Hoden Seimitsu Kako Kenkyusho Co., Ltd. (6469) AI Stock Analysis

• Market Cap: ¥33.28B
• Dividend Yield: 0.45%
• Average Volume (3M): 108.50K
• Price to Earnings (P/E): 37.5
• Beta (1Y): 1.92
• Revenue Growth: 13.61%
• EPS Growth: 94.37%
• Country: JP
• Employees: 649
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 13.31
• Shares Outstanding: 10,953,900
• 10 Day Avg. Volume: 124,420
• 30 Day Avg. Volume: 108,496
• PEG Ratio: 0.33
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 1.01
• P/FCF Ratio: -44.98
• 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: 62 Neutral
• Price Target: ¥3,264.00 ▲(23.36% Upside)

The score is primarily supported by improving operating performance and a generally reasonable balance sheet, but is meaningfully pressured by weak cash flow (negative free cash flow) and a demanding valuation (P/E ~39.9). Technically, the uptrend is strong, yet overbought signals (RSI/Stoch ~85) temper the outlook.

Positive Factors

Consistent Revenue Growth

Sustained top-line expansion shows ongoing demand for precision instruments across electronics, automotive and healthcare. Durable revenue growth supports scale, recurring contract wins and reinvestment in R&D, improving long-term competitive positioning and product pipeline.

Improving Profitability

Margin expansion signals better operational efficiency and pricing power in niche precision equipment. Higher gross and operating margins provide cushion to fund innovation and absorb cyclical downturns, supporting sustainable earnings generation over the medium term.

Reasonable Capital Structure

Moderate leverage and a solid equity base give the company financial flexibility to fund capital expenditure and selective M&A without overburdening the balance sheet. A near-8% ROE indicates competent use of shareholder capital to generate returns.

Negative Factors

Negative Free Cash Flow

A weakened FCF profile limits the firm's ability to self-fund capex, pay dividends or reduce debt. Persistent or recurring negative FCF would constrain strategic investments and heighten reliance on external financing, impacting long-term operational flexibility.

Weak Cash Conversion

Low cash conversion suggests earnings are not translating efficiently into cash, raising concerns about working capital management or one-time accounting gains. Over time this can stress liquidity and limit the firm’s ability to sustain investments and smooth earnings volatility.

Rising Total Liabilities

An upward trend in liabilities increases refinancing and interest-rate exposure and can erode financial resilience if unchecked. If liabilities grow faster than cash generation or equity, it raises solvency risk and constrains strategic optionality over the medium term.

Hoden Seimitsu Kako Kenkyusho Co., Ltd. Business Overview & Revenue Model

Company Description

Hoden Seimitsu Kako Kenkyusho Co., Ltd. manufactures and sells electric discharge machining, industrial gas turbine parts, and other metal products. It also offers aircraft engine parts, servo press machines, surface treatment solutions, dies and moldings, and automotive parts. The company also provides dies-molding, and extrusion dies for aluminum and ceramic honeycomb. Hoden Seimitsu Kako Kenkyusho Co., Ltd. was incorporated in 1961 and is headquartered in Yokohama, Japan.

How the Company Makes Money

Hoden Seimitsu Kako Kenkyusho Co., Ltd. generates revenue primarily through the sale of its precision instruments and equipment. The company's revenue model is based on both direct sales to customers and long-term contracts with industrial partners. Key revenue streams include the sale of proprietary measurement devices and precision tools, as well as engineering consulting services for custom projects. Additionally, the company may benefit from strategic partnerships with major players in the electronics and automotive sectors, allowing for expanded market reach and collaborative product development, which contributes to its overall earnings.

Hoden Seimitsu Kako Kenkyusho Co., Ltd. Financial Statement Overview

Summary

Strong revenue growth (+5.95%) and improving profitability (net margin up to 4.52%, stronger EBIT/EBITDA margins) support the score, but it is held back by negative free cash flow in 2025, a low operating cash flow to net income ratio (0.71), and rising liabilities despite moderate leverage (debt-to-equity 0.79).

Income Statement

Hoden Seimitsu Kako Kenkyusho Co., Ltd. has demonstrated strong revenue growth with a 5.95% increase in the latest year. The gross profit margin for 2025 is robust at 23.32%, and the net profit margin has significantly improved to 4.52% from a previous low in 2023. EBIT and EBITDA margins have also strengthened, indicating improved operational efficiency. However, fluctuations in net income over the years suggest some instability in profitability.

Balance Sheet

The company's balance sheet shows a reasonable debt-to-equity ratio of 0.79 for 2025, reflecting moderate leverage. Return on Equity (ROE) is healthy at 7.93%, showcasing effective utilization of equity to generate profits. The equity ratio stands at 41.91%, indicating a solid equity base. However, the total liabilities have shown an increasing trend, which could pose risks if not managed well.

Cash Flow

Cash flow analysis reveals challenges with free cash flow, which was negative in 2025, showing a decline from the previous positive figure in 2024. The operating cash flow to net income ratio is low at 0.71, suggesting less cash conversion from earnings. Such cash flow volatility may impact future investments and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.05B	12.90B	12.16B	11.68B	12.98B	10.93B
Gross Profit	3.59B	3.01B	2.51B	1.93B	2.82B	1.63B
EBITDA	1.87B	1.42B	916.96M	406.23M	2.70B	-2.06B
Net Income	846.58M	583.22M	231.88M	-1.29B	1.41B	-2.84B
Balance Sheet
Total Assets	17.76B	17.55B	17.97B	14.83B	15.55B	15.42B
Cash, Cash Equivalents and Short-Term Investments	2.58B	2.60B	4.13B	1.68B	1.95B	1.52B
Total Debt	5.12B	5.80B	6.45B	5.91B	5.10B	7.17B
Total Liabilities	9.18B	9.29B	10.75B	9.95B	9.29B	10.44B
Stockholders Equity	7.69B	7.36B	6.44B	4.13B	5.61B	4.37B
Cash Flow
Free Cash Flow	0.00	-288.37M	157.77M	-1.00B	483.67M	-473.40M
Operating Cash Flow	0.00	415.03M	1.02B	-129.29M	1.88B	584.13M
Investing Cash Flow	0.00	-619.22M	-782.15M	-806.76M	601.29M	-1.01B
Financing Cash Flow	0.00	-1.45B	2.13B	550.98M	-2.05B	600.88M

Hoden Seimitsu Kako Kenkyusho Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2646.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6469, the sentiment is Positive. The current price of 2646 is below the 20-day moving average (MA) of 3174.95, above the 50-day MA of 2632.06, and above the 200-day MA of 1927.34, indicating a neutral trend. The MACD of 113.71 indicates Positive momentum. The RSI at 53.36 is Neutral, neither overbought nor oversold. The STOCH value of 19.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6469.

Hoden Seimitsu Kako Kenkyusho Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6365	80 Outperform	¥22.86B	7.49	―	3.35%	23.30%	104.31%
6378	80 Outperform	¥25.24B	11.93	―	3.34%	2.10%	4.99%
6317	78 Outperform	¥16.54B	5.05	―	3.41%	-3.27%	572.42%
6264	73 Outperform	¥35.00B	23.36	―	2.04%	140.12%	6842.82%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6469	62 Neutral	¥33.28B	37.51	―	0.45%	13.61%	94.37%
6293	46 Neutral	¥17.01B	-20.71	―	4.21%	2.79%	-281.15%