Hokuto Corporation (1379) AI Stock Analysis

• Market Cap: ¥56.63B
• Dividend Yield: 4.45%
• Average Volume (3M): 36.15K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.19
• Revenue Growth: 4.63%
• EPS Growth: 27.74%
• Country: JP
• Employees: 4,117
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Agricultural Farm Products
• EPS (TTM): 46.94
• Shares Outstanding: 33,359,040
• 10 Day Avg. Volume: 34,080
• 30 Day Avg. Volume: 36,146
• PEG Ratio: 1.93
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 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

• Rating: 66 Neutral
• Price Target: ¥1,929.00 ▲(8.01%Upside)

Hokuto Corporation has strong financial performance, characterized by revenue growth and efficient cash flow management. Its valuation is attractive with a low P/E ratio and high dividend yield. However, technical indicators suggest bearish momentum, which may limit short-term upside. The absence of earnings call data and corporate events provides no additional insights.

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	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	82.45B	79.43B	72.98B	70.93B	73.89B	71.22B
Gross Profit	23.09B	19.79B	12.97B	17.39B	21.90B	19.96B
EBITDA	12.66B	11.34B	5.16B	8.99B	12.99B	11.13B
Net Income	5.02B	3.52B	-2.04B	2.53B	4.04B	1.53B
Balance Sheet
Total Assets	110.97B	103.50B	104.90B	104.93B	100.24B	100.60B
Cash, Cash Equivalents and Short-Term Investments	22.44B	14.92B	16.03B	12.48B	13.89B	12.18B
Total Debt	34.59B	32.28B	39.70B	36.91B	32.03B	35.33B
Total Liabilities	55.33B	48.68B	53.94B	50.42B	46.10B	50.06B
Stockholders Equity	55.64B	54.82B	50.95B	54.51B	54.14B	50.54B
Cash Flow
Free Cash Flow	0.00	6.16B	3.10B	-4.54B	6.48B	8.05B
Operating Cash Flow	0.00	8.38B	4.67B	5.85B	10.47B	10.78B
Investing Cash Flow	0.00	1.05B	-4.15B	-11.61B	-4.33B	-2.90B
Financing Cash Flow	0.00	-8.79B	888.00M	3.01B	-4.80B	-4.84B

Hokuto Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1786.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 1786 is below the 20-day moving average (MA) of 1800.80, below the 50-day MA of 1803.20, and below the 200-day MA of 1792.38, indicating a bearish trend. The MACD of -2.96 indicates Positive momentum. The RSI at 44.13 is Neutral, neither overbought nor oversold. The STOCH value of 50.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1379.

Hokuto Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2938	72 Outperform	¥56.72B	25.72		0.55%	13.62%	24.54%
9955	70 Outperform	¥27.93B	19.72		0.88%	-0.54%	-13.51%
1379	66 Neutral	¥56.63B	12.77		4.45%	4.63%	27.74%
Sector *	65 Neutral	$27.33B	15.36	-4.01%	3.14%	1.00%	1.98%
2292	64 Neutral	¥82.83B	31.09		3.44%	4.60%	-70.62%
2874	56 Neutral	¥51.54B	13.04		2.74%	1.11%	―

Hokuto Corporation Corporate Events

Hokuto Corporation Unveils Strategic Initiatives for Growth and Profitability

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

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

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

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

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.