Hirakawa Hewtech Corp. (5821) AI Stock Analysis

• Market Cap: ¥27.35B
• Dividend Yield: 2.34%
• Average Volume (3M): 56.53K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.84
• Revenue Growth: 1.70%
• EPS Growth: 42.11%
• Country: JP
• Employees: 2,212
• Sector: Industrials
• Sector Strength: 83
• Industry: Conglomerates
• EPS (TTM): 64.15
• Shares Outstanding: 18,509,190
• 10 Day Avg. Volume: 81,450
• 30 Day Avg. Volume: 56,533
• 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: ¥1,777.00
• Price Target Upside: -5.68% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥1,777.00 ▼(-5.68% Downside)

Hirakawa Hewtech Corp. exhibits strong financial performance, supported by robust balance sheet metrics and improving cash flows. The stock shows positive technical trends but is at risk of being overbought. Reasonable valuation and a decent dividend yield further enhance its attractiveness, making it a solid choice for growth and income-focused investors.

Hirakawa Hewtech Corp. Business Overview & Revenue Model

Company Description

Hirakawa Hewtech Corp. (5821) is a Japanese company that specializes in the manufacturing and sale of wires, cables, and related products. The company operates across various sectors, including automotive, electronics, and industrial equipment, providing essential components for communication and power transmission. Its core products include electric wires, cables, and harnesses designed to meet diverse industrial needs.

How the Company Makes Money

Hirakawa Hewtech Corp. generates revenue primarily through the sale of its electric wires, cables, and harnesses. The company serves a wide range of industries, which contributes to a diversified income stream. Key revenue sources include supplying automotive manufacturers with wiring systems and providing the electronics sector with critical components for various devices. Additionally, Hirakawa Hewtech may engage in partnerships with other firms to enhance its product offerings and expand its market reach, further supporting its revenue growth.

Hirakawa Hewtech Corp. Financial Statement Overview

Summary

Hirakawa Hewtech Corp. exhibits strong financial health, characterized by steady revenue growth, improving profitability margins, and robust balance sheet metrics. While cash flow has shown some volatility, recent improvements are promising. The company's low leverage and efficient use of equity provide a stable financial foundation, positioning it well for future growth in the conglomerates industry.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	30.80B	29.33B	32.22B	27.80B	22.95B
Gross Profit	7.22B	6.53B	7.83B	6.00B	5.53B
EBITDA	4.04B	3.23B	4.57B	3.33B	2.85B
Net Income	2.03B	1.44B	2.96B	1.50B	1.08B
Balance Sheet
Total Assets	47.11B	46.55B	44.27B	41.57B	37.18B
Cash, Cash Equivalents and Short-Term Investments	13.94B	12.69B	9.32B	8.78B	8.50B
Total Debt	2.95B	3.21B	3.23B	4.43B	4.28B
Total Liabilities	8.38B	9.07B	10.14B	11.16B	9.70B
Stockholders Equity	38.72B	37.48B	34.13B	30.42B	27.48B
Cash Flow
Free Cash Flow	2.28B	3.10B	-326.00M	-203.00M	-1.32B
Operating Cash Flow	3.89B	4.20B	1.60B	968.00M	1.32B
Investing Cash Flow	-2.24B	-1.35B	-677.00M	-284.00M	-3.02B
Financing Cash Flow	-912.00M	-763.00M	-1.68B	-305.00M	-306.00M

Hirakawa Hewtech Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1884.00
• 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 1884 is above the 20-day moving average (MA) of 1659.70, above the 50-day MA of 1533.14, and above the 200-day MA of 1416.70, indicating a bullish trend. The MACD of 107.59 indicates Negative momentum. The RSI at 80.25 is Negative, neither overbought nor oversold. The STOCH value of 91.63 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	80 Outperform	¥53.33B	11.66		2.78%	-14.87%	-0.65%
8070	76 Outperform	¥24.71B	11.13		3.90%	8.75%	―
5355	74 Outperform	¥4.04B	10.79		2.82%	1.81%	29.37%
8014	73 Outperform	¥96.47B	9.66		3.61%	-0.89%	-13.53%
5821	71 Outperform	¥27.35B	12.00		2.34%	1.70%	42.11%
5721	65 Neutral	¥17.42B	312.50		―	-24.20%	-82.44%
Sector *	63 Neutral	$10.80B	16.55	6.58%	2.06%	2.37%	-15.86%

Hirakawa Hewtech Corp. Corporate Events

Hirakawa Hewtech Revises Earnings Forecast Following Strategic Acquisition

Hirakawa Hewtech Corp. announced an extraordinary income gain due to the acquisition of Yoshinogawa Electric Wire & Cable Co., Ltd., which has been made a subsidiary. This acquisition resulted in a 443 million yen gain on bargain purchase, prompting the company to revise its full-year consolidated earnings forecast, increasing the profit attributable to owners of the parent by 17.4%. This strategic move is expected to strengthen Hirakawa Hewtech’s market position and improve financial performance.

Hirakawa Hewtech Corp. Reports Q1 Financial Results and Revises Earnings Forecast

Hirakawa Hewtech Corp. reported a slight increase in net sales for the three months ended June 30, 2025, with a notable rise in operating profit by 22.9% year-on-year. However, ordinary profit saw a decline of 32.8%. The company has revised its earnings forecast for the fiscal year ending March 31, 2026, indicating a positive outlook with expected increases in net sales, operating profit, and profit attributable to owners of the parent.

Hirakawa Hewtech Finalizes Treasury Share Disposal for Stock Compensation

Hirakawa Hewtech Corp. has completed the payment procedures for the disposal of 4,500 treasury shares as restricted stock compensation, a decision made at the Board of Directors meeting on June 27, 2025. This move involves a total disposal amount of 6,322,500 yen, with shares allocated to directors within the company and its subsidiaries, potentially impacting the company’s financial structuring and stakeholder interests.

Hirakawa Hewtech Corp. Announces Treasury Share Disposal for Employee Incentives

Hirakawa Hewtech Corp. has announced a plan to dispose of its treasury shares as restricted stock incentives for its Employee Shareholding Association. This initiative is designed to enhance employee welfare and align their interests with shareholders by allowing employees to acquire company stock, thereby promoting corporate value and asset building among employees. The disposal involves 39,900 shares at a price of 1,405 yen each, with the potential for a 0.23% stock dilution if all eligible employees participate.

Hirakawa Hewtech Corp. Announces Treasury Share Disposal for Stock Compensation Plan

Hirakawa Hewtech Corp. has announced a decision to dispose of its treasury shares as part of a new restricted stock compensation plan. This initiative aims to incentivize directors and employees by aligning their interests with shareholders and promoting sustainable corporate value improvement. The plan, approved at the company’s general meeting, sets a cap on the annual remuneration and number of shares issued, with transfer restrictions until the resignation or retirement of the recipients.

Hirakawa Hewtech Corp. Introduces Restricted Stock Remuneration System

Hirakawa Hewtech Corp. announced the introduction of a restricted stock remuneration system aimed at aligning the interests of its directors with those of shareholders and promoting sustainable corporate value improvement. This new compensation system, which will be proposed at the upcoming General Meeting of Shareholders, allows eligible directors to receive company common stock or monetary claims to acquire such stock, with a compensation limit set separately from existing director compensation limits.