Hokuetsu Metal Co., Ltd. (5446) AI Stock Analysis

• Market Cap: ¥4.78B
• Dividend Yield: 3.61%
• Average Volume (3M): 2.32K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.25
• Revenue Growth: -15.00%
• EPS Growth: 9.27%
• Country: JP
• Employees: 493
• Sector: Basic Materials
• Sector Strength: 55
• Industry: Steel
• EPS (TTM): 8.89
• Shares Outstanding: 3,994,000
• 10 Day Avg. Volume: 1,390
• 30 Day Avg. Volume: 2,320
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,428.00
• Price Target Upside: 14.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ¥1,428.00 ▲(14.79% Upside)

Hokuetsu Metal Co., Ltd. has a stable financial foundation with strong balance sheet metrics, but cash flow concerns remain. Valuation metrics suggest the stock might be undervalued, supported by a high dividend yield. Technical indicators present a mixed view, with no strong momentum in either direction.

Hokuetsu Metal Co., Ltd. Business Overview & Revenue Model

Company Description

Hokuetsu Metal Co., Ltd. (5446) is a Japan-based company primarily engaged in the manufacturing and sale of metal products. The company specializes in producing a wide range of metal components and materials used across various industries, including construction, automotive, and machinery. Hokuetsu Metal Co., Ltd. is known for its high-quality metal processing capabilities and its commitment to innovation and sustainability in metal production.

How the Company Makes Money

Hokuetsu Metal Co., Ltd. generates revenue through the manufacturing and sale of metal products and components. The company's primary revenue streams include the sale of metal parts to industries such as construction, automotive, and machinery, which rely on the durability and precision of these components. Additionally, Hokuetsu Metal Co., Ltd. may engage in partnerships with key industrial players to supply custom metal solutions, further contributing to its earnings. The company also invests in research and development to enhance its production processes and offer advanced metal products, thereby maintaining its competitive edge and ensuring steady revenue growth.

Hokuetsu Metal Co., Ltd. Financial Statement Overview

Summary

Hokuetsu Metal Co., Ltd. demonstrates a mixed financial performance with signs of recovery in profitability and operational efficiency post-2022. The balance sheet is a strong point, reflecting low leverage and solid equity backing. However, cash flow management presents challenges, with fluctuations in free cash flow generation.

Income Statement

The company shows a mixed performance in its income statement metrics. Gross profit margin has been relatively stable, but net profit margins have been under pressure, especially with a significant dip in 2022 due to a negative net income. Revenue growth has been inconsistent, with a notable drop from 2024 to 2025. However, there is an improvement in EBIT and EBITDA margins since 2022, indicating some recovery in operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a strong equity base. Debt-to-equity ratio remains low, indicating conservative leverage practices. Return on equity shows improvement after a negative performance in 2022, suggesting enhanced profitability relative to shareholder equity. The equity ratio remains healthy, providing a solid foundation for future growth.

Cash Flow

Cash flow analysis reveals some concerns, particularly with free cash flow volatility. There was a negative free cash flow in 2022, but a recovery is evident in 2025. The operating cash flow to net income ratio indicates robust cash generation relative to accounting profits in recent years, although the free cash flow to net income ratio suggests some inefficiencies in capital expenditure management.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	28.73B	31.82B	31.04B	27.36B	21.82B
Gross Profit	3.85B	3.67B	4.17B	2.14B	3.45B
EBITDA	1.86B	1.77B	2.20B	243.67M	1.83B
Net Income	572.17M	467.90M	1.01B	-967.69M	729.41M
Balance Sheet
Total Assets	26.69B	28.76B	27.96B	26.54B	26.62B
Cash, Cash Equivalents and Short-Term Investments	2.24B	2.77B	2.25B	2.71B	6.19B
Total Debt	2.71B	3.77B	3.81B	3.76B	2.71B
Total Liabilities	8.90B	11.79B	11.54B	11.17B	10.44B
Stockholders Equity	17.79B	16.97B	16.42B	15.37B	16.17B
Cash Flow
Free Cash Flow	611.88M	657.82M	-469.24M	-4.52B	87.68M
Operating Cash Flow	1.62B	2.03B	898.68M	-2.47B	1.73B
Investing Cash Flow	-1.03B	-1.13B	-1.28B	-2.02B	-1.49B
Financing Cash Flow	-1.12B	-380.25M	-74.78M	1.00B	2.28B

Hokuetsu Metal Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1244.00
• 50DMA: Negative
• 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:5446, the sentiment is Negative. The current price of 1244 is below the 20-day moving average (MA) of 1244.60, below the 50-day MA of 1267.66, and below the 200-day MA of 1297.72, indicating a bearish trend. The MACD of -4.08 indicates Negative momentum. The RSI at 45.25 is Neutral, neither overbought nor oversold. The STOCH value of 48.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5446.

Hokuetsu Metal Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5542	77 Outperform	¥5.35B	8.98		2.53%	-6.55%	6.55%
5491	72 Outperform	¥5.00B	5.97		―	-2.76%	-44.71%
5609	69 Neutral	¥4.29B	16.44		3.35%	-8.45%	-42.89%
5986	65 Neutral	¥4.71B	14.52		1.97%	-0.82%	-9.80%
5446	65 Neutral	¥4.78B	9.46		3.61%	-15.00%	9.27%
Sector *	61 Neutral	$10.07B	6.27	0.59%	3.01%	2.91%	-45.05%
5476	45 Neutral	¥6.48B	―		12.44%	4.33%	-234.35%