Ishii Hyoki Co., Ltd. (6336) AI Stock Analysis

• Market Cap: ¥7.79B
• Dividend Yield: 2.63%
• Average Volume (3M): 10.22K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.75
• Revenue Growth: 0.59%
• EPS Growth: 53.87%
• Country: JP
• Employees: 672
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 8,176,452
• 10 Day Avg. Volume: 4,490
• 30 Day Avg. Volume: 10,223
• PEG Ratio: 0.46
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 7.18
• 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: 78 Outperform
• Price Target: ¥1,110.00 ▲(43.97% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is driven primarily by strong financial stability (low leverage and a strengthened balance sheet) and constructive technicals (price above key moving averages with positive momentum). These positives are tempered by softer profitability versus prior peaks and uneven cash-flow consistency; valuation is reasonable with a supportive dividend.

Positive Factors

Balance-sheet strength

The company materially reduced leverage and built equity, improving financial flexibility and resilience. Low debt levels lower refinancing and interest risk, enabling more stable capex, dividend support, or opportunistic investments over the next several quarters.

Positive free cash flow

FCF turned sustainably positive after 2024 and remained positive in 2026, demonstrating the business can convert earnings into cash. Persistent positive FCF supports capex funding, dividends, and balance-sheet repair, underpinning long-term operational stability.

Structural demand for automation

The firm's focus on packaging and factory-automation equipment aligns with durable industry trends—manufacturers seeking efficiency and automation. This structural demand supports steady addressable market and product relevance over multiple quarters to years.

Negative Factors

Margin erosion

Multi-year margin compression indicates weaker pricing power, higher input or operating costs, or a less profitable sales mix. Persistently lower margins weaken return on capital and reduce internal cash generation, limiting reinvestment or payout capacity.

Uneven revenue trend

Choppy top-line performance signals sensitivity to end-market demand or inconsistent order cycles. Uneven revenue increases forecasting difficulty for capacity planning and margins, and raises risk that growth may not be sustained without product or market diversification.

Volatile cash conversion

Wide swings in operating cash flow and cash conversion reduce predictability of available funds for capex, dividends, or debt payoff. This variability complicates planning and increases reliance on careful working-capital management to sustain investment or payout policies.

Ishii Hyoki Co., Ltd. Business Overview & Revenue Model

Company Description

Ishii Hyoki Co., Ltd. manufactures and sells electrical machinery and peripheral electronic machinery parts in Japan. It offers devices, such as graphic operation panel LCD systems; switch panel units; silk printing, label printing, and alumite nameplates; film formation products; printed circuit board parts; and precision sheet metal processing products. The company also provides polishing and surfacing machines for use in the production of printed circuit boards, FPCs, and electronic parts; and deburring machines for use in the surface treatment of clutch discs, brake pads, and other automobile parts. In addition, it offers PI inkjet systems for liquid crystal displays, as well as related maintenance services. The company was founded in 1963 and is headquartered in Fukuyama, Japan.

How the Company Makes Money

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Ishii Hyoki Co., Ltd. Financial Statement Overview

Summary

Balance sheet strength is a key positive (very low leverage and rising equity), but operating performance has cooled from the 2022–2023 peak with lower margins and uneven revenue. Cash flow is positive overall but volatile with inconsistent cash conversion, limiting the score.

Income Statement

Revenue growth has been uneven—strong expansion in 2022–2023, followed by two years of decline, then a return to growth in 2026 (+5.6%). Profitability remains solid but has clearly cooled from the 2022–2023 peak: net margin fell from ~10.3% (2022) / ~9.0% (2023) to ~5.7% (2026), with similar pressure in operating profitability. Overall, the company is still profitable with acceptable margins for the industry, but the multi-year downshift in margins and choppy top-line trend keep the score from being higher.

Balance Sheet

The balance sheet has strengthened materially over time, with leverage dropping sharply: debt-to-equity improved from ~1.37 (2021) to ~0.12 (2026), and total debt has been reduced meaningfully since 2021. Equity has grown steadily, supporting a stronger capital base. Returns on equity remain positive (~8.4% in 2026) but are well below the exceptionally high levels seen in 2022–2023, suggesting either lower profitability or a more conservative balance sheet. Net-net: low leverage and improved financial flexibility are clear strengths, with the main drawback being the moderation in returns.

Cash Flow

Cash generation is positive, but volatility is a notable issue. Operating cash flow swung sharply (very weak in 2024, very strong in 2025, then lower again in 2026), which reduces confidence in cash flow consistency. Free cash flow rebounded strongly after 2024 and remained positive in 2026, but cash conversion is not consistently strong—free cash flow is only ~64% of net income in 2026 (after ~81% in 2025 and ~15% in 2024). The business is generating cash overall, but variability and inconsistent conversion temper the score.

Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	14.82B	15.65B	14.82B	16.73B	18.22B	14.42B
Gross Profit	3.36B	3.48B	3.21B	3.90B	4.24B	3.80B
EBITDA	1.56B	1.74B	1.57B	2.17B	2.54B	2.26B
Net Income	893.00M	890.00M	788.00M	1.10B	1.64B	1.49B
Balance Sheet
Total Assets	15.34B	15.92B	15.70B	16.68B	16.24B	13.49B
Cash, Cash Equivalents and Short-Term Investments	3.71B	4.37B	4.09B	3.69B	3.33B	2.87B
Total Debt	1.56B	1.27B	2.09B	3.73B	3.41B	4.01B
Total Liabilities	5.76B	5.27B	5.96B	8.00B	8.82B	8.02B
Stockholders Equity	9.58B	10.64B	9.74B	8.69B	7.42B	5.46B
Cash Flow
Free Cash Flow	0.00	827.00M	1.86B	99.21M	933.61M	1.24B
Operating Cash Flow	0.00	1.30B	2.29B	561.54M	1.75B	1.68B
Investing Cash Flow	0.00	183.00M	-626.00M	-1.41B	-1.12B	-390.28M
Financing Cash Flow	0.00	-939.00M	-1.78B	122.38M	-681.07M	-1.13B

Ishii Hyoki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 771.00
• 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:6336, the sentiment is Positive. The current price of 771 is below the 20-day moving average (MA) of 922.50, below the 50-day MA of 827.24, and above the 200-day MA of 700.69, indicating a bullish trend. The MACD of 35.25 indicates Positive momentum. The RSI at 59.25 is Neutral, neither overbought nor oversold. The STOCH value of 64.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6336.

Ishii Hyoki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6336	78 Outperform	¥7.79B	6.67	―	2.63%	0.59%	53.87%
6317	78 Outperform	¥15.86B	15.61	―	3.41%	-3.27%	572.42%
6391	74 Outperform	¥8.29B	3.84	―	1.19%	-14.09%	-36.08%
6343	73 Outperform	¥7.74B	8.08	―	0.30%	4.45%	19.84%
6346	69 Neutral	¥8.21B	19.51	―	2.42%	3.68%	-14.90%
6408	67 Neutral	¥6.89B	3.03	―	1.37%	-3.05%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%