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

• Market Cap: ¥16.03B
• Dividend Yield: 4.25%
• Average Volume (3M): 28.21K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.70
• Revenue Growth: 5.82%
• EPS Growth: -11.79%
• Country: JP
• Employees: 1,877
• Sector: Technology
• Sector Strength: 93
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 49.73
• Shares Outstanding: 8,450,099
• 10 Day Avg. Volume: 24,090
• 30 Day Avg. Volume: 28,210
• PEG Ratio: 9.26
• Price to Book (P/B): 0.75
• 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: ¥2,550.00
• Price Target Upside: 20.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥2,550.00 ▲(20.40%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. 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 electronic components, including resistors, capacitors, and sensors. The company's key revenue streams are derived from its extensive product lineup, which is utilized in the automotive, industrial, and consumer electronics sectors. By supplying components to manufacturers in these industries, Hokuriku Electric benefits from the growing demand for electronic devices and systems worldwide. Additionally, the company may engage in strategic partnerships with other technology firms to enhance its product offerings and expand its market reach. Factors contributing to its earnings include its reputation for high-quality products, innovation in electronic component technology, and its ability to meet the needs of a diverse and global customer base.

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

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

Hokuriku Electric Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2118.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6989, the sentiment is Neutral. The current price of 2118 is below the 20-day moving average (MA) of 2187.00, below the 50-day MA of 2144.32, and above the 200-day MA of 1620.40, indicating a neutral trend. The MACD of -14.03 indicates Positive momentum. The RSI at 42.90 is Neutral, neither overbought nor oversold. The STOCH value of 19.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
6989	77 Outperform	¥16.03B	7.82		4.25%	5.82%	-11.79%
6853	76 Outperform	¥14.08B	13.04		5.83%	0.16%	5.68%
Sector *	70 Neutral	€7.83B	16.55	8.79%	2.03%	6.90%	1.32%
90G	―	€103.53M	56.46	0.75%	5.25%	―	―
6779	74 Outperform	¥16.74B	9.79		3.94%	5.48%	-23.11%
6848	71 Outperform	¥16.16B	14.47		2.70%	3.52%	-14.04%
6844	55 Neutral	¥24.15B	―		8.32%	3.49%	-241.96%

Hokuriku Electric Industry Co., Ltd. Corporate Events

Hokuriku Electric Industry Reports Increased Sales and Improved Financial Position

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.