HOKUETSU INDUSTRIES CO., LTD. (6364) AI Stock Analysis

• Market Cap: ¥64.25B
• Dividend Yield: 3.18%
• Average Volume (3M): 32.17K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.72
• Revenue Growth: 2.98%
• EPS Growth: 10.15%
• Country: JP
• Employees: 761
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 30,165,419
• 10 Day Avg. Volume: 26,420
• 30 Day Avg. Volume: 32,166
• PEG Ratio: -2.39
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 17.23
• 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: 84 Outperform
• Price Target: ¥2,609.00 ▲(43.04% Upside)
• Action: Reiterated Date: 01/31/26
• Date: Action: Reiterated 01/31/26

The score is driven primarily by strong financial performance (profitability, low leverage, and improving free cash flow) and supported by attractive valuation (low P/E and solid dividend yield). Technicals add a positive but secondary contribution, with price above major moving averages and supportive momentum indicators.

Positive Factors

Strong balance sheet

A very high equity ratio and conservative debt-to-equity provide durable financial stability. This capital structure supports sustained investment, dividend capacity and shock absorption during cyclical downturns, giving management flexibility for long-term strategic choices.

Improving free cash flow

Material improvement in free cash flow alongside healthy operating cash conversion indicates the business is generating increasing cash from operations. This strengthens funding for capex, debt reduction and shareholder returns over the medium term.

Consistent margins and revenue growth

Steady revenue growth combined with mid-teens EBITDA/EBIT margins and consistent net margins reflects operational efficiency. These durable profitability metrics underpin predictable cash generation and support reinvestment in the core machinery business.

Negative Factors

Modest top-line and EPS growth

Growth rates are moderate, suggesting limited organic expansion relative to higher-growth sectors. Over a 2-6 month horizon this implies constrained upside from core operations and a need for strategic initiatives or M&A to materially accelerate long-term earnings growth.

Sub-par cash conversion vs. net income

While cash generation is improving, OCF and FCF remain below full parity with reported earnings. This persistent gap can limit free cash for growth investments or increased shareholder returns and indicates working-capital or capex demands that reduce financial optionality.

Cyclical industry exposure / limited scale

Exposure to industrial machinery end-markets makes revenue and margins sensitive to macro cycles. Relatively small employee base suggests limited scale and geographic/product diversification, which can amplify demand swings and constrain pricing power versus larger competitors.

HOKUETSU INDUSTRIES CO., LTD. Business Overview & Revenue Model

Company Description

Airman Corporation engages in the manufacture and sale of construction machinery, including construction equipment for heavy machinery and industrial machinery in Japan and internationally. The company also engages in the manufacture and sale of air compressors under the AIRMAN brand. In addition, the company offers engine compressors, engine generators, aerial work platforms, motor compressors, emergency generators, scissors lifters, and mini excavators. The company was formerly known as Hokuetsu Industries Co., Ltd. and changed its name to Airman Corporation in April 2025. The company was incorporated in 1938 and is headquartered in Tsubame, Japan.

How the Company Makes Money

HOKUETSU INDUSTRIES generates revenue through multiple streams, primarily focused on the sale of industrial machinery and equipment. The company earns significant income from the sale of concrete production machinery, which is essential for the construction industry. Additionally, HOKUETSU offers maintenance and repair services for its machinery, contributing to its revenue through service contracts. The company also engages in partnerships with construction firms and government projects, which provide stable income sources through long-term contracts. Their focus on innovation and technological advancements allows them to maintain a competitive edge, attracting more clients and increasing sales volume.

HOKUETSU INDUSTRIES CO., LTD. Financial Statement Overview

Summary

Strong overall fundamentals: solid revenue growth (5.64% in 2025), healthy profitability (gross margin 26.76%, net margin 8.78%), conservative leverage (debt-to-equity 0.19) and high equity ratio (63.65%), plus improving free cash flow (up 71.97% from 2024 to 2025) with decent cash conversion (operating cash flow to net income 0.81).

Income Statement

Hokuetsu Industries demonstrates strong financial performance with consistent revenue growth, evidenced by a 5.64% increase in 2025. The company maintains solid profitability with a gross profit margin of 26.76% and a net profit margin of 8.78% for 2025. Additionally, EBIT and EBITDA margins have shown healthy trends at 12.62% and 14.82%, respectively, indicating efficient operational management. The income statement reflects robust growth and stability.

Balance Sheet

The balance sheet of Hokuetsu Industries is robust, with a high equity ratio of 63.65% in 2025, indicating a strong equity position and financial stability. The debt-to-equity ratio remains low at 0.19, showcasing conservative leverage practices. Return on equity is solid at 11.78%, reflecting effective utilization of equity to generate profits. Overall, the company exhibits a strong balance sheet with minimal risks.

