Hirakawa Hewtech Corp. (5821) AI Stock Analysis

• Market Cap: ¥20.42B
• Dividend Yield: 3.15%
• Average Volume (3M): 39.61K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.81
• Revenue Growth: 5.03%
• EPS Growth: 40.30%
• Country: JP
• Employees: 2,212
• Sector: Industrials
• Sector Strength: 89
• Industry: Conglomerates
• EPS (TTM): 29.62
• Shares Outstanding: 18,509,190
• 10 Day Avg. Volume: 42,720
• 30 Day Avg. Volume: 39,610
• PEG Ratio: 0.07
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -65.67
• 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: ¥1,639.00
• Price Target Upside: 19.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥1,563.00 ▲(14.25%Upside)

Hirakawa Hewtech Corp. demonstrates robust financial performance with strong revenue growth and a solid balance sheet, making it a stable investment in the conglomerates sector. Despite neutral technical indicators, the stock's attractive valuation, characterized by a low P/E ratio and healthy dividend yield, enhances its appeal for value 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. shows strong financial health with consistent revenue growth, improved profitability margins, and a robust balance sheet. While cash flow has been volatile, recent positive trends are promising, and the company's low leverage provides stability.

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	30.45B	30.80B	29.33B	32.22B	27.80B	22.95B
Gross Profit	7.07B	7.22B	6.53B	7.83B	6.00B	5.53B
EBITDA	2.77B	4.04B	3.23B	4.57B	3.33B	2.85B
Net Income	2.20B	2.03B	1.44B	2.96B	1.50B	1.08B
Balance Sheet
Total Assets	49.21B	47.11B	46.55B	44.27B	41.57B	37.18B
Cash, Cash Equivalents and Short-Term Investments	14.69B	13.94B	12.69B	9.32B	8.78B	8.50B
Total Debt	3.45B	2.95B	3.21B	3.23B	4.43B	4.28B
Total Liabilities	9.54B	8.38B	9.07B	10.14B	11.16B	9.70B
Stockholders Equity	39.67B	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: 1368.00
• 50DMA: Negative
• 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 1368 is below the 20-day moving average (MA) of 1422.05, below the 50-day MA of 1421.24, and below the 200-day MA of 1391.00, indicating a neutral trend. The MACD of -18.72 indicates Positive momentum. The RSI at 48.64 is Neutral, neither overbought nor oversold. The STOCH value of 62.64 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
8014	80 Outperform	¥100.53B	8.64		3.96%	1.25%	21.02%
8157	76 Outperform	¥47.29B	10.91		3.20%	-21.30%	-13.68%
8070	75 Outperform	¥20.70B	9.32		4.64%	8.75%	―
5355	74 Outperform	¥4.05B	10.80		2.82%	1.81%	29.37%
5821	72 Outperform	¥20.42B	10.46		3.15%	5.03%	40.30%
5721	65 Neutral	¥20.96B	407.27		―	-24.20%	-82.44%
Sector *	65 Neutral	$10.82B	15.59	5.20%	1.89%	3.09%	-26.84%

Hirakawa Hewtech Corp. Corporate Events

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.

Hirakawa Hewtech Corp. Reports Strong Financial Performance and Positive Outlook

Hirakawa Hewtech Corp. reported a significant improvement in its financial performance for the fiscal year ended March 31, 2025, with a 5% increase in net sales and a notable rise in profits compared to the previous year. The company has also announced a forecast for continued growth in the upcoming fiscal year, indicating strong market positioning and potential positive implications for stakeholders.

Hirakawa Hewtech Corp. Announces Treasury Stock Repurchase

Hirakawa Hewtech Corp. has announced a decision by its Board of Directors to repurchase fractional shares resulting from a recent gratis allotment of shares. This move is aimed at consolidating the company’s share structure and involves purchasing 110 shares of common stock at the closing price on the Tokyo Stock Exchange, aligning with the provisions of the Companies Act.