Hirakawa Hewtech Corp. (5821) AI Stock Analysis

• Market Cap: ¥65.31B
• Dividend Yield: 1.52%
• Average Volume (3M): 92.50K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 1.04
• 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: 73 Outperform
• Price Target: ¥4,845.00 ▲(71.81% Upside)

The score is driven primarily by strong financial performance (improving margins, very low leverage, and a high equity ratio). Technicals are supportive due to a strong uptrend and positive MACD, but overbought RSI/Stoch readings temper the outlook. Valuation is reasonable but not especially cheap, and the dividend yield is modest.

Positive Factors

Strong balance sheet

Extremely low leverage (debt-to-equity 0.08) and an 82.19% equity ratio give the company durable financial flexibility. This capital structure reduces solvency risk, supports investment or cyclical buffering, and lowers refinancing pressure over the next several quarters.

Improving profitability

Sequential revenue growth and margin expansion (gross margin 23.46%, net margin 6.58%) indicate sustainable improvements in cost structure and pricing. These trends support durable operating cash generation and create a buffer against margin pressure in typical industry cycles.

Positive cash generation

Rebounded free cash flow (positive ¥/USD 2.28B) and an operating cash flow to net income ratio of 1.92 show the business converts earnings into cash reliably. That strengthens funding for capex, working capital and shareholder returns while preserving balance sheet resilience.

Negative Factors

Free cash flow volatility

Although FCF is positive in 2025, historical volatility in free cash flow undermines predictability for reinvestment and distributions. Irregular FCF can force conservative capital allocation, limit accelerated growth projects, and increase sensitivity to working capital swings.

Fluctuating operational margins

Variability in EBIT/EBITDA margins points to sensitivity to input costs, mix shifts, or operational execution. Persistent margin swings can constrain long-term profitability improvement and make forecasting earnings and cash flow less reliable during commodity or demand cycles.

Modest return on equity

An ROE of ~5.23% is modest, indicating limited profit generated per unit of equity. Over time this can restrict the company’s ability to deliver high shareholder returns or to self-fund aggressive expansion without dilutive financing or higher operational leverage.

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: revenue grew 5.04% (2025 vs 2024), gross margin improved to 23.46% and net margin to 6.58%. Balance sheet is very solid with low leverage (debt-to-equity 0.08) and a high equity ratio (82.19%). Cash flow is improving with positive free cash flow (¥2.28B) and strong cash conversion (operating cash flow to net income 1.92), but free cash flow has been volatile.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Neutral

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 3576.75, below the 50-day MA of 3143.88, and above the 200-day MA of 2260.42, indicating a bullish trend. The MACD of 395.50 indicates Negative momentum. The RSI at 72.51 is Negative, neither overbought nor oversold. The STOCH value of 75.69 is Neutral, 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	¥65.35B	11.34	―	2.82%	-5.63%	52.73%
8070	74 Outperform	¥26.93B	5.74	―	3.66%	-18.88%	42.17%
5821	73 Outperform	¥65.31B	19.14	―	1.52%	5.75%	59.69%
8014	73 Outperform	¥111.60B	11.03	―	3.74%	-2.33%	-16.42%
5355	72 Outperform	¥4.37B	9.73	―	2.79%	3.32%	18.84%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5721	48 Neutral	¥83.37B	-18.89	―	―	―	―

Hirakawa Hewtech Corp. Corporate Events

Hirakawa Hewtech to Boost Liquidity With Treasury Share Allotment

Hirakawa Hewtech Corp. has approved a no‑charge share allotment using treasury shares, aiming to boost the liquidity of its stock and return profits to shareholders without altering total issued shares or requiring any action from investors. The move addresses the company’s sizeable treasury stake, equivalent to 16.01% of outstanding shares, by distributing 0.05 share per existing share as of March 31, 2026, with 740,278 shares slated for allocation and fractional entitlements to be monetized and paid out proportionally.

The allotment, effective April 1, 2026, will not change the company’s share capital and will temporarily decouple year‑end dividends from the increased share count, with fiscal 2025 year‑end payouts based on pre‑allotment holdings. From the interim dividend for the year ending March 2027, payments will reflect post‑allotment share numbers, reinforcing management’s emphasis on stable and continuous dividends while enhancing market circulation and potentially improving valuation and trading conditions for existing shareholders.

The most recent analyst rating on (JP:5821) stock is a Buy with a Yen4508.00 price target. To see the full list of analyst forecasts on Hirakawa Hewtech Corp. stock, see the JP:5821 Stock Forecast page.

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.