HPC Systems, Inc. (6597) AI Stock Analysis

• Market Cap: ¥8.04B
• Dividend Yield: 1.65%
• Average Volume (3M): 92.52K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 1.42
• Revenue Growth: 3.70%
• EPS Growth: 107.81%
• Country: JP
• Employees: 127
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 27.55
• Shares Outstanding: 4,370,000
• 10 Day Avg. Volume: 120,110
• 30 Day Avg. Volume: 92,520
• PEG Ratio: 0.42
• Price to Book (P/B): 3.14
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 6.28
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥1,827.00 ▲(7.79% Upside)

HPC Systems, Inc. demonstrates strong financial performance with robust cash flow and improved profitability, which is the most significant factor in its overall score. However, the technical analysis indicates a bearish trend, which tempers the positive financial outlook. The valuation is reasonable, providing some support to the stock's attractiveness. The absence of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and demand for HPC Systems' products and services, supporting long-term business expansion.

Cash Flow Management

Efficient cash flow management enhances financial stability, enabling HPC Systems to invest in growth initiatives and weather economic fluctuations.

Balance Sheet Health

Reduced leverage strengthens the balance sheet, providing financial flexibility and reducing risk, which supports sustainable long-term growth.

Negative Factors

Moderate Profit Margins

Moderate profit margins may limit profitability growth, impacting the company's ability to reinvest in innovation and competitive positioning.

Bearish Technical Trend

A sustained bearish trend can affect investor confidence and access to capital, potentially impacting long-term strategic initiatives.

Lack of Recent Earnings Call Data

Lack of recent earnings call data may indicate limited transparency and communication, which can affect investor confidence and market perception.

HPC Systems, Inc. Business Overview & Revenue Model

Company Description

HPC SYSTEMS Inc. develops, manufactures, and sells high-performance and embedded computers in Japan. Its principal products are cluster computers and personal cluster systems. The company is also specializes in science and technology calculations; and provides consulting services. It serves research institutes, including government labs, universities, and multi-national corporate research and development centers. The company was founded in 2006 and is headquartered in Tokyo, Japan.

How the Company Makes Money

HPC Systems, Inc. generates revenue through multiple streams, including direct sales of high-performance computing hardware and software solutions. The company also earns income from subscription fees for its cloud-based HPC services, which allow clients to access powerful computing resources without the need for significant upfront investments. Additionally, HPC Systems engages in consulting and support services, helping clients optimize their HPC environments and implement tailored solutions. Strategic partnerships with research institutions and technology firms further enhance its offerings and contribute to revenue growth, as they collaborate on projects that require advanced computing capabilities.

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. While profitability margins are moderate, the positive trends suggest a stable and improving financial trajectory.

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: Negative
• Last Price: 1695.00
• 50DMA: Negative
• 100DMA: Negative
• 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:6597, the sentiment is Negative. The current price of 1695 is below the 20-day moving average (MA) of 1785.50, below the 50-day MA of 1855.78, and above the 200-day MA of 1625.28, indicating a neutral trend. The MACD of -37.71 indicates Positive momentum. The RSI at 40.66 is Neutral, neither overbought nor oversold. The STOCH value of 12.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥3.51B	10.69	―	2.82%	33.70%	36.99%
6862	73 Outperform	¥6.47B	16.44	―	1.08%	17.06%	30.17%
6599	71 Outperform	¥3.85B	10.71	―	1.53%	4.40%	35.86%
6597	67 Neutral	¥8.04B	18.46	―	1.65%	3.70%	107.81%
6918	67 Neutral	¥14.54B	20.61	―	2.94%	-17.73%	-83.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6836	42 Neutral	¥4.83B	167.65	―	―	17.29%	―