Hosoya Pyroengineering Co., Ltd. (4274) AI Stock Analysis

• Market Cap: ¥4.01B
• Dividend Yield: 1%
• Average Volume (3M): 65.51K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.85
• Revenue Growth: 11.25%
• EPS Growth: 58.54%
• Country: JP
• Employees: 90
• Sector: Basic Materials
• Sector Strength: 71
• Industry: Chemicals
• EPS (TTM): -9.15
• Shares Outstanding: 4,032,000
• 10 Day Avg. Volume: 74,950
• 30 Day Avg. Volume: 65,510
• PEG Ratio: 9.24
• Price to Book (P/B): 1.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 79.36
• 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

• Rating: 67 Neutral
• Price Target: ¥1,110.00 ▲(10.89%Upside)

The overall score reflects a strong financial performance in terms of revenue growth and profitability, tempered by cash flow challenges. Technical indicators suggest a neutral to bearish trend, while valuation metrics indicate the stock is fairly valued with a modest dividend yield. The absence of earnings call data and corporate events means these factors are not considered in the score.

Hosoya Pyroengineering Co., Ltd. Business Overview & Revenue Model

Company Description

Hosoya Pyroengineering Co., Ltd. (4274) is a Japanese company specializing in the development and manufacturing of pyrotechnic devices primarily for the automotive industry. The company focuses on producing automotive safety components, including airbag inflators, micro gas generators, and seatbelt pretensioners, which are critical for enhancing vehicle safety features. With a strong emphasis on research and innovation, Hosoya Pyroengineering leverages advanced technologies to deliver high-quality products that meet stringent safety standards.

How the Company Makes Money

Hosoya Pyroengineering Co., Ltd. generates revenue through the sale of its pyrotechnic devices to automotive manufacturers and suppliers. The company's key revenue streams include contracts and partnerships with major automotive companies that integrate its safety components into their vehicles. By maintaining a robust supply chain and focusing on innovation, Hosoya Pyroengineering is able to secure long-term agreements and expand its market presence. Additionally, the company invests in research and development to continuously enhance its product offerings, which helps in attracting new business and retaining existing clients. While specific financial details and partnership information are proprietary, the core of Hosoya Pyroengineering's earnings is driven by its role as a supplier of essential safety components in the automotive sector.

Hosoya Pyroengineering Co., Ltd. Financial Statement Overview

Summary

Strong revenue growth and profitability with a solid balance sheet and low leverage. However, cash flow challenges indicate potential cash management issues.

Income Statement

The company's income statement shows strong growth with a notable revenue increase of 11.3% from the previous year. Gross profit margin is solid at 32.3%, and the net profit margin improved to 10.8%, indicating enhanced profitability. The EBIT margin is 14.3%, and EBITDA margin stands at 18.0%, both reflecting operational efficiency. Overall, the income statement demonstrates positive trends in revenue and profitability, suggesting a well-managed cost structure.

Balance Sheet

The balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.20, indicating low leverage and prudent risk management. The company has a strong equity ratio of 71.3%, which signifies a robust capital structure. Return on equity is 6.9%, showing an adequate return to shareholders. Overall, the company maintains a healthy balance sheet with low financial risk and solid equity backing, although ROE could be improved.

Cash Flow

The cash flow statement shows a decrease in operating cash flow, resulting in a negative free cash flow of -133.7 million. The free cash flow to net income ratio is negative, indicating challenges in converting profits to cash. While past years showed positive free cash flow growth, recent figures suggest potential cash management issues. Improvements in cash generation and capital allocation are needed to strengthen liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.07B	2.04B	1.83B	1.76B	1.79B	1.56B
Gross Profit	772.07M	658.16M	535.90M	509.59M	524.53M	522.04M
EBITDA	479.63M	368.03M	271.40M	254.61M	252.22M	258.76M
Net Income	296.39M	219.80M	138.64M	132.32M	126.61M	143.31M
Balance Sheet
Total Assets	4.47B	4.48B	4.39B	4.28B	4.22B	4.11B
Cash, Cash Equivalents and Short-Term Investments	643.00M	725.35M	969.52M	1.20B	1.19B	868.19M
Total Debt	634.00M	635.01M	645.18M	769.75M	793.29M	818.71M
Total Liabilities	1.21B	1.29B	1.34B	1.35B	1.43B	1.38B
Stockholders Equity	3.27B	3.20B	3.05B	2.93B	2.79B	2.73B
Cash Flow
Free Cash Flow	0.00	-133.75M	-65.61M	69.64M	378.76M	-29.17M
Operating Cash Flow	0.00	-33.50M	19.08M	133.12M	440.93M	23.30M
Investing Cash Flow	0.00	-101.33M	-85.93M	-64.88M	-63.42M	-51.52M
Financing Cash Flow	0.00	-59.33M	-165.52M	-57.67M	-54.38M	-37.66M

Hosoya Pyroengineering Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1001.00
• 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:4274, the sentiment is Negative. The current price of 1001 is below the 20-day moving average (MA) of 1031.85, below the 50-day MA of 1024.26, and below the 200-day MA of 1075.72, indicating a bearish trend. The MACD of -6.58 indicates Positive momentum. The RSI at 44.06 is Neutral, neither overbought nor oversold. The STOCH value of 15.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4274.

Hosoya Pyroengineering Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4885	71 Outperform	¥2.94B	8.20		3.13%	10.31%	77.52%
4274	67 Neutral	¥4.01B	18.23		1.00%	11.25%	58.54%
4102	63 Neutral	¥3.04B	20.15		2.20%	-0.35%	-39.20%
4960	61 Neutral	¥4.31B	32.83		1.33%	5.14%	1.96%
4124	56 Neutral	¥2.59B	43,540.30		1.42%	4.98%	99.38%
4360	46 Neutral	¥4.31B	521.41		3.00%	-3.17%	-21.99%
Sector *	43 Neutral	AU$1.41B	-6.02	-40.74%	3.99%	-3.45%	-41.76%