Hirakawa Hewtech Corp. (5821) AI Stock Analysis

• Market Cap: ¥49.64B
• Dividend Yield: 1.52%
• Average Volume (3M): 92.50K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.83
• Revenue Growth: 5.75%
• EPS Growth: 59.69%
• Country: JP
• Employees: 2,212
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 76.26
• Shares Outstanding: 18,509,190
• 10 Day Avg. Volume: 109,080
• 30 Day Avg. Volume: 92,496
• PEG Ratio: 0.31
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 9.14
• 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: 74 Outperform
• Price Target: ¥3,334.00 ▲(18.23% Upside)

The score is driven primarily by strong financial performance—especially the robust balance sheet with very low leverage and improving profitability—partly offset by cash-flow volatility. Technicals are constructive on trend (price above major moving averages) but tempered by negative MACD. Valuation is supportive with a moderate P/E and a modest dividend yield.

Positive Factors

Very low leverage / strong balance sheet

Extremely low debt (D/E 0.08) and an 82.19% equity ratio provide durable financial flexibility. This reduces interest burden, supports investment or dividend optionality, and improves resilience to cyclical downturns, enabling long-term capital allocation without refinancing risk.

Improving profitability and margins

Rising gross and net margins signal better cost control and pricing power in core wire/cable products. Sustained margin expansion supports durable cash generation, funds reinvestment, and increases operating leverage, which enhances long-term earnings stability if maintained.

Consistent revenue growth

Steady top-line growth demonstrates continued market demand and customer retention in electrical and industrial end markets. Persistent revenue gains help spread fixed costs, support scale advantages, and underpin sustainable profit improvement over multiple reporting periods.

Negative Factors

Free cash flow volatility

Although FCF recovered to ¥2.28bn and operating cash flow to net income is strong (1.92x), historical swings in free cash flow reduce predictability for capex, M&A, and dividends. Persistent volatility can constrain long-term planning and investor confidence.

EBIT/EBITDA margin fluctuations

Variable operating margins indicate sensitivity to input costs, product mix, or operational execution. Such fluctuations impair earnings predictability, make multi-period forecasting harder, and can limit the company's ability to lock in sustainable margin improvement.

Modest return on equity

An ROE of ~5.2% is modest given the business's equity-heavy capital structure. This suggests limited capital efficiency and could constrain long-term shareholder returns unless the company boosts margins, asset turnover, or pursues higher-return investments.

Hirakawa Hewtech Corp. Business Overview & Revenue Model

Company Description

Hirakawa Hewtech Corp. manufactures and sells cable and assemblies, electric and electronic equipment, and medical equipment and parts in Japan and internationally. The company offers super-fine coaxial cables for medical precision equipment; board-in cables for board mounting; wire harness products used as internal wiring and inter-machine wiring for multimedia-related industrial equipment; digital interface cables to support digital signals; and infiniband cables for connections between servers, storage devices, etc. It also provides factory automation cables that connect industrial machineries, including robot and machine tools; LCD cables to connect the displays notebook computers with main boards; flexible and power cords, and power supply parts, as well as EMI shielding products; and broadcasting cables, such as optical camera cables and HC-4E6 microphone cords. In addition, the company offers broadcast and network products; and develops, manufactures, and sells special medical tubing, as well as related processed goods used in medical, analysis equipment, and other special industrial fields. Further, it undertakes design, execution, and management and contract works of electrical and telecommunications work; and leases and manages real estate properties. The company was formerly known as Hirakawa Electric Wire Corporation and changed its name to Hirakawa Hewtech Corp. in October 1990. Hirakawa Hewtech Corp. was incorporated in 1948 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Hirakawa Hewtech Corp. generates revenue primarily through the sale of its electronic components and materials to various industries. The company has a diversified revenue model that includes direct sales to OEMs (Original Equipment Manufacturers) and distributors, which form a significant portion of its revenue streams. Key revenue streams include semiconductor packaging materials, which are essential for the assembly of integrated circuits, and electronic circuit materials used in various electronic devices. Additionally, Hirakawa Hewtech benefits from strategic partnerships and collaborations with technology firms and research institutions, enabling access to new markets and advanced technologies that enhance its product offerings. The company's focus on R&D and innovation helps to maintain a competitive edge, driving growth and the ability to command premium pricing for its high-quality products.

Hirakawa Hewtech Corp. Financial Statement Overview

Summary

Strong overall fundamentals supported by solid Income Statement (80) and Balance Sheet (85) scores: steady revenue growth, improving margins, very low leverage (debt-to-equity 0.08), and a high equity ratio (82.19%). Cash Flow is the main limiter (70) due to historical volatility, despite a rebound to positive free cash flow and strong operating cash flow conversion.

