Hakuten Corporation (2173) AI Stock Analysis

• Market Cap: ¥13.85B
• Dividend Yield: 2.46%
• Average Volume (3M): 81.84K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.80
• Revenue Growth: 6.38%
• EPS Growth: 18.64%
• Country: JP
• Employees: 545
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 17.26
• Shares Outstanding: 16,248,520
• 10 Day Avg. Volume: 37,160
• 30 Day Avg. Volume: 81,840
• PEG Ratio: 0.59
• Price to Book (P/B): 2.54
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 8.56
• 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: 81 Outperform
• Price Target: ¥975.00 ▲(47.06% Upside)

Hakuten Corporation's strong financial performance and attractive valuation are the primary drivers of its high stock score. The robust revenue growth, healthy profit margins, and efficient cash flow generation underscore its financial strength. Despite the technical indicators suggesting overbought conditions, the stock's valuation remains compelling, making it an attractive investment opportunity in the advertising industry.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and robust demand for Hakuten's products, supporting long-term business sustainability.

Cash Generation

Strong cash generation ability supports future investments and growth, ensuring financial flexibility and operational resilience.

Profit Margins

Healthy profit margins reflect efficient operations and competitive pricing power, enhancing long-term profitability and shareholder value.

Negative Factors

Leverage

Moderate leverage could limit financial flexibility, potentially impacting the company's ability to respond to market changes or invest in growth opportunities.

Equity Ratio

While stable, the equity ratio indicates potential vulnerability to financial stress, suggesting the need for improved capital structure management.

Industry Position

Misalignment between industry classification and core operations may affect investor perception and strategic focus, impacting long-term growth.

Hakuten Corporation Business Overview & Revenue Model

Company Description

Hakuten Corporation (2173) is a Japanese company primarily engaged in the development and manufacturing of advanced electronic materials and components. The company operates across various sectors, including electronics, telecommunications, and renewable energy. Core products include semiconductor materials, display materials, and other high-performance components designed for use in consumer electronics, automotive applications, and industrial systems.

How the Company Makes Money

Hakuten Corporation generates revenue through the sale of its specialized electronic materials and components, which are utilized in a wide array of industries. The primary revenue streams include the production and supply of semiconductor materials, which are in high demand due to the growth of the electronics market. Additionally, the company benefits from long-term contracts with major technology firms, ensuring a steady flow of income. Strategic partnerships with leading manufacturers in the telecommunications and automotive sectors further enhance its market position and revenue potential. The company's focus on innovation and development of new materials also provides additional revenue opportunities through licensing agreements and collaborations with research institutions.

Hakuten Corporation Financial Statement Overview

Summary

Hakuten Corporation exhibits a strong financial standing with impressive revenue growth, healthy profit margins, and robust cash flow generation. The balance sheet is stable with moderate leverage, providing a solid foundation for future expansion. The company's financial performance is commendable, with a consistent upward trajectory in key financial metrics, positioning it well for continued success in the advertising industry.

Income Statement

Hakuten Corporation has shown strong revenue growth with a 8.4% increase in 2024 compared to 2023. The gross profit margin stands at 30.2% and the net profit margin is 5.3%, both indicating healthy profitability for the industry. The EBIT margin at 7.4% and EBITDA margin at 8.1% further reflect efficient operations. Steady growth and robust margins highlight a solid financial performance.

Balance Sheet

The company maintains a balanced financial structure with a debt-to-equity ratio of 0.52, indicating moderate leverage. The return on equity (ROE) is 29.8%, showcasing effective use of equity to generate profits. An equity ratio of 42.5% suggests a stable foundation, although there's room for improvement in reducing liabilities. Overall, the balance sheet reflects financial stability with manageable debt levels.

Cash Flow

Hakuten Corporation's cash flow position is strong, with a positive free cash flow growth rate of 5.9%. The operating cash flow to net income ratio of 1.10 highlights effective conversion of earnings to cash. Additionally, the free cash flow to net income ratio of 1.00 indicates efficient cash utilization. These metrics demonstrate a solid cash generation ability, supporting future investments and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.09B	18.84B	17.39B	13.94B	10.63B	7.27B
Gross Profit	6.12B	5.69B	5.13B	3.88B	3.13B	2.20B
EBITDA	1.72B	1.53B	1.42B	827.80M	1.15B	-126.55M
Net Income	1.11B	999.00M	866.00M	553.63M	760.81M	-189.85M
Balance Sheet
Total Assets	8.16B	7.90B	7.67B	4.94B	4.78B	4.45B
Cash, Cash Equivalents and Short-Term Investments	2.70B	2.64B	2.53B	1.03B	1.58B	2.01B
Total Debt	1.71B	1.74B	2.21B	1.09B	1.05B	2.30B
Total Liabilities	4.14B	4.54B	5.03B	2.95B	3.03B	3.47B
Stockholders Equity	4.02B	3.35B	2.64B	1.99B	1.74B	973.66M
Cash Flow
Free Cash Flow	0.00	997.00M	941.33M	-56.88M	404.27M	88.06M
Operating Cash Flow	0.00	1.10B	1.45B	114.07M	487.78M	167.13M
Investing Cash Flow	0.00	-169.00M	-833.33M	-334.39M	513.70M	108.00M
Financing Cash Flow	0.00	-816.00M	1.03B	-328.90M	-1.44B	901.01M

Hakuten Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 663.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2173, the sentiment is Positive. The current price of 663 is below the 20-day moving average (MA) of 822.65, below the 50-day MA of 745.72, and above the 200-day MA of 605.83, indicating a bullish trend. The MACD of 30.03 indicates Negative momentum. The RSI at 65.09 is Neutral, neither overbought nor oversold. The STOCH value of 59.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2173.

Hakuten Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2173	81 Outperform	¥13.85B	9.02	―	2.46%	6.38%	18.64%
7050	73 Outperform	¥12.95B	11.69	―	4.08%	51.26%	296.98%
7368	71 Outperform	¥8.00B	10.55	―	3.62%	-0.94%	51.68%
6533	66 Neutral	¥11.96B	63.40	―	0.91%	15.68%	-64.57%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9235	39 Underperform	¥5.60B	-11.06	―	―	49.01%	-21.56%