Hisaka Works,Ltd. (6247) AI Stock Analysis

• Market Cap: ¥49.72B
• Dividend Yield: 3.32%
• Average Volume (3M): 48.25K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.60
• Revenue Growth: 18.47%
• EPS Growth: 64.23%
• Country: JP
• Employees: 1,011
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 34.12
• Shares Outstanding: 28,732,800
• 10 Day Avg. Volume: 42,020
• 30 Day Avg. Volume: 48,246
• 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: 76 Outperform
• Price Target: ¥2,061.00 ▲(55.43% Upside)
• Action: Reiterated Date: 03/01/26
• Date: Action: Reiterated 03/01/26

The score is driven primarily by strong financial performance (growth, solid margins, and a low-leverage balance sheet), supported by an established technical uptrend. Reasonable valuation and dividend yield help, while negative free cash flow and near-overbought momentum readings modestly limit the upside.

Positive Factors

Revenue Growth

Sustained double-digit top-line growth demonstrates durable end-market demand for Hisaka's engineered products. Consistent revenue expansion supports capacity investments, scale economics and customer footholds in industrial segments, strengthening multi‑quarter earnings resilience and strategic positioning.

Profitability / Margins

Healthy gross and net margins indicate effective cost control and pricing power in engineered equipment. Margin durability provides operating buffers through cycles, funds reinvestment and dividend capacity, and signals structural operational efficiency versus lower‑margin peers in industrial machinery.

Balance Sheet Strength

Very low leverage and a high equity ratio give the company long-term financial flexibility and low refinancing risk. This conservative capital structure supports capital spending, cushions cyclical downturns, and enables strategic investments without pressuring cash flow or requiring urgent external funding.

Negative Factors

Free Cash Flow

Persistent negative free cash flow despite profitable operations suggests difficulty converting earnings into discretionary cash. Over months this can constrain capex funding, limit dividend growth or require external financing, introducing execution risk if cash conversion does not improve.

Cash Management

Management's cash conversion and working capital control are flagged as an area to address. Structural inefficiencies in receivables, inventory or capex timing could erode margin advantages and force trade-offs between growth and liquidity, raising medium‑term operational risk.

Investor Communication

Absence of earnings call information and detailed disclosures limits transparency and recurring guidance. Over 2–6 months this can hamper investors' ability to assess execution, reduce external oversight, and make forecasting and accountability more difficult compared with peers with active investor engagement.

Hisaka Works,Ltd. Business Overview & Revenue Model

Company Description

Hisaka Works, Ltd. (6247) is a leading Japanese manufacturer specializing in heat exchangers and related equipment, serving various industries including chemical, pharmaceutical, food, and energy sectors. The company is known for its innovative designs and high-quality products that enhance efficiency and performance in thermal management processes. With a strong focus on research and development, Hisaka Works aims to provide advanced solutions that meet the evolving needs of its diverse clientele.

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

Strong income statement trends with 12.2% revenue growth and solid profitability (gross margin 25.4%, net margin 9.9%). Balance sheet is conservative and stable (debt-to-equity 0.08; equity ratio 72.1%). The main offset is cash flow quality: operating cash flow improved to positive, but free cash flow remains negative, indicating continued reinvestment/capital management pressure.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Negative

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 1659.20, below the 50-day MA of 1592.74, and below the 200-day MA of 1427.50, indicating a bullish trend. The MACD of 49.63 indicates Negative momentum. The RSI at 68.60 is Neutral, neither overbought nor oversold. The STOCH value of 82.15 is Negative, 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
6247	76 Outperform	¥49.72B	12.25	―	3.32%	18.47%	64.23%
6237	76 Outperform	¥64.73B	14.88	―	2.79%	2.85%	3.17%
6144	75 Outperform	¥43.48B	12.41	―	3.00%	12.75%	96.71%
6145	72 Outperform	¥48.35B	15.08	―	2.09%	20.20%	37.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6240	61 Neutral	¥41.61B	23.03	―	2.53%	6.56%	23.98%
6151	59 Neutral	¥35.20B	17.03	―	2.13%	1.13%	-66.14%