Heiwa (6412) AI Stock Analysis

• Market Cap: ¥213.05B
• Dividend Yield: 3.72%
• Average Volume (3M): 193.61K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.35
• Revenue Growth: 31.75%
• EPS Growth: -9.71%
• Country: JP
• Employees: 5,034
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Leisure
• EPS (TTM): 82.94
• Shares Outstanding: 99,809,060
• 10 Day Avg. Volume: 199,170
• 30 Day Avg. Volume: 193,613
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,246.51
• Price Target Upside: 4.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥2,247.00 ▲(4.03% Upside)

Heiwa's strong financial performance, particularly in cash flow and revenue growth, is the most significant factor driving the score. However, challenges with profit margins and increased leverage lower the score. Technical indicators suggest a neutral trend, while valuation metrics provide a modest boost with fair P/E and attractive dividend yield.

Heiwa Business Overview & Revenue Model

Company Description

Heiwa Corporation, headquartered in Japan, operates primarily in the manufacturing and distribution of pachinko and pachislot machines. Established in 1949, the company has become a leading player in the amusement industry, catering to gaming enthusiasts across Japan. Heiwa's core products include a wide range of innovative gaming machines that blend traditional Japanese gaming culture with modern technology. The company is committed to enhancing entertainment experiences through continuous research and development, ensuring a dynamic and engaging portfolio of gaming products.

How the Company Makes Money

Heiwa Corporation generates revenue primarily through the sale and leasing of pachinko and pachislot machines to gaming centers across Japan. The company designs, manufactures, and markets a diverse array of gaming machines that attract a loyal customer base, seeking both entertainment and potential monetary rewards. Key revenue streams include the direct sale of new machines, which are regularly updated with the latest gaming technology and themes, as well as leasing arrangements with gaming parlors. Heiwa also benefits from after-sales service fees, maintenance, and the supply of machine parts. Additionally, strategic partnerships with gaming venues help expand its market presence and ensure steady demand for its products. The company's deep understanding of consumer preferences and regulatory compliance within the Japanese gaming industry further contribute to its profitability.

Heiwa Financial Statement Overview

Summary

Heiwa demonstrates strong revenue growth and operational efficiency, but faces challenges with declining net profit margins and increased financial leverage. The company's cash flow generation is robust, though rising debt levels warrant careful monitoring.

Income Statement

Heiwa has shown a stable revenue growth of 6.96% from 2024 to 2025, following a recovery post-2022. The gross profit margin has improved to 35.97% in 2025 from 34.30% in 2024, indicating better cost management. However, net profit margin decreased to 8.95% in 2025 from 12.18% in 2024, largely due to reduced net income. EBIT and EBITDA margins remain strong, indicating operational efficiency, though the net income drop is a concern.

Balance Sheet

The company's debt-to-equity ratio has significantly increased to 2.57 in 2025, suggesting higher financial leverage, which could pose risks if not managed properly. The return on equity decreased to 5.35% in 2025 from 6.94% in 2024, highlighting a decline in profitability relative to shareholder equity. The equity ratio stands at 23.21%, indicating a moderate reliance on debt for financing.

Cash Flow

Heiwa's free cash flow has grown substantially by 141.97% from 2024 to 2025, reflecting improved cash management and operational performance. The operating cash flow to net income ratio is strong at 1.91, indicating robust cash-generating ability. However, reliance on financing cash flow could be a potential risk if debt levels continue to rise.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	145.87B	136.38B	142.29B	121.56B	107.74B
Gross Profit	52.49B	46.80B	49.31B	33.40B	29.04B
EBITDA	32.33B	32.14B	35.71B	20.32B	14.33B
Net Income	13.06B	16.61B	20.68B	2.19B	865.00M
Balance Sheet
Total Assets	1.05T	428.03B	423.73B	417.07B	430.07B
Cash, Cash Equivalents and Short-Term Investments	92.25B	57.71B	67.72B	67.05B	70.08B
Total Debt	628.42B	104.70B	106.77B	112.65B	121.45B
Total Liabilities	807.28B	188.84B	192.72B	199.88B	203.83B
Stockholders Equity	244.12B	239.19B	231.00B	217.19B	226.24B
Cash Flow
Free Cash Flow	6.13B	2.53B	17.83B	13.02B	-764.00M
Operating Cash Flow	24.93B	13.93B	25.59B	20.44B	7.03B
Investing Cash Flow	-500.03B	2.71B	-15.22B	2.04B	-5.87B
Financing Cash Flow	509.94B	-11.22B	-14.50B	-17.36B	-3.07B

Heiwa Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2160.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6412, the sentiment is Positive. The current price of 2160 is above the 20-day moving average (MA) of 2080.15, above the 50-day MA of 2070.06, and below the 200-day MA of 2177.38, indicating a neutral trend. The MACD of 21.12 indicates Negative momentum. The RSI at 72.94 is Negative, neither overbought nor oversold. The STOCH value of 92.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6412.

Heiwa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7944	81 Outperform	¥84.20B	14.06		5.28%	-4.39%	-27.30%
7458	74 Outperform	¥188.75B	9.90		3.46%	5.69%	48.81%
4680	73 Outperform	$437.12B	26.41	22.21%	1.09%	11.92%	33.70%
9166	69 Neutral	¥168.57B	61.15		―	77.47%	-45.82%
6412	69 Neutral	¥213.05B	13.64	6.63%	3.72%	31.75%	-9.71%
7906	68 Neutral	$268.25B	22.05	18.19%	0.68%	23.05%	31.52%
Sector *	67 Neutral	¥271.27B	14.21	6.84%	2.52%	5.08%	-22.38%

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.