Halows Co., Ltd. (2742) AI Stock Analysis

• Market Cap: ¥96.26B
• Dividend Yield: 1.51%
• Average Volume (3M): 23.71K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.41
• Revenue Growth: 7.75%
• EPS Growth: -1.68%
• Country: JP
• Employees: 1,305
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 91.56
• Shares Outstanding: 21,477,700
• 10 Day Avg. Volume: 16,870
• 30 Day Avg. Volume: 23,713
• PEG Ratio: 2.58
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 21.86
• 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: 72 Outperform
• Price Target: ¥5,506.00 ▲(19.83% Upside)

Halows Co., Ltd. has a strong financial foundation with robust revenue growth and profitability. The technical analysis indicates some short-term weakness, but the stock is not oversold. The valuation is reasonable, offering a fair P/E ratio and a modest dividend yield. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and effective business strategies, supporting long-term sustainability and market position.

Operational Efficiency

Strong operational efficiency reflects effective cost management and resource utilization, enhancing profitability and competitive advantage.

Conservative Leverage

A conservative leverage approach reduces financial risk and enhances stability, providing flexibility for future investments and growth opportunities.

Negative Factors

Capital Expenditure Challenges

High capital expenditures can strain free cash flow, potentially limiting the company's ability to invest in growth and manage financial obligations effectively.

Financial Risk

Despite a strong equity base, a high liabilities to equity ratio indicates potential financial risk, which could affect long-term financial health if not managed.

Free Cash Flow Decline

A decline in free cash flow can limit the company's ability to fund new projects and respond to market changes, impacting growth and operational flexibility.

Halows Co., Ltd. Business Overview & Revenue Model

Company Description

Halows Co., Ltd. (2742) is a dynamic company primarily engaged in the technology and electronics sector, focusing on the development and manufacturing of innovative consumer electronics and smart home solutions. The company specializes in creating high-quality products designed to enhance user experience, including smart appliances, home automation systems, and connected devices. With a commitment to sustainability and cutting-edge technology, Halows aims to lead in the rapidly evolving market of smart living solutions.

How the Company Makes Money

Halows Co., Ltd. generates revenue through multiple channels, including direct sales of its consumer electronics and smart home products, which are sold both online and through retail partnerships. The company also benefits from licensing agreements for its technology, allowing other manufacturers to utilize its innovations. Additionally, Halows engages in strategic partnerships with major retailers and e-commerce platforms, expanding its market reach and driving sales. The company's focus on research and development ensures a steady pipeline of new products, reinforcing its competitive edge and enabling continuous revenue growth.

Halows Co., Ltd. Financial Statement Overview

Summary

Halows Co., Ltd. demonstrates strong revenue growth and profitability with effective cost management. The company has a solid equity base and conservative leverage, though there are challenges in managing capital expenditures affecting free cash flow.

Income Statement

Halows Co., Ltd. has demonstrated strong revenue growth, with a consistent increase in total revenue over the past years, culminating in a 7.86% growth from 2024 to 2025. The company maintains a healthy gross profit margin of 25.64% and a net profit margin of 4.23% in 2025, indicating effective cost management and profitability. EBIT and EBITDA margins are also solid at 5.82% and 7.94%, respectively, showing operational efficiency. Overall, the income statement reflects a robust growth trajectory and profitability.

Balance Sheet

The balance sheet of Halows Co., Ltd. reveals a strong equity base with a rising stockholders' equity, reaching 62.40% of total assets in 2025, which enhances financial stability. The debt-to-equity ratio has been decreasing over the years, currently at 0.16, which signifies a conservative leverage approach. Return on equity is at 12.65%, indicating good returns for shareholders. However, the high total liabilities to equity ratio still suggests some level of financial risk, albeit well-managed.

Cash Flow

The cash flow statement shows a positive trend in operating cash flow, which increased to ¥15.89 billion in 2025, supporting business operations and growth. However, free cash flow decreased significantly due to a high capital expenditure, impacting the free cash flow to net income ratio. The operating cash flow to net income ratio is favorable at 1.78, reflecting strong cash generation from operations. Despite healthy operational cash flows, the decline in free cash flow suggests potential challenges in managing capital investments effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	217.54B	210.75B	195.44B	174.11B	163.37B	151.94B
Gross Profit	54.99B	54.03B	54.35B	48.00B	44.40B	41.35B
EBITDA	17.18B	16.73B	15.71B	13.32B	12.73B	11.41B
Net Income	9.00B	8.91B	8.59B	6.20B	5.93B	5.50B
Balance Sheet
Total Assets	132.75B	112.87B	104.28B	99.15B	87.27B	90.84B
Cash, Cash Equivalents and Short-Term Investments	26.07B	15.03B	18.14B	17.84B	14.66B	23.25B
Total Debt	11.62B	11.13B	15.14B	19.44B	14.09B	16.89B
Total Liabilities	59.27B	42.44B	41.77B	44.34B	37.87B	46.63B
Stockholders Equity	73.48B	70.43B	62.51B	54.80B	49.40B	44.21B
Cash Flow
Free Cash Flow	0.00	3.88B	5.75B	-562.00M	-4.38B	5.00B
Operating Cash Flow	0.00	15.89B	13.15B	10.62B	3.28B	11.59B
Investing Cash Flow	0.00	-13.76B	-7.25B	-11.52B	-7.82B	-7.56B
Financing Cash Flow	0.00	-5.25B	-5.60B	4.08B	-4.05B	4.68B

Halows Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4595.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2742, the sentiment is Negative. The current price of 4595 is above the 20-day moving average (MA) of 4594.50, below the 50-day MA of 4658.70, and below the 200-day MA of 4617.51, indicating a bearish trend. The MACD of -13.71 indicates Positive momentum. The RSI at 40.81 is Neutral, neither overbought nor oversold. The STOCH value of 6.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2742.

Halows Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9823	79 Outperform	¥78.21B	13.85	―	1.45%	20.50%	10.77%
8198	78 Outperform	¥109.63B	9.97	―	1.94%	2.30%	26.52%
9974	76 Outperform	¥152.95B	12.36	―	1.69%	10.13%	23.77%
7508	76 Outperform	¥56.94B	10.99	―	2.92%	11.38%	4.28%
8167	74 Outperform	¥57.52B	10.20	―	3.35%	4.92%	19.73%
2742	72 Outperform	¥96.26B	10.67	―	1.51%	7.75%	-1.68%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Halows Co., Ltd. Corporate Events

Halows Co., Ltd. Reports Increased Revenue and Profit for H1 2025

Halows Co., Ltd. reported its non-consolidated financial results for the six months ended August 31, 2025, showing an increase in operating revenue and profit compared to the previous year. The company announced a dividend payment schedule and maintained its financial forecast for the fiscal year ending February 28, 2026, indicating stable growth and a commitment to shareholder returns.