HEPHAIST CO.,LTD (6433) AI Stock Analysis

• Market Cap: ¥3.94B
• Dividend Yield: 0.29%
• Average Volume (3M): 227.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: -10.82%
• EPS Growth: -69.03%
• Country: JP
• Employees: 94
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -27.96
• Shares Outstanding: 6,316,700
• 10 Day Avg. Volume: 531,810
• 30 Day Avg. Volume: 227,156
• PEG Ratio: 1.43
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 1.03
• P/FCF Ratio: -11.15
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: ¥385.00 ▼(-3.51% Downside)

The overall stock score of 43 reflects significant financial and technical challenges. The company's declining financial performance and negative valuation metrics are the most impactful factors. Technical analysis indicates bearish trends, further weighing on the stock's outlook. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Market Position

HEPHAIST CO.,LTD's strong market position in tech, especially in consumer electronics and automotive technology, provides a competitive edge and potential for growth in these expanding sectors.

Revenue Streams

Diverse revenue streams, including long-term contracts and partnerships, enhance financial stability and reduce dependency on any single sector, supporting sustained business operations.

Partnerships

Strategic partnerships with leading tech firms expand market reach and product offerings, fostering innovation and competitive advantages in the tech industry.

Negative Factors

Revenue Decline

The decline in revenue and profitability indicates challenges in maintaining market share and operational efficiency, potentially impacting long-term growth and financial health.

Negative Cash Flow

Negative free cash flow suggests liquidity issues, limiting the company's ability to invest in growth opportunities and meet financial obligations, affecting long-term sustainability.

Rising Leverage

Rising leverage increases financial risk, potentially straining cash flow and limiting flexibility in pursuing strategic initiatives, impacting long-term financial stability.

HEPHAIST CO.,LTD Business Overview & Revenue Model

Company Description

HEPHAIST CO.,LTD (6433) is a prominent player in the tech industry, primarily focusing on the development and manufacturing of advanced electronic components and systems. The company operates in several sectors, including consumer electronics, automotive technology, and industrial automation. Its core products include semiconductors, sensors, and integrated circuits, catering to a diverse range of clients from various industries seeking innovative technological solutions.

How the Company Makes Money

HEPHAIST CO.,LTD generates revenue through multiple streams, including direct sales of its electronic components to manufacturers and businesses across different sectors. A significant portion of its income comes from long-term contracts with automotive and industrial clients, who rely on the company's products for their advanced systems. Additionally, the company benefits from partnerships with leading tech firms, enhancing its market reach and product offerings. The revenue model is bolstered by providing value-added services, such as technical support and customized solutions, which further engage clients and drive repeat business.

HEPHAIST CO.,LTD Financial Statement Overview

Summary

HEPHAIST CO.,LTD faces significant financial challenges with declining revenues and profitability. The income statement shows negative net profit margins and volatile EBIT. The balance sheet is moderately stable with a decent equity ratio, but rising leverage is a concern. Cash flow issues, particularly negative free cash flow, highlight liquidity concerns.

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	2.19B	2.25B	2.31B	2.41B	2.74B	2.25B
Gross Profit	342.90M	333.89M	315.94M	477.90M	705.06M	543.86M
EBITDA	84.47M	10.28M	85.75M	207.10M	409.71M	224.73M
Net Income	-210.04M	-203.46M	-221.82M	-2.48M	217.71M	41.92M
Balance Sheet
Total Assets	5.05B	5.01B	5.38B	5.15B	4.90B	4.59B
Cash, Cash Equivalents and Short-Term Investments	562.00M	559.16M	884.91M	864.46M	973.46M	953.81M
Total Debt	1.59B	1.42B	1.36B	966.73M	529.37M	713.68M
Total Liabilities	2.29B	2.19B	2.37B	1.92B	1.66B	1.58B
Stockholders Equity	2.76B	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: Negative
• Last Price: 399.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6433, the sentiment is Negative. The current price of 399 is below the 20-day moving average (MA) of 472.10, below the 50-day MA of 520.24, and below the 200-day MA of 438.45, indicating a bearish trend. The MACD of -68.63 indicates Positive momentum. The RSI at 29.16 is Positive, neither overbought nor oversold. The STOCH value of 8.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	71 Outperform	¥7.42B	10.77	―	3.43%	0.24%	20.23%
5994	69 Neutral	¥8.13B	4.21	―	1.27%	6.41%	―
6138	68 Neutral	¥2.69B	7.48	―	2.80%	3.89%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6150	63 Neutral	¥2.76B	12.44	―	2.72%	-17.16%	-47.34%
2962	46 Neutral	¥3.68B	―	―	―	-19.32%	-171.53%
6433	43 Neutral	¥3.94B	-18.91	―	0.29%	-10.82%	-69.03%