Hob Co., Ltd. (1382) AI Stock Analysis

• Market Cap: ¥1.38B
• Dividend Yield: 2.83%
• Average Volume (3M): 3.00K
• Price to Earnings (P/E): 54.2
• Beta (1Y): 0.48
• Revenue Growth: -5.15%
• EPS Growth: -47.23%
• Country: JP
• Employees: 42
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Agricultural Farm Products
• EPS (TTM): 26.78
• Shares Outstanding: 762,000
• 10 Day Avg. Volume: 1,020
• 30 Day Avg. Volume: 3,000
• PEG Ratio: 0.24
• Price to Book (P/B): 1.86
• 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: ¥1,846.00
• Price Target Upside: 4.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: ¥1,892.00 ▲(7.01%Upside)

The overall stock score is influenced primarily by the stable balance sheet and low leverage, indicating financial health. However, this is offset by issues with cash flow volatility and low profitability margins, posing risks to liquidity and operational efficiency. The technical analysis suggests weak market momentum, and the high P/E ratio indicates potential overvaluation.

Hob Co., Ltd. Business Overview & Revenue Model

Company Description

HOB Co.,Ltd. produces and sells seedlings and strawberries in Japan. The company also engages in the retail and wholesale of fruits and vegetables; and fruits, such as blueberries, mango, and kiwifruit. In addition, the company produces and sells seed potatoes; and purchases and sells potatoes. Additionally, it offers transport services for fruits and vegetables. HOB Co.,Ltd. was incorporated in 1987 and is headquartered in Kamikawa, Japan.

How the Company Makes Money

Hob Co., Ltd. generates revenue through the sale of its kitchen appliances, primarily hobs and stoves. The company's revenue model is centered around direct sales to retailers and distributors who then sell to end consumers. Additionally, Hob Co., Ltd. may engage in strategic partnerships with home appliance retailers and kitchen design firms, allowing for expanded market reach and increased sales volumes. The company also invests in research and development to stay ahead of market trends, ensuring its products remain competitive in terms of technology and design, which helps drive sales. After-sales services, such as maintenance and extended warranties, may provide additional revenue streams.

Hob Co., Ltd. Financial Statement Overview

Summary

Hob Co., Ltd. has a strong balance sheet with low leverage and solid equity positions. However, it faces challenges with low profitability margins and inconsistent revenue trends. The cash flow statement reveals significant volatility and a lack of positive cash flow generation, indicating potential liquidity concerns.

Income Statement

Hob Co., Ltd. has shown a mixed performance on its income statement. The gross profit margin for TTM (Trailing-Twelve-Months) is approximately 22.8%, indicating a reasonable ability to convert revenue into profit. However, the net profit margin is relatively low at 1.0%, demonstrating slim earnings after all expenses. Revenue growth has been inconsistent, with a recent decline from previous periods, indicating potential challenges in sustaining sales growth. The EBIT and EBITDA margins are modest, at around 1.4% and 2.2% respectively, suggesting limited operational efficiency.

Balance Sheet

The balance sheet of Hob Co., Ltd. reflects strong capital structure stability. The debt-to-equity ratio is low at 0.27, showing conservative leverage and a strong equity base. The equity ratio stands at approximately 50.6%, indicating a robust balance of equity financing. Return on Equity (ROE) is moderate at 3.0%, suggesting room for improvement in generating returns for shareholders. Overall, the company maintains a healthy financial position with low debt levels and solid equity backing.

Cash Flow

The cash flow statement reveals significant challenges. There is no operating cash flow reported in the most recent TTM period, which could indicate issues in generating cash from core activities. Previous periods show fluctuating free cash flow, with a current absence of free cash flow growth, pointing to inconsistencies in cash management. The lack of operating and free cash flow to net income ratios further emphasizes cash flow volatility, posing a risk to financial flexibility.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	2.52B	2.49B	2.60B	3.04B	3.23B
Gross Profit	551.99M	664.43M	684.53M	647.12M	610.15M
EBITDA	57.13M	151.41M	157.56M	123.22M	37.15M
Net Income	20.01M	110.35M	142.24M	108.31M	28.95M
Balance Sheet
Total Assets	1.12B	1.11B	1.08B	974.95M	970.62M
Cash, Cash Equivalents and Short-Term Investments	351.52M	577.91M	505.03M	407.79M	265.47M
Total Debt	8.01M	12.01M	16.00M	29.72M	222.72M
Total Liabilities	354.20M	320.32M	361.99M	397.77M	502.09M
Stockholders Equity	769.64M	787.72M	719.37M	577.18M	468.53M
Cash Flow
Free Cash Flow	-187.43M	116.60M	103.16M	329.83M	-113.53M
Operating Cash Flow	-159.78M	122.76M	128.62M	352.44M	-97.31M
Investing Cash Flow	-24.71M	-4.08M	-17.67M	-16.05M	-17.33M
Financing Cash Flow	-41.90M	-45.80M	-13.71M	-193.05M	86.99M

Hob Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1768.00
• 50DMA: Positive
• 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:1382, the sentiment is Neutral. The current price of 1768 is below the 20-day moving average (MA) of 1910.19, below the 50-day MA of 1828.06, and above the 200-day MA of 1765.31, indicating a neutral trend. The MACD of 7.93 indicates Positive momentum. The RSI at 49.75 is Neutral, neither overbought nor oversold. The STOCH value of 71.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1382.

Hob Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8041	80 Outperform	¥20.71B	4.45		2.48%	5.07%	24.88%
1384	79 Outperform	¥13.33B	6.11		4.44%	2.62%	31.70%
Sector *	65 Neutral	$27.19B	15.58	-4.44%	2.56%	1.05%	4.97%
7443	64 Neutral	¥3.73B	20.59		0.50%	1.40%	11.35%
1383	61 Neutral	¥4.82B	129.99		0.34%	3.08%	-111.11%
1382	58 Neutral	¥1.38B	54.17		2.83%	-5.15%	-47.23%
1380	57 Neutral	¥4.21B	149.25		0.96%	7.64%	-71.33%