$8.79B	14.77	5.05%	174.29%	3.63%	3.48%
1375	56 Neutral	¥45.22B	23.61		1.05%	12.65%	21.05%
1380	43 Neutral	¥4.12B	―		1.02%	5.53%	-128.84%

Hokuto Corporation Corporate Events

Hokuto Corporation Finalizes Treasury Share Disposal for Executive Compensation

Hokuto Corporation has completed the payment process for the disposal of its treasury shares as restricted stock compensation for its executive officers. This move, resolved in November 2024, involves the disposal of 6,770 common shares at a price of ¥1,773 per share, amounting to a total value of ¥12,003,210, and is aimed at aligning the interests of the executive officers with those of the shareholders.

Hokuto’s Maitake Mushrooms Receive SCFA Certification

Hokuto Corporation has received certification from the SCFA Promotion Association for its maitake mushrooms, recognizing their potential to contribute to SCFA production in the human intestine. This certification allows Hokuto to include the SCFA Certification Mark on its maitake mushroom packaging starting May 2025, enhancing its market positioning by highlighting the health benefits of its products.

Hokuto Corporation and Riken Vitamin Co. Innovate with New Mushroom Extract

Hokuto Corporation, in partnership with Riken Vitamin Co., Ltd., has developed a new mushroom extract from unused parts and off-grade bunashimeji mushrooms, for which they were granted a patent in November 2024. This innovation, which supports sustainable production, is already being used in Riken Vitamin’s products, with plans for broader application. This development marks a significant advancement in utilizing natural resources efficiently, reinforcing both companies’ commitment to sustainability and health-oriented products.

Hokuto Corporation Reports Strong Financial Growth and Positive Outlook

Hokuto Corporation reported a significant increase in its financial performance for the nine months ended December 31, 2024, with net sales rising by 5.2% and operating profit surging by 182.1% compared to the previous year. The company also revised its earnings forecasts upward, indicating strong growth expectations, which may positively impact stakeholders and enhance its competitive position in the food industry.

Hokuto Corporation Shows Strong Performance with Increased Profits in 2024

Hokuto Corporation reported a robust financial performance for the nine months ending December 31, 2024, with significant increases in operating profit and profit attributable to owners of the parent. The company’s net sales grew by 5.2% year-on-year, and operating profit rose by 182.1%, indicative of strong operational efficiencies and market demand for its products. This financial upturn highlights Hokuto’s strengthened position in the industry and could potentially lead to increased investor confidence.

Hokuto Corporation Raises Financial and Dividend Forecasts for FY 2025

Hokuto Corporation has revised its financial forecasts for the fiscal year ending March 31, 2025, projecting significant increases in net sales, operating profit, ordinary profit, and profit attributable to owners of the parent, driven by higher mushroom prices and lower manufacturing costs. Additionally, the company updated its dividend forecast, increasing the year-end dividend per share from previous estimates, reflecting its strong financial performance.