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

• Market Cap: ¥25.63B
• Dividend Yield: 2.45%
• Average Volume (3M): 41.15K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.72
• Revenue Growth: 21.60%
• EPS Growth: 116.17%
• Country: JP
• Employees: 235
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 116.73
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 295.55
• Revenue Forecast (FY): ¥22.40B

• Rating: 78 Outperform
• Price Target: ¥3,363.00 ▲(11.54% Upside)
• Action: Reiterated Date: 11/05/25
• Date: Action: Reiterated 11/05/25

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

Sustained revenue growth

Hokuryo's ~24% reported revenue growth signals expanding volumes and stronger market penetration in its core egg wholesale and distribution business. Persistent top-line momentum supports scale benefits in grading/packing and durable operating leverage that should underpin results over months.

Improving margins and operational efficiency

Stable gross margins alongside marked improvements in net, EBIT and EBITDA margins reflect lasting operational efficiencies and disciplined cost control in packing/distribution. Sustained margin expansion strengthens cash generation capacity and resilience to moderate industry cost swings.

Strong balance sheet and cash generation

A strong equity ratio, falling leverage and improved returns indicate financial resilience. Coupled with consistent free cash flow growth and high operating cash conversion, this balance sheet strength provides flexibility for capex, dividends or weathering cyclical pressures over the medium term.

Negative Factors

Exposure to input price volatility

Hokuryo's profitability is structurally sensitive to commodity input and egg price swings, especially feed costs set upstream. If pass-through to customers is constrained, recurring commodity volatility can compress margins and earnings predictability over multiple quarters.

Material capital expenditure needs

Significant and recurring capex for packing, storage and logistics has weighed on free cash flow despite strong operating cash generation. Ongoing investment requirements can limit cash flexibility, necessitating careful prioritization or external funding to sustain growth without eroding liquidity.

Concentration in eggs and domestic market

The company's narrow product and market focus on shell eggs in Japan raises structural concentration risk. Sector-specific shocks—disease, regulation, or demand shifts—could materially affect revenues and leave limited diversification levers to offset adverse industry developments over the medium term.

Hokuryo Co., Ltd. Business Overview & Revenue Model

Company Description

Hokuryo 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 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. 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

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	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 Price: 3015.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 3015 is below the 20-day moving average (MA) of 3075.80, below the 50-day MA of 3082.04, and above the 200-day MA of 2500.72, indicating a neutral trend. The MACD of -10.54 indicates Positive momentum. The RSI at 47.16 is Neutral, neither overbought nor oversold. The STOCH value of 47.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1384.

Hokuryo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1384	78 Outperform	¥25.63B	6.45	―	2.45%	21.60%	116.17%
1379	75 Outperform	¥60.44B	4.62	―	2.44%	5.74%	76.28%
2003	71 Outperform	¥65.20B	13.32	―	3.98%	1.21%	-14.59%
2292	70 Neutral	¥92.32B	7.70	―	3.59%	4.55%	79.33%
1377	69 Neutral	¥187.18B	13.74	―	1.65%	4.90%	-19.32%
2938	63 Neutral	¥57.88B	22.47	―	0.34%	4.70%	-2.58%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%