Hokuryo Co., Ltd. receives a strong overall score driven by its robust financial performance and attractive valuation. The company's solid revenue growth, profitability, and effective balance sheet management are key strengths. While technical indicators show bullish momentum, caution is advised due to overbought signals.
Positive Factors
Revenue Growth Trend
Sustained ~24% revenue growth through 2022–2025 indicates expanding demand or share gains in Japan's egg market. Persistent top-line expansion supports scale economies, strengthens negotiating leverage with buyers, and creates room to invest in packing, distribution, and margin-protecting initiatives over the medium term.
Margin Improvement
Stable gross margins alongside significantly improved net profit margins point to durable cost control and/or pricing power in the core egg business. Persistent margin improvement increases operating leverage, boosts return on equity, and enhances the company's ability to fund capex, dividends, or debt reduction over time.
Cash Generation & Balance Sheet
Consistent free cash flow growth and a strong operating-cash-to-net-income ratio indicate high-quality earnings and internal funding capacity. Coupled with a strong equity ratio and declining leverage, this supports reinvestment, selective capex, and financial flexibility that underpin medium-term stability and strategic optionality.
Negative Factors
Input Cost Sensitivity
Profitability is exposed to feed and other input-cost volatility noted in the company description. If feed prices rise or the firm cannot fully pass costs to customers, margins can compress. Over the medium term this structural exposure requires procurement hedging, vertical integration, or stronger pricing power to preserve margins.
Limited Diversification
Concentration on shell eggs and related products with no named major partnerships suggests limited product and customer diversification. Reliance on a single product category and wholesale distribution increases sensitivity to demand shifts, commodity cycles, and competitive pressure, constraining long-term resilience and growth avenues.
Capital Expenditure Pressure
Material capex requirements for grading, packing, storage and logistics have at times reduced free cash flow. Recurring investment needs can limit discretionary cash for dividends or accelerated deleveraging unless revenue and margins continue to grow to sustainably cover those capital demands over the medium term.
Hokuryo Co., Ltd. (1384) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥24.82B
Dividend Yield2.45%
Average Volume (3M)41.15K
Price to Earnings (P/E)6.5
Beta (1Y)0.72
Revenue Growth21.60%
EPS Growth116.17%
CountryJP
Employees235
SectorConsumer Defensive
Sector Strength42
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)116.73
Shares Outstanding8,459,000
10 Day Avg. Volume34,140
30 Day Avg. Volume41,153
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)0.83
Price to Sales (P/S)0.61
P/FCF Ratio10.76
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)295.55
Revenue Forecast (FY)¥22.40B
Hokuryo Co., Ltd. Business Overview & Revenue Model
Company DescriptionHokuryo Co., Ltd. engages in the production and sale of eggs, processed eggs, and egg-processed products in Japan. The company was incorporated in 1949 and is headquartered in Sapporo, Japan.
How the Company Makes MoneyHokuryo Co., Ltd. generates revenue primarily through the sale of its plastic products to businesses in different sectors, including food packaging, pharmaceuticals, and other consumer goods. The company’s revenue model is based on direct sales, where it supplies products to manufacturers and retailers, as well as through long-term contracts with major clients that ensure a steady stream of income. Key revenue streams include custom packaging solutions, which are tailored to meet specific client needs, and standard products sold in bulk. Additionally, Hokuryo may benefit from partnerships with other manufacturers and distributors that expand its market reach and enhance its product offerings, contributing positively to its overall earnings.
Hokuryo Co., Ltd. Financial Statement Overview
Summary
Hokuryo Co., Ltd. demonstrates strong financial health with a positive growth trend in revenue and profitability. The company has effectively managed its balance sheet, reducing leverage and improving equity returns. Cash flow generation is solid, though capital expenditures require careful management.
Income Statement
85
Very Positive
Hokuryo Co., Ltd. has demonstrated a strong upward trajectory in revenue with a noticeable growth rate from 2022 to 2025. The gross profit margins have remained stable, showcasing efficient cost management. The net profit margin has improved significantly over the years, indicating enhanced profitability. EBIT and EBITDA margins have also shown positive trends, reflecting robust operational efficiency.
Balance Sheet
77
Positive
The company maintains a solid financial position with a strong equity ratio, indicating a healthy balance between debt and equity. The debt-to-equity ratio has been decreasing, reflecting reduced leverage risk over time. Return on equity has improved, highlighting effective use of shareholders' funds. However, there is a need to monitor total debt levels despite the favorable net debt position.
Cash Flow
80
Positive
Hokuryo Co., Ltd. has shown a consistent growth in free cash flow, enhancing financial flexibility. The operating cash flow to net income ratio is strong, indicating high-quality earnings. The free cash flow to net income ratio remains healthy, supporting sustainability in cash generation. However, capital expenditures have been significant, impacting free cash flow growth in certain years.
Breakdown
TTM
Mar 2025
Mar 2024
Mar 2023
Mar 2022
Mar 2021
Income Statement
Total Revenue
14.68B
19.40B
18.90B
17.82B
15.36B
13.06B
Gross Profit
3.52B
3.77B
3.88B
3.07B
2.58B
1.82B
EBITDA
2.58B
3.05B
3.27B
2.45B
1.70B
946.10M
Net Income
1.16B
2.18B
1.66B
745.00M
1.19B
235.91M
Balance Sheet
Total Assets
16.21B
19.33B
17.88B
16.95B
15.66B
11.84B
Cash, Cash Equivalents and Short-Term Investments
2.50B
4.19B
3.90B
2.53B
1.85B
1.09B
Total Debt
3.07B
1.45B
1.95B
1.78B
2.53B
313.52M
Total Liabilities
6.31B
5.17B
5.56B
6.20B
5.51B
2.76B
Stockholders Equity
9.90B
14.15B
12.32B
10.75B
10.15B
9.08B
Cash Flow
Free Cash Flow
0.00
1.09B
2.14B
599.00M
993.84M
-275.74M
Operating Cash Flow
0.00
3.22B
3.38B
2.52B
1.84B
635.35M
Investing Cash Flow
0.00
-2.26B
-1.28B
-1.82B
-784.90M
-905.44M
Financing Cash Flow
0.00
-663.00M
-722.00M
-19.00M
-961.10M
-532.23M
Hokuryo Co., Ltd. Technical Analysis
Technical Analysis Sentiment
Negative
Last Price3015.00
Price Trends
50DMA
3080.92
Negative
100DMA
3051.21
Negative
200DMA
2515.94
Positive
Market Momentum
MACD
-21.31
Positive
RSI
41.53
Neutral
STOCH
23.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1384, the sentiment is Negative. The current price of 3015 is below the 20-day moving average (MA) of 3066.00, below the 50-day MA of 3080.92, and above the 200-day MA of 2515.94, indicating a neutral trend. The MACD of -21.31 indicates Positive momentum. The RSI at 41.53 is Neutral, neither overbought nor oversold. The STOCH value of 23.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1384.
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.Date of analysis: Nov 05, 2025