Hiramatsu Inc. (2764) AI Stock Analysis

• Market Cap: ¥8.55B
• Dividend Yield: N/A
• Average Volume (3M): 355.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: -26.12%
• EPS Growth: -110.09%
• Country: JP
• Employees: 703
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -1.24
• Shares Outstanding: 74,740,400
• 10 Day Avg. Volume: 539,410
• 30 Day Avg. Volume: 355,856
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 1.00
• P/FCF Ratio: -20.93
• 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): 1,392.37
• Revenue Forecast (FY): ¥2.50T

• Rating: 54 Neutral
• Price Target: ¥120.00 ▲(5.26% Upside)

Hiramatsu Inc.'s overall stock score reflects its ongoing financial restructuring efforts, with improvements in operational efficiency. However, the negative P/E ratio and technical indicators suggest caution, as the company faces challenges in achieving consistent profitability and positive market momentum.

Positive Factors

Operational Efficiency

The improvement in EBIT and EBITDA margins suggests that Hiramatsu Inc. is enhancing its operational processes, which can lead to sustained profitability and competitive advantage in the long term.

Balance Sheet Health

A strong equity base and improving debt-to-equity ratio indicate financial stability, providing Hiramatsu with the flexibility to invest in growth opportunities and weather economic downturns.

Gross Profit Margin

A robust gross profit margin reflects effective cost management and pricing power, which are crucial for maintaining profitability and competitive positioning in the upscale dining market.

Negative Factors

Revenue Volatility

Revenue volatility and cash flow management issues suggest challenges in maintaining steady growth, which could impact long-term financial stability and investor confidence.

Profitability Challenges

Consistent profitability challenges, as indicated by negative net profit margins, can hinder Hiramatsu's ability to reinvest in its business and compete effectively in the market.

Cash Flow Volatility

Volatile cash flow can limit Hiramatsu's ability to fund operations and growth initiatives, potentially affecting its long-term strategic plans and financial health.

Hiramatsu Inc. Business Overview & Revenue Model

Company Description

Hiramatsu Inc. (2764) is a prominent player in the Japanese food service industry, primarily known for its upscale dining restaurants that focus on French cuisine. The company operates a variety of establishments, including fine dining, casual eateries, and catering services, catering to diverse consumer preferences. With a commitment to high-quality ingredients and exceptional service, Hiramatsu has established a strong brand presence in both domestic and international markets.

How the Company Makes Money

Hiramatsu Inc. generates revenue primarily through its restaurant operations, which include sales from dining services, takeout, and catering. The company benefits from a multi-tiered revenue model, where its upscale dining locations attract high-income customers willing to pay premium prices for quality food and service. Additionally, Hiramatsu may engage in strategic partnerships or collaborations with suppliers and other businesses to enhance its product offerings and expand its market reach. Seasonal promotions and special events also contribute to revenue, drawing in customers and increasing overall sales. Overall, Hiramatsu's focus on quality and customer experience positions it well for profitability in a competitive industry.

Hiramatsu Inc. Financial Statement Overview

Summary

Hiramatsu Inc. is showing signs of recovery with improved operational efficiency and a stronger financial foundation. However, challenges remain in achieving consistent profitability and cash flow stability.

Income Statement

Hiramatsu Inc. has shown a volatile revenue trajectory over the years, with a decline in recent periods. The gross profit margin is robust, maintaining a healthy percentage, which indicates efficient cost management relative to revenue generation. However, net income fluctuations and negative net profit margins in past years suggest challenges in achieving consistent profitability. EBIT and EBITDA margins have improved significantly, indicating a turnaround from previous losses, but still reflect underlying profitability issues.

Balance Sheet

The company's balance sheet shows a solid equity base with an improving debt-to-equity ratio, suggesting a more balanced approach to leveraging. Return on equity has been volatile due to swings in net income. The equity ratio is stable, indicating a strong asset base relative to liabilities, which provides a cushion against financial instability. Overall, the balance sheet reflects a company in transition towards stronger financial health.

Cash Flow

Hiramatsu Inc.'s cash flow statement reveals significant volatility in free cash flow, with recent improvements following years of negative cash flow. The operating cash flow to net income ratio is concerning, indicating challenges in converting profit into cash. The free cash flow to net income ratio suggests ongoing difficulty in generating cash from operations. However, recent financing activities have bolstered cash reserves, supporting liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.76B	10.66B	13.86B	12.38B	9.22B	6.27B
Gross Profit	5.44B	5.99B	8.09B	7.17B	4.96B	3.20B
EBITDA	1.93B	1.92B	741.48M	33.77M	-1.49B	-3.19B
Net Income	1.66B	1.53B	-153.11M	-904.02M	-2.47B	-4.11B
Balance Sheet
Total Assets	11.64B	12.14B	21.87B	21.76B	22.80B	19.38B
Cash, Cash Equivalents and Short-Term Investments	6.02B	6.65B	5.63B	5.26B	5.58B	640.33M
Total Debt	3.77B	3.83B	14.58B	14.62B	14.66B	13.61B
Total Liabilities	5.72B	6.25B	17.53B	17.24B	17.42B	16.19B
Stockholders Equity	5.93B	5.90B	4.35B	4.52B	5.39B	3.19B
Cash Flow
Free Cash Flow	0.00	-509.25M	444.26M	-303.00M	-333.97M	-5.67B
Operating Cash Flow	0.00	-346.78M	1.15B	-99.42M	-68.25M	-2.70B
Investing Cash Flow	0.00	12.14B	-744.95M	-179.63M	-63.89M	-2.87B
Financing Cash Flow	0.00	-10.79B	-38.24M	-42.65M	5.07B	1.58B

Hiramatsu Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 114.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2764, the sentiment is Positive. The current price of 114 is below the 20-day moving average (MA) of 121.95, below the 50-day MA of 117.72, and below the 200-day MA of 132.61, indicating a neutral trend. The MACD of 0.92 indicates Positive momentum. The RSI at 51.32 is Neutral, neither overbought nor oversold. The STOCH value of 31.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2764.

Hiramatsu Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7561	65 Neutral	¥10.01B	10.86	―	4.19%	6.45%	-19.71%
3082	64 Neutral	¥10.60B	28.00	―	0.78%	10.30%	1.56%
2798	62 Neutral	¥9.71B	32.12	―	―	7.88%	164.80%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9950	56 Neutral	¥10.00B	99.85	―	0.59%	3.51%	-47.40%
2764	54 Neutral	¥8.55B	-49.38	―	―	-26.12%	-110.09%
7682	53 Neutral	¥8.53B	93.09	―	0.38%	5.44%	-8.33%