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

• Market Cap: ¥4.75B
• Dividend Yield: 3.19%
• Average Volume (3M): 1.27K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.23
• Revenue Growth: -20.10%
• EPS Growth: -14.13%
• Country: JP
• Employees: 493
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): -5.31
• Shares Outstanding: 3,994,000
• 10 Day Avg. Volume: 770
• 30 Day Avg. Volume: 1,273
• PEG Ratio: 0.40
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 8.45
• 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: 64 Neutral
• Price Target: ¥1,338.00 ▲(9.67% Upside)

The overall stock score of 64 reflects a balanced view of Hokuetsu Metal Co., Ltd.'s current position. The company's strong balance sheet and attractive valuation are offset by challenges in cash flow management and neutral technical indicators. The absence of recent earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Balance Sheet Strength

A strong balance sheet with low leverage and solid equity backing provides a robust foundation for future growth and financial stability.

Operational Efficiency

Enhanced operational efficiency, as seen in improved margins, suggests effective cost management and potential for increased profitability.

Cash Generation Ability

Strong cash generation relative to accounting profits ensures liquidity and supports ongoing operations and strategic investments.

Negative Factors

Revenue Growth Challenges

Inconsistent revenue growth may hinder long-term expansion and market competitiveness, affecting overall business sustainability.

Cash Flow Volatility

Volatile cash flow can limit financial flexibility and impact the company's ability to invest in growth opportunities or manage debt effectively.

Net Profit Margin Pressure

Sustained pressure on net profit margins may reduce profitability, affecting the company's ability to reinvest in business operations and growth.

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

Company Description

Hokuetsu Metal Co., Ltd. (5446) is a leading Japanese manufacturer specializing in the production of metal products, particularly aluminum and copper alloys. The company operates primarily in the automotive, electronics, and construction sectors, providing high-quality materials for various applications. With a focus on innovation and sustainability, Hokuetsu Metal is committed to developing advanced materials and solutions that meet the evolving needs of its customers.

How the Company Makes Money

Hokuetsu Metal Co., Ltd. generates revenue through the sale of its metal products, which include rolled and extruded aluminum and copper materials. The company has a diversified revenue model, relying on multiple key streams such as direct sales to manufacturers in the automotive and electronics industries, as well as partnerships with construction firms for specialized metal applications. Additionally, Hokuetsu Metal may engage in long-term contracts with major clients, ensuring a stable income base. Factors contributing to its earnings include the demand for lightweight materials in automotive design, growth in electronic devices requiring high-performance metals, and strategic collaborations with industry leaders to develop new products.

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 some 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.20B	28.73B	31.82B	31.04B	27.36B	21.82B
Gross Profit	3.73B	3.85B	3.67B	4.17B	2.14B	3.45B
EBITDA	1.75B	1.86B	1.77B	2.20B	243.67M	1.83B
Net Income	506.66M	572.17M	467.90M	1.01B	-967.69M	729.41M
Balance Sheet
Total Assets	26.34B	26.69B	28.76B	27.96B	26.54B	26.62B
Cash, Cash Equivalents and Short-Term Investments	2.08B	2.24B	2.77B	2.25B	2.71B	6.19B
Total Debt	2.58B	2.71B	3.77B	3.81B	3.76B	2.71B
Total Liabilities	8.65B	8.90B	11.79B	11.54B	11.17B	10.44B
Stockholders Equity	17.69B	17.79B	16.97B	16.42B	15.37B	16.17B
Cash Flow
Free Cash Flow	0.00	611.88M	657.82M	-469.24M	-4.52B	87.68M
Operating Cash Flow	0.00	1.62B	2.03B	898.68M	-2.47B	1.73B
Investing Cash Flow	0.00	-1.03B	-1.13B	-1.28B	-2.02B	-1.49B
Financing Cash Flow	0.00	-1.12B	-380.25M	-74.78M	1.00B	2.28B

Hokuetsu Metal Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1220.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 1220 is below the 20-day moving average (MA) of 1233.00, below the 50-day MA of 1241.20, and below the 200-day MA of 1281.79, indicating a bearish trend. The MACD of -4.11 indicates Positive momentum. The RSI at 38.95 is Neutral, neither overbought nor oversold. The STOCH value of 26.95 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
5491	70 Outperform	¥5.34B	4.19	―	―	-5.93%	-36.01%
5542	69 Neutral	¥5.52B	9.26	―	2.72%	-3.45%	34.97%
5446	64 Neutral	¥4.75B	12.31	―	3.19%	-20.10%	-14.13%
5609	63 Neutral	¥4.08B	7.95	―	3.64%	-4.20%	-11.70%
5986	63 Neutral	¥4.50B	13.90	―	2.06%	-1.86%	7.29%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5476	56 Neutral	¥6.68B	-0.94	―	―	3.22%	-451.22%