Hokuto Corporation (1379) AI Stock Analysis

• Market Cap: ¥57.92B
• Dividend Yield: 2.66%
• Average Volume (3M): 47.51K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.18
• Revenue Growth: 4.23%
• EPS Growth: 18.36%
• Country: JP
• Employees: 4,117
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 43.43
• Shares Outstanding: 33,359,040
• 10 Day Avg. Volume: 37,870
• 30 Day Avg. Volume: 47,513
• PEG Ratio: 0.50
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 5.58
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥2,103.00 ▲(11.80% Upside)

Hokuto Corporation's overall stock score is driven by its strong financial performance and attractive valuation. The company's robust revenue growth, efficient cash flow management, and solid balance sheet contribute positively. While technical indicators suggest caution due to bearish momentum, the stock's low P/E ratio and decent dividend yield make it an appealing investment in the agricultural farm products industry.

Hokuto Corporation Business Overview & Revenue Model

Company Description

Hokuto Corporation researches, develops, produces, and sells mushrooms in Japan. It offers various mushrooms, including Eryngii, Maitake, Bunashimeji, Bunapi, and Shimofuri Hiratake. The company also molds and sells plastic products; produces and sells agricultural production materials and machines; and produces, processes, and sells agriculture products. It also operates in the United States, Taiwan, and Malaysia. The company was formerly known as Hokuto Industry Corporation and changed its name to Hokuto Corporation in October 2003. Hokuto Corporation was founded in 1964 and is headquartered in Nagano, Japan.

How the Company Makes Money

Hokuto Corporation generates revenue through multiple key streams including the sale of processed food products, fresh produce, and agricultural supplies. The company leverages its extensive distribution network to reach a wide customer base, including supermarkets, restaurants, and foodservice companies. Additionally, Hokuto engages in strategic partnerships with local farmers and suppliers to ensure a steady supply of quality raw materials, which helps reduce costs and improve margins. The company's focus on sustainability and innovation also attracts investment and grants, further contributing to its revenue. By diversifying its product offerings and maintaining strong relationships within the agricultural sector, Hokuto is able to sustain and grow its earnings.

Hokuto Corporation Financial Statement Overview

Summary

Hokuto Corporation demonstrates robust financial performance with strong revenue growth and improved profitability. The company has a solid balance sheet with moderate leverage and strong equity. Cash flow management is efficient, with excellent liquidity and the ability to fund growth internally. 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	83.80B	83.10B	79.43B	72.98B	70.93B	73.89B
Gross Profit	24.10B	23.73B	19.79B	12.97B	17.39B	21.90B
EBITDA	12.71B	11.72B	11.34B	5.16B	10.72B	13.32B
Net Income	5.20B	4.44B	3.52B	-2.04B	2.53B	4.04B
Balance Sheet
Total Assets	109.49B	107.62B	103.50B	104.90B	104.93B	100.24B
Cash, Cash Equivalents and Short-Term Investments	24.03B	23.31B	14.92B	16.03B	12.48B	13.89B
Total Debt	31.99B	33.07B	32.28B	39.70B	36.91B	32.03B
Total Liabilities	51.80B	50.81B	48.68B	53.94B	50.42B	46.10B
Stockholders Equity	57.69B	56.81B	54.82B	50.95B	54.51B	54.14B
Cash Flow
Free Cash Flow	0.00	10.57B	6.16B	3.10B	-4.54B	6.48B
Operating Cash Flow	0.00	12.22B	8.38B	4.67B	5.85B	10.47B
Investing Cash Flow	0.00	-9.01B	1.05B	-4.15B	-11.61B	-4.33B
Financing Cash Flow	0.00	-1.72B	-8.79B	888.00M	3.01B	-4.80B

Hokuto Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1881.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1881 is above the 20-day moving average (MA) of 1867.35, below the 50-day MA of 1887.53, and above the 200-day MA of 1833.69, indicating a neutral trend. The MACD of -6.19 indicates Negative momentum. The RSI at 53.15 is Neutral, neither overbought nor oversold. The STOCH value of 68.56 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2874	74 Outperform	¥72.42B	15.92	―	1.92%	3.24%	―
1379	74 Outperform	¥57.92B	11.04	―	2.66%	4.23%	18.36%
2292	70 Neutral	¥79.80B	14.26	―	3.81%	4.55%	79.33%
9955	65 Neutral	¥30.98B	9.25	―	0.78%	-2.02%	103.07%
2938	63 Neutral	¥60.02B	29.22	―	0.29%	8.20%	0.15%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Hokuto Corporation Corporate Events

Hokuto Corporation Extends Stock-based Compensation Plan for Directors

Hokuto Corporation has announced the continuation of its Stock-based Compensation Plan for its Directors, extending it for another three years until March 31, 2028. This plan, using a Board Incentive Plan Trust structure, aims to align directors’ interests with shareholders by linking compensation to the company’s performance and share price, thereby motivating management to focus on long-term growth.

Hokuto Corporation Reports Mixed Financial Results for Q2 2025

Hokuto Corporation reported its consolidated financial results for the three months ending June 30, 2025, showing a 3.9% increase in net sales to ¥18,524 million compared to the previous year. Despite this, the company experienced a significant drop in ordinary profit by 84%, while profit attributable to owners of the parent rose by 125.4%, reflecting a complex financial scenario that stakeholders should consider.