HPC Systems, Inc. (6597) AI Stock Analysis

• Market Cap: ¥7.98B
• Dividend Yield: 1.5%
• Average Volume (3M): 113.78K
• Price to Earnings (P/E): 20.1
• Beta (1Y): 1.34
• Revenue Growth: -2.04%
• EPS Growth: 8.15%
• Country: JP
• Employees: 127
• Sector: Technology
• Sector Strength: 91
• Industry: Computer Hardware
• EPS (TTM): 60.17
• Shares Outstanding: 4,366,000
• 10 Day Avg. Volume: 70,000
• 30 Day Avg. Volume: 113,776
• PEG Ratio: 2.64
• Price to Book (P/B): 7.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.27
• 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: ¥2,439.00
• Price Target Upside: 30.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥1,914.00 ▲(2.79%Upside)

The overall stock score of HPC Systems reflects a combination of strong financial performance, particularly in revenue growth and balance sheet health, tempered by profitability and cash flow concerns. Technical analysis suggests mixed signals with room for stability, while valuation metrics indicate moderate pricing with a reasonable dividend yield.

HPC Systems, Inc. Business Overview & Revenue Model

Company Description

HPC Systems, Inc. (6597) specializes in providing high-performance computing solutions designed to meet the demanding needs of various industries, including scientific research, financial services, and engineering. The company offers a range of products and services, such as custom-built supercomputers, storage solutions, and software development, aimed at optimizing computational efficiency and data processing capabilities.

How the Company Makes Money

HPC Systems, Inc. generates revenue primarily through the sale of its high-performance computing products and solutions. The company customizes and integrates advanced computing systems tailored to the specific needs of its clients, which include businesses and research institutions. Additional revenue streams include ongoing maintenance and support services, as well as licensing fees from proprietary software solutions. Strategic partnerships with technology providers and research organizations further enhance its market position and contribute to its income.

HPC Systems, Inc. Financial Statement Overview

Summary

HPC Systems, Inc. shows solid revenue growth and a strong balance sheet with a high equity ratio. However, profitability and cash flow consistency remain concerns. The company has stable operational efficiency but needs to improve net profit margins and cash flow stability for long-term resilience.

Income Statement

HPC Systems has shown strong revenue growth from 2020 to 2023, though it experienced a dip in 2024. The gross profit margin for TTM is approximately 27.73%, indicating good cost management. However, net profit margin is at about 5.11%, reflecting room for improvement in profitability. EBIT and EBITDA margins are moderate, suggesting stable operational efficiency.

Balance Sheet

The company has a manageable debt-to-equity ratio of 0.45 TTM, indicating controlled leverage. Return on Equity (ROE) for TTM is approximately 15.05%, showcasing decent returns for shareholders. The equity ratio is around 55.50%, which implies a strong equity base compared to total assets. However, fluctuations in debt levels over the years highlight potential risks of increased leverage.

Cash Flow

The cash flow situation is mixed, with inconsistent free cash flow over the years. The TTM data shows no free cash flow, indicating challenges in generating consistent cash from operations. The operating cash flow to net income ratio has been volatile, posing risks to liquidity. The company needs to stabilize cash flow generation to enhance financial health.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	6.84B	6.95B	8.85B	6.02B	5.83B	4.73B
Gross Profit	1.90B	1.90B	1.67B	1.86B	1.81B	1.55B
EBITDA	573.45M	521.40M	377.33M	694.34M	735.39M	520.70M
Net Income	349.19M	299.04M	183.75M	432.95M	447.08M	307.43M
Balance Sheet
Total Assets	4.18B	4.77B	7.88B	4.57B	3.28B	2.65B
Cash, Cash Equivalents and Short-Term Investments	1.74B	1.83B	1.17B	1.30B	1.73B	1.40B
Total Debt	1.06B	1.26B	4.51B	1.66B	852.65M	678.40M
Total Liabilities	1.86B	2.28B	5.57B	2.35B	1.55B	1.20B
Stockholders Equity	2.32B	2.49B	2.31B	2.22B	1.73B	1.46B
Cash Flow
Free Cash Flow	0.00	4.03B	-2.92B	-1.21B	347.22M	283.39M
Operating Cash Flow	0.00	4.08B	-2.79B	-1.16B	426.19M	341.51M
Investing Cash Flow	0.00	-8.66M	-235.76M	-126.19M	-99.67M	-61.45M
Financing Cash Flow	0.00	-3.36B	2.75B	829.54M	4.00M	181.25M

HPC Systems, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1862.00
• 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:6597, the sentiment is Positive. The current price of 1862 is below the 20-day moving average (MA) of 1893.86, above the 50-day MA of 1645.12, and above the 200-day MA of 1280.58, indicating a neutral trend. The MACD of 37.45 indicates Positive momentum. The RSI at 54.64 is Neutral, neither overbought nor oversold. The STOCH value of 42.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6597.

HPC Systems, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6734	80 Outperform	¥3.37B	10.56		2.84%	26.52%	-8.57%
6599	71 Outperform	¥3.29B	10.51		1.83%	-6.10%	-26.21%
6918	67 Neutral	¥12.76B	11.83		2.84%	-13.64%	-76.09%
6597	66 Neutral	¥7.98B	20.14		1.50%	-2.04%	8.15%
6862	60 Neutral	¥5.88B	15.03		1.85%	29.04%	-74.63%
Sector *	56 Neutral	HK$13.96B	5.37	-5.75%	5.38%	9.34%	-42.23%
6836	42 Neutral	¥7.71B	636.15		―	14.80%	70.15%