Hokuryo Co., Ltd. (1384) AI Stock Analysis

• Market Cap: ¥20.35B
• Dividend Yield: 2.91%
• Average Volume (3M): 41.15K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.65
• Revenue Growth: 12.61%
• EPS Growth: 139.53%
• Country: JP
• Employees: 235
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 113.12
• Shares Outstanding: 8,459,000
• 10 Day Avg. Volume: 34,140
• 30 Day Avg. Volume: 41,153
• PEG Ratio: 0.17
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 10.76
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥1,892.00 ▼(-25.07% Downside)

The overall stock score of Hokuryo Co., Ltd. is primarily driven by strong financial performance and attractive valuation metrics. The company's robust revenue growth, profitability, and solid balance sheet position it well within the industry. While technical indicators show overbought signals, the stock's valuation remains compelling due to a low P/E ratio and high dividend yield.

Hokuryo Co., Ltd. Business Overview & Revenue Model

Company Description

Hokuryo Co., Ltd. (1384) is a Japanese company primarily engaged in the manufacturing and distribution of high-quality plastic products. Operating within the packaging and materials sector, the company specializes in producing various plastic containers, packaging solutions, and related materials. Hokuryo serves a diverse range of industries, including food and beverage, pharmaceuticals, and consumer goods, with a commitment to innovation and sustainability in its product offerings.

How the Company Makes Money

Hokuryo 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. shows strong financial health with a positive growth trend in revenue and profitability. The stable gross profit margins and improved net profit margin indicate efficient cost management and increased profitability. The balance sheet highlights reduced leverage risk and improved return on equity, while cash flow generation is solid, supporting financial flexibility.

Income Statement

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

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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.68B	19.40B	18.90B	17.82B	15.36B	13.06B
Gross Profit	3.37B	3.77B	3.93B	3.12B	2.64B	1.87B
EBITDA	2.51B	4.21B	3.42B	2.34B	2.19B	1.39B
Net Income	1.06B	2.18B	1.66B	745.00M	1.19B	235.91M
Balance Sheet
Total Assets	16.21B	19.22B	17.76B	16.85B	15.55B	11.72B
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	2.50B	2.53B	749.21M
Total Liabilities	6.31B	5.06B	5.45B	6.10B	5.39B	2.76B
Stockholders Equity	9.90B	14.15B	12.32B	10.75B	10.15B	9.05B
Cash Flow
Free Cash Flow	0.00	1.09B	2.13B	588.00M	986.23M	-277.61M
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: Neutral
• Last Price: 2525.00
• 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:1384, the sentiment is Neutral. The current price of 2525 is above the 20-day moving average (MA) of 2445.45, above the 50-day MA of 2232.98, and above the 200-day MA of 1626.00, indicating a neutral trend. The MACD of 57.55 indicates Positive momentum. The RSI at 52.81 is Neutral, neither overbought nor oversold. The STOCH value of 45.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1384.

Hokuryo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8041	80 Outperform	¥21.74B	4.10	―	2.45%	6.45%	50.01%
1384	79 Outperform	¥20.35B	6.90	―	2.91%	12.61%	139.53%
1333	75 Outperform	$172.41B	7.37	10.66%	3.22%	4.69%	12.04%
2874	74 Outperform	¥72.84B	16.01	―	1.93%	3.24%	―
2938	63 Neutral	¥61.22B	29.27	―	0.29%	8.20%	0.15%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
9955	61 Neutral	¥32.55B	28.26	―	0.75%	-2.46%	-28.42%