Hirakawa Hewtech Corp. (5821) AI Stock Analysis

• Market Cap: ¥32.84B
• Dividend Yield: 1.95%
• Average Volume (3M): 37.73K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.83
• Revenue Growth: 1.70%
• EPS Growth: 42.11%
• Country: JP
• Employees: 2,212
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 64.15
• Shares Outstanding: 18,509,190
• 10 Day Avg. Volume: 44,300
• 30 Day Avg. Volume: 37,730
• 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

• Rating: 75 Outperform
• Price Target: ¥2,480.00 ▲(15.13% Upside)

Hirakawa Hewtech Corp. scores well due to its strong financial performance and positive technical indicators. The company's robust balance sheet and consistent revenue growth are significant strengths. However, caution is advised due to cash flow volatility and technical indicators suggesting potential overbought conditions. The valuation is fair, providing a balanced investment outlook.

Hirakawa Hewtech Corp. Business Overview & Revenue Model

Company Description

Hirakawa Hewtech Corp. (5821) is a leading Japanese company specializing in the design, manufacturing, and sale of electronic components and materials. The company operates primarily in the semiconductor and electronic materials sectors, providing high-quality products such as semiconductor packaging materials, electronic circuit materials, and precision equipment. Hirakawa Hewtech is known for its innovation and commitment to quality, serving a diverse range of industries including consumer electronics, automotive, and telecommunications.

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

Hirakawa Hewtech Corp. shows strong financial health with consistent revenue growth and improved profitability margins. The balance sheet is robust with low financial leverage and high asset financing through equity. Despite some volatility in cash flow, recent improvements indicate promising recovery.

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: 2154.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 2154 is above the 20-day moving average (MA) of 2126.47, above the 50-day MA of 2010.41, and above the 200-day MA of 1540.03, indicating a bullish trend. The MACD of 64.11 indicates Positive momentum. The RSI at 64.07 is Neutral, neither overbought nor oversold. The STOCH value of 72.12 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	80 Outperform	¥51.27B	10.95	―	3.04%	-14.87%	-0.65%
5821	75 Outperform	¥32.84B	14.11	―	1.95%	1.70%	42.11%
8070	73 Outperform	¥25.19B	10.47	―	3.93%	-13.72%	―
5355	72 Outperform	¥4.06B	12.56	―	2.81%	1.65%	-1.61%
8014	72 Outperform	¥93.15B	9.20	―	3.75%	-0.89%	-13.53%
5721	65 Neutral	¥23.81B	366.29	―	―	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Hirakawa Hewtech Corp. Corporate Events

Hirakawa Hewtech Completes Treasury Stock Disposal for Employee Incentive Plan

Hirakawa Hewtech Corp. has announced the completion of payment procedures for the disposal of treasury stock as part of a restricted stock incentive plan for its Employee Stock Ownership Association. The company had previously resolved this action at a Board of Directors meeting on June 27, 2025. Due to partial forfeiture, there have been adjustments to the number of shares and the total amount disposed of, reflecting changes in the number of members agreeing to the incentive plan.

The most recent analyst rating on (JP:5821) stock is a Buy with a Yen1777.00 price target. To see the full list of analyst forecasts on Hirakawa Hewtech Corp. stock, see the JP:5821 Stock Forecast page.

Hirakawa Hewtech 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.