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

• Market Cap: ¥22.00B
• Dividend Yield: 3.15%
• Average Volume (3M): 12.26K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.66
• Revenue Growth: 2.48%
• EPS Growth: 39.69%
• Country: JP
• Employees: 1,877
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 79.41
• Shares Outstanding: 8,450,099
• 10 Day Avg. Volume: 11,920
• 30 Day Avg. Volume: 12,260
• PEG Ratio: -0.46
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 3.84
• 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: 71 Outperform
• Price Target: ¥3,232.00 ▲(10.99% Upside)
• Action: Reiterated Date: 11/12/25
• Date: Action: Reiterated 11/12/25

Hokuriku Electric Industry Co., Ltd. achieves a solid overall stock score driven by strong financial performance and attractive valuation. The company benefits from robust revenue growth and a strong equity position, while the low P/E ratio and high dividend yield enhance its appeal. However, technical indicators suggest caution due to overbought conditions, which may lead to short-term volatility.

Positive Factors

Sustained Revenue Growth

Consistent top-line expansion across 2021-2025 reflects durable demand for its electronic components in industrial and automotive markets. Sustained revenue growth supports scale economies, capacity investment and reduces single-market concentration risk, strengthening long‑term competitiveness.

Improving Gross Margin

A multi-year rise in gross margin signals better cost control and pricing power in core product lines. Higher gross margins create durable room to absorb SG&A or R&D, underpin operating profitability and allow reinvestment to sustain product competitiveness over several quarters to years.

Recovering Cash Generation

Recovery to positive free cash flow and a strong OCF-to-net-income ratio indicate the business can convert earnings into cash. Durable cash generation supports capex, dividend payouts and debt reduction, improving financial flexibility and resilience over the medium term.

Negative Factors

Declining Net Profit Margin

A falling net margin despite revenue gains suggests rising operating costs, financing or other non‑operational pressures that erode bottom‑line conversion. Persistently lower net margins reduce retained earnings and limit the firm's ability to sustainably boost ROE or fund growth from profits.

Inconsistent Free Cash Flow

Volatile free cash flow indicates uneven conversion of accounting profits into spendable cash. This inconsistency can hinder reliable financing of capex, dividends and debt repayment, forcing the company to rely on external funding at inopportune times and raising long‑term funding risk.

Remaining Leverage Risk

Although leverage has improved, material remaining debt increases interest and refinancing risk, especially if margins stay compressed. Persistent leverage can constrain strategic moves, elevate fixed costs, and amplify earnings volatility during demand slowdowns over the medium term.

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

Company Description

Hokuriku Electric Industry Co.,Ltd. develops, manufactures, and sells electronic components in Japan and internationally. It offers pressure sensors, force sensors, pressure sensor modules, barometric pressure sensors, humidity sensors elements and modules; circuit modules, DC/DC converters, and low power RF transceiver modules and modems; high frequency components; piezoelectric speakers and actuators; chip fixed resistors and network chip fixed resistors; and metal plate chip fixed resistors. The company also provides fixed metal film, fixed metal oxide film, and fixed carbon film resistors; chip type and miniature cermet trimmer potentiometers; glass sealed radial lead, glass sealed axial lead, epoxy resin coated radial lead thermistors; tactile switches; and printed circuit boards. Its products are used in mobile communication, digital/PC, car electronic, and home electronic applications. The company was incorporated in 1943 and is based in Toyama, Japan.

How the Company Makes Money

Hokuriku Electric Industry Co., Ltd. generates revenue primarily through the sale of its electrical and electronic components to a diverse range of industries, including manufacturing, construction, and energy. Key revenue streams include direct product sales, long-term contracts with industrial clients, and partnerships with other technology firms for co-development projects. The company also benefits from ongoing maintenance and support services for its products, which provide a continuous revenue source. Additionally, strategic collaborations with major players in the energy sector help to enhance its market presence and drive sales growth.

Hokuriku Electric Industry Co., Ltd. Financial Statement Overview

Summary

Hokuriku Electric Industry Co., Ltd. shows robust revenue growth and improved cost management, contributing to a solid financial foundation. However, challenges in maintaining net profit margins and fluctuating free cash flow indicate areas for improvement. The strong equity position enhances financial stability.

Income Statement

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

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

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.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	42.76B	43.19B	40.81B	45.46B	40.45B	32.83B
Gross Profit	8.58B	8.58B	7.55B	7.90B	6.96B	5.03B
EBITDA	2.95B	3.87B	4.18B	2.69B	3.65B	1.73B
Net Income	1.70B	2.19B	2.54B	647.00M	1.95B	447.00M
Balance Sheet
Total Assets	42.06B	43.20B	41.65B	42.98B	40.96B	35.69B
Cash, Cash Equivalents and Short-Term Investments	11.86B	11.93B	10.11B	8.05B	7.01B	8.26B
Total Debt	7.93B	8.89B	9.74B	11.31B	9.97B	9.59B
Total Liabilities	20.34B	20.48B	21.54B	25.87B	25.01B	22.41B
Stockholders Equity	21.71B	22.71B	20.11B	17.11B	15.95B	13.29B
Cash Flow
Free Cash Flow	0.00	3.11B	3.82B	-128.00M	-2.06B	1.59B
Operating Cash Flow	0.00	4.12B	4.52B	629.00M	-909.00M	2.05B
Investing Cash Flow	0.00	-1.47B	-737.00M	-1.04B	-1.06B	-590.00M
Financing Cash Flow	0.00	-1.91B	-2.48B	773.00M	23.00M	-558.00M

Hokuriku Electric Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2912.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2912 is above the 20-day moving average (MA) of 2906.40, above the 50-day MA of 2903.22, and above the 200-day MA of 2397.18, indicating a bullish trend. The MACD of -3.05 indicates Negative momentum. The RSI at 54.54 is Neutral, neither overbought nor oversold. The STOCH value of 85.74 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6848	73 Outperform	¥18.03B	22.69	―	2.59%	1.66%	-12.21%
6853	73 Outperform	¥21.36B	21.31	―	2.93%	-1.58%	12.24%
6989	71 Outperform	¥22.00B	11.05	―	3.15%	2.48%	39.69%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6962	60 Neutral	¥21.77B	58.52	1.29%	4.91%	-1.71%	―
6779	59 Neutral	¥27.52B	32.63	―	2.86%	2.87%	-53.44%
6844	58 Neutral	¥41.07B	10.70	―	1.95%	6.10%	―

Hokuriku Electric Industry Co., Ltd. Corporate Events

Hokuriku Electric Industry Posts Slight Profit Decline but Strengthens Balance Sheet

Hokuriku Electric Industry reported consolidated net sales of ¥32.06 billion for the quarter ended December 2025, down 0.6% year on year, with operating profit essentially flat at ¥1.93 billion and ordinary profit down 4.2%. Profit attributable to owners of the parent fell 7% to ¥1.68 billion, while basic earnings per share slipped to ¥213.39, indicating mild profit pressure despite broadly stable sales.

The company’s financial position strengthened, as total assets rose to ¥44.98 billion and net assets to ¥24.31 billion, lifting its capital adequacy ratio to 54.1% from 52.6%. Despite this solid balance sheet, the firm maintained its stance of paying no interim dividend for the fiscal year ending March 2026, a decision that may disappoint income-focused shareholders but supports internal capital retention.

The most recent analyst rating on (JP:6989) stock is a Buy with a Yen3279.00 price target. To see the full list of analyst forecasts on Hokuriku Electric Industry Co., Ltd. stock, see the JP:6989 Stock Forecast page.