Hayashikane Sangyo Co., Ltd. (2286) AI Stock Analysis

• Market Cap: ¥6.37B
• Dividend Yield: 3.44%
• Average Volume (3M): 24.09K
• Price to Earnings (P/E): 4.0
• Beta (1Y): 0.42
• Revenue Growth: -2.78%
• EPS Growth: 331.41%
• Country: JP
• Employees: 305
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 44.40
• Shares Outstanding: 8,910,000
• 10 Day Avg. Volume: 36,080
• 30 Day Avg. Volume: 24,093
• PEG Ratio: 0.09
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 8.45
• 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: ¥796.00 ▲(4.60% Upside)

The stock is rated highly due to its strong technical indicators and attractive valuation, suggesting potential undervaluation and good investor returns. Financial performance is positive but tempered by concerns over cash flow and debt levels.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for the company's products and successful market penetration, supporting long-term expansion.

Profitability Margins

Improved profitability margins reflect effective cost management and operational efficiency, enhancing the company's competitive position.

ROE Improvement

An improved ROE suggests the company is using its equity base efficiently to generate profits, which is a positive indicator for shareholders.

Negative Factors

High Debt Levels

High debt levels can limit financial flexibility and increase risk, especially if market conditions deteriorate, impacting long-term stability.

Cash Flow Concerns

Decreased operating cash flow suggests potential liquidity issues, which could affect the company's ability to fund operations and growth initiatives.

Low Net Profit Margin

Despite improvements, the relatively low net profit margin indicates room for better cost control or pricing strategies to enhance profitability.

Hayashikane Sangyo Co., Ltd. Business Overview & Revenue Model

Company Description

Hayashikane Sangyo Co., Ltd. (2286) is a Japanese company engaged primarily in the manufacturing and sales of chemical products, including specialty chemicals and materials used in various industries. The company operates in sectors such as agriculture, construction, and electronics, providing innovative solutions to meet the diverse needs of its customers. Hayashikane Sangyo is known for its commitment to quality and sustainability, developing products that enhance performance while minimizing environmental impact.

How the Company Makes Money

Hayashikane Sangyo Co., Ltd. generates revenue through the sale of its chemical products and materials to a variety of industries. The company's revenue model is primarily based on direct sales to industrial clients, with key revenue streams coming from the agricultural sector, where it supplies fertilizers and agrochemicals, and from the construction sector, providing specialty chemicals used in building materials. Additionally, the company may pursue strategic partnerships with other firms to expand its product offerings and access new markets, further contributing to its earnings. The company's focus on research and development also aids in creating high-value products that command premium prices, enhancing profitability.

Hayashikane Sangyo Co., Ltd. Financial Statement Overview

Summary

The company has shown positive revenue growth and improved profitability margins, with a stable balance sheet. However, the high debt level and deteriorating cash flow performance are concerns that need addressing.

Income Statement

The company has shown a positive trend in revenue growth, with a 4.0% increase from 2024 to 2025. Gross profit margin improved to 11.5% in 2025, indicating good cost management. Net profit margin also increased to 2.1%, showing enhanced profitability. EBIT and EBITDA margins have strengthened, reflecting better operating efficiency. However, the net profit margin remains relatively low, which suggests room for improvement in controlling costs or pricing strategy.

Balance Sheet

The debt-to-equity ratio of 0.71 indicates moderate leverage, which is manageable but requires close monitoring. Return on Equity (ROE) improved to 8.9% in 2025, signaling effective use of equity. The equity ratio of 42.7% reflects a stable capital structure, but the high level of debt compared to equity suggests potential risks if market conditions worsen.

Cash Flow

There was a significant drop in operating cash flow in 2025, indicating potential liquidity concerns. Free cash flow decreased, leading to a negative free cash flow growth rate. The operating cash flow to net income ratio is 1.1, which is satisfactory, but the free cash flow to net income ratio indicates less efficient cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.84B	49.27B	47.38B	42.54B	40.39B	44.37B
Gross Profit	6.18B	5.66B	5.20B	4.74B	5.86B	6.67B
EBITDA	2.76B	2.56B	1.87B	1.30B	2.05B	2.34B
Net Income	1.44B	1.05B	749.17M	333.19M	707.83M	1.29B
Balance Sheet
Total Assets	28.18B	27.63B	29.04B	26.76B	26.49B	28.66B
Cash, Cash Equivalents and Short-Term Investments	2.13B	3.16B	2.51B	843.52M	1.95B	2.47B
Total Debt	8.06B	8.41B	9.28B	10.37B	10.47B	11.37B
Total Liabilities	16.31B	15.84B	17.95B	16.82B	16.72B	18.42B
Stockholders Equity	11.86B	11.79B	11.09B	9.93B	9.77B	9.33B
Cash Flow
Free Cash Flow	0.00	496.00M	2.99B	-694.84M	291.51M	2.22B
Operating Cash Flow	0.00	1.11B	3.58B	-310.87M	683.76M	3.28B
Investing Cash Flow	0.00	885.00M	-399.05M	-452.02M	18.81M	47.28M
Financing Cash Flow	0.00	-1.35B	-1.24B	-615.68M	-737.50M	-2.90B

Hayashikane Sangyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 761.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2286, the sentiment is Positive. The current price of 761 is above the 20-day moving average (MA) of 717.95, above the 50-day MA of 712.28, and above the 200-day MA of 572.51, indicating a bullish trend. The MACD of 7.72 indicates Negative momentum. The RSI at 73.86 is Negative, neither overbought nor oversold. The STOCH value of 78.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2286.

Hayashikane Sangyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2286	76 Outperform	¥6.37B	3.97	―	3.44%	-2.78%	331.41%
2911	68 Neutral	¥4.15B	16.26	―	1.54%	-1.00%	31.15%
2894	66 Neutral	¥5.30B	15.03	―	1.25%	1.52%	28.70%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2872	59 Neutral	¥3.11B	28.52	―	0.93%	11.75%	-17.13%
2876	51 Neutral	¥3.86B	-5.60	―	3.53%	-15.71%	-293.44%
2291	37 Underperform	¥2.06B	―	―	―	-2.97%	-6.82%