Income Statement

Hirakawa Hewtech Corp. has demonstrated consistent revenue growth, with a 5.04% increase in 2025 compared to 2024. The gross profit margin improved to 23.46% in 2025, signaling efficient production and cost management. Net profit margin also rose to 6.58%, reflecting enhanced profitability. However, EBIT and EBITDA margins have shown some fluctuations, indicating variable operational efficiency over the years.

Balance Sheet

The company's balance sheet is robust, with a debt-to-equity ratio significantly decreasing over the years, now at 0.08 in 2025, indicating low financial leverage. Return on Equity (ROE) improved to 5.23%, showing effective use of equity capital. The equity ratio remains strong at 82.19%, suggesting high asset financing through equity rather than debt, which enhances financial stability.

Cash Flow

Free cash flow has rebounded to a positive $2.28 billion in 2025, showing recovery from previous years' negative figures. The operating cash flow to net income ratio is healthy at 1.92, indicating strong cash generation relative to net income. However, fluctuations in free cash flow growth suggest some volatility in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.82B	30.80B	29.33B	32.22B	27.80B	22.95B
Gross Profit	7.35B	7.22B	6.53B	7.83B	6.00B	5.53B
EBITDA	4.52B	4.04B	3.23B	5.39B	3.33B	2.69B
Net Income	2.25B	2.03B	1.44B	2.96B	1.50B	1.08B
Balance Sheet
Total Assets	52.20B	47.11B	46.55B	44.27B	41.57B	37.18B
Cash, Cash Equivalents and Short-Term Investments	15.55B	13.94B	12.69B	9.32B	8.78B	8.50B
Total Debt	5.65B	2.95B	3.21B	3.23B	4.43B	4.28B
Total Liabilities	12.22B	8.38B	9.07B	10.14B	11.16B	9.70B
Stockholders Equity	38.82B	38.72B	37.48B	34.13B	30.42B	27.48B
Cash Flow
Free Cash Flow	0.00	2.28B	3.10B	-326.00M	-203.00M	-1.32B
Operating Cash Flow	0.00	3.89B	4.20B	1.60B	968.00M	1.32B
Investing Cash Flow	0.00	-2.24B	-1.35B	-677.00M	-284.00M	-3.02B
Financing Cash Flow	0.00	-912.00M	-763.00M	-1.68B	-305.00M	-306.00M

Hirakawa Hewtech Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2820.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5821, the sentiment is Positive. The current price of 2820 is below the 20-day moving average (MA) of 2871.40, below the 50-day MA of 2907.58, and above the 200-day MA of 2097.13, indicating a bullish trend. The MACD of 67.80 indicates Negative momentum. The RSI at 76.96 is Negative, neither overbought nor oversold. The STOCH value of 92.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5821.

Hirakawa Hewtech Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8157	75 Outperform	¥62.06B	10.77	―	2.82%	-5.63%	52.73%
5821	74 Outperform	¥49.64B	14.55	―	1.52%	5.75%	59.69%
8070	74 Outperform	¥25.53B	8.55	―	3.66%	-18.88%	42.17%
8014	73 Outperform	¥104.71B	10.35	―	3.74%	-2.33%	-16.42%
5355	72 Outperform	¥4.35B	11.94	―	2.79%	3.32%	18.84%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5721	48 Neutral	¥86.43B	579.30	―	―	―	―

Hirakawa Hewtech Corp. Corporate Events

Hirakawa Hewtech Posts Sharp Profit Surge and Affirms Robust FY2026 Outlook

Hirakawa Hewtech Corp. reported strong consolidated results for the nine months ended 31 December 2025, with net sales up 21.6% year on year to ¥28.55 billion and profit attributable to owners of the parent surging 84.8% to ¥2.94 billion, reflecting significant operating leverage as operating profit more than doubled. The company’s balance sheet expanded, with total assets rising to ¥58.15 billion and equity increasing to ¥43.25 billion, although the equity ratio declined due to the larger asset base, while earnings per share climbed to ¥198.64 after a free allotment of treasury shares. Management kept its full-year forecasts unchanged, projecting an 18.5% rise in net sales to ¥36.5 billion and a 62.9% jump in full-year profit to ¥3.3 billion, alongside a planned increase in annual dividends to ¥47 per share, signaling confidence in ongoing earnings growth and a commitment to shareholder returns.

The most recent analyst rating on (JP:5821) stock is a Buy with a Yen2959.00 price target. To see the full list of analyst forecasts on Hirakawa Hewtech Corp. stock, see the JP:5821 Stock Forecast page.