Hokuriku Electrical Construction Co (1930) AI Stock Analysis

• Market Cap: ¥48.87B
• Dividend Yield: 3.06%
• Average Volume (3M): 48.09K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.78
• Revenue Growth: -5.41%
• EPS Growth: 5.68%
• Country: JP
• Employees: 1,330
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 50.91
• Shares Outstanding: 29,963,991
• 10 Day Avg. Volume: 50,360
• 30 Day Avg. Volume: 48,093
• PEG Ratio: 0.24
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 4.73
• 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: 70 Outperform
• Price Target: ¥1,978.00 ▲(40.58% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

Hokuriku Electrical Construction Co's strong financial performance, characterized by robust revenue growth and cash flow, is the primary driver of its stock score. The technical analysis indicates some short-term bearish momentum, which slightly offsets the positive financial outlook. The valuation is reasonable, with a decent dividend yield, making it an attractive option for income-focused investors.

Positive Factors

Balance Sheet Strength

Extremely low leverage and a high equity ratio provide durable financial flexibility for bid bonding, working capital through project cycles, and capital spending. This reduces refinancing and covenant risk, supporting stability across multi-month infrastructure contracts.

Cash Flow Generation

Material improvement in free cash flow and strong operating cash conversion indicate sustainable internal funding for capex, maintenance and dividends. Reliable cash generation strengthens resilience to project timing and supports reinvestment without heavy borrowing.

Margin and Profitability

Healthy gross and net margins with recent revenue recovery imply effective cost controls and execution ability on contracts. Consistent margins across projects preserve profitability through contract mix shifts and underpin longer-term return on invested capital.

Negative Factors

Revenue Volatility

Material year-on-year revenue swings reflect dependence on timing and awards of construction projects. Such volatility can strain utilization, backlog visibility and working capital planning, creating risk to sustained top-line momentum over coming quarters.

Shrinking Asset Base

A downward trend in total assets could signal lower investment in capacity or asset disposals, which may limit ability to scale for larger contracts. Over months this can constrain backlog conversion and reduce operational flexibility in winning big projects.

Project Concentration & Execution Risk

Revenue depends on winning and executing discrete contracts; margins hinge on labor utilization and procurement. This structural exposure to project awards and execution raises operational risk versus recurring-revenue peers and can pressure margins if project conditions worsen.

Hokuriku Electrical Construction Co Business Overview & Revenue Model

Company Description

Hokuriku Electrical Construction Co, established in 1930, is a leading player in the electrical construction industry, primarily operating in Japan. The company specializes in providing a comprehensive range of services including electrical installation, maintenance, and infrastructure development for both commercial and residential sectors. With a commitment to innovation and quality, Hokuriku Electrical Construction Co has built a reputation for delivering reliable electrical solutions and is involved in various projects that support the modernization of Japan's energy infrastructure.

How the Company Makes Money

Hokuriku Electrical Construction Co generates revenue through several key streams. Primarily, the company earns income from contracts related to electrical installation services for new constructions, renovations, and upgrades in residential, commercial, and industrial projects. Maintenance contracts also contribute significantly to its revenue, as clients often require ongoing support for existing electrical systems. Additionally, the company engages in partnership agreements with construction firms and government entities, which can lead to substantial project-based earnings. The company's focus on renewable energy solutions and smart technology integration further enhances its marketability, allowing it to tap into emerging sectors and increase its revenue potential.

Hokuriku Electrical Construction Co Financial Statement Overview

Summary

Hokuriku Electrical Construction Co demonstrates strong financial health with consistent revenue growth and profitability. The balance sheet is stable with low leverage, and cash flow generation is robust, supporting future growth and investment opportunities. While there are minor concerns regarding asset trends, the company's financial position is largely positive.

Income Statement

The company has shown a consistent increase in revenue over the past years, with a notable revenue growth rate of 7.48% in the most recent year. The gross profit margin is strong at 18.06%, and the net profit margin improved to 5.55%. EBIT and EBITDA margins are also solid, indicating effective cost management. However, the revenue dip in 2022 was a concern, though it has since recovered.

