Hanshin Diesel Works, Ltd. (6018) AI Stock Analysis

• Market Cap: ¥14.17B
• Dividend Yield: 2.78%
• Average Volume (3M): 27.28K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 1.24
• Revenue Growth: 38.48%
• EPS Growth: 100.84%
• Country: JP
• Employees: 276
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 51.19
• Shares Outstanding: 3,248,548
• 10 Day Avg. Volume: 16,700
• 30 Day Avg. Volume: 27,283
• PEG Ratio: 0.80
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 6.45
• 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: ¥4,614.00 ▲(14.78% Upside)

Hanshin Diesel Works, Ltd. scores well due to its strong financial stability and revenue growth, despite some pressure on profitability margins. The technical indicators suggest bullish momentum, though caution is advised due to overbought signals. The valuation is reasonable, supported by a decent dividend yield.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates a positive trajectory in market demand and effective sales strategies, enhancing its competitive position.

Financial Stability

Low leverage reduces financial risk and enhances the company's ability to invest in growth opportunities without excessive debt burden.

Cash Flow Improvement

Improved cash flow generation supports sustainable operations and provides flexibility for strategic investments and shareholder returns.

Negative Factors

Profitability Margins

Declining margins suggest challenges in cost management, which could impact long-term profitability if not addressed.

Operational Efficiency

Decreasing operational efficiency may hinder the company's ability to maximize profitability and compete effectively in the market.

Cash Flow Variability

Variability in cash flow management can lead to unpredictability in funding operations and growth initiatives, affecting financial planning.

Hanshin Diesel Works, Ltd. Business Overview & Revenue Model

Company Description

The Hanshin Diesel Works, Ltd. manufactures and sells engines and propulsion systems for ships worldwide. The company offers engines comprising low speed four-stroke engines, medium speed engines, and low speed two-stroke engines; and engine monitoring and support systems for ship administration. It also offers propulsion systems, such as controllable pitch propellers and side thrusters; remote control systems and integrated control systems; casting and metal machining; and auxiliary devices, including lubricating oil and fuel oil purifiers, fuel oil fine filters, and LG type lubricating oil filters. The company was formerly known as The Hanshin Ironworks Co., Ltd. and changed its name to The Hanshin Diesel Works, Ltd. in 1944. The Hanshin Diesel Works, Ltd. was incorporated in 1918 and is headquartered in Kobe, Japan.

How the Company Makes Money

Hanshin Diesel Works generates revenue primarily through the sale of diesel engines and related equipment to various industries, including maritime, industrial, and energy sectors. The company has multiple key revenue streams, including manufacturing and selling complete diesel engine systems, spare parts, and providing maintenance and repair services. Additionally, the company may engage in long-term contracts or partnerships with shipbuilders and industrial firms to supply engines and support services, contributing to stable and recurring revenue. Factors such as technological advancements, demand for energy-efficient solutions, and strategic collaborations further enhance its earning potential.

Hanshin Diesel Works, Ltd. Financial Statement Overview

Summary

Hanshin Diesel Works, Ltd. exhibits strong revenue growth and low leverage, indicating a solid financial position. However, declining profitability margins and variability in cash flow management present challenges.

Income Statement

Hanshin Diesel Works, Ltd. has demonstrated strong revenue growth of 20.62% in the latest year, indicating a positive trajectory. However, the gross profit margin has decreased over the years, from 28.84% in 2020 to 18.15% in 2025, suggesting pressure on cost management. The net profit margin has remained relatively stable around 4-5%, which is modest. EBIT and EBITDA margins have also shown a slight decline, indicating potential challenges in operational efficiency.

Balance Sheet

The company maintains a very low debt-to-equity ratio, demonstrating strong financial stability and low leverage risk. Return on equity has been consistent, albeit modest, around 3-5%, reflecting steady profitability. The equity ratio is strong, indicating a solid capital structure with a high proportion of equity financing.

Cash Flow

Hanshin Diesel Works, Ltd. has shown significant improvement in free cash flow, with a notable growth rate. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to earnings. However, the free cash flow to net income ratio has fluctuated, suggesting some variability in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.41B	13.34B	9.64B	9.06B	10.14B	9.44B
Gross Profit	2.42B	2.42B	2.14B	2.18B	2.20B	2.58B
EBITDA	1.00B	1.12B	1.01B	884.49M	868.92M	816.47M
Net Income	457.98M	536.29M	456.10M	406.74M	394.04M	358.56M
Balance Sheet
Total Assets	24.66B	25.00B	22.75B	20.99B	19.79B	19.20B
Cash, Cash Equivalents and Short-Term Investments	5.10B	5.57B	5.00B	5.62B	5.35B	4.81B
Total Debt	268.18M	29.80M	31.73M	51.87M	10.10M	19.28M
Total Liabilities	9.96B	10.20B	8.34B	7.13B	6.32B	6.06B
Stockholders Equity	14.70B	14.80B	14.42B	13.85B	13.47B	13.14B
Cash Flow
Free Cash Flow	0.00	1.16B	211.29M	598.68M	560.73M	-456.48M
Operating Cash Flow	0.00	1.59B	1.10B	1.18B	892.58M	-140.32M
Investing Cash Flow	0.00	-6.56M	-2.25B	-777.75M	667.89M	-820.31M
Financing Cash Flow	0.00	-207.35M	-172.11M	-132.48M	-118.08M	-214.68M

Hanshin Diesel Works, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4020.00
• 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:6018, the sentiment is Positive. The current price of 4020 is above the 20-day moving average (MA) of 3806.00, above the 50-day MA of 3798.90, and above the 200-day MA of 3103.18, indicating a bullish trend. The MACD of 36.01 indicates Negative momentum. The RSI at 62.87 is Neutral, neither overbought nor oversold. The STOCH value of 76.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6018.

Hanshin Diesel Works, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6393	76 Outperform	¥13.29B	9.89	―	6.70%	7.96%	43.37%
6016	75 Outperform	¥120.05B	28.02	―	0.55%	9.04%	-7.84%
6023	71 Outperform	¥70.23B	14.05	11.47%	1.88%	-0.04%	15.59%
6018	71 Outperform	¥14.17B	20.80	―	2.78%	38.48%	100.84%
6490	67 Neutral	¥124.84B	14.51	―	2.50%	-2.46%	-10.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6440	62 Neutral	¥15.00B	10.95	―	―	-2.84%	―