Cash Flow

Hokuetsu Industries displays a positive cash flow trajectory, with a 71.97% growth in free cash flow from 2024 to 2025. The operating cash flow to net income ratio stands at 0.81, reflecting healthy cash conversion capabilities. The free cash flow to net income ratio at 0.64 suggests efficient management of capital expenditures. The cash flow statement indicates solid cash management, though there is room for improvement in converting income to cash.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	54.83B	54.83B	51.90B	49.00B	36.65B	32.93B
Gross Profit	14.69B	14.67B	13.46B	11.52B	9.55B	8.21B
EBITDA	5.92B	8.13B	8.43B	6.33B	5.09B	3.85B
Net Income	4.35B	4.81B	5.10B	3.75B	2.75B	1.94B
Balance Sheet
Total Assets	64.06B	64.20B	56.35B	53.24B	45.83B	43.38B
Cash, Cash Equivalents and Short-Term Investments	18.52B	19.25B	11.65B	12.84B	10.94B	11.38B
Total Debt	7.77B	7.92B	1.29B	1.27B	100.00M	1.07B
Total Liabilities	22.69B	23.16B	18.77B	19.04B	14.52B	13.42B
Stockholders Equity	41.20B	40.87B	37.41B	34.04B	31.16B	29.83B
Cash Flow
Free Cash Flow	0.00	3.06B	1.78B	1.76B	1.15B	2.11B
Operating Cash Flow	0.00	3.91B	3.97B	2.87B	2.28B	4.10B
Investing Cash Flow	0.00	-1.08B	-2.76B	-867.94M	-615.90M	-2.02B
Financing Cash Flow	0.00	4.37B	-2.49B	-158.97M	-2.22B	-1.73B

HOKUETSU INDUSTRIES CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1824.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6364, the sentiment is Positive. The current price of 1824 is below the 20-day moving average (MA) of 2132.05, below the 50-day MA of 1956.98, and below the 200-day MA of 1936.03, indicating a bullish trend. The MACD of 72.07 indicates Negative momentum. The RSI at 72.43 is Negative, neither overbought nor oversold. The STOCH value of 89.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6364.

HOKUETSU INDUSTRIES CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6364	84 Outperform	¥64.25B	11.68	―	3.18%	2.98%	10.15%
6517	78 Outperform	¥75.79B	15.50	―	2.63%	-6.00%	-13.74%
5982	77 Outperform	¥64.12B	13.31	―	3.43%	5.51%	13.00%
6237	76 Outperform	¥62.19B	14.88	―	2.79%	2.85%	3.17%
6381	75 Outperform	¥68.69B	16.94	―	3.95%	-1.67%	-4.39%
6363	70 Outperform	¥70.88B	14.83	―	3.09%	6.35%	-34.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

HOKUETSU INDUSTRIES CO., LTD. Corporate Events

Airman Corporation Advances Share Buyback With ¥214 Million Treasury Purchase

Airman Corporation has repurchased 101,300 of its common shares on the Tokyo Stock Exchange between February 2 and February 28, 2026, at a total cost of ¥214,023,600. The buyback was executed under a previously approved program that authorizes the purchase of up to 250,000 shares, or 0.90% of issued shares excluding treasury stock, for a maximum of ¥400 million through March 31, 2026.

This latest round of treasury share purchases signals ongoing capital management aimed at enhancing shareholder value and optimizing the company’s balance sheet. With less than half of the authorized volume and budget used so far, Airman retains scope to continue buying back shares, which may support its share price and adjust its capital structure over the remainder of the program period.

The most recent analyst rating on (JP:6364) stock is a Buy with a Yen2664.00 price target. To see the full list of analyst forecasts on HOKUETSU INDUSTRIES CO., LTD. stock, see the JP:6364 Stock Forecast page.

AIRMAN CORPORATION Launches One-Time Shareholder Perk to Mark Name Change

AIRMAN CORPORATION has announced a one-time commemorative shareholder benefit to mark its corporate name change implemented on April 1, 2025, and to reinforce recognition of the new brand. Shareholders recorded at the end of March 2026 holding at least 100 shares will receive QUO gift cards, with holders of 100 to 999 shares getting cards worth 1,000 yen and those with 1,000 shares or more receiving cards worth 2,000 yen.

The initiative underscores the company’s effort to express gratitude to long-term investors while using the benefit as a marketing tool to promote its rebranded identity in the capital markets. Management also signaled that the broader shareholder benefit program remains under review and may be adjusted in the future depending on business performance and the operating environment, which could influence the attractiveness of the stock to retail investors.

The most recent analyst rating on (JP:6364) stock is a Buy with a Yen2541.00 price target. To see the full list of analyst forecasts on HOKUETSU INDUSTRIES CO., LTD. stock, see the JP:6364 Stock Forecast page.

Airman Corporation to Grant Commemorative Shareholder Benefits for Corporate Name Change

Airman Corporation has announced that it will introduce a special shareholder benefit program to mark its forthcoming change of corporate name. While specific details of the incentive scheme were not disclosed in the English notice, the company indicated that fuller information is currently available in Japanese, with an official English version to follow in the coming weeks.

