HABA Laboratories, Inc. (4925) AI Stock Analysis

• Market Cap: ¥6.80B
• Dividend Yield: 2.38%
• Average Volume (3M): 2.14K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.26
• Revenue Growth: -0.79%
• EPS Growth: N/A
• Country: JP
• Employees: 631
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 34.53
• Shares Outstanding: 3,935,000
• 10 Day Avg. Volume: 2,940
• 30 Day Avg. Volume: 2,136
• PEG Ratio: -0.09
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.55
• P/FCF Ratio: 4.44
• 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: 69 Neutral
• Price Target: ¥1,970.00 ▲(18.67% Upside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is driven primarily by improved FY2025 profitability and cash flow alongside a conservatively positioned balance sheet, tempered by recent revenue contraction and historical volatility. Technicals are mildly supportive, and valuation is reasonable with a moderate dividend yield.

Positive Factors

Balance sheet strength

HABA's strong equity base and low leverage provide a durable financial cushion. Low debt-to-equity reduces refinancing and solvency risk, supporting capital allocation for operations, dividends or selective investment over the next several months even if revenue remains pressured.

Improving operating cash flow

Recent improvement in operating cash flow indicates better cash conversion from core operations. That enhances short-to-medium term liquidity, supports working capital and discretionary spending, and partially offsets prior free cash flow volatility when sustaining operations or funding initiatives.

Robust gross margins

Sustained strong gross margins point to effective pricing or cost control in core product lines. This structural margin buffer helps absorb revenue softness, supports operating leverage recovery, and preserves capacity to invest in marketing or product development to stabilize growth.

Negative Factors

Declining revenue trend

A negative revenue growth trend reduces scale and puts pressure on fixed-cost absorption. Persistent top-line contraction constrains reinvestment, weakens negotiating leverage with suppliers, and makes it harder to restore margins and earnings, posing a sustained medium-term growth risk.

Volatile profitability

Significant swings in net income and erratic EBIT/EBITDA margins indicate unstable operating performance. This unpredictability complicates planning, capital allocation and dividend policy, and suggests structural issues in demand, pricing, or cost control that may persist absent strategic fixes.

Inconsistent free cash flow growth

Struggles to grow free cash flow historically reduce flexibility for investments, debt reduction and shareholder returns. Even with recent OCF improvement, inconsistent FCF undermines confidence in sustainable internal funding and creates execution risk over the next several quarters.

HABA Laboratories, Inc. Business Overview & Revenue Model

Company Description

HABA Laboratories,Inc. manufactures and sells skin care, and hair and body care products in Japan and internationally. Its skin care products include cleansers/face washes, toners, special care products, and squalane oils; and hair and body care products comprise shampoos, conditioners, soaps, and hair and hand treatment products. The company sells its products through mail order, shops, drug/variety stores, and internet. It has approximately 70 HABA shops located in department stores, shopping malls, etc. HABA Laboratories,Inc. was founded in 1983 and is headquartered in Tokyo, Japan.

How the Company Makes Money

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HABA Laboratories, Inc. Financial Statement Overview

Summary

Financials show a clear rebound in FY2025 with a return to positive earnings and improved cash generation, supported by low leverage. Offsetting this, revenue is slightly contracting and profitability/cash flow have been volatile over recent years, suggesting the turnaround is not yet fully proven.

Income Statement

Profitability has meaningfully improved in the latest year, with the company returning to positive earnings and solid gross margins (about mid-60s), after two consecutive years of sizable losses. However, the revenue line is still slightly contracting (about -1.9% year over year in FY2025), and operating-level profitability remains modest versus earlier peak years, pointing to a still-incomplete turnaround despite the sharp recovery from FY2024.

Balance Sheet

The balance sheet looks conservatively positioned: leverage is low with debt at roughly 0.20x equity in FY2025, and equity represents a substantial capital base. Returns on equity have rebounded to positive (~6%), but remain below the stronger levels seen earlier in the cycle, suggesting improved but not yet fully normalized profitability.

Cash Flow

Cash generation strengthened materially in FY2025, with operating cash flow and free cash flow both solidly positive, and free cash flow running close to reported earnings. That said, cash flow has been volatile over the period (including negative operating and free cash flow in FY2024 and negative free cash flow in FY2023), which reduces confidence in durability until the improved run-rate is sustained.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	12.02B	12.06B	12.32B	12.04B	12.91B	14.31B
Gross Profit	8.08B	7.99B	8.03B	8.17B	8.79B	10.20B
EBITDA	826.86M	811.56M	-1.31B	17.05M	448.30M	960.14M
Net Income	638.78M	576.57M	-2.12B	-707.87M	-269.03M	216.42M
Balance Sheet
Total Assets	11.76B	12.34B	12.43B	14.73B	15.76B	17.52B
Cash, Cash Equivalents and Short-Term Investments	4.48B	4.74B	3.96B	4.82B	5.65B	5.66B
Total Debt	1.56B	1.82B	2.36B	2.03B	2.56B	3.92B
Total Liabilities	2.95B	3.42B	3.92B	3.96B	4.12B	5.48B
Stockholders Equity	8.82B	8.93B	8.51B	10.77B	11.64B	12.04B
Cash Flow
Free Cash Flow	0.00	1.48B	-1.02B	-232.69M	1.53B	-346.95M
Operating Cash Flow	0.00	1.62B	-587.92M	55.96M	1.71B	534.71M
Investing Cash Flow	0.00	-147.18M	-441.79M	-214.40M	-216.49M	-925.08M
Financing Cash Flow	0.00	-689.49M	171.06M	-676.32M	-1.51B	825.38M

HABA Laboratories, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1660.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4925, the sentiment is Neutral. The current price of 1660 is below the 20-day moving average (MA) of 1816.55, below the 50-day MA of 1764.70, and below the 200-day MA of 1707.82, indicating a neutral trend. The MACD of 11.38 indicates Positive momentum. The RSI at 52.68 is Neutral, neither overbought nor oversold. The STOCH value of 33.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4925.

HABA Laboratories, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4925	69 Neutral	¥6.80B	12.52	―	2.38%	-0.79%	―
4920	68 Neutral	¥2.15B	3.43	―	1.72%	-6.06%	-97.12%
4933	64 Neutral	¥18.88B	33.88	―	0.91%	13.12%	27.53%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
4926	58 Neutral	¥5.69B	-33.12	―	1.68%	8.46%	―
4936	58 Neutral	¥7.79B	-49.92	―	2.65%	11.87%	-31.02%
4918	51 Neutral	¥2.00B	-3.04	―	―	12.96%	―