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

• Market Cap: ¥9.48B
• Dividend Yield: 1.72%
• Average Volume (3M): 7.58K
• Price to Earnings (P/E): 56.9
• Beta (1Y): 0.34
• Revenue Growth: -4.63%
• EPS Growth: -83.79%
• Country: JP
• Employees: 4,352
• Sector: Technology
• Sector Strength: 90
• Industry: Communication Equipment
• EPS (TTM): -36.81
• Shares Outstanding: 21,758,000
• 10 Day Avg. Volume: 8,890
• 30 Day Avg. Volume: 7,580
• PEG Ratio: 0.50
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥442.00
• Price Target Upside: 1.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: ¥442.00 ▲(1.38%Upside)

The stock score is primarily influenced by financial performance showing signs of recovery and stability. However, the technical analysis indicates weak market momentum, and the high P/E ratio suggests overvaluation, which negatively impacts the overall score.

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 demonstrates gradual recovery across financial statements with improved profitability margins and cash flow generation. Revenue growth is inconsistent, and the balance sheet reflects moderate leverage and stable equity, suggesting cautious growth.

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	45.39B	44.82B	46.99B	42.11B	35.81B	34.71B
Gross Profit	9.07B	9.23B	8.66B	7.06B	5.81B	6.40B
EBITDA	1.47B	3.07B	4.41B	552.45M	224.09M	-19.93M
Net Income	-1.10B	166.22M	885.67M	-1.53B	-1.11B	-1.29B
Balance Sheet
Total Assets	37.05B	38.93B	37.60B	40.13B	35.94B	32.79B
Cash, Cash Equivalents and Short-Term Investments	5.91B	6.45B	5.14B	5.97B	3.75B	4.66B
Total Debt	17.17B	16.53B	14.87B	19.72B	16.59B	13.20B
Total Liabilities	24.43B	25.55B	25.68B	28.97B	24.74B	21.21B
Stockholders Equity	12.61B	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: 436.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 436 is below the 20-day moving average (MA) of 437.15, below the 50-day MA of 441.50, and below the 200-day MA of 488.90, indicating a neutral trend. The MACD of -1.15 indicates Negative momentum. The RSI at 48.89 is Neutral, neither overbought nor oversold. The STOCH value of 28.33 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
6771	62 Neutral	¥3.96B	16.88		1.94%	-4.02%	-65.53%
6778	58 Neutral	¥6.19B	29.16		2.99%	-1.17%	―
Sector *	56 Neutral	HK$13.96B	5.35	-5.75%	5.38%	9.34%	-42.23%
6904	53 Neutral	¥9.48B	56.87		1.72%	-4.63%	-83.79%
6634	47 Neutral	¥5.55B	―		―	220.67%	71.37%

Harada Industry Co., Ltd. Corporate Events

Harada Industry Reports Mixed Financial Results for FY 2025

Harada Industry Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a decline in net sales by 4.6% compared to the previous year. Despite the drop in sales, the company achieved a significant increase in operating profit by 68.5% and ordinary profit by 156.1%, indicating improved operational efficiency. However, the profit attributable to owners of the parent decreased by 81.2%. The company also announced a reduction in dividends for the fiscal year, reflecting a cautious approach amid challenging market conditions. Looking forward, Harada Industry forecasts a further decline in net sales and profits for the next fiscal year, highlighting ongoing challenges in the industry.