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

• Market Cap: ¥38.18B
• Dividend Yield: 5.16%
• Average Volume (3M): 95.26K
• Price to Earnings (P/E): 4.2
• Beta (1Y): 1.00
• Revenue Growth: -11.67%
• EPS Growth: N/A
• Country: JP
• Employees: 6,178
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 48.28
• Shares Outstanding: 28,392,830
• 10 Day Avg. Volume: 148,380
• 30 Day Avg. Volume: 95,256
• PEG Ratio: -0.02
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 6.48
• 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: 62 Neutral
• Price Target: ¥1,382.00 ▲(5.98% Upside)

H-One Co., Ltd. has a mixed overall outlook. The most significant factor is its attractive valuation, with a low P/E ratio and high dividend yield suggesting potential undervaluation. However, financial performance concerns, particularly cash flow issues, and neutral technical indicators temper the positive valuation.

Positive Factors

Stable Gross Profit Margin

A stable gross profit margin indicates effective cost management, which supports long-term profitability despite revenue challenges.

Moderate Leverage

Moderate leverage suggests a balanced approach to financing, providing flexibility for future investments and growth opportunities.

Strong ROE

A strong ROE indicates efficient use of shareholder equity to generate profits, enhancing investor confidence in long-term value creation.

Negative Factors

Declining Revenue

Declining revenue reflects challenges in maintaining sales growth, which could impact future profitability and market position.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues, limiting the company's ability to invest in growth and manage debt.

Decreased Profit Margins

Decreased profit margins suggest reduced profitability, which may affect the company's ability to sustain competitive advantages.

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

Company Description

H-One Co., Ltd. (5989) is a prominent player in the manufacturing sector, specializing in the production of high-performance materials and components for various industries, including automotive, electronics, and consumer goods. The company is known for its innovative approaches and advanced technologies, offering a range of products that enhance the performance and durability of end-use applications. With a commitment to sustainability and efficiency, H-One Co., Ltd. focuses on delivering quality solutions that meet the evolving needs of its global clientele.

How the Company Makes Money

H-One Co., Ltd. generates revenue primarily through the sale of its manufactured components and materials to various industries, including automotive and electronics. The company's revenue model is built around both direct sales and long-term contracts with major clients, ensuring a steady cash flow. Key revenue streams include bulk orders of specialized materials, custom manufacturing services, and partnerships with original equipment manufacturers (OEMs) that require high-quality components for their products. Additionally, H-One Co., Ltd. has established collaborations with research institutions and technology firms, which not only enhance their product offerings but also open new avenues for revenue through joint ventures and technology licensing agreements.

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	211.31B	228.15B	232.73B	225.51B	170.59B	163.93B
Gross Profit	30.19B	31.70B	22.23B	15.63B	13.72B	16.79B
EBITDA	19.12B	22.61B	-3.91B	15.46B	11.45B	18.16B
Net Income	8.97B	10.73B	-21.66B	-6.99B	-1.39B	2.84B
Balance Sheet
Total Assets	191.73B	178.53B	181.60B	187.31B	193.98B	163.97B
Cash, Cash Equivalents and Short-Term Investments	20.31B	19.31B	18.89B	10.42B	7.19B	3.60B
Total Debt	72.67B	65.34B	71.77B	65.47B	64.94B	45.31B
Total Liabilities	120.66B	112.99B	126.04B	118.40B	118.38B	91.65B
Stockholders Equity	68.19B	64.00B	55.18B	68.58B	72.92B	67.28B
Cash Flow
Free Cash Flow	-8.22B	4.90B	4.63B	7.66B	-16.67B	3.57B
Operating Cash Flow	8.66B	21.08B	19.49B	21.96B	5.71B	14.58B
Investing Cash Flow	-13.72B	-13.15B	-13.26B	-15.19B	-19.27B	-12.21B
Financing Cash Flow	2.33B	-7.34B	1.28B	-3.51B	14.89B	-11.65B

H-One Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1304.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1304 is above the 20-day moving average (MA) of 1296.25, below the 50-day MA of 1318.20, and above the 200-day MA of 1270.88, indicating a bullish trend. The MACD of 4.95 indicates Negative momentum. The RSI at 56.89 is Neutral, neither overbought nor oversold. The STOCH value of 86.58 is Negative, 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	77 Outperform	¥46.46B	3.95	―	0.99%	-0.83%	-27.20%
7244	74 Outperform	¥49.76B	8.47	8.46%	2.64%	-6.35%	18.49%
7236	72 Outperform	¥50.71B	7.03	―	3.60%	0.14%	882.91%
7229	72 Outperform	¥45.05B	8.64	―	2.37%	-13.35%	-19.38%
5989	62 Neutral	¥38.18B	4.19	―	5.16%	-11.67%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7294	57 Neutral	¥23.13B	-2.21	―	3.19%	-8.99%	-62.26%