HPC Systems, Inc. (6597) AI Stock Analysis

• Market Cap: ¥8.08B
• Dividend Yield: 1.49%
• Average Volume (3M): 65.34K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 1.33
• Revenue Growth: 1.71%
• EPS Growth: 46.30%
• Country: JP
• Employees: 127
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 7.25
• Shares Outstanding: 4,367,000
• 10 Day Avg. Volume: 105,560
• 30 Day Avg. Volume: 65,343
• 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: ¥2,164.00
• Price Target Upside: 16.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥2,164.00 ▲(16.41% Upside)

HPC Systems, Inc. demonstrates strong financial performance with consistent revenue growth and robust cash flow management, which are the most significant factors contributing to the score. The technical analysis indicates a positive trend, though momentum is not particularly strong. The valuation is reasonable, providing a balanced view of the stock's potential. The absence of earnings call and corporate events data means these factors do not influence the score.

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 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: Neutral
• Last Price: 1859.00
• 50DMA: Negative
• 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:6597, the sentiment is Neutral. The current price of 1859 is below the 20-day moving average (MA) of 1945.65, below the 50-day MA of 1911.02, and above the 200-day MA of 1474.08, indicating a neutral trend. The MACD of 12.07 indicates Positive momentum. The RSI at 44.30 is Neutral, neither overbought nor oversold. The STOCH value of 12.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥3.76B	11.79	―	2.59%	47.58%	23.65%
6597	72 Outperform	¥8.08B	18.55	―	1.49%	1.71%	46.30%
6599	71 Outperform	¥3.57B	11.22	―	1.68%	-1.94%	2.49%
6862	70 Outperform	¥6.93B	17.63	6.33%	1.61%	33.14%	-37.77%
6918	67 Neutral	¥14.11B	16.25	―	3.25%	-18.21%	-81.79%
6836	42 Neutral	¥5.69B	959.67	―	―	17.90%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%