Hisaka Works,Ltd. (6247) AI Stock Analysis

• Market Cap: ¥40.20B
• Dividend Yield: 3.52%
• Average Volume (3M): 51.94K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.53
• Revenue Growth: 18.47%
• EPS Growth: 64.23%
• Country: JP
• Employees: 1,011
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 31.98
• Shares Outstanding: 28,732,800
• 10 Day Avg. Volume: 44,870
• 30 Day Avg. Volume: 51,936
• PEG Ratio: 0.13
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.72
• P/FCF Ratio: -35.77
• 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: 72 Outperform
• Price Target: ¥1,505.00 ▲(13.50% Upside)

The overall stock score for Hisaka Works, Ltd. is driven primarily by strong financial performance and attractive valuation. The company's robust revenue growth and solid profitability are significant strengths, though cash flow management requires improvement. The stock's low P/E ratio and high dividend yield enhance its appeal. Technical analysis indicates a neutral trend, with no significant bullish or bearish signals.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, positioning the company well for future expansion.

Balance Sheet Health

A low debt-to-equity ratio reflects prudent financial management, providing the company with flexibility to invest in growth opportunities.

Profit Margins

Strong profit margins demonstrate effective cost control and pricing power, enhancing the company's ability to sustain profitability.

Negative Factors

Cash Flow Management

Negative free cash flow can limit the company's ability to reinvest in the business and may require external financing to support growth.

Free Cash Flow

Negative free cash flow relative to net income suggests inefficiencies in converting profits into cash, which could impact long-term financial health.

Cash Flow Performance

While operating cash flow has improved, mixed cash flow performance indicates ongoing challenges in achieving consistent cash generation.

Hisaka Works,Ltd. Business Overview & Revenue Model

Company Description

Hisaka Works, Ltd. engages in the manufacture and sale of industrial machinery worldwide. The company operates through Heat Exchanger, Process Engineering, Valve, and Other segments. The Heat Exchanger segment offers plate heat exchangers, multi gap plate heat exchangers, welded plate heat exchangers, plate condensers, PTFE cushion gaskets, and plate heat exchangers; and brazed plate heat exchangers. This segment's products are used in various applications, such as chemical, food, marine, power, light machine, steel, metal smelting, plant, semiconductors, paper, refrigeration and heat pumps, hot water supply and heating, paper/pulp, and industrial machine industries, as well as heating, ventilation, and air-conditioning industry. The Process Engineering segment provides food machinery, such as sterilizers, evaporator-concentrator systems, factory automation systems, and testing machine and other equipment; pharmaceutical purposes sterilizers, pharmaceutical liquid continuous sterilizers, evaporation concentrator systems, and pure steam generators; and dyeing and finishing machinery consisting of liquid dyeing, multi-purpose air jet processing, dyeing processing, beam-dyeing, and cheese dyeing/drying machines, as well as options for dyeing equipment. The Valve segment offers various valves, such as 2-way ball, 3-way ball, 4-way ball, and diaphragm valves. The Other segment engages in the solar power generation business. The company was formerly known as MITSUISHI Ind. and changed its name to Hisaka Works, Ltd. in August 1951. Hisaka Works, Ltd. was founded in 1942 and is headquartered in Osaka, Japan.

How the Company Makes Money

Hisaka Works generates revenue primarily through the sale of heat exchangers and thermal equipment. The company operates on a B2B model, selling to industrial manufacturers and service providers across multiple sectors. Key revenue streams include direct sales of products, customized solutions, and maintenance services. Hisaka Works also benefits from long-term contracts and partnerships with major corporations in its target industries, which provide a steady income stream. Additionally, the company invests in R&D to innovate and expand its product offerings, allowing it to capture new market opportunities and enhance its competitive edge.

Hisaka Works,Ltd. Financial Statement Overview

Summary

Hisaka Works, Ltd. has demonstrated strong financial performance with impressive revenue growth and solid profitability. The balance sheet is stable with low leverage, and operational efficiency is evident in healthy margins. However, cash flow management remains a key area for improvement, particularly in generating positive free cash flow.

Income Statement

The company has shown strong revenue growth over the past year, with a revenue increase of 12.2% in 2025 compared to 2024. Gross and net profit margins are solid at 25.4% and 9.9%, respectively, indicating efficient cost management. EBIT and EBITDA margins are healthy, reflecting strong operational performance.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.08, suggesting strong financial stability. The equity ratio of 72.1% indicates a conservative capital structure with significant equity support. Return on equity is impressive at 6.3%, showcasing effective use of shareholders' funds.

Cash Flow

Cash flow performance is mixed, with a significant improvement in operating cash flow from negative to positive in 2025, though free cash flow remains negative. The operating cash flow to net income ratio is 1.25, indicating good cash generation relative to net income. However, free cash flow to net income is negative, highlighting potential challenges in capital management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.34B	38.35B	34.18B	34.07B	30.09B	28.44B
Gross Profit	10.03B	9.75B	8.30B	7.71B	6.89B	6.23B
EBITDA	5.72B	6.82B	4.58B	3.91B	2.97B	2.77B
Net Income	3.90B	3.78B	2.42B	2.04B	2.06B	1.21B
Balance Sheet
Total Assets	80.60B	82.70B	82.02B	70.98B	67.30B	65.20B
Cash, Cash Equivalents and Short-Term Investments	9.19B	12.91B	13.84B	14.87B	17.34B	15.12B
Total Debt	5.00B	5.00B	5.00B	21.00M	34.00M	9.00M
Total Liabilities	21.15B	22.68B	21.72B	14.68B	12.93B	11.87B
Stockholders Equity	59.09B	59.65B	59.98B	56.16B	54.24B	53.20B
Cash Flow
Free Cash Flow	0.00	-771.00M	-6.13B	-3.49B	1.35B	2.58B
Operating Cash Flow	0.00	4.72B	-461.00M	1.49B	3.15B	3.93B
Investing Cash Flow	0.00	-3.30B	-3.82B	-2.81B	-159.00M	-563.00M
Financing Cash Flow	0.00	-2.40B	3.83B	-1.00B	-863.00M	-803.00M

Hisaka Works,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1326.00
• 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:6247, the sentiment is Positive. The current price of 1326 is below the 20-day moving average (MA) of 1428.70, below the 50-day MA of 1391.03, and above the 200-day MA of 1234.90, indicating a bullish trend. The MACD of 21.61 indicates Negative momentum. The RSI at 59.82 is Neutral, neither overbought nor oversold. The STOCH value of 60.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6247.

Hisaka Works,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6144	79 Outperform	¥32.34B	13.03	―	3.65%	12.75%	96.71%
6237	76 Outperform	¥53.03B	11.66	―	2.86%	2.85%	3.17%
6145	72 Outperform	¥41.19B	15.09	―	2.15%	20.20%	37.72%
6247	72 Outperform	¥40.20B	9.59	―	3.52%	18.47%	64.23%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6240	61 Neutral	¥45.11B	25.81	―	1.96%	6.56%	23.98%
6151	59 Neutral	¥32.36B	59.02	―	2.22%	1.13%	-66.14%