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Hokuto Corporation (JP:1379)
:1379
Japanese Market

Hokuto Corporation (1379) AI Stock Analysis

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JP

Hokuto Corporation

(1379)

Rating:71Outperform
Price Target:
¥1,989.00
▲(10.44%Upside)
Hokuto Corporation's overall score reflects strong financial performance and reasonable valuation. While technical analysis indicators show a mixed outlook, the company's solid financial foundation and attractive dividend yield contribute positively to its investment appeal.

Hokuto Corporation (1379) vs. iShares MSCI Japan ETF (EWJ)

Hokuto Corporation Business Overview & Revenue Model

Company DescriptionHokuto 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 MoneyHokuto 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
78
Positive
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
72
Positive
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
60
Neutral
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
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
82.45B79.43B72.98B70.93B73.89B71.22B
Gross Profit
23.09B19.79B12.97B17.39B21.90B19.96B
EBIT
5.80B3.18B-2.95B2.01B6.01B3.92B
EBITDA
12.66B11.34B5.16B8.99B12.99B11.13B
Net Income Common Stockholders
5.02B3.52B-2.04B2.53B4.04B1.53B
Balance SheetCash, Cash Equivalents and Short-Term Investments
22.44B14.92B16.03B12.48B13.89B12.18B
Total Assets
110.97B103.50B104.90B104.93B100.24B100.60B
Total Debt
34.59B32.28B39.70B36.91B32.03B35.33B
Net Debt
16.14B18.65B23.67B24.43B18.14B23.16B
Total Liabilities
55.33B48.68B53.94B50.42B46.10B50.06B
Stockholders Equity
55.64B54.82B50.95B54.51B54.14B50.54B
Cash FlowFree Cash Flow
0.006.16B3.10B-4.54B6.48B8.05B
Operating Cash Flow
0.008.38B4.67B5.85B10.47B10.78B
Investing Cash Flow
0.001.05B-4.15B-11.61B-4.33B-2.90B
Financing Cash Flow
0.00-8.79B888.00M3.01B-4.80B-4.84B

Hokuto Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1801.00
Price Trends
50DMA
1819.32
Negative
100DMA
1821.13
Negative
200DMA
1792.83
Positive
Market Momentum
MACD
-8.73
Negative
RSI
50.28
Neutral
STOCH
47.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1379, the sentiment is Positive. The current price of 1801 is above the 20-day moving average (MA) of 1786.40, below the 50-day MA of 1819.32, and above the 200-day MA of 1792.83, indicating a neutral trend. The MACD of -8.73 indicates Negative momentum. The RSI at 50.28 is Neutral, neither overbought nor oversold. The STOCH value of 47.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1379.

Hokuto Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥50.91B23.11
0.58%13.62%24.54%
71
Outperform
¥56.76B12.80
2.78%4.63%27.57%
70
Outperform
¥27.33B19.30
0.90%-0.54%-13.51%
65
Neutral
$8.88B15.054.75%203.76%3.54%-2.50%
62
Neutral
¥82.77B31.06
3.40%4.60%-70.62%
61
Neutral
¥52.30B13.23
2.70%1.11%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1379
Hokuto Corporation
1,801.00
0.89
0.05%
JP:2292
S Foods Inc.
2,592.00
-227.55
-8.07%
JP:2874
YOKOREI CO. LTD.
892.00
-109.67
-10.95%
JP:2938
Okamura Foods Co. Ltd.
3,215.00
1,547.99
92.86%
JP:9955
Yonkyu Co., Ltd.
2,214.00
23.97
1.09%

Hokuto Corporation Corporate Events

Hokuto Corporation Unveils Strategic Initiatives for Growth and Profitability
May 26, 2025

Hokuto Corporation has announced its strategic initiatives to enhance management practices focused on capital cost and stock price improvement. Despite a challenging fiscal year in 2023 due to rising costs, the company has maintained a positive return on equity and aims to achieve significant growth by 2029, with targets set for net sales and operating profit. Key strategies include increasing domestic market share, enhancing pricing strategies, expanding overseas, and improving production efficiency, which are expected to strengthen the company’s market position and profitability.

Hokuto Corporation Advances Recovery Efforts After Ueda Center Fire
May 23, 2025

Hokuto Corporation has identified a thermal runaway in a lithium-ion battery as the cause of a fire at its Ueda First Mushroom Center, leading to the complete destruction of a work building. The company is actively reconstructing the facility with a capital investment of approximately ¥3.6 billion, aiming to resume production by early November 2025, with minimal expected impact on its financial results.

Hokuto Corporation Announces Board of Directors Changes
May 14, 2025

Hokuto Corporation has announced changes in its board of directors, with new nominees Kohei Nakada, Yoshiyuki Satou, and Akira Hara set to join the board, pending approval at the upcoming Annual General Meeting. These changes are part of the company’s strategic efforts to strengthen its leadership team and enhance its operational capabilities, potentially impacting its market positioning and stakeholder relationships.

Hokuto Corporation Exceeds Financial Forecasts for Fiscal Year 2025
May 14, 2025

Hokuto Corporation reported a positive variance between its forecasted and actual financial results for the fiscal year ending March 31, 2025. The company exceeded its targets due to high trading prices for vegetables and sustained demand for hot pot dishes, leading to increased sales and profits. This performance highlights Hokuto’s strong market positioning and the impact of external market conditions on its financial outcomes.

Hokuto Corporation Reports Strong Financial Growth in FY 2025
May 14, 2025

Hokuto Corporation reported a strong financial performance for the year ended March 31, 2025, with net sales of ¥83,104 million, marking a 4.6% increase from the previous year. The company’s operating profit surged by 108.4% to ¥6,628 million, and ordinary profit rose by 47.5% to ¥6,953 million. This robust growth reflects the company’s effective strategies and market positioning, enhancing its profitability and shareholder value. Despite a decrease in comprehensive income by 12.3%, the company maintained a stable equity ratio and increased cash and cash equivalents. The financial results indicate Hokuto’s resilience and potential for continued growth in the competitive agricultural sector.

Hokuto Corporation Finalizes Treasury Share Disposal for Executive Compensation
Mar 28, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.