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

• Market Cap: ¥24.28B
• Dividend Yield: 5.51%
• Average Volume (3M): 35.86K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.71
• Revenue Growth: -14.01%
• EPS Growth: -65.79%
• Country: JP
• Employees: 413
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 17.19
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥1,814.00 ▲(15.91% Upside)

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

Revenue Growth

Consistent revenue growth indicates a strong market position and ability to meet customer demand, supporting long-term business stability.

Balance Sheet Health

Low leverage and high equity financing reduce financial risk, providing a stable foundation for future growth and investment.

Operational Efficiency

Healthy margins demonstrate effective cost management and operational strength, enhancing the company's ability to sustain profitability.

Negative Factors

Declining Profitability

Decreasing net profit margins suggest challenges in maintaining profitability, which could impact long-term financial performance.

Cash Flow Volatility

Volatile cash flows can hinder the company's ability to invest in growth opportunities and maintain dividend policies, affecting financial stability.

Decreased Return on Equity

A declining ROE indicates reduced efficiency in generating profits from shareholders' equity, potentially impacting investor confidence.

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

Company Description

Hirano Tecseed Co., Ltd. (6245) is a Japanese company specializing in the design, manufacturing, and sale of precision machinery and automation equipment primarily for the semiconductor and electronic components industries. The company focuses on providing innovative solutions such as assembly systems, inspection equipment, and custom automation tools that cater to the evolving needs of its clients in the high-tech sector.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 1565.00
• 50DMA: Negative
• 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 1565 is below the 20-day moving average (MA) of 1580.10, below the 50-day MA of 1601.34, and above the 200-day MA of 1539.57, indicating a neutral trend. The MACD of -14.80 indicates Positive momentum. The RSI at 44.32 is Neutral, neither overbought nor oversold. The STOCH value of 50.96 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	¥21.37B	7.01	―	3.35%	23.30%	104.31%
6245	74 Outperform	¥24.28B	20.01	―	5.51%	-14.01%	-65.79%
6482	74 Outperform	¥22.26B	13.40	―	2.96%	-4.47%	-24.47%
6246	72 Outperform	¥24.44B	7.75	―	4.21%	55.21%	80.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6405	61 Neutral	¥16.42B	14.61	―	2.29%	-6.08%	-56.08%
6279	51 Neutral	¥25.95B	111.63	―	1.09%	9.21%	-46.66%

Hirano Tecseed Co., Ltd. Corporate Events

Hirano Tecseed Revises 1H FY2025 Earnings Forecasts Amid Market Challenges

Hirano Tecseed Co., Ltd. has revised its earnings forecasts for the first half of FY2025, reflecting an increase in operating income, ordinary income, and net income attributable to owners of the parent. The revision is attributed to successful price adjustments on some orders, which helped offset rising industrial material costs and personnel expenses. Despite these adjustments, the company maintains its full-year forecast due to uncertainties in the business environment, including a slowdown in the electric vehicle market and potential impacts from U.S. trade policies.

Hirano Tecseed Reports Q1 2025 Financial Results with Mixed Performance

Hirano Tecseed Co., Ltd. reported its consolidated financial results for the first quarter ending June 30, 2025, showing a decline in net sales by 11.4% compared to the previous year. Despite the drop in sales, the company experienced significant growth in operating income and net income, indicating improved operational efficiency. The financial forecast for the fiscal year ending March 31, 2026, predicts further declines in net sales and income, suggesting potential challenges ahead.