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

• Market Cap: ¥17.22B
• Dividend Yield: 3.83%
• Average Volume (3M): 12.26K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.64
• Revenue Growth: 2.48%
• EPS Growth: 39.69%
• Country: JP
• Employees: 1,877
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 101.15
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥2,681.00 ▲(3.31% Upside)

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

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Improved Cost Management

Enhanced cost management reflects operational efficiency, which can lead to better profitability and competitive pricing strategies over time.

Financial Stability

A stronger equity ratio enhances financial stability, providing a solid foundation for future investments and reducing financial risk.

Negative Factors

Net Profit Margin Challenges

Declining net profit margins suggest challenges in cost control or pricing power, potentially impacting long-term profitability and shareholder returns.

Fluctuating Free Cash Flow

Inconsistent free cash flow can hinder the company's ability to fund operations and growth initiatives, affecting financial flexibility and resilience.

Debt Management

High debt levels, despite improvements, can strain financial resources and limit strategic options, posing risks to long-term financial health.

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

Company Description

Hokuriku Electric Industry Co., Ltd. (6989) is a Japanese company primarily engaged in the manufacturing and sales of electrical and electronic components. The company operates in various sectors, including industrial machinery, electrical equipment, and energy solutions. Its core products include transformers, circuit breakers, and control devices, catering to both domestic and international markets, with a focus on innovation and quality in the electrical industry.

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 company's 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 2595.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 2595 is above the 20-day moving average (MA) of 2438.90, above the 50-day MA of 2293.82, and above the 200-day MA of 1969.07, indicating a bullish trend. The MACD of 83.93 indicates Negative momentum. The RSI at 74.07 is Negative, neither overbought nor oversold. The STOCH value of 76.79 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6848	73 Outperform	¥16.50B	16.09	―	2.64%	1.66%	-12.21%
6853	72 Outperform	¥18.75B	17.70	―	3.06%	-1.58%	12.24%
6989	71 Outperform	¥17.22B	10.78	―	3.83%	2.48%	39.69%
6779	64 Neutral	¥20.65B	18.23	―	3.08%	2.87%	-53.44%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6962	60 Neutral	€18.56B	-35.00	1.29%	4.97%	-1.71%	―
6844	58 Neutral	¥36.08B	-29.86	―	2.00%	6.10%	―