Hirano Tecseed Co., Ltd. (6245) AI Stock Analysis

• Market Cap: ¥27.53B
• Dividend Yield: 5.37%
• Average Volume (3M): 35.86K
• Price to Earnings (P/E): 36.1
• Beta (1Y): 0.63
• Revenue Growth: -14.01%
• EPS Growth: -65.79%
• Country: JP
• Employees: 413
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 30.66
• Shares Outstanding: 15,394,379
• 10 Day Avg. Volume: 36,040
• 30 Day Avg. Volume: 35,863
• PEG Ratio: -0.43
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.51
• P/FCF Ratio: -19.99
• 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: 74 Outperform
• Price Target: ¥2,047.00 ▲(22.21% Upside)
• Action: Upgraded Date: 10/17/25
• Date: Action: Upgraded 10/17/25

Hirano Tecseed Co., Ltd. has a solid financial foundation with strong revenue growth and a stable balance sheet. Technical indicators show positive momentum, supporting a favorable outlook. However, declining profitability and cash flow volatility are key risks. The stock's valuation is reasonable, with an attractive dividend yield.

Positive Factors

Strong balance sheet

Low leverage and a robust equity ratio give the company durable financial resilience: it can fund capex, absorb cyclicality, and pursue strategic opportunities without needing urgent external financing. This structural strength supports long-term stability and lowers solvency risk.

Healthy operational margins

Sustained EBIT/EBITDA margins indicate the business maintains core operational efficiency and pricing/control over costs. That margin buffer supports reinvestment in products and maintenance of competitiveness, helping the company weather input cost swings and fund strategic initiatives.

Long‑term revenue traction

A multi‑year revenue growth trajectory builds scale advantages: better fixed‑cost absorption, stronger supplier negotiating power, and more predictable cash generation when sustainable. This structural top‑line progress underpins capacity to invest in product development and market expansion.

Negative Factors

Declining profitability

Material declines in net margins reduce retained earnings and the company's ability to convert sales into shareholder returns. Persisting margin erosion pressures ROE and could force cost restructuring, limit reinvestment, and weaken long‑term competitiveness if not addressed.

Cash flow volatility

Volatile operating cash flow and recent negative OCF undermine the firm's ability to sustain capex, dividends, or strategic investments without tapping reserves or debt. Inconsistent free cash flow raises refinancing and execution risk, constraining durable growth planning.

Recent revenue & EPS contraction

Steep reported declines in revenue and EPS signal a meaningful recent deterioration in demand or execution that can erode scale benefits. If this trend persists, it will reduce investment capacity, weaken margins through lost operating leverage, and impair long‑term competitiveness.

Hirano Tecseed Co., Ltd. Business Overview & Revenue Model

Company Description

HIRANO TECSEED Co.,Ltd. produces and sells coating/laminating and industrial machinery primarily in Japan. The company offers optical function film, flexible board, dry film, electronic material, battery electrode, adhesive, release film and paper, carbon fiber prepreg, synthetic leather, hot-melt, and other coating lines. It also provides non-woven dryers, ceramic sheet forming lines, film stretching lines, glass cloth production lines, and multicoaters. The company was founded in 1935 and is headquartered in Nara, Japan.

How the Company Makes Money

Hirano Tecseed generates revenue through the sale of its machinery and automation systems, including both standard and customized solutions tailored to specific client requirements. The company also earns income from maintenance services, spare parts sales, and after-sales support. Significant partnerships with major semiconductor manufacturers enhance their market presence and contribute to a steady stream of orders. Additionally, Hirano Tecseed engages in research and development to create cutting-edge technologies, which can lead to new product offerings and increased market competitiveness, further driving revenue growth.

Hirano Tecseed Co., Ltd. Financial Statement Overview

Summary

Hirano Tecseed Co., Ltd. shows strong revenue growth and operational efficiency, but declining profitability margins and volatile cash flows are concerning. The balance sheet is a strong point with low leverage, providing financial stability.

Income Statement

Hirano Tecseed Co., Ltd. has demonstrated a solid revenue growth trajectory with a continuous increase over the years. The gross profit margin has been stable, though there was a slight decline in the latest year. Net profit margins have decreased significantly from the previous year, which indicates a reduction in profitability. Despite this, the EBIT and EBITDA margins remain relatively healthy, supporting operational efficiency.

Balance Sheet

The company's balance sheet reflects strong equity with a favorable debt-to-equity ratio, indicating low leverage and financial stability. The equity ratio is robust, showcasing a high proportion of equity financing, which reduces financial risk. Return on Equity (ROE) has decreased, which could be a potential concern for investors seeking high returns on equity investments.