The move underscores Airman’s efforts to engage its investor base and highlight the importance of its rebranding milestone. By tying commemorative benefits to the name change, the company signals that it views the transition as a strategic step in its corporate evolution, with potential implications for its market identity and how it is perceived by both domestic and international stakeholders.

The most recent analyst rating on (JP:6364) stock is a Buy with a Yen2526.00 price target. To see the full list of analyst forecasts on HOKUETSU INDUSTRIES CO., LTD. stock, see the JP:6364 Stock Forecast page.

Airman Corporation Restructures Organization and Leadership for Medium-Term Growth

Airman Corporation has unveiled a major reorganization aligned with its Medium-Term Vision 2027, reframing the business as a four-division structure comprising newly established Domestic Sales and Overseas Sales units alongside existing Production and Administration. The overhaul is designed to accelerate growth through overseas construction machinery channels, reinforce domestic industrial machinery sales, and drive digital transformation, including carving out dedicated manufacturing engineering and information systems departments and integrating its EN System subsidiary into a two-tier manufacturing setup.

The company also announced a broad reshuffle of senior management, reassigning director roles toward corporate planning and sustainability, while naming new executive officers to lead the Domestic Sales, Overseas Sales, Production, and Administration divisions. These personnel moves consolidate responsibility for key growth domains such as construction machinery, industrial machinery, development, and overseas sales under clearly defined leadership, positioning the organization for more agile execution of its restructuring and growth strategies.

The most recent analyst rating on (JP:6364) stock is a Buy with a Yen2526.00 price target. To see the full list of analyst forecasts on HOKUETSU INDUSTRIES CO., LTD. stock, see the JP:6364 Stock Forecast page.

AIRMAN Posts Higher Nine-Month Profits and Confirms Modest Full-Year Outlook

AIRMAN CORPORATION reported steady growth for the nine months ended December 31, 2025, with net sales rising 3.8% year on year to ¥42.8 billion and profit attributable to owners of parent up 11.3% to ¥4.3 billion, reflecting improved profitability and higher earnings per share. The company’s financial position strengthened, as total assets and net assets both increased and the equity ratio improved, while it maintained its dividend policy and left full-year forecasts unchanged, signaling confidence in achieving modest growth in sales and earnings for the fiscal year ending March 31, 2026.

Dividends for the fiscal year are projected to rise slightly to a total of ¥60 per share, up from ¥57 in the previous year, indicating a continued focus on shareholder returns tied to earnings growth. The reaffirmed full-year guidance of ¥55.0 billion in net sales and ¥4.87 billion in profit attributable to owners of parent suggests stable operations amid accounting policy changes, with incremental gains expected rather than aggressive expansion, providing stakeholders with visibility on near-term performance.

The most recent analyst rating on (JP:6364) stock is a Buy with a Yen2526.00 price target. To see the full list of analyst forecasts on HOKUETSU INDUSTRIES CO., LTD. stock, see the JP:6364 Stock Forecast page.

AIRMAN Launches Share Buyback to Support Medium-Term Shareholder Return Targets

AIRMAN CORPORATION has approved a new share buyback as part of its capital policy, resolving to repurchase up to 250,000 common shares, or about 0.9% of its outstanding stock (excluding treasury shares), for a maximum of ¥400 million via market purchases on the Tokyo Stock Exchange between February 2 and March 31, 2026. The move aligns with the company’s Medium-Term Vision 2027, which targets a 70% total shareholder return by the fiscal year ending March 31, 2028 through dividends and share repurchases of around ¥10 billion, underscoring a continued emphasis on shareholder returns and capital efficiency at a time when the group already holds a sizable treasury stock position.

The most recent analyst rating on (JP:6364) stock is a Buy with a Yen2000.00 price target. To see the full list of analyst forecasts on HOKUETSU INDUSTRIES CO., LTD. stock, see the JP:6364 Stock Forecast page.

AIRMAN Delivers Higher Profits and Steady Growth in Nine-Month Results

AIRMAN CORPORATION reported solid results for the nine months ended December 31, 2025, with net sales rising 3.8% year on year to ¥42.8 billion and profit attributable to owners of parent increasing 11.3% to ¥4.35 billion, driven by improved profitability and higher operating and ordinary income. The company’s financial position also strengthened, with total assets and net assets both up and the equity ratio improving to 64.9%, while it maintained its dividend policy and left full-year guidance unchanged, projecting modest full-year growth in sales and earnings for the fiscal year ending March 31, 2026, signaling stable operations and continued shareholder returns.

The most recent analyst rating on (JP:6364) stock is a Buy with a Yen2000.00 price target. To see the full list of analyst forecasts on HOKUETSU INDUSTRIES CO., LTD. stock, see the JP:6364 Stock Forecast page.