tiprankstipranks
Trending News
More News >
Hokuriku Electric Industry Co., Ltd. (JP:6989)
:6989
Japanese Market

Hokuriku Electric Industry Co., Ltd. (6989) AI Stock Analysis

Compare
0 Followers

Top Page

JP

Hokuriku Electric Industry Co., Ltd.

(6989)

Rating:77Outperform
Price Target:
¥2,550.00
▲(11.74%Upside)
The overall stock score is driven primarily by strong valuation metrics, including a low P/E ratio and high dividend yield. Technical analysis supports a positive outlook with bullish momentum, though overbought signals suggest caution. Financial performance is solid, but challenges in profitability and cash flow stability remain.

Hokuriku Electric Industry Co., Ltd. (6989) vs. iShares MSCI Japan ETF (EWJ)

Hokuriku Electric Industry Co., Ltd. Business Overview & Revenue Model

Company DescriptionHokuriku Electric Industry Co., Ltd. (6989) is a Japanese company primarily engaged in the manufacturing and sale of electronic components. The company operates in sectors such as automotive, industrial equipment, and consumer electronics, offering a range of products including resistors, sensors, and power devices. Hokuriku Electric Industry is committed to providing high-quality and innovative solutions to its clients across various industries.
How the Company Makes MoneyHokuriku Electric Industry Co., Ltd. generates revenue through the production and sale of electronic components. The company's primary revenue streams include sales of resistors, sensors, and power devices to industries like automotive, industrial equipment, and consumer electronics. Hokuriku Electric Industry collaborates with key partners in these sectors to supply components that meet specific technical requirements and performance standards. Additionally, the company invests in research and development to innovate and expand its product offerings, which helps maintain its competitive edge and drive revenue growth.

Hokuriku Electric Industry Co., Ltd. Financial Statement Overview

Summary
Hokuriku Electric Industry Co., Ltd. shows strong revenue growth and improved cost management, but faces challenges in net profit margins and free cash flow stability. The balance sheet is solid with a strong equity position.
Income Statement
75
Positive
Hokuriku Electric Industry Co., Ltd. has demonstrated steady revenue growth over recent years, with a notable increase from ¥32.8 billion in 2021 to ¥43.1 billion in 2025. Gross profit margin has improved to 19.87% in 2025, compared to 15.33% in 2021, indicating better cost management. However, net profit margin decreased to 5.08% in 2025 from 6.22% in 2021, highlighting challenges in maintaining profitability. EBIT and EBITDA margins have shown stability, reflecting operational efficiency.
Balance Sheet
70
Positive
The company's debt-to-equity ratio has decreased, indicating improved leverage, but remains significant. Equity ratio has strengthened to 52.57% in 2025, enhancing financial stability. Return on equity has shown variability, currently at 9.66% for 2025, suggesting moderate efficiency in generating profits from shareholders' equity. Overall, the balance sheet reflects a solid financial position with room for improvement in debt management.
Cash Flow
68
Positive
Free cash flow has fluctuated, showing negative growth in recent years but recovered to ¥3.11 billion in 2025. The operating cash flow to net income ratio is strong, indicating good cash generation from operations. However, the free cash flow to net income ratio is less consistent, reflecting challenges in converting income into free cash flow. Overall, cash flow management shows resilience but requires focus on sustaining free cash flow growth.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue41.77B43.19B40.81B45.46B40.45B32.83B
Gross Profit8.06B8.58B7.55B7.90B6.96B5.03B
EBITDA3.31B3.87B4.18B2.69B3.65B1.73B
Net Income2.19B2.19B2.54B647.00M1.95B447.00M
Balance Sheet
Total Assets42.36B43.20B41.65B42.98B40.96B35.69B
Cash, Cash Equivalents and Short-Term Investments10.15B11.93B10.11B8.05B7.01B8.26B
Total Debt9.68B8.89B9.74B11.31B9.97B9.59B
Total Liabilities20.41B20.48B21.54B25.87B25.01B22.41B
Stockholders Equity21.96B22.71B20.11B17.11B15.95B13.29B
Cash Flow
Free Cash Flow0.003.11B3.82B-128.00M-2.06B1.59B
Operating Cash Flow0.004.12B4.52B629.00M-909.00M2.05B
Investing Cash Flow0.00-1.47B-737.00M-1.04B-1.06B-590.00M
Financing Cash Flow0.00-1.91B-2.48B773.00M23.00M-558.00M

Hokuriku Electric Industry Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2282.00
Price Trends
50DMA
1964.78
Positive
100DMA
1731.59
Positive
200DMA
1559.09
Positive
Market Momentum
MACD
77.57
Positive
RSI
56.12
Neutral
STOCH
28.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6989, the sentiment is Positive. The current price of 2282 is below the 20-day moving average (MA) of 2294.60, above the 50-day MA of 1964.78, and above the 200-day MA of 1559.09, indicating a neutral trend. The MACD of 77.57 indicates Positive momentum. The RSI at 56.12 is Neutral, neither overbought nor oversold. The STOCH value of 28.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6989.

Hokuriku Electric Industry Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥16.91B8.25
4.03%5.82%-11.79%
76
Outperform
¥14.30B13.24
3.82%0.16%5.68%
75
Outperform
¥16.58B9.70
3.98%5.48%-23.11%
71
Outperform
¥15.87B14.21
2.75%3.52%-14.04%
69
Neutral
¥231.71B14.677.64%2.71%9.09%8.52%
60
Neutral
¥17.86B63.380.75%4.98%-1.84%-84.66%
46
Neutral
¥22.79B
2.94%3.49%-241.98%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6989
Hokuriku Electric Industry Co., Ltd.
2,234.00
876.32
64.55%
JP:6779
Nihon Dempa Kogyo Co., Ltd.
754.00
-645.27
-46.11%
JP:6844
Shindengen Electric Mfg Co Ltd
2,211.00
-661.59
-23.03%
JP:6848
Dkk-Toa Corporation
800.00
-32.71
-3.93%
JP:6853
Kyowa Electronic Instruments Co., Ltd.
523.00
87.28
20.03%
JP:6962
Daishinku Corp.,
561.00
-115.15
-17.03%

Hokuriku Electric Industry Co., Ltd. Corporate Events

Hokuriku Electric Industry Reports Increased Sales and Improved Financial Position
May 9, 2025

Hokuriku Electric Industry Co., Ltd. reported a 5.8% increase in net sales to 43,185 million yen for the fiscal year ending March 2025, with operating profit rising by 14.5% to 2,600 million yen. Despite a decrease in ordinary profit and profit attributable to owners of the parent, the company improved its capital adequacy ratio to 52.6%, indicating a stronger financial position. These results suggest a positive trajectory in operational efficiency and financial stability, potentially enhancing its market competitiveness.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 03, 2025