Hokuto Corporation (1379) AI Stock Analysis

• Market Cap: ¥57.86B
• Dividend Yield: 2.73%
• Average Volume (3M): 31.42K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.20
• 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: 26,420
• 30 Day Avg. Volume: 31,416
• PEG Ratio: -1.05
• Price to Book (P/B): 1.15
• 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: ¥1,989.00
• Price Target Upside: 8.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥2,022.00 ▲(10.31%Upside)

Hokuto Corporation's strong financial performance is the key driver of its overall score, supported by a favorable valuation. Technical analysis provides mixed signals, which slightly tempers the score. The absence of significant earnings call data or corporate events does not impact the evaluation.

Hokuto Corporation Business Overview & Revenue Model

Company Description

Hokuto Corporation (1379) is a prominent player in the agricultural sector, particularly in the cultivation and distribution of mushrooms. The company is headquartered in Japan and focuses on producing high-quality fungi, with a strong emphasis on enoki and maitake mushrooms. Hokuto Corporation is dedicated to leveraging advanced cultivation techniques and sustainable practices to ensure a consistent supply of fresh and safe products for both domestic and international markets.

How the Company Makes Money

Hokuto Corporation generates revenue primarily through the cultivation and sale of mushrooms. The company utilizes state-of-the-art agricultural technology to optimize production efficiency, ensuring a stable supply of high-quality mushrooms to meet market demand. Key revenue streams include domestic sales within Japan and export sales to international markets, where there is a growing appetite for Japanese mushrooms. Hokuto Corporation also benefits from strategic partnerships with distributors and retailers, which help expand its market reach and enhance its brand presence. Additionally, the company's commitment to sustainable practices and innovation in agricultural methods contributes to its competitive advantage and profitability in the agricultural industry.

Hokuto Corporation Financial Statement Overview

Summary

Hokuto Corporation exhibits strong revenue growth, improving profitability, and efficient cash flow management. The balance sheet reflects a solid financial position with moderate leverage and strong equity. However, there is room for improvement in the net profit margin.

Income Statement

Hokuto Corporation exhibits strong revenue growth, with an increase from 79.43 billion JPY to 83.10 billion JPY. Gross profit margin has improved to 28.55%, indicating efficient cost management. Net profit margin is at 5.34%, which shows profitability, though it has room for improvement. The EBIT margin has improved significantly to 7.94%, reflecting better operational efficiency. EBITDA margin is robust at 14.10%, showcasing healthy operating cash flow.

Balance Sheet

The balance sheet is stable with a debt-to-equity ratio of 0.58, indicating moderate leverage. Return on equity (ROE) is at 7.82%, showing satisfactory returns for shareholders. The equity ratio is strong at 52.79%, indicating a solid financial foundation. While liabilities have increased, the company maintains a healthy level of stockholders' equity.

Cash Flow

Cash flow analysis reveals a strong operating cash flow to net income ratio of 2.75, indicating efficient cash generation from operations. The free cash flow has grown significantly, highlighting improved cash management and investment in growth opportunities. The free cash flow to net income ratio is 2.38, demonstrating excellent liquidity and the ability to fund operations and growth internally.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	83.10B	79.43B	72.98B	70.93B	73.89B
Gross Profit	23.73B	19.79B	12.97B	17.39B	21.90B
EBITDA	11.72B	11.34B	5.16B	8.99B	12.99B
Net Income	4.44B	3.52B	-2.04B	2.53B	4.04B
Balance Sheet
Total Assets	107.62B	103.50B	104.90B	104.93B	100.24B
Cash, Cash Equivalents and Short-Term Investments	23.31B	14.92B	16.03B	12.48B	13.89B
Total Debt	33.07B	32.28B	39.70B	36.91B	32.03B
Total Liabilities	50.81B	48.68B	53.94B	50.42B	46.10B
Stockholders Equity	56.81B	54.82B	50.95B	54.51B	54.14B
Cash Flow
Free Cash Flow	10.57B	6.16B	3.10B	-4.54B	6.48B
Operating Cash Flow	12.22B	8.38B	4.67B	5.85B	10.47B
Investing Cash Flow	-9.01B	1.05B	-4.15B	-11.61B	-4.33B
Financing Cash Flow	-1.72B	-8.79B	888.00M	3.01B	-4.80B

Hokuto Corporation Technical Analysis

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

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 1833 is above the 20-day moving average (MA) of 1803.15, above the 50-day MA of 1797.86, and above the 200-day MA of 1795.56, indicating a bullish trend. The MACD of 7.33 indicates Negative momentum. The RSI at 64.70 is Neutral, neither overbought nor oversold. The STOCH value of 85.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1379.

Hokuto Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1379	74 Outperform	¥57.86B	13.05		2.73%	4.63%	27.74%
2292	70 Neutral	¥82.14B	20.19		3.40%	3.99%	-32.61%
2938	66 Neutral	¥55.39B	25.39		1.09%	13.62%	24.54%
Sector *	65 Neutral	£10.65B	8.75	3.35%	284.67%	-1.40%	17.93%
2874	63 Neutral	¥61.48B	15.56		2.29%	1.11%	―
9955	61 Neutral	¥28.96B	20.43		0.85%	-0.54%	-13.51%

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.