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

• Market Cap: ¥10.64B
• Dividend Yield: 1.64%
• Average Volume (3M): 15.16K
• Price to Earnings (P/E): 3.5
• Beta (1Y): 0.40
• Revenue Growth: -11.47%
• EPS Growth: N/A
• Country: JP
• Employees: 4,352
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 32.99
• Shares Outstanding: 21,758,000
• 10 Day Avg. Volume: 18,040
• 30 Day Avg. Volume: 15,160
• PEG Ratio: -0.79
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 101.14
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ¥535.00 ▲(15.55% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

Harada Industry's stock score reflects a moderate financial recovery with stable profitability and cash flow improvements. Technical indicators suggest a neutral market position, while valuation metrics indicate fair pricing. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Cash flow recovery

Operating and free cash flow have recovered materially from prior negatives, indicating improved cash generation and cash management. Durable cash conversion supports reinvestment in tooling and program ramp, lowers refinancing risk, and strengthens the firm's ability to fund working capital through auto cycles.

Balance sheet stability

The company's moderate leverage and healthy equity ratio, plus ROE recovery from negative levels, create structural resilience. This reduces solvency risk, preserves financing optionality for program bids or capex, and provides a stronger footing to absorb cyclical downturns over the medium term.

Margin improvement

Gross and operating margins have shown improvement, reflecting better cost management and operational efficiency. Sustained margin expansion increases cash per vehicle shipped, enhancing profitability resilience and enabling the company to better withstand modest volume declines or fund incremental R&D and capex.

Negative Factors

Inconsistent revenue growth

Revenue growth has been uneven and declined materially recently, reflecting exposure to vehicle production cycles and program timing. Structural top-line volatility limits medium-term visibility, constrains scale benefits, and can amplify earnings and cash-flow swings when new program wins are delayed.

Limited asset growth

A stagnant asset base suggests limited investment in capacity or new program-related assets. This can constrain the company's ability to scale for larger vehicle programs, impede revenue diversification, and reduce potential economies of scale required for longer-term margin and market-share gains.

Historical cash and margin volatility

Historical negative free cash flow and volatile net margins indicate sensitivity to timing, one-offs or cost pressures. Even with recovery, such volatility undermines predictability for reinvestment, dividends, and creditor confidence, raising the risk of constrained growth or tighter financing terms during stress.

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

Company Description

Harada Industry Co., Ltd. engages in planning, design, development, manufacture, and sale of various automotive antennas for radio broadcasting, GPS, phone, DSRC, ETC, TV, and others in Japan and internationally. The company provides fin, rod, screen, film, and integrated type antennas, as well as other antennas. The company also provides cables, such as copper clad aluminum, coaxial, and shielded twisted pair cables, as well as connectors and cable routing in cars. In addition, it offers amplifiers and noise filters. The company was formerly known as Harada Electric Manufacturing Co., Ltd. and changed its name to Harada Industry Co., Ltd. in March 1958. Harada Industry Co., Ltd. was founded in 1947 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Harada Industry Co., Ltd. generates revenue primarily through the sale of its automotive components to major automobile manufacturers. The company's revenue model is based on direct sales, long-term contracts, and partnerships with automotive brands, which provide a steady stream of income. Key revenue streams include the production of electronic control units and sensors that are integral to vehicle operation and safety systems. Additionally, Harada benefits from research and development collaborations with industry partners, which can lead to new product innovations and enhanced market offerings, further contributing to its earnings.

Harada Industry Co., Ltd. Financial Statement Overview

Summary

Harada Industry shows gradual recovery in profitability margins and cash flow generation, though revenue growth is inconsistent. The balance sheet is stable with moderate leverage, but asset growth is limited.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	43.76B	44.82B	46.99B	42.11B	35.81B	34.71B
Gross Profit	9.39B	9.23B	8.66B	7.06B	5.81B	6.40B
EBITDA	3.22B	3.07B	4.41B	552.45M	224.09M	-19.93M
Net Income	502.19M	166.22M	885.67M	-1.53B	-1.11B	-1.29B
Balance Sheet
Total Assets	35.79B	38.93B	37.60B	40.13B	35.94B	32.79B
Cash, Cash Equivalents and Short-Term Investments	6.16B	6.45B	5.14B	5.97B	3.75B	4.66B
Total Debt	17.42B	16.53B	14.87B	19.72B	16.59B	13.20B
Total Liabilities	22.82B	25.55B	25.68B	28.97B	24.74B	21.21B
Stockholders Equity	12.97B	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: Positive
• Last Price: 463.00
• 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:6904, the sentiment is Positive. The current price of 463 is below the 20-day moving average (MA) of 488.65, below the 50-day MA of 484.48, and below the 200-day MA of 463.07, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 51.99 is Neutral, neither overbought nor oversold. The STOCH value of 36.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
6718	81 Outperform	¥44.78B	71.35	―	4.43%	0.63%	-24.87%
6675	79 Outperform	¥46.37B	310.64	―	2.26%	20.13%	33.43%
6820	70 Outperform	¥43.56B	14.45	―	2.93%	-0.90%	-13.24%
6703	70 Outperform	¥240.23B	6.34	12.24%	2.31%	-2.36%	-61.50%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6771	60 Neutral	¥5.19B	44.10	―	2.01%	13.56%	―
6904	59 Neutral	¥10.64B	3.50	―	1.64%	-11.47%	―

Harada Industry Co., Ltd. Corporate Events

Harada Industry Lifts Q3 Profits Despite Lower Sales, Keeps Dividend Outlook

Harada Industry reported third-quarter fiscal 2025 consolidated net sales of ¥31.0 billion, down 8.3% year on year, but achieved substantial profit growth, with operating profit up 25.5% to ¥2.62 billion and profit attributable to owners of parent more than doubling to ¥1.99 billion. Earnings per share rose to ¥94.48, and the company strengthened its financial position as total assets declined moderately while net assets and the capital adequacy ratio improved.

Despite weaker sales, Harada Industry plans to maintain its annual dividend forecast of ¥7.50 per share for fiscal 2025, signaling continued shareholder returns. The company projects full-year net sales of ¥40.0 billion, a 10.7% decline, and modest profit easing versus the prior year, suggesting that the strong third-quarter performance may normalize as the year progresses while overall profitability remains positive.

The most recent analyst rating on (JP:6904) stock is a Hold with a Yen466.00 price target. To see the full list of analyst forecasts on Harada Industry Co., Ltd. stock, see the JP:6904 Stock Forecast page.