Balance Sheet

Hokuriku Electrical Construction Co maintains a robust balance sheet with a low debt-to-equity ratio of 0.01, reflecting minimal leverage risk. The equity ratio is high at 72.31%, suggesting financial stability and a strong capital base. However, the slight decline in total assets over recent years may warrant attention.

Cash Flow

The company's cash flow position is strong, with a significant improvement in free cash flow, which grew by 387.24% over the previous year. Operating cash flow to net income ratio is healthy at 2.39, indicating efficient cash conversion. The company has effectively managed its capital expenditures, leading to robust free cash flow.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	56.40B	57.41B	53.40B	44.85B	45.93B	44.89B
Gross Profit	10.36B	10.37B	8.88B	7.03B	6.94B	7.72B
EBITDA	5.69B	5.96B	4.65B	3.37B	4.22B	5.50B
Net Income	3.11B	3.19B	2.21B	1.63B	2.25B	3.17B
Balance Sheet
Total Assets	56.21B	60.71B	62.75B	54.80B	55.47B	53.70B
Cash, Cash Equivalents and Short-Term Investments	22.61B	23.35B	19.50B	20.65B	21.57B	24.26B
Total Debt	111.00M	371.00M	371.00M	14.00M	28.00M	26.00M
Total Liabilities	12.68B	16.81B	20.88B	14.09B	15.61B	15.25B
Stockholders Equity	43.53B	43.89B	41.87B	40.72B	39.86B	38.45B
Cash Flow
Free Cash Flow	0.00	7.19B	1.47B	1.85B	-1.57B	3.00B
Operating Cash Flow	0.00	7.60B	2.25B	3.31B	199.00M	4.00B
Investing Cash Flow	0.00	-3.42B	-1.44B	-2.94B	-3.04B	17.00M
Financing Cash Flow	0.00	-1.39B	-1.29B	-900.00M	-943.00M	-593.00M

Hokuriku Electrical Construction Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1407.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1930, the sentiment is Positive. The current price of 1407 is below the 20-day moving average (MA) of 1651.50, below the 50-day MA of 1579.10, and above the 200-day MA of 1392.76, indicating a bullish trend. The MACD of 39.18 indicates Negative momentum. The RSI at 70.34 is Negative, neither overbought nor oversold. The STOCH value of 84.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1930.

Hokuriku Electrical Construction Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1941	76 Outperform	¥282.69B	16.21	9.20%	2.78%	1.31%	59.20%
1939	76 Outperform	¥101.86B	18.89	―	4.38%	-0.84%	-1.80%
1949	74 Outperform	¥345.45B	19.95	12.41%	1.68%	8.09%	20.78%
1959	74 Outperform	¥748.49B	22.29	―	2.15%	-5.20%	-1.20%
1942	72 Outperform	¥1.43T	25.17	14.15%	2.00%	16.43%	53.76%
1930	70 Outperform	¥48.87B	13.93	7.09%	3.06%	-5.41%	5.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Hokuriku Electrical Construction Co Corporate Events

Hokuriku Electrical Construction Posts Strong Nine-Month Earnings and Confirms FY2026 Outlook

Hokuriku Electrical Construction reported consolidated net sales of ¥43.9 billion for the nine months ended 31 December 2025, up 6.1% year on year, with operating profit rising 16.4% to ¥3.2 billion and profit attributable to owners of parent increasing 14.5% to ¥2.3 billion, reflecting continued earnings growth after a strong prior-year rebound. The company maintained a solid financial position with an equity ratio of 78.4% and confirmed its full-year forecast for FY ending 31 March 2026, projecting higher sales but modest year-on-year declines in profit as it anticipates normalization from exceptionally strong results, while keeping its annual dividend plan of ¥44 per share unchanged, signaling an ongoing commitment to shareholder returns.

The most recent analyst rating on (JP:1930) stock is a Hold with a Yen1679.00 price target. To see the full list of analyst forecasts on Hokuriku Electrical Construction Co stock, see the JP:1930 Stock Forecast page.