Hiraki Co., Ltd. (3059) AI Stock Analysis

• Market Cap: ¥4.06B
• Dividend Yield: 2.4%
• Average Volume (3M): 2.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.04
• Revenue Growth: -3.69%
• EPS Growth: -11429.88%
• Country: JP
• Employees: 250
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -28.35
• Shares Outstanding: 5,155,600
• 10 Day Avg. Volume: 1,710
• 30 Day Avg. Volume: 2,246
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 124.97
• 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: 44 Neutral
• Price Target: ¥804.00 ▼(-3.37% Downside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is held down primarily by deteriorating financial performance (loss-making operations and negative free cash flow) and weak technical momentum (below key moving averages with negative MACD). Valuation support is limited by the negative P/E, partially offset by a moderate dividend yield.

Positive Factors

Strong product-level gross margins

Gross margins near the mid-40s indicate durable product-level profitability driven by sourcing and product mix. That margin buffer helps absorb operating cost pressure and supports long-term viability of core retail operations if management stabilizes SG&A and inventory turns.

Multi-channel retail model with private-label focus

A diversified direct-to-consumer model (stores plus mail-order/e-commerce) and private-label sourcing create structural advantages: broader customer reach, lower SKU cost control, and differentiation on price/value. These reduce channel concentration risk and support consistent revenue streams over time.

Serviceable balance sheet with equity cushion

Despite recent pressures, a sizeable equity base relative to assets provides a buffer against operating volatility and supports access to financing if needed. That cushion increases resilience to cyclical retail swings and gives management runway to execute turnaround actions.

Negative Factors

Loss-making operations and negative margins

Sustained net losses and negative operating profit materially reduce retained earnings and constrain reinvestment. If losses persist, they will erode the equity cushion, limit strategic initiatives, and force cost cutting or external financing, harming long-term competitiveness.

Weak and negative free cash flow (TTM)

Negative free cash flow in the trailing period signals structural working-capital or profitability issues. Persistent FCF deficits elevate refinancing and liquidity risk, reduce ability to fund inventory and store operations, and make sustained recovery dependent on external capital or margin improvement.

Rising leverage (debt-to-equity ~1.13) and deteriorating trend

Debt exceeding equity increases fixed obligations and interest exposure, reducing financial flexibility. Rising leverage during a loss-making period amplifies refinancing and covenant risks and limits the company's ability to invest in growth or inventory, worsening medium-term recovery prospects.

Hiraki Co., Ltd. Business Overview & Revenue Model

Company Description

Hiraki Co.,Ltd. engages in the mail-order, store sales, and wholesale businesses in Japan. The company sells shoes, footwear, clothing, food, daily goods, daily miscellaneous goods, etc. primarily through catalogs and internet. It also operates discount and specialty stores for shoes. In addition, the company wholesales its products to retailers and mass retailers. Hiraki Co.,Ltd. was founded in 1961 and is headquartered in Kobe, Japan.

How the Company Makes Money

Hiraki Co., Ltd. generates revenue through multiple streams, primarily by offering bespoke software development and IT consulting services to businesses seeking to modernize their operations. The company charges clients on a project basis or through retainer agreements for ongoing consulting services. Additionally, Hiraki earns income from subscription-based cloud services, which provide clients with scalable solutions that can adapt to their changing needs. Strategic partnerships with other tech firms and organizations enhance their service offerings and expand their market reach, further contributing to their revenue generation.

Hiraki Co., Ltd. Financial Statement Overview

Summary

Operating results have deteriorated: TTM revenue fell (-3.149%), margins are loss-making (net margin -8.0%) with negative operating profit, and cash generation weakened materially with negative free cash flow. Gross margin remains relatively strong (~44–49%) and the balance sheet is serviceable, but leverage has crept higher (debt-to-equity ~1.13) and losses reduce flexibility.

Income Statement

Profitability has deteriorated meaningfully: TTM (Trailing-Twelve-Months) revenue declined (-3.149%) and the company is loss-making (net margin -8.0%) with negative operating profit as well. This is a sharp reversal from 2021–2022, when the company posted solid positive earnings and healthier operating margins, and even from 2024 when results were near break-even. A key positive is that gross margin remains relatively strong and stable (~44–49%), suggesting product-level profitability is intact, but operating costs and/or one-time pressures are overwhelming that gross profit.

Balance Sheet

The balance sheet looks serviceable but not conservative. Leverage is moderate-to-elevated, with debt running slightly above equity in TTM (Trailing-Twelve-Months) (debt-to-equity ~1.13) and trending worse versus 2023–2024. Equity remains sizeable relative to the asset base, which provides some cushion, but negative returns on equity in TTM (Trailing-Twelve-Months) reflect the current loss-making profile and reduce financial flexibility if weak performance persists.

Cash Flow

Cash generation has weakened materially in TTM (Trailing-Twelve-Months): operating cash flow is essentially flat-to-negative and free cash flow is negative, a significant step down from 2024 when both operating cash flow and free cash flow were strongly positive. While 2025 annual still showed positive operating and free cash flow, the swing to negative in TTM (Trailing-Twelve-Months) raises concerns around near-term cash burn and working-capital volatility, especially alongside net losses.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	12.14B	12.96B	13.31B	14.29B	15.20B	15.96B
Gross Profit	5.37B	5.85B	6.08B	6.62B	7.39B	7.48B
EBITDA	-545.97M	-282.40M	326.69M	501.36M	1.00B	1.18B
Net Income	-976.09M	-689.81M	-15.16M	111.70M	466.55M	560.44M
Balance Sheet
Total Assets	15.16B	15.07B	16.26B	16.44B	16.74B	17.11B
Cash, Cash Equivalents and Short-Term Investments	7.10B	6.48B	6.79B	5.73B	7.06B	6.79B
Total Debt	7.02B	6.64B	6.83B	6.99B	7.12B	7.39B
Total Liabilities	8.93B	8.51B	8.91B	8.99B	9.32B	10.02B
Stockholders Equity	6.23B	6.56B	7.36B	7.45B	7.42B	7.10B
Cash Flow
Free Cash Flow	-45.70M	34.94M	1.37B	-1.05B	672.69M	1.19B
Operating Cash Flow	-8.47M	162.15M	1.43B	-899.44M	741.38M	1.30B
Investing Cash Flow	384.54M	-667.00K	-890.77M	746.81M	-36.55M	-714.12M
Financing Cash Flow	-509.83M	-342.49M	-305.95M	-268.85M	-401.78M	-472.13M

Hiraki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 832.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3059, the sentiment is Positive. The current price of 832 is below the 20-day moving average (MA) of 832.10, below the 50-day MA of 833.36, and below the 200-day MA of 835.59, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 54.02 is Neutral, neither overbought nor oversold. The STOCH value of 63.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3059.

Hiraki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3560	78 Outperform	¥8.31B	13.89	―	2.66%	15.17%	12.30%
3192	73 Outperform	¥2.06B	4.91	―	―	0.06%	―
3093	65 Neutral	¥45.48B	14.84	―	2.19%	17.90%	14.14%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3396	60 Neutral	¥5.71B	10.64	―	1.76%	2.24%	―
2769	45 Neutral	¥7.62B	-2.21	―	―	-4.54%	-261.55%
3059	44 Neutral	¥4.06B	-3.84	―	2.40%	-3.69%	-11429.88%