Hammock Corporation (173A) AI Stock Analysis

• Market Cap: ¥6.12B
• Dividend Yield: 1.99%
• Average Volume (3M): 3.86K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.44
• 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: ¥1,601.00 ▲(4.50% 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

Balance Sheet Strength

Extremely low leverage and a healthy equity ratio provide long-term financial flexibility, allowing Hammock to fund R&D, acquisitions, or weather downturns without stressing creditors. A 22.7% ROE signals efficient capital use, supporting durable shareholder returns and reinvestment capacity.

Improving Free Cash Flow

Sharp FCF improvement and strong operating-CF-to-net-income ratios indicate the business converts earnings to cash effectively. Sustained FCF growth underpins capex funding, dividends, and deleveraging potential, strengthening the firm’s ability to invest in long-term initiatives.

Robust Profitability Margins

High and stable gross and operating margins point to pricing power and efficient cost structure in its infrastructure software business. Persistent margin levels support cash generation and resilience to input cost swings, underpinning sustainable earnings power.

Negative Factors

Rising Total Liabilities

Even a modest rise in liabilities can erode balance sheet flexibility if it signals growing operational obligations or short-term financing. If liabilities keep rising while cash generation softens, liquidity stress or higher financing costs could constrain strategic investments.

Decline in Operating Cash Flow

A decline in operating cash flow, despite strong FCF year-over-year, suggests potential timing or sustainability issues in core cash generation. Persistent decreases would pressure funding for growth, dividends, or debt servicing and require management action to restore operating cash conversion.

Earnings and EPS Pressure

Falling net income and negative EPS growth point to margin or volume pressures that could recur. Over a multi-month horizon, continued EPS declines would limit reinvestment and shareholder return options and may indicate competitive or demand headwinds in core markets.

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

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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	2.05B	1.98B	1.76B	1.65B
EBITDA	1.32B	1.26B	920.20M	582.75M	423.98M
Net Income	586.82M	618.08M	648.48M	417.14M	931.57M
Balance Sheet
Total Assets	6.22B	6.18B	5.62B	4.60B	4.76B
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	3.45B	3.46B	3.10B	3.53B
Stockholders Equity	2.65B	2.73B	2.16B	1.51B	1.22B
Cash Flow
Free Cash Flow	0.00	907.59M	1.05B	-264.77M	1.02B
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: Neutral
• Last Price: 1532.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 1532 is above the 20-day moving average (MA) of 1440.95, above the 50-day MA of 1483.80, and below the 200-day MA of 1561.63, indicating a neutral trend. The MACD of -6.18 indicates Negative momentum. The RSI at 50.27 is Neutral, neither overbought nor oversold. The STOCH value of 54.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥6.72B	15.28	―	1.18%	6.95%	-9.62%
173A	73 Outperform	¥6.12B	8.04	―	1.99%	―	―
4374	70 Outperform	¥10.08B	20.41	―	0.47%	19.35%	71.74%
4496	69 Neutral	¥5.55B	12.30	―	2.50%	4.29%	-42.71%
7351	66 Neutral	¥4.23B	21.71	―	1.54%	28.98%	3659.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3680	44 Neutral	¥3.33B	-2.24	―	1.17%	-21.76%	-5832.28%