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

• Market Cap: ¥20.82B
• Dividend Yield: 3.15%
• Average Volume (3M): 12.26K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.67
• 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: ¥3,090.00 ▲(6.11% 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

Revenue Growth

Sustained top-line growth over multiple years indicates durable demand for the company’s electronic components across industrial and automotive B2B markets. This trend supports scale efficiencies, steadier customer relationships and capacity to reinvest in R&D and production over the medium term.

Gross Margin Expansion

Material improvement in gross margin reflects better cost management or improved product mix, increasing operating leverage. Higher sustained gross margins enhance the company’s ability to absorb input-cost volatility, fund SG&A or R&D, and preserve earnings power over several quarters to years.

Stronger Equity Position

A stronger equity ratio and reduced leverage improve financial resilience and lower refinancing risk. This provides durable capacity for strategic investments, dividend policy stability and better shock absorption during industry cycles, supporting long-term operational plans and credit optionality.

Negative Factors

Declining Net Profit Margin

Falling net margins suggest rising operating costs, higher financing expense, or pricing pressure that erodes ultimate profitability. Persistently lower net margins constrain retained earnings, limit reinvestment capacity and reduce returns to shareholders over the medium term if not reversed.

Inconsistent Free Cash Flow

Volatile free cash flow and inconsistent conversion of net income into FCF increase uncertainty around funding for capex, dividends and debt reduction. Structural inconsistency in cash generation can limit strategic flexibility and raise refinancing or liquidity risks over multiple quarters.

Significant Remaining Leverage

Although leverage has improved, meaningful remaining debt maintains interest and covenant exposure that can constrain capital allocation. In cyclical slowdowns, this structural debt burden may restrict M&A, capex or dividend policies and elevate financial risk 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

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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	8.33B	7.29B	7.63B	6.72B	4.80B
EBITDA	3.64B	3.63B	3.30B	4.07B	3.17B	1.75B
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	9.01B	9.88B	11.46B	10.16B	9.80B
Total Liabilities	20.34B	20.48B	21.54B	25.87B	25.00B	22.40B
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: Negative
• Last Price: 2912.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6989, the sentiment is Negative. The current price of 2912 is above the 20-day moving average (MA) of 2854.65, above the 50-day MA of 2894.36, and above the 200-day MA of 2463.47, indicating a neutral trend. The MACD of -34.09 indicates Positive momentum. The RSI at 40.15 is Neutral, neither overbought nor oversold. The STOCH value of 30.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
6981	74 Outperform	¥6.91T	59.16	8.95%	1.88%	2.88%	28.76%
6989	71 Outperform	¥20.82B	9.15	―	3.15%	2.48%	39.69%
6817	70 Outperform	¥36.58B	10.46	―	4.53%	-2.57%	3.43%
6768	69 Neutral	¥54.79B	33.92	3.63%	2.25%	11.74%	-30.96%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6996	60 Neutral	¥128.45B	11.45	―	2.18%	-0.93%	-45.03%
6997	47 Neutral	¥37.07B	9.09	2.26%	―	-2.53%	-85.61%

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.