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

• Market Cap: ¥22.20B
• Dividend Yield: 6.11%
• Average Volume (3M): 27.05K
• Price to Earnings (P/E): 24.6
• Beta (1Y): 0.81
• Revenue Growth: 3.00%
• EPS Growth: -62.93%
• Country: JP
• Employees: 413
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Machinery
• EPS (TTM): -39.59
• Shares Outstanding: 15,394,379
• 10 Day Avg. Volume: 26,690
• 30 Day Avg. Volume: 27,053
• PEG Ratio: -0.44
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.20
• 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

• Rating: 70 Outperform
• Price Target: ¥1,625.00 ▲(10.24%Upside)

Hirano Tecseed Co., Ltd. scores 70, driven by a strong balance sheet and attractive dividend yield. However, challenges in profitability and cash flow, along with bearish technical indicators, temper the overall positive outlook. Investors should consider the high dividend yield and financial stability while being cautious about the declining profitability margins and market momentum.

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

Company Description

Hirano Tecseed Co., Ltd. is a Japan-based company primarily engaged in the manufacturing and sale of machinery and equipment. The company mainly operates in sectors such as industrial machinery and equipment, with a focus on products like coating machines and laminating machines. These machines are typically used across various industries, including automotive, electronics, and packaging, providing solutions for specialized production processes and enhancing manufacturing capabilities.

How the Company Makes Money

Hirano Tecseed Co., Ltd. generates revenue through the sale of its machinery and equipment, including coating and laminating machines. The company's key revenue streams include direct sales of these machines to manufacturers in industries such as automotive, electronics, and packaging. Additionally, the company may earn revenue from after-sales services, including maintenance, spare parts, and technical support. Strategic partnerships with distributors and other industrial firms can also contribute to its earnings by expanding its market reach and enhancing its product offerings.

Hirano Tecseed Co., Ltd. Financial Statement Overview

Summary

Overall, Hirano Tecseed Co., Ltd. demonstrates solid revenue growth and a stable balance sheet, but faces challenges in cash flow management. While profitability remains stable, the company must address rising operational costs and improve cash generation to enhance financial resilience.

Income Statement

Hirano Tecseed Co., Ltd. exhibits a solid financial performance with consistent revenue growth, highlighted by a 10.1% increase from the previous year. The gross profit margin stands at 14.0% for TTM, showing effective cost management. The net profit margin is 3.9%, reflecting stable profitability amid market conditions. However, a decline in EBIT margin to 4.7% from 6.9% last year suggests rising operating costs.

Balance Sheet

The balance sheet is stable with an equity ratio of 55.9%, indicating a strong equity base. The debt-to-equity ratio is 0.30, reflecting moderate leverage and financial stability. However, the return on equity decreased slightly to 5.2%, indicating a need for improved profitability.

Cash Flow

Cash flow analysis reveals challenges with negative free cash flow of -2.1 billion yen in TTM, a significant drop compared to last year's positive flow. Operating cash flow is negative, suggesting potential liquidity issues. The operating cash flow to net income ratio and free cash flow to net income ratio indicate inefficiencies in cash generation relative to earnings.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	51.21B	46.95B	42.42B	37.87B	25.80B	31.68B
Gross Profit	7.17B	7.34B	6.68B	7.06B	4.99B	6.31B
EBITDA	3.42B	4.36B	3.91B	4.80B	3.19B	4.23B
Net Income	2.02B	2.44B	2.24B	3.10B	1.79B	2.35B
Balance Sheet
Total Assets	62.93B	62.93B	60.52B	50.46B	42.70B	42.21B
Cash, Cash Equivalents and Short-Term Investments	14.28B	14.28B	14.04B	16.02B	15.67B	14.94B
Total Debt	6.95B	6.95B	11.11B	745.64M	934.03M	1.00B
Total Liabilities	24.37B	24.37B	24.53B	16.00B	11.64B	12.88B
Stockholders Equity	38.56B	38.56B	36.00B	34.46B	31.05B	29.33B
Cash Flow
Free Cash Flow	-2.09B	4.88B	-11.32B	1.49B	1.22B	-5.59B
Operating Cash Flow	-1.88B	5.53B	-10.25B	2.30B	1.97B	-3.09B
Investing Cash Flow	-169.96M	85.56M	90.85M	-1.12B	668.94M	155.77M
Financing Cash Flow	101.74M	-5.00B	9.52B	-934.08M	-723.96M	-598.71M

Hirano Tecseed Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1474.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 1474 is above the 20-day moving average (MA) of 1462.65, below the 50-day MA of 1480.58, and below the 200-day MA of 1617.70, indicating a neutral trend. The MACD of -1.62 indicates Negative momentum. The RSI at 52.38 is Neutral, neither overbought nor oversold. The STOCH value of 65.20 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	79 Outperform	¥20.08B	8.23		4.85%	16.52%	41.05%
6482	79 Outperform	¥20.05B	11.84		3.40%	15.17%	36.74%
6246	72 Outperform	¥20.13B	7.93		5.05%	-4.51%	-4.46%
6405	71 Outperform	¥22.77B	15.57		2.04%	7.26%	28.17%
6245	70 Outperform	¥22.20B	24.60		6.11%	3.00%	-62.93%
Sector *	66 Neutral	€9.87B	16.58	3.59%	3.46%	3.75%	-21.04%
6279	50 Neutral	¥26.71B	―		0.98%	-1.44%	-108.44%

Hirano Tecseed Co., Ltd. Corporate Events

Hirano Tecseed Reports 2025 Financial Results with Mixed Performance

Hirano Tecseed Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight increase in net sales by 3% compared to the previous year. However, the company experienced significant declines in operating income, ordinary income, and net income attributable to owners of the parent, with decreases of 48%, 44.2%, and 62.8% respectively. Despite these challenges, the company maintained a stable equity ratio and increased its annual dividends, reflecting a commitment to shareholder returns.