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H-One Co., Ltd. (JP:5989)
:5989
Japanese Market
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H-One Co., Ltd. (5989) AI Stock Analysis

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JP:5989

H-One Co., Ltd.

(5989)

Rating:72Outperform
Price Target:
¥1,629.00
▲(6.96% Upside)
H-One Co., Ltd. receives a solid overall stock score of 72, driven primarily by its attractive valuation and positive technical indicators. The low P/E ratio and high dividend yield suggest the stock is undervalued, while the technical analysis indicates bullish momentum. However, the company's mixed financial performance, particularly challenges in revenue growth and cash flow generation, slightly dampens the score. Addressing these financial challenges could enhance the company's long-term sustainability and improve its stock score.

H-One Co., Ltd. (5989) vs. iShares MSCI Japan ETF (EWJ)

H-One Co., Ltd. Business Overview & Revenue Model

Company DescriptionH-One Co., Ltd. (5989) is a Japan-based company primarily engaged in the manufacture and sale of automotive parts. The company specializes in metal stamping and welding for automobile frames and parts, providing essential components to various automotive manufacturers. With a focus on innovation, quality, and efficiency, H-One Co., Ltd. plays a crucial role in the supply chain of the automotive industry.
How the Company Makes MoneyH-One Co., Ltd. generates revenue primarily through the production and sale of automotive components, focusing on metal stamping and welding. The company supplies these parts directly to automotive manufacturers, forming long-term partnerships and contracts that ensure a steady stream of income. Additionally, H-One Co., Ltd. may engage in research and development activities to improve product quality and maintain competitive advantage, which further supports its revenue growth. The company's earnings are also influenced by its ability to manage production costs, leverage technological advancements, and expand its market presence both domestically and internationally.

H-One Co., Ltd. Financial Statement Overview

Summary
H-One Co., Ltd. presents a mixed financial performance. The company demonstrates stable profitability and operational efficiency, as reflected in its income statement. The balance sheet shows a balanced financial structure with strong return on equity, despite high leverage. However, the company faces challenges in revenue growth and cash flow generation, which could impact its ability to invest in future growth. Overall, while the company is profitable, it needs to address its revenue and cash flow issues to ensure long-term sustainability.
Income Statement
65
Positive
H-One Co., Ltd. shows a mixed performance in its income statement. The company has a moderate gross profit margin of 13.90% and a net profit margin of 4.70% in the TTM period, indicating reasonable profitability. However, the revenue growth rate is negative at -3.16%, reflecting a decline in sales. The EBIT and EBITDA margins are stable at 5.32% and 9.52%, respectively, suggesting operational efficiency. Overall, the company demonstrates stable profitability but faces challenges in revenue growth.
Balance Sheet
70
Positive
The balance sheet of H-One Co., Ltd. reflects a stable financial position with a debt-to-equity ratio of 1.021, indicating a balanced use of debt and equity. The return on equity is strong at 17.50%, showcasing effective use of shareholder funds. The equity ratio stands at 36.20%, suggesting a solid equity base. Despite the high leverage, the company maintains a robust return on equity, highlighting its ability to generate returns for shareholders.
Cash Flow
60
Neutral
H-One Co., Ltd. faces challenges in its cash flow management. The free cash flow growth rate is negative at -31.21%, indicating a decline in cash available for reinvestment. The operating cash flow to net income ratio is 0.27, and the free cash flow to net income ratio is 0.23, suggesting moderate cash flow generation relative to net income. The company needs to improve its cash flow generation to support future growth and investment.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue220.95B228.15B232.73B225.51B170.59B163.93B
Gross Profit30.87B31.70B22.23B15.63B13.72B16.79B
EBITDA19.61B22.61B-3.91B15.46B11.45B18.16B
Net Income9.68B10.73B-21.66B-6.99B-1.39B2.84B
Balance Sheet
Total Assets177.51B178.53B181.60B187.31B193.98B163.97B
Cash, Cash Equivalents and Short-Term Investments19.27B19.31B18.89B10.42B7.19B3.60B
Total Debt66.46B65.34B71.77B65.47B64.94B45.31B
Total Liabilities111.20B112.99B126.04B118.40B118.38B91.65B
Stockholders Equity64.24B64.00B55.18B68.58B72.92B67.28B
Cash Flow
Free Cash Flow3.37B4.90B4.63B7.66B-16.67B3.57B
Operating Cash Flow18.54B21.08B19.49B21.96B5.71B14.58B
Investing Cash Flow-12.07B-13.15B-13.26B-15.19B-19.27B-12.21B
Financing Cash Flow-5.07B-7.34B1.28B-3.51B14.89B-11.65B

H-One Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1523.00
Price Trends
50DMA
1376.24
Positive
100DMA
1286.27
Positive
200DMA
1156.88
Positive
Market Momentum
MACD
34.04
Negative
RSI
69.65
Neutral
STOCH
78.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5989, the sentiment is Positive. The current price of 1523 is above the 20-day moving average (MA) of 1429.70, above the 50-day MA of 1376.24, and above the 200-day MA of 1156.88, indicating a bullish trend. The MACD of 34.04 indicates Negative momentum. The RSI at 69.65 is Neutral, neither overbought nor oversold. The STOCH value of 78.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5989.

H-One Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥42.82B4.41
3.28%-7.52%
61
Neutral
$17.92B12.81-2.97%2.98%1.30%-14.28%
€252.99M6.838.65%
79
Outperform
¥36.07B7.28
3.49%1.00%413.42%
72
Outperform
¥45.05B11.47
2.37%-18.46%-48.08%
72
Outperform
¥44.15B3.70
1.03%-1.12%-24.58%
55
Neutral
¥23.97B
3.11%-4.86%-162.41%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5989
H-One Co., Ltd.
1,517.00
667.96
78.67%
DE:7P0
Ichikoh Industries,Ltd.
2.48
0.00
0.00%
JP:7229
Yutaka Giken Co., Ltd.
3,040.00
1,302.63
74.98%
JP:7236
T.RAD Co., Ltd.
6,870.00
3,538.57
106.22%
JP:7280
Mitsuba Corporation
974.00
62.45
6.85%
JP:7294
Yorozu Corporation
1,003.00
-26.90
-2.61%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 29, 2025