H-One Co., Ltd. (5989) AI Stock Analysis

• Market Cap: ¥38.94B
• Dividend Yield: 3.7%
• Average Volume (3M): 109.32K
• Price to Earnings (P/E): 4.0
• Beta (1Y): 1.05
• Revenue Growth: -7.52%
• EPS Growth: N/A
• Country: JP
• Employees: 6,178
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Auto - Parts
• EPS (TTM): 57.10
• Shares Outstanding: 28,392,830
• 10 Day Avg. Volume: 166,120
• 30 Day Avg. Volume: 109,323
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,505.00
• Price Target Upside: 8.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥1,505.00 ▲(8.66% Upside)

The overall stock score is driven by strong valuation metrics, including a low P/E ratio and a solid dividend yield, indicating potential undervaluation. Financial performance shows improvement with profitability and strong cash flows, though revenue growth remains a concern. Technical analysis suggests a positive trend but highlights potential oversold conditions.

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

Company Description

H-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 Money

H-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. has demonstrated financial improvement with a return to profitability and enhanced margins. The balance sheet reflects improved leverage and stable equity ratios, while cash flows indicate strong operational cash generation. Continued focus on revenue growth and debt management could further strengthen financial performance.

Income Statement

The company has shown a significant turnaround with a positive net income of 10.73 billion yen in 2025, following losses in the previous years. The gross profit margin improved to 13.9%, and both EBIT and EBITDA margins turned positive at 6.3% and 9.9% respectively, indicating better operational efficiency. However, revenue slightly decreased by 1.97% from the previous year, which suggests potential challenges in sales growth.

Balance Sheet

The debt-to-equity ratio stands at 1.02, down from 1.30 the previous year, indicating improved leverage. The equity ratio is 35.8%, reflecting a stable financial position. Return on equity (ROE) improved to 16.8%, demonstrating effective use of equity. The balance sheet shows adequate liquidity, but further reduction in debt could enhance financial stability.

Cash Flow

Operating cash flow increased to 21.08 billion yen, showing strong cash generation capabilities. The free cash flow is positive at 4.9 billion yen, with a free cash flow to net income ratio of 0.46, indicating reasonable cash conversion. The operating cash flow to net income ratio of 1.97 suggests strong cash flow relative to net income, although capital expenditure remains significant.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	228.15B	232.73B	225.51B	170.59B	163.93B
Gross Profit	31.70B	22.23B	15.63B	13.72B	16.79B
EBITDA	22.61B	-3.91B	7.64B	11.45B	18.16B
Net Income	10.73B	-21.66B	-6.99B	-1.39B	2.84B
Balance Sheet
Total Assets	178.53B	181.60B	187.31B	193.98B	163.97B
Cash, Cash Equivalents and Short-Term Investments	19.31B	18.89B	13.54B	7.19B	5.83B
Total Debt	65.34B	71.77B	65.47B	64.94B	45.31B
Total Liabilities	112.99B	126.04B	118.40B	118.38B	91.65B
Stockholders Equity	64.00B	55.18B	68.58B	72.92B	67.28B
Cash Flow
Free Cash Flow	4.90B	4.63B	7.66B	-16.67B	3.57B
Operating Cash Flow	21.08B	19.49B	21.96B	5.71B	14.58B
Investing Cash Flow	-13.15B	-13.26B	-15.19B	-19.27B	-12.21B
Financing Cash Flow	-7.34B	1.28B	-3.51B	14.89B	-11.65B

H-One Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1385.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1385 is above the 20-day moving average (MA) of 1375.45, above the 50-day MA of 1308.96, and above the 200-day MA of 1107.55, indicating a neutral trend. The MACD of 20.63 indicates Positive momentum. The RSI at 49.44 is Neutral, neither overbought nor oversold. The STOCH value of 18.06 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7280	81 Outperform	¥40.80B	3.42		1.11%	-1.12%	-24.58%
7236	76 Outperform	¥37.64B	7.60		3.35%	1.00%	413.42%
5989	73 Outperform	¥38.94B	4.01		3.70%	-7.52%	―
7244	68 Neutral	€40.62B	7.14	8.65%	3.18%	-10.13%	-15.17%
Sector *	67 Neutral	¥277.48B	14.88	6.81%	2.50%	5.07%	-22.68%
7229	66 Neutral	¥40.88B	10.41		2.61%	-18.46%	-48.08%
7294	55 Neutral	¥23.35B	―		3.19%	-4.86%	-162.41%