Cash Flow

Cash flow analysis reveals volatility, with significant fluctuations in operating cash flow, which turned negative in the latest year. Free cash flow has also been inconsistent, showing a negative trend recently, which could impact future investments and dividend policies. The operating cash flow to net income ratio highlights this volatility, suggesting potential challenges in cash generation relative to net income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	46.98B	48.36B	46.95B	42.42B	37.87B	25.80B
Gross Profit	6.99B	6.31B	7.51B	6.68B	7.06B	4.99B
EBITDA	2.63B	2.33B	4.36B	3.91B	4.80B	3.19B
Net Income	1.22B	905.90M	2.44B	2.24B	3.10B	1.79B
Balance Sheet
Total Assets	62.33B	61.69B	62.93B	60.52B	50.46B	42.70B
Cash, Cash Equivalents and Short-Term Investments	12.88B	11.76B	14.28B	14.04B	16.02B	15.67B
Total Debt	7.83B	6.84B	6.95B	11.11B	745.64M	934.03M
Total Liabilities	24.03B	23.45B	24.37B	24.53B	16.00B	11.64B
Stockholders Equity	38.30B	38.24B	38.56B	36.00B	34.46B	31.05B
Cash Flow
Free Cash Flow	-2.09B	-1.23B	4.88B	-11.32B	1.49B	1.22B
Operating Cash Flow	-1.88B	-724.40M	5.53B	-10.25B	2.30B	1.97B
Investing Cash Flow	-169.96M	-147.90M	85.56M	90.85M	-1.12B	668.94M
Financing Cash Flow	101.74M	-1.78B	-5.00B	9.52B	-934.08M	-723.96M

Hirano Tecseed Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1675.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6245, the sentiment is Neutral. The current price of 1675 is below the 20-day moving average (MA) of 1864.15, below the 50-day MA of 1790.26, and above the 200-day MA of 1596.54, indicating a neutral trend. The MACD of 17.05 indicates Positive momentum. The RSI at 48.44 is Neutral, neither overbought nor oversold. The STOCH value of 61.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6245.

Hirano Tecseed Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6365	80 Outperform	¥26.20B	9.35	―	3.35%	23.30%	104.31%
6246	76 Outperform	¥25.04B	8.60	―	4.27%	55.21%	80.44%
6245	74 Outperform	¥27.53B	36.07	―	5.37%	-14.01%	-65.79%
6482	74 Outperform	¥25.02B	25.84	―	2.77%	-4.47%	-24.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6405	61 Neutral	¥15.39B	44.85	―	2.71%	-6.08%	-56.08%
6279	51 Neutral	¥24.08B	60.22	―	1.10%	9.21%	-46.66%

Hirano Tecseed Co., Ltd. Corporate Events

Hirano Tecseed Cuts Sales Outlook but Sees Profit Rebound as Equity Ratio Improves

Hirano Tecseed reported a sharp 34.1% year-on-year decline in net sales to ¥25.67 billion for the nine months ended December 31, 2025, while operating income slipped 4.6% and net income attributable to owners of parent fell 9.2%. Despite weaker earnings and lower basic earnings per share, the balance sheet remained solid, with total assets of ¥58.96 billion and an improved equity ratio of 66.4%.

The company held its interim dividend at a relatively high level, paying ¥42 per share for the second quarter and forecasting a full-year total of ¥84, slightly below the prior year, signaling continued shareholder returns. Management revised its full-year forecast, now expecting a 35.9% drop in net sales but a rebound in profitability, with operating income projected to rise 24.9% and net income 76.6%, suggesting an anticipated recovery in margins despite a smaller top line.

The most recent analyst rating on (JP:6245) stock is a Hold with a Yen1971.00 price target. To see the full list of analyst forecasts on Hirano Tecseed Co., Ltd. stock, see the JP:6245 Stock Forecast page.

Hirano Tecseed Cuts Sales Outlook but Sees Profit Rebound and Keeps Dividend on Track

Hirano Tecseed reported consolidated net sales of ¥25.67 billion for the nine months ended December 31, 2025, down 34.1% year on year, while operating income slipped 4.6% to ¥1.75 billion and net income attributable to owners of parent declined 9.2% to ¥1.37 billion. Despite weaker sales, the equity ratio improved to 66.4% as total assets decreased, and the company maintained a strong financial position, supporting an annual dividend forecast of ¥84 per share for the fiscal year ending March 31, 2026.

For the full fiscal year, the company now forecasts net sales of ¥31 billion, a 35.9% decline from the previous year, but expects operating income to rise 24.9% to ¥2.1 billion and net income to increase 76.6% to ¥1.6 billion, implying a recovery in profitability. The revised outlook, coupled with a stable dividend policy, signals management’s confidence in earnings resilience despite a sharp revenue contraction, which will be closely watched by investors assessing the firm’s mid-term competitiveness and demand trends in its core machinery markets.

The most recent analyst rating on (JP:6245) stock is a Hold with a Yen1971.00 price target. To see the full list of analyst forecasts on Hirano Tecseed Co., Ltd. stock, see the JP:6245 Stock Forecast page.