Hirakawa Hewtech Corp. (5821) AI Stock Analysis

• Market Cap: ¥41.49B
• Dividend Yield: 1.52%
• Average Volume (3M): 92.50K
• Price to Earnings (P/E): 12.2
• 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: 71 Outperform
• Price Target: ¥2,959.00 ▲(4.93% Upside)

Hirakawa Hewtech Corp. demonstrates strong financial performance with robust revenue growth and a solid balance sheet, contributing significantly to the overall score. Technical analysis indicates strong momentum but warns of potential overbought conditions. Valuation metrics suggest the stock is fairly valued, with a reasonable P/E ratio and modest dividend yield. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Very low leverage / strong equity ratio

Extremely low debt and an 82% equity ratio provide long-term financial resilience. This reduces interest burden, preserves borrowing capacity for capex or acquisitions, and lessens solvency risk through economic cycles, supporting durable operational plans.

Consistent revenue growth and improving margins

Sustained top-line growth alongside rising gross and net margins indicates structural improvement in pricing or cost control. These trends support longer-term earnings stability, better reinvestment capacity, and higher operating cash conversion if maintained over multiple cycles.

Positive free cash flow and strong cash conversion

Re-established positive free cash flow and nearly 2x cash generation versus net income enhance funding flexibility for dividends, capex, and strategic investments. Durable cash generation improves balance-sheet optionality and reduces reliance on external financing.

Negative Factors

Free cash flow volatility

Despite a strong FCF rebound, historical swings imply inconsistent cash timing and working-capital sensitivity. Persistent volatility can constrain reliable capital allocation, force larger cash buffers or credit use, and complicate multi‑period investment and dividend planning.

EBIT/EBITDA margin variability

Variable operating margins signal inconsistent operational efficiency or exposure to input-cost swings. That reduces predictability of profit generation, makes long-term margin expansion harder, and raises execution risk for scalable margin improvement programs.

Modest return on equity and profitability

ROE near 5% and single-digit net margins suggest limited capital productivity relative to higher-return peers. Over the medium term this can constrain shareholder returns and indicates the business may be capital intensive or facing structural limits to margin and ROE expansion.

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

Hirakawa Hewtech Corp. exhibits strong financial health with consistent revenue growth, improved profitability margins, and a robust balance sheet. The low debt-to-equity ratio and strong equity financing enhance financial stability. However, cash flow volatility slightly tempers the overall financial performance score.

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: 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 2820 is below the 20-day moving average (MA) of 2821.75, below the 50-day MA of 2896.08, and above the 200-day MA of 2074.54, indicating a bullish trend. The MACD of -15.62 indicates Negative momentum. The RSI at 61.19 is Neutral, neither overbought nor oversold. The STOCH value of 58.10 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	¥61.07B	10.60	―	2.82%	-5.63%	52.73%
8070	74 Outperform	¥25.13B	8.41	―	3.66%	-18.88%	42.17%
8014	73 Outperform	¥101.27B	10.01	―	3.74%	-2.33%	-16.42%
5355	72 Outperform	¥4.31B	11.83	―	2.79%	3.32%	18.84%
5821	71 Outperform	¥41.49B	12.16	―	1.52%	5.75%	59.69%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5721	48 Neutral	¥83.37B	543.35	―	―	―	―

Hirakawa Hewtech Corp. Corporate Events

Hirakawa Hewtech Corp. Revises Financial Forecasts Upward Amid Strong Cable Sales

Hirakawa Hewtech Corp. has revised its full-year consolidated financial forecast for the fiscal year ending March 31, 2026, reflecting a positive outlook driven by strong sales in energy industry cables and new mass-produced automotive and medical cables. The company’s operating profit, ordinary profit, and profit attributable to owners are expected to surpass previous forecasts due to robust local demand and a recovery in the factory automation sector, indicating a strong market position and potential benefits for stakeholders.

The most recent analyst rating on (JP:5821) stock is a Buy with a Yen2677.00 price target. To see the full list of analyst forecasts on Hirakawa Hewtech Corp. stock, see the JP:5821 Stock Forecast page.

Hirakawa Hewtech Corp. Reports Strong Financial Growth and Revises Earnings Forecast

Hirakawa Hewtech Corp. reported significant financial growth for the six months ending September 30, 2025, with a notable increase in net sales and profits compared to the previous year. The company’s strong performance is highlighted by a 12.9% rise in net sales and a substantial 79.5% increase in profit attributable to owners, reflecting its improved market positioning and operational efficiency. The company also announced a revision in its earnings forecast for the fiscal year ending March 31, 2026, indicating continued optimism about its financial trajectory.

The most recent analyst rating on (JP:5821) stock is a Buy with a Yen2677.00 price target. To see the full list of analyst forecasts on Hirakawa Hewtech Corp. stock, see the JP:5821 Stock Forecast page.