Harada Industry Co., Ltd. (6904) AI Stock Analysis

• Market Cap: ¥10.11B
• Dividend Yield: 1.61%
• Average Volume (3M): 20.34K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.37
• Revenue Growth: -7.72%
• EPS Growth: N/A
• Country: JP
• Employees: 4,352
• Sector: Technology
• Sector Strength: 85
• Industry: Communication Equipment
• EPS (TTM): 31.75
• Shares Outstanding: 21,758,000
• 10 Day Avg. Volume: 7,320
• 30 Day Avg. Volume: 20,340
• 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: ¥526.00
• Price Target Upside: 12.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ¥526.00 ▲(12.63% Upside)

Harada Industry's stock is supported by strong technical indicators, reflecting bullish momentum. Financial performance shows recovery, though revenue growth is inconsistent. Valuation is reasonable, with no significant undervaluation or overvaluation. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Profitability Margins

Improved profitability margins indicate better cost management and operational efficiency, which can enhance long-term financial stability and competitiveness.

Cash Flow Recovery

The recovery in cash flow demonstrates effective cash management, providing the company with more resources for investment and growth opportunities.

Balance Sheet Stability

A stable balance sheet with moderate leverage ensures financial resilience and the ability to withstand economic fluctuations, supporting long-term growth.

Negative Factors

Inconsistent Revenue Growth

Inconsistent revenue growth can hinder strategic planning and investment, potentially affecting the company's ability to capitalize on market opportunities.

Decline in Net Sales

A decline in net sales suggests challenges in market demand or competitive positioning, which could impact future profitability and market share.

Volatile Net Profit Margin

Volatile net profit margins indicate potential instability in earnings, which can affect investor confidence and the company's ability to sustain growth.

Harada Industry Co., Ltd. Business Overview & Revenue Model

Company Description

Harada Industry Co., Ltd. (6904) is a Japanese company primarily engaged in the manufacturing and sale of automobile antennas and related components. The company serves various sectors within the automotive industry, providing essential communication components for vehicles. With a focus on innovation and quality, Harada Industry Co., Ltd. has established itself as a key supplier to major automobile manufacturers globally.

How the Company Makes Money

Harada Industry Co., Ltd. generates revenue through the production and sale of automotive antennas and related components. The company's primary revenue stream is derived from supplying these products to automotive manufacturers, who integrate them into vehicles as part of the standard communication and entertainment systems. Harada Industry Co., Ltd. may also engage in strategic partnerships or collaborations with automotive companies to enhance product offerings and expand market reach. Additionally, the company invests in research and development to innovate and maintain competitive advantages in the automotive communication equipment sector.

Harada Industry Co., Ltd. Financial Statement Overview

Summary

Harada Industry shows a gradual recovery across its financial statements. Improvements in profitability margins and cash flow generation are noted, though revenue growth remains inconsistent. The balance sheet reflects moderate leverage and a stable equity position, indicating a cautious growth approach.

Income Statement

Harada Industry has shown a mixed performance in its income statement. The gross profit margin has improved over the years, indicating an enhancement in cost management. However, the net profit margin has been volatile, with recent recovery from previous losses. The revenue growth rate has been inconsistent, with a recent decline in 2025. The company has improved its EBIT and EBITDA margins over the years, though they remain below industry benchmarks.

Balance Sheet

The company's balance sheet is stable but shows potential risks. The debt-to-equity ratio is moderate, indicating a balanced leverage. Return on equity has recovered from negative values, showing a positive trend in 2025. The equity ratio is healthy, reflecting a reasonable proportion of equity financing. However, the overall asset base has not significantly grown, indicating potential constraints on expansion.

Cash Flow

Harada Industry's cash flow statement indicates recovery in operating cash flow and free cash flow, showing a positive trend in recent years. The free cash flow growth has been substantial from negative figures in earlier years, reflecting improved cash management. The operating cash flow to net income ratio indicates efficient cash generation relative to earnings. However, past negative free cash flows highlight historical cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.82B	44.82B	46.99B	42.11B	35.81B	34.71B
Gross Profit	9.23B	9.23B	8.66B	7.06B	5.81B	6.40B
EBITDA	3.07B	3.07B	4.41B	552.45M	224.09M	-19.93M
Net Income	165.65M	166.22M	885.67M	-1.53B	-1.11B	-1.29B
Balance Sheet
Total Assets	38.93B	38.93B	37.60B	40.13B	35.94B	32.79B
Cash, Cash Equivalents and Short-Term Investments	6.45B	6.45B	5.14B	5.97B	3.75B	4.66B
Total Debt	16.53B	16.53B	14.87B	19.72B	16.59B	13.20B
Total Liabilities	25.55B	25.55B	25.68B	28.97B	24.74B	21.21B
Stockholders Equity	13.38B	13.38B	11.91B	11.17B	11.21B	11.59B
Cash Flow
Free Cash Flow	0.00	105.48M	1.69B	-97.12M	-4.26B	-772.32M
Operating Cash Flow	0.00	855.89M	2.42B	558.64M	-3.57B	-152.22M
Investing Cash Flow	0.00	-408.51M	2.57B	-569.39M	-131.19M	-702.29M
Financing Cash Flow	0.00	573.12M	-6.00B	2.00B	2.50B	-168.32M

Harada Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 467.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6904, the sentiment is Neutral. The current price of 467 is below the 20-day moving average (MA) of 470.00, above the 50-day MA of 451.48, and below the 200-day MA of 472.40, indicating a neutral trend. The MACD of 3.86 indicates Positive momentum. The RSI at 52.93 is Neutral, neither overbought nor oversold. The STOCH value of 64.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6904.

Harada Industry Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6904	68 Neutral	¥10.11B	20.29		1.61%	-7.72%	―
Sector *	61 Neutral	$36.80B	12.38	-10.20%	1.85%	8.54%	-7.31%
6778	55 Neutral	¥6.25B	45.44		3.15%	-4.92%	―
6634	51 Neutral	¥5.70B	―		―	229.77%	0.22%
6771	49 Neutral	¥3.76B	29.68		2.04%	0.35%	―

Harada Industry Co., Ltd. Corporate Events

Harada Industry Reports Q1 Financial Results with Mixed Performance

Harada Industry Co., Ltd. reported a decline in net sales for the first quarter of fiscal year 2025, with a 9.4% decrease compared to the previous year. Despite the drop in sales, the company achieved significant growth in operating profit and ordinary profit, indicating improved operational efficiency. The company’s financial forecast for the full year anticipates further declines in net sales and profits, suggesting potential challenges in market conditions or operational hurdles.