Hokuriku Electrical Construction Co (1930) AI Stock Analysis

• Market Cap: ¥43.92B
• Dividend Yield: 3.06%
• Average Volume (3M): 48.09K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.80
• 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: 76 Outperform
• Price Target: ¥1,839.00 ▲(30.70% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is driven primarily by strong financial performance (robust free cash flow, improving margins, and very low leverage). Technicals are supportive but somewhat stretched in the short term (elevated RSI/Stochastic and price below the 20-day average), while valuation appears reasonable with a moderate dividend yield.

Positive Factors

Strong cash generation

A large increase in free cash flow (387%) and operating cash flow well above net income (2.39x) indicate durable cash conversion. This supports reinvestment in projects, funds working capital during multi‑month contracts and provides buffer for cyclical timing of receipts.

Very low leverage and strong equity base

Minimal financial leverage (D/E ~0.01) and a high equity ratio (72%) give the company structural balance sheet resilience. Low interest burden and available headroom support bidding for large projects and absorbing project delays without pressuring liquidity or credit capacity.

Improving margins and profitability

Sustained gross and improving net margins reflect better project execution, cost control and pricing discipline. Higher operating and EBITDA margins indicate structural efficiency gains that should persist across contract cycles, supporting long‑term earnings quality.

Negative Factors

Historical revenue dip/volatility

A prior revenue decline in 2022 shows the business is exposed to project award timing and market demand swings. Such volatility can compress margins and working capital during down cycles and means revenue visibility is tied to new contract wins over several quarters.

Slight decline in total assets

A modest shrinkage in total assets could signal reduced scale, deferred capex, or asset turnover changes. Over time this might limit capacity to take on larger or concurrent projects without incremental investment, constraining revenue growth potential.

Negative recent headline growth metrics

Reported negative revenue and EPS growth metrics point to recent operational pressure or timing differences in project recognition. Persisting negative growth could erode pricing leverage and investor confidence, requiring sustained recovery through new contract volume or margin improvement.

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

Strong overall fundamentals: improving profitability (net margin 5.55%), solid operating margins, and very strong cash generation (free cash flow up 387.24% and operating cash flow well above net income at 2.39x). Balance sheet leverage is minimal (debt-to-equity 0.01) with a high equity ratio (72.31%), though a slight decline in total assets and a prior revenue dip are modest risks.

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: Positive
• RSI: Neutral
• STOCH: Positive

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 1676.90, below the 50-day MA of 1600.34, and above the 200-day MA of 1406.67, indicating a neutral trend. The MACD of 27.13 indicates Positive momentum. The RSI at 48.81 is Neutral, neither overbought nor oversold. The STOCH value of 18.78 is Positive, 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
1930	76 Outperform	¥43.92B	7.43	7.09%	3.06%	-5.41%	5.68%
1941	76 Outperform	¥250.51B	12.20	7.43%	2.78%	1.31%	59.20%
1939	76 Outperform	¥90.48B	13.41	―	4.38%	-0.84%	-1.80%
1949	74 Outperform	¥345.09B	15.86	12.41%	1.68%	8.09%	20.78%
1959	74 Outperform	¥658.72B	12.93	―	2.15%	-5.20%	-1.20%
1942	72 Outperform	¥1.21T	12.95	14.80%	2.00%	16.43%	53.76%
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.