HKS Co., Ltd. (7219) AI Stock Analysis

• Market Cap: ¥2.84B
• Dividend Yield: 3.24%
• Average Volume (3M): 416.00
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.23
• Revenue Growth: 0.23%
• EPS Growth: -16.37%
• Country: JP
• Employees: 384
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Auto - Parts
• EPS (TTM): 252.36
• Shares Outstanding: 1,600,000
• 10 Day Avg. Volume: 510
• 30 Day Avg. Volume: 416
• PEG Ratio: -0.82
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -84.42
• 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

• Rating: 76 Outperform
• Price Target: ¥2,275.00 ▲(13.35%Upside)

HKS Co., Ltd. receives a strong overall score driven by attractive valuation metrics and positive technical indicators. Despite financial performance challenges, including revenue and cash flow pressures, the company's low P/E ratio and solid dividend yield present a compelling investment case. Technical analysis supports a bullish trend, albeit with caution due to potential overbought conditions.

HKS Co., Ltd. Business Overview & Revenue Model

Company Description

HKS Co., Ltd. (7219) is a prominent Japanese company specializing in the automotive industry. The company is renowned for its high-performance aftermarket automotive products, including turbochargers, exhaust systems, suspension kits, and electronic tuning devices. HKS is dedicated to innovation and quality, catering to automotive enthusiasts and professionals looking to enhance vehicle performance and efficiency.

How the Company Makes Money

HKS Co., Ltd. generates revenue primarily through the sale of its aftermarket automotive products. The company's key revenue streams include direct sales to consumers through its online platform and a network of authorized dealers and distributors worldwide. HKS also engages in strategic partnerships with automotive manufacturers for co-development projects and licensing agreements. Additionally, the company invests in research and development to continuously innovate and expand its product line, which helps maintain its competitive edge in the market.

HKS Co., Ltd. Financial Statement Overview

Summary

HKS Co., Ltd. demonstrates financial stability with strong equity and manageable debt levels, but faces challenges in revenue growth and free cash flow generation. The company needs to focus on enhancing profitability and cash flow to strengthen its financial position.

Income Statement

The company exhibits a solid gross profit margin and a consistent EBIT margin, indicating stable operational efficiency. However, the revenue has decreased slightly over the past year, and net profit margin has seen a decline, reflecting pressure on bottom-line profitability.

Balance Sheet

The company maintains a strong equity position with a low debt-to-equity ratio, suggesting financial stability and low leverage. The return on equity is moderate, showing efficient utilization of equity, but there is room for improvement.

Cash Flow

There is a concerning decline in free cash flow growth, indicating potential liquidity issues. However, the operating cash flow remains positive and covers net income adequately, suggesting operational cash generation capability.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	9.07B	9.00B	9.24B	8.63B	7.97B	7.23B
Gross Profit	3.41B	3.65B	3.78B	3.50B	3.11B	2.73B
EBITDA	761.97M	1.20B	1.30B	1.27B	1.11B	840.29M
Net Income	391.72M	347.75M	451.06M	496.20M	352.25M	148.45M
Balance Sheet
Total Assets	13.21B	13.34B	13.35B	13.09B	12.48B	11.76B
Cash, Cash Equivalents and Short-Term Investments	2.46B	2.42B	2.17B	2.55B	3.06B	2.31B
Total Debt	726.00M	764.02M	877.26M	1.14B	1.25B	1.52B
Total Liabilities	2.92B	3.02B	3.36B	3.57B	3.51B	3.14B
Stockholders Equity	10.29B	10.32B	9.96B	9.51B	8.98B	8.62B
Cash Flow
Free Cash Flow	0.00	-234.87M	-39.98M	204.22M	973.87M	-21.64M
Operating Cash Flow	0.00	380.97M	694.14M	658.80M	1.21B	395.44M
Investing Cash Flow	0.00	-12.23M	-822.18M	-946.25M	-277.10M	-850.64M
Financing Cash Flow	0.00	-243.95M	-329.26M	-166.39M	-312.64M	125.38M

HKS Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2007.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7219, the sentiment is Positive. The current price of