Hamai Industries Ltd. (6497) AI Stock Analysis

• Market Cap: ¥8.11B
• Dividend Yield: 2.92%
• Average Volume (3M): 3.61K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.33
• Revenue Growth: 9.38%
• EPS Growth: 95.55%
• Country: JP
• Employees: 288
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 36.12
• Shares Outstanding: 7,424,140
• 10 Day Avg. Volume: 2,490
• 30 Day Avg. Volume: 3,610
• 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: ¥1,160.00
• Price Target Upside: -3.25% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ¥1,160.00 ▼(-3.25% Downside)

Hamai Industries Ltd. exhibits strong financial performance with solid revenue growth and effective cash flow management. The technical analysis suggests cautious optimism with potential for a rebound. Valuation metrics are reasonable, supported by a decent dividend yield. Absence of earnings call data and corporate events does not impact the overall assessment due to their exclusion.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Hamai's precision components, enhancing market position and supporting long-term expansion.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility, enabling strategic investments and resilience against downturns.

Cash Flow Management

Improved cash flow management enhances liquidity, allowing Hamai to fund operations and growth initiatives without relying heavily on external financing.

Negative Factors

Net Income Decline

A decline in net income can impact profitability and shareholder returns, suggesting the need for operational improvements to sustain long-term growth.

Volatile Free Cash Flow

Volatility in free cash flow may challenge Hamai's ability to consistently fund capital expenditures and strategic initiatives, affecting long-term planning.

Moderate Return on Equity

Moderate ROE suggests limited efficiency in generating returns from equity, indicating potential areas for improving operational and financial strategies.

Hamai Industries Ltd. Business Overview & Revenue Model

Company Description

Hamai Industries Ltd. (6497) is a Japan-based manufacturing company primarily engaged in the production and sale of high-precision components and machinery. The company operates in sectors such as automotive, aerospace, and industrial machinery, providing products that include precision mechanical components, gears, and various machine tools. Hamai Industries is known for its expertise in precision engineering and its commitment to quality and innovation.

How the Company Makes Money

Hamai Industries Ltd. generates revenue through the manufacturing and sale of precision components and machinery to various industrial sectors. The company's key revenue streams are derived from its automotive and aerospace clients who require high-precision gears and mechanical components. Additionally, the company earns money by providing maintenance and technical support services associated with its products. Strategic partnerships with major automotive and aerospace companies further bolster its revenue, as does its focus on research and development to enhance product offerings and meet industry-specific needs.

Hamai Industries Ltd. Financial Statement Overview

Summary

Hamai Industries Ltd. demonstrates strong financial performance with consistent revenue growth and efficient operational management. The balance sheet is solid with low leverage, and cash flow management shows improvements. However, there is room for enhancement in net income and return on equity to maximize shareholder value.

Income Statement

Hamai Industries Ltd. demonstrates strong financial performance with a consistent increase in total revenue, showcasing a revenue growth rate of 8.63% from 2023 to 2024. The gross profit margin is healthy, and the net profit margin has improved significantly, though it remains moderate at 3.28% in 2024. The EBIT and EBITDA margins are robust, indicating efficient operational management. However, net income has decreased, which affects overall profitability.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio, indicating prudent financial management. The equity ratio is high at 74.19%, suggesting a stable capital structure. The return on equity (ROE) is moderate at 2.47% in 2024, reflecting room for improvement in generating returns for shareholders.

Cash Flow

Hamai Industries Ltd. shows a positive trend in operating cash flow with a significant increase from 2023 to 2024, reflecting strong cash generation capabilities. Free cash flow has improved from a negative position to a positive one, indicating better capital expenditure management. However, the free cash flow growth rate is volatile, and the operating cash flow to net income ratio suggests challenges in converting accounting profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.42B	12.09B	11.13B	11.20B	9.46B	8.28B
Gross Profit	2.34B	2.33B	2.25B	2.24B	1.61B	1.60B
EBITDA	1.55B	1.68B	1.59B	1.56B	947.74M	920.25M
Net Income	333.90M	396.77M	909.00M	949.23M	433.47M	377.46M
Balance Sheet
Total Assets	21.31B	21.65B	21.10B	19.79B	18.32B	17.41B
Cash, Cash Equivalents and Short-Term Investments	3.45B	4.36B	4.57B	4.49B	3.93B	4.01B
Total Debt	152.01M	168.60M	114.00M	74.67M	84.04M	118.03M
Total Liabilities	5.23B	5.59B	5.46B	5.50B	4.64B	4.20B
Stockholders Equity	16.08B	16.06B	15.64B	14.29B	13.68B	13.21B
Cash Flow
Free Cash Flow	0.00	134.45M	-150.00M	703.03M	64.39M	543.05M
Operating Cash Flow	0.00	535.70M	323.00M	1.07B	412.26M	1.15B
Investing Cash Flow	0.00	-442.83M	-10.36M	-322.24M	-192.69M	-524.89M
Financing Cash Flow	0.00	-310.27M	-237.00M	-206.68M	-207.97M	-211.81M

Hamai Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1199.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6497, the sentiment is Neutral. The current price of 1199 is below the 20-day moving average (MA) of 1209.85, above the 50-day MA of 1164.46, and above the 200-day MA of 1091.78, indicating a neutral trend. The MACD of 15.49 indicates Positive momentum. The RSI at 50.57 is Neutral, neither overbought nor oversold. The STOCH value of 67.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6497.

Hamai Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5644	80 Outperform	¥11.75B	5.81		3.47%	0.52%	-3.96%
6998	78 Outperform	¥6.82B	9.91		3.62%	4.95%	24.62%
3440	75 Outperform	¥6.63B	5.63		3.50%	37.40%	146.86%
3435	73 Outperform	¥10.02B	9.28		2.99%	-0.77%	-23.54%
6497	66 Neutral	¥8.11B	10.11		2.92%	9.38%	95.55%
Sector *	63 Neutral	$10.84B	15.52	7.44%	2.00%	2.86%	-14.57%
5987	52 Neutral	¥2.98B	1,058.36		1.08%	1.73%	―