Heiwa (6412) AI Stock Analysis

• Market Cap: ¥206.93B
• Dividend Yield: 3.88%
• Average Volume (3M): 182.89K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.34
• Revenue Growth: 6.96%
• EPS Growth: -21.35%
• Country: JP
• Employees: 5,034
• Sector: Industrials
• Sector Strength: 92
• Industry: Leisure
• EPS (TTM): -76.24
• Shares Outstanding: 99,809,060
• 10 Day Avg. Volume: 299,950
• 30 Day Avg. Volume: 182,893
• PEG Ratio: 0.28
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.30
• 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: 67 Neutral
• Price Target: ¥2,271.00 ▲(8.25%Upside)

Heiwa's financial performance is strong with robust cash flow, but declining net profit margins and increased financial leverage are concerns. Technically, the stock shows bearish momentum, which could present risks. However, a reasonable valuation and a solid dividend yield offer a balanced investment proposition.

Heiwa Business Overview & Revenue Model

Company Description

Heiwa Corporation, established in 1949 and headquartered in Japan, is a leading manufacturer in the gaming and entertainment industry. The company primarily focuses on the production and distribution of pachinko and pachislot machines, which are popular forms of recreational gaming in Japan. Heiwa also engages in the development of related software and systems, offering a comprehensive suite of gaming solutions.

How the Company Makes Money

Heiwa Corporation generates revenue primarily through the sale and leasing of pachinko and pachislot machines to gaming parlors across Japan. These machines are a major attraction in the country's entertainment sector. The company also earns money from providing maintenance services, spare parts, and software updates for its gaming machines. Additionally, Heiwa benefits from its research and development capabilities, which enable it to innovate and create new models that attract more customers. Partnerships with gaming parlors and other businesses in the entertainment industry also play a significant role in its revenue generation.

Heiwa Financial Statement Overview

Summary

Heiwa demonstrates strong financial performance with solid revenue and profit margins, a robust balance sheet with moderate leverage, and excellent cash flow management. The company shows potential for sustained growth and profitability in its industry.

Income Statement

Heiwa demonstrates strong financial performance with significant revenue growth of 11.73% in the TTM compared to the previous year. The gross profit margin is solid at 37.92%, while the net profit margin stands at 16.79%, indicating good profitability. Both EBIT and EBITDA margins are healthy at 21.58% and 27.51% respectively, showcasing efficient operations and cost management.

Balance Sheet

The company's balance sheet is robust with a debt-to-equity ratio of 0.44, reflecting moderate leverage and a stable financial structure. Return on Equity (ROE) is impressive at 10.16%, underlining effective use of shareholders' equity. The equity ratio of 56.79% further supports the company's financial stability, though there is room for improvement in reducing liabilities.

Cash Flow

Heiwa's cash flow analysis reveals a strong free cash flow growth rate of 428.47% in the TTM, driven by efficient cash management. The operating cash flow to net income ratio is 1.14, indicating solid cash generation relative to earnings. The free cash flow to net income ratio of 0.52 suggests a healthy conversion of earnings into free cash flow.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
152.36B	136.38B	142.29B	121.56B	107.74B	144.57B
	Gross Profit
57.79B	46.80B	49.31B	33.40B	29.04B	56.31B
	EBIT
32.88B	23.43B	26.91B	10.23B	5.31B	23.55B
	EBITDA
41.93B	32.14B	35.71B	20.32B	14.33B	32.30B
	Net Income Common Stockholders
25.59B	16.61B	20.68B	2.19B	865.00M	15.87B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
64.08B	57.71B	67.72B	67.05B	70.08B	83.30B
	Total Assets
443.30B	428.03B	423.73B	417.07B	430.07B	436.76B
	Total Debt
110.70B	104.70B	106.77B	112.65B	121.45B	115.83B
	Net Debt
69.66B	70.83B	69.95B	70.40B	81.15B	79.63B
	Total Liabilities
191.60B	188.84B	192.72B	199.88B	203.83B	204.19B
	Stockholders Equity
251.70B	239.19B	231.00B	217.19B	226.24B	232.58B
Cash Flow		Free Cash Flow
13.38B	2.53B	17.83B	13.02B	-764.00M	4.12B
	Operating Cash Flow
29.25B	13.93B	25.59B	20.44B	7.03B	12.58B
	Investing Cash Flow
-16.72B	2.71B	-15.22B	2.04B	-5.87B	7.70B
	Financing Cash Flow
-2.15B	-11.22B	-14.50B	-17.36B	-3.07B	-13.63B

Heiwa Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2098.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6412, the sentiment is Negative. The current price of 2098 is below the 20-day moving average (MA) of 2177.60, below the 50-day MA of 2244.40, and below the 200-day MA of 2164.83, indicating a bearish trend. The MACD of -37.22 indicates Positive momentum. The RSI at 33.81 is Neutral, neither overbought nor oversold. The STOCH value of 3.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6412.

Heiwa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7906	78 Outperform	$220.07B	20.62	16.08%	0.86%	18.75%	20.55%
7944	74 Outperform	¥84.20B	12.95		5.28%	-1.74%	-11.79%
4680	70 Outperform	$304.35B	17.67	22.21%	1.43%	11.23%	2.86%
6412	67 Neutral	¥206.93B	15.84	5.27%	3.88%	6.96%	-21.35%
7458	66 Neutral	¥170.61B	9.04		3.65%	4.28%	47.50%
9166	64 Neutral	¥154.70B	43.11		―	100.70%	-26.30%
Sector *	62 Neutral	$728.57M	9.75	4.60%	3.57%	1.08%	-37.28%

Heiwa Corporate Events

Heiwa Corporation Maintains Independence Amid Significant Shareholding by Ishihara Holdings

Heiwa Corporation has announced that Ishihara Holdings Inc. holds 42.99% of its voting rights, classifying it as an ‘other affiliated company.’ Despite this significant shareholding, Heiwa maintains a level of independence, with no substantial business or personnel relationships with Ishihara Holdings. The company ensures that any transactions with its controlling shareholder are conducted under the same terms as general transactions, safeguarding the interests of minority shareholders.

Heiwa Corporation Introduces Shareholder Benefit Program for FY 2026

Heiwa Corporation has announced a shareholder benefit program for the fiscal year ending March 2026, aimed at enhancing shareholder engagement and investment attractiveness. The program offers benefit coupons redeemable at Heiwa’s golf courses and facilities, encouraging medium to long-term stock retention among shareholders. This initiative is expected to strengthen shareholder relations and potentially boost the company’s market position by increasing shareholder loyalty.

Heiwa Corporation Reports Mixed Financial Results with Positive Future Outlook

Heiwa Corporation reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a 7% increase in net sales to ¥145,867 million and an 18.2% rise in operating profit to ¥27,690 million. However, ordinary profit and profit attributable to owners of the parent decreased by 6.2% and 21.4% respectively. The company also experienced a significant change in its financial position, with total assets increasing to ¥1,051,598 million. Despite these mixed results, Heiwa forecasts substantial growth for the next fiscal year, with expected net sales of ¥295,900 million, indicating a 102.9% increase, and a 109.5% rise in operating profit, suggesting a positive outlook for stakeholders.