Hammock Corporation (173A) AI Stock Analysis

• Market Cap: ¥6.10B
• Dividend Yield: 1.99%
• Average Volume (3M): 3.86K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.47
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: N/A
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 47.64
• Shares Outstanding: 4,360,000
• 10 Day Avg. Volume: 5,950
• 30 Day Avg. Volume: 3,860
• PEG Ratio: -4.62
• Price to Book (P/B): 2.41
• Price to Sales (P/S): 1.40
• P/FCF Ratio: 7.24
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥1,596.00 ▲(4.18% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

Hammock Corporation's strong financial performance and reasonable valuation are the primary drivers of its stock score. The technical analysis indicates a neutral market sentiment, which slightly tempers the overall score. The absence of earnings call data and corporate events does not impact the evaluation.

Positive Factors

High margins and operational efficiency

Sustained high gross, EBIT and EBITDA margins indicate durable operating leverage and cost control. Strong margins provide room to invest in R&D or sales, absorb pricing pressure, and sustain long-term profitability across business cycles, supporting cash flow stability.

Very low leverage and high ROE

Minimal financial leverage and a 22.7% ROE show capital-efficient operations and low default risk. A conservative balance sheet increases strategic optionality for capex, acquisitions or dividends, and reduces refinancing vulnerability in adverse conditions.

Strong free cash flow growth and conversion

Large FCF growth and strong cash conversion ratios demonstrate the company's ability to convert earnings into deployable cash. This supports durable funding for growth, dividends or deleveraging without reliance on external financing.

Negative Factors

Declining operating cash flow

A drop in operating cash flow can signal weakening core cash generation or working capital stress. If the decline persists it could constrain reinvestment, increase reliance on financing, and undermine the sustainability of current cash returns despite recent FCF gains.

Increase in total liabilities

A rising liability base, even from a low starting point, can erode balance-sheet flexibility over time. If liabilities grow faster than assets or cash flow, interest and covenant pressure could limit strategic moves and raise financial risk under stress scenarios.

Pressure on earnings and EPS

A decline in net income and negative EPS growth point to earnings quality or demand pressures. Persistent earnings weakness can reduce retained earnings, limit reinvestment capacity, and make funding dividends or buybacks less sustainable over the medium term.

Hammock Corporation Business Overview & Revenue Model

Company Description

Hammock Corp. provides packaged software and cloud services that solved corporate security, sales and business improvement issues. Its products include network solutions, integrated IT operations management software, business card management, sales support tools, new development form sales tool, OCR software regardless of format, cloud based data entry service, paperless fax ordering and business improvement. The company was founded by Masami Wakayama in April 1994 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Hammock Corporation generates revenue through multiple streams, including direct sales of its products through online platforms and physical retail locations. The company also partners with outdoor and sporting goods retailers to distribute its products, creating a significant wholesale revenue stream. Additionally, Hammock Corporation benefits from seasonal promotions and marketing campaigns that drive sales during peak outdoor activity periods. Strategic partnerships with eco-friendly suppliers and manufacturers enhance its brand reputation and attract environmentally conscious consumers, contributing to its overall profitability.

Hammock Corporation Financial Statement Overview

Summary

Hammock Corporation demonstrates strong financial performance with robust revenue growth, solid profit margins, and efficient cash flow management. The balance sheet is stable with low leverage, although there are minor concerns about increased liabilities and decreased operating cash flow.

Income Statement

Hammock Corporation shows strong revenue growth with a 9.92% increase from 2024 to 2025. The gross profit margin is solid at 43.82%, and the net profit margin is healthy at 13.13%. However, the net income has slightly decreased from the previous year. The EBIT and EBITDA margins are robust at 16.81% and 28.82%, respectively, indicating efficient operations.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio of 0.001, indicating minimal leverage. The return on equity is impressive at 22.67%, showing effective use of equity. The equity ratio is 44.43%, reflecting a stable financial position. However, the total liabilities have increased slightly, which could be a potential risk if not managed properly.

Cash Flow

Hammock Corporation has shown significant improvement in free cash flow, with a growth rate of 90.95% from the previous year. The operating cash flow to net income ratio is 1.49, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.47, suggesting efficient cash management. However, the operating cash flow has decreased compared to the previous year, which may need attention.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2022
Income Statement
Total Revenue	4.79B	4.71B	4.28B	3.99B	3.65B
Gross Profit	2.08B	2.06B	2.00B	1.78B	1.67B
EBITDA	1.37B	1.36B	1.16B	690.24M	1.39B
Net Income	586.82M	618.08M	648.48M	417.14M	931.57M
Balance Sheet
Total Assets	6.22B	6.14B	5.57B	4.58B	4.74B
Cash, Cash Equivalents and Short-Term Investments	3.41B	3.23B	2.85B	2.14B	3.19B
Total Debt	2.40M	2.63M	3.59M	4.55M	0.00
Total Liabilities	3.57B	3.41B	3.41B	3.08B	3.52B
Stockholders Equity	2.65B	2.73B	2.16B	1.51B	1.22B
Cash Flow
Free Cash Flow	0.00	907.59M	475.34M	-672.87M	710.21M
Operating Cash Flow	0.00	923.33M	1.06B	-252.42M	1.06B
Investing Cash Flow	0.00	-366.65M	-404.05M	-731.43M	750.71M
Financing Cash Flow	0.00	-37.38M	-76.81M	-127.37M	73.99M

Hammock Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1532.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:173A, the sentiment is Negative. The current price of 1532 is above the 20-day moving average (MA) of 1464.30, above the 50-day MA of 1506.90, and below the 200-day MA of 1573.24, indicating a bearish trend. The MACD of -25.94 indicates Positive momentum. The RSI at 44.50 is Neutral, neither overbought nor oversold. The STOCH value of 48.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:173A.

Hammock Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3623	79 Outperform	¥7.36B	17.79	―	1.18%	6.95%	-9.62%
173A	73 Outperform	¥6.10B	9.43	―	1.99%	―	―
4374	72 Outperform	¥9.10B	16.26	―	0.47%	19.35%	71.74%
4496	69 Neutral	¥5.73B	24.33	―	2.50%	4.29%	-42.71%
7351	66 Neutral	¥4.48B	11.18	―	1.54%	28.98%	3659.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3680	44 Neutral	¥3.53B	-1.97	―	1.17%	-21.76%	-5832.28%