HEPHAIST CO.,LTD (6433) AI Stock Analysis

• Market Cap: ¥2.90B
• Dividend Yield: 0.21%
• Average Volume (3M): 10.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: -5.80%
• EPS Growth: 2.65%
• Country: JP
• Employees: 94
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -7.30
• Shares Outstanding: 6,316,700
• 10 Day Avg. Volume: 8,380
• 30 Day Avg. Volume: 10,166
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥429.00
• Price Target Upside: -9.68% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ¥429.00 ▼(-9.68% Downside)

The company's overall stock score is driven by significant financial challenges, including declining profitability and liquidity issues, which weigh heavily on its financial performance score. Despite this, the stock benefits from strong technical momentum, although valuation remains a concern with a negative P/E ratio. Improvements in financial health are crucial for a more favorable outlook.

Positive Factors

Equity Ratio Stability

A stable equity ratio indicates that the company maintains a balanced approach to financing, which can provide resilience against financial volatility and support long-term operational stability.

Cash Reserves

Having a healthy level of cash reserves provides the company with the flexibility to manage short-term obligations and invest in growth opportunities, supporting long-term strategic initiatives.

EPS Growth

Positive EPS growth suggests improvements in profitability, which can enhance investor confidence and provide resources for reinvestment into the business, supporting sustainable growth.

Negative Factors

Declining Revenue

Declining revenue growth indicates challenges in maintaining market share or demand, which can impact long-term profitability and necessitate strategic adjustments to reverse the trend.

Negative Free Cash Flow

Negative free cash flow suggests the company is spending more than it earns, which can strain financial resources and limit the ability to invest in growth or weather economic downturns.

Rising Leverage

Increasing leverage can heighten financial risk, as higher debt levels may lead to increased interest obligations and reduced financial flexibility, impacting long-term stability.

HEPHAIST CO.,LTD Business Overview & Revenue Model

Company Description

HEPHAIST CO., LTD (6433) is a Japanese company specializing in precision machinery and components. The company operates primarily in the industrial sector, producing high-quality machine tools and parts that are integral to various manufacturing processes. HEPHAIST is known for its advanced technology and commitment to precision engineering, catering to a diverse range of industries including automotive, aerospace, and electronics.

How the Company Makes Money

HEPHAIST CO., LTD generates revenue through the manufacturing and sale of precision machinery and components. The company earns money by providing high-quality machine tools to various industrial clients, which rely on these products for their manufacturing needs. HEPHAIST engages in direct sales to manufacturers across different sectors, leveraging its reputation for precision and reliability. Additionally, the company may have partnerships or collaborations with other firms to enhance its product offerings and expand its market reach. Key revenue streams include the sale of custom-engineered components and ongoing service contracts for maintenance and support of their machinery products. Factors such as technological innovation, industry demand, and operational efficiency significantly contribute to the company's earnings.

HEPHAIST CO.,LTD Financial Statement Overview

Summary

The company faces financial challenges with declining revenues and profitability. While the balance sheet shows some stability with a reasonable equity ratio, rising leverage is concerning. Cash flow issues, particularly negative free cash flow, highlight liquidity concerns. Overall, financial performance is weak, necessitating improvements in operational efficiency and profitability.

Income Statement

The income statement reflects declining revenue and profitability over recent years. Gross profit margins have decreased significantly, from 25.7% in 2022 to 14.9% in 2025. Net profit margin has been negative since 2020, indicating ongoing losses. The company also exhibits volatility in EBIT and EBITDA margins, with negative EBIT over the years. Overall, the income statement highlights significant challenges in maintaining stable revenues and profitability.

Balance Sheet

The balance sheet shows a reasonable equity ratio of approximately 56.3% in 2025, offering some stability. However, the debt-to-equity ratio has increased, indicating rising leverage from 0.16 in 2022 to 0.50 in 2025. Return on equity has been negative for the past few years, reflecting losses impacting shareholder returns. The company maintains a healthy level of cash and equivalents, which is a positive aspect.

Cash Flow

Cash flow analysis reveals negative free cash flow in recent years, indicating cash outflow challenges. Operating cash flow has fluctuated, showing negative values in 2025, which raises concerns about operational sustainability. The free cash flow to net income ratio is negative, suggesting that cash generation is not supporting net income adequately. Overall, cash flow metrics signify potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.24B	2.25B	2.31B	2.41B	2.74B	2.25B
Gross Profit	333.39M	333.89M	315.94M	477.90M	705.06M	543.86M
EBITDA	83.34M	10.28M	85.75M	207.10M	409.71M	224.73M
Net Income	-203.04M	-203.46M	-221.82M	-2.48M	217.71M	41.92M
Balance Sheet
Total Assets	5.01B	5.01B	5.38B	5.15B	4.90B	4.59B
Cash, Cash Equivalents and Short-Term Investments	559.16M	559.16M	884.91M	864.46M	973.46M	953.81M
Total Debt	1.42B	1.42B	1.36B	966.73M	529.37M	713.68M
Total Liabilities	2.19B	2.19B	2.37B	1.92B	1.66B	1.58B
Stockholders Equity	2.82B	2.82B	3.02B	3.23B	3.24B	3.01B
Cash Flow
Free Cash Flow	0.00	-206.96M	-130.18M	-451.99M	226.16M	56.65M
Operating Cash Flow	0.00	-183.39M	166.30M	-40.00M	417.36M	166.89M
Investing Cash Flow	0.00	-51.72M	-322.71M	-430.90M	-207.56M	-133.85M
Financing Cash Flow	0.00	-99.47M	171.66M	354.69M	-203.10M	99.93M

HEPHAIST CO.,LTD Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 475.00
• 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:6433, the sentiment is Positive. The current price of 475 is above the 20-day moving average (MA) of 454.15, above the 50-day MA of 437.44, and above the 200-day MA of 397.89, indicating a bullish trend. The MACD of 8.68 indicates Negative momentum. The RSI at 81.72 is Negative, neither overbought nor oversold. The STOCH value of 96.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6433.

HEPHAIST CO.,LTD Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6998	78 Outperform	¥6.82B	9.90		3.62%	4.95%	24.62%
6138	72 Outperform	¥3.28B	8.69		2.26%	8.06%	―
6150	72 Outperform	¥2.75B	9.50		2.67%	-10.50%	-31.23%
Sector *	63 Neutral	$10.84B	15.52	7.44%	2.00%	2.86%	-14.57%
5994	63 Neutral	¥5.49B	31.79		1.60%	1.07%	―
6433	54 Neutral	¥2.90B	―		0.21%	-5.80%	2.65%
2962	38 Underperform	¥2.42B	―		―	-28.21%	-396.64%