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

• Market Cap: ¥4.05B
• Dividend Yield: 2.41%
• 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): -23.11
• 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: 45 Neutral
• Price Target: ¥811.00 ▼(-2.52% Downside)

Hiraki Co., Ltd. faces significant financial challenges with declining revenues and high leverage, leading to a low financial performance score. Technical indicators suggest bearish momentum, and the negative P/E ratio reflects poor valuation. The dividend yield offers some value, but overall, the stock is underperforming.

Positive Factors

Cash Flow Growth

Strong free cash flow growth indicates improved cash generation ability, providing the company with more flexibility to invest in growth opportunities or manage debt.

Strategic Partnerships

These partnerships can expand market reach and strengthen competitive positioning, supporting long-term revenue growth and business model resilience.

Cloud Services Revenue

Subscription-based revenue from cloud services offers a recurring income stream, enhancing financial stability and supporting sustainable growth.

Negative Factors

High Leverage

Reliance on debt financing increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth or weather economic downturns.

Declining Revenue

Declining revenue growth reflects challenges in maintaining market share and competitiveness, which could hinder long-term profitability and strategic initiatives.

Negative Profitability

Negative profitability suggests operational inefficiencies and cost management issues, which could undermine long-term financial health and shareholder value.

Hiraki Co., Ltd. Business Overview & Revenue Model

Company Description

Hiraki Co., Ltd. (3059) is a Japanese company specializing in the development and distribution of innovative technology solutions, primarily within the fields of digital transformation and information technology services. The company focuses on providing a range of products and services, including software development, IT consulting, and cloud solutions, aimed at enhancing operational efficiency for businesses across various sectors.

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

Hiraki Co., Ltd. is facing challenges in revenue growth and profitability, with negative net income and declining revenue trends. The balance sheet shows moderate leverage, but the negative return on equity is concerning. Cash flow metrics indicate some improvement in free cash flow, but operational cash generation remains weak. Overall, the company needs to address its profitability and operational efficiency to improve its financial health.

Income Statement

Hiraki Co., Ltd. has faced declining revenue over recent periods, with a negative revenue growth rate of -1.36% TTM. The company is experiencing negative net profit margins and EBIT margins, indicating operational challenges. The gross profit margin remains relatively stable at around 45%, but overall profitability is under pressure.

Balance Sheet

The balance sheet shows a debt-to-equity ratio of approximately 1.01, indicating moderate leverage. However, the return on equity is negative, reflecting the company's struggles to generate returns for shareholders. The equity ratio is not explicitly calculated, but the company's equity position appears stable relative to its assets.

Cash Flow

The cash flow statement shows a significant improvement in free cash flow growth, with a 135.19% increase TTM. However, the operating cash flow to net income ratio is low at 0.046, suggesting limited cash generation from operations relative to net income. The free cash flow to net income ratio is more favorable at 0.216, indicating some ability to convert earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.54B	12.96B	13.31B	14.29B	15.20B	15.96B
Gross Profit	5.55B	5.85B	6.08B	6.62B	7.39B	7.48B
EBITDA	-388.27M	-282.40M	326.69M	501.36M	1.00B	1.18B
Net Income	-788.11M	-689.81M	-15.16M	111.70M	466.55M	560.44M
Balance Sheet
Total Assets	15.66B	15.07B	16.26B	16.44B	16.74B	17.11B
Cash, Cash Equivalents and Short-Term Investments	7.65B	6.48B	6.79B	5.73B	7.06B	6.79B
Total Debt	7.56B	6.64B	6.83B	6.99B	7.12B	7.39B
Total Liabilities	9.27B	8.51B	8.91B	8.99B	9.32B	10.02B
Stockholders Equity	6.39B	6.56B	7.36B	7.45B	7.42B	7.10B
Cash Flow
Free Cash Flow	230.54M	34.94M	1.37B	-1.05B	672.69M	1.19B
Operating Cash Flow	262.99M	162.15M	1.43B	-899.44M	741.38M	1.30B
Investing Cash Flow	-307.05M	-667.00K	-890.77M	746.81M	-36.55M	-714.12M
Financing Cash Flow	-328.82M	-342.49M	-305.95M	-268.85M	-401.78M	-472.13M

Hiraki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 832.00
• 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:3059, the sentiment is Negative. The current price of 832 is below the 20-day moving average (MA) of 833.05, below the 50-day MA of 835.00, and below the 200-day MA of 845.41, indicating a bearish trend. The MACD of -0.66 indicates Positive momentum. The RSI at 39.31 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3059.

Hiraki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3181	80 Outperform	¥3.28B	10.66	―	1.12%	24.10%	-15.55%
3172	70 Outperform	¥4.92B	14.63	―	3.47%	-11.32%	1.10%
3190	66 Neutral	¥4.01B	13.59	―	1.76%	4.95%	17.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3195	48 Neutral	¥4.09B	25.35	―	―	1.95%	―
3059	45 Neutral	¥4.05B	-4.64	―	2.41%	-3.69%	-11429.88%