HPC Systems, Inc. (6597) AI Stock Analysis

• Market Cap: ¥8.19B
• Dividend Yield: 1.47%
• Average Volume (3M): 57.97K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 1.32
• Revenue Growth: 1.71%
• EPS Growth: 46.50%
• Country: JP
• Employees: 127
• Sector: Technology
• Sector Strength: 85
• Industry: Computer Hardware
• EPS (TTM): 7.25
• Shares Outstanding: 4,367,000
• 10 Day Avg. Volume: 43,770
• 30 Day Avg. Volume: 57,966
• 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: ¥2,235.00
• Price Target Upside: 17.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥2,235.00 ▲(17.02% Upside)

HPC Systems, Inc. demonstrates strong financial performance with robust cash flow management and improved profitability margins. The technical indicators show a positive trend, supporting a bullish outlook. The valuation is reasonable, making the stock attractive for investors seeking growth with moderate income potential.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong demand for HPC Systems' products and services, suggesting a solid market position and potential for future expansion.

Cash Flow Management

Efficient cash flow management ensures HPC Systems can support growth initiatives and maintain financial stability, enhancing long-term business resilience.

Balance Sheet Strength

Reduced leverage and a stronger equity position improve financial flexibility, allowing HPC Systems to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Moderate Profit Margins

Moderate profit margins may limit the company's ability to reinvest in business development and innovation, potentially affecting competitive positioning over time.

Industry Competition

Intense competition in the computer hardware industry could pressure pricing and margins, challenging HPC Systems' ability to maintain its market share and profitability.

Employee Base

A relatively small employee base may limit operational capacity and scalability, potentially hindering HPC Systems' ability to rapidly expand or innovate in response to market demands.

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. exhibits strong financial health with consistent revenue growth, improved profitability margins, and a solid balance sheet with reduced leverage. The company's cash flow position is particularly strong, indicating efficient cash management and the ability to support future growth initiatives.

Income Statement

HPC Systems, Inc. has shown consistent revenue growth with a 3.35% increase in the latest year. The gross profit margin has improved to 29.76% from 27.33% the previous year, indicating better cost management. The net profit margin also increased to 6.00% from 4.31%, reflecting enhanced profitability. However, the EBIT and EBITDA margins, while improved, remain moderate at 9.00% and 10.07%, respectively.

Balance Sheet

The company's debt-to-equity ratio has significantly improved to 0.20 from 0.51, indicating reduced leverage and a stronger equity position. Return on equity (ROE) has increased to 16.27%, showcasing efficient use of equity to generate profits. The equity ratio stands at 57.57%, reflecting a solid capital structure with a majority of assets financed by equity.

Cash Flow

HPC Systems, Inc. has demonstrated robust cash flow management, with a remarkable free cash flow growth rate. The operating cash flow to net income ratio is strong at 3.15, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also healthy at 3.07, highlighting strong cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.00B	7.06B	6.95B	8.85B	6.02B	5.83B
Gross Profit	2.00B	2.10B	1.90B	1.67B	1.86B	1.81B
EBITDA	653.74M	711.42M	521.40M	377.33M	694.34M	735.39M
Net Income	383.87M	423.85M	299.04M	183.75M	432.95M	447.08M
Balance Sheet
Total Assets	4.58B	4.52B	4.77B	7.88B	4.57B	3.28B
Cash, Cash Equivalents and Short-Term Investments	1.74B	2.08B	1.83B	1.17B	1.30B	1.73B
Total Debt	951.10M	525.68M	1.26B	4.51B	1.66B	852.65M
Total Liabilities	2.01B	1.92B	2.28B	5.57B	2.35B	1.55B
Stockholders Equity	2.58B	2.60B	2.49B	2.31B	2.22B	1.73B
Cash Flow
Free Cash Flow	0.00	1.30B	4.03B	-2.92B	-1.21B	347.22M
Operating Cash Flow	0.00	1.34B	4.08B	-2.79B	-1.16B	426.19M
Investing Cash Flow	0.00	-55.20M	-8.66M	-235.76M	-126.19M	-99.67M
Financing Cash Flow	0.00	-1.04B	-3.36B	2.75B	829.54M	4.00M

HPC Systems, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1910.00
• 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 1910 is below the 20-day moving average (MA) of 1940.20, above the 50-day MA of 1870.30, and above the 200-day MA of 1420.19, indicating a neutral trend. The MACD of 6.42 indicates Positive momentum. The RSI at 50.09 is Neutral, neither overbought nor oversold. The STOCH value of 26.13 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	¥3.72B	11.65		2.58%	47.58%	23.65%
6597	74 Outperform	¥8.19B	18.81		1.47%	1.71%	46.50%
6599	71 Outperform	¥3.44B	10.80		1.76%	-1.94%	2.49%
6862	70 Outperform	¥6.47B	16.44		1.67%	33.14%	-37.77%
6918	67 Neutral	¥13.37B	15.40		3.04%	-18.21%	-81.79%
Sector *	61 Neutral	$36.58B	11.16	-10.43%	1.86%	8.71%	-7.09%
6836	42 Neutral	¥6.51B	1,067.55		―	17.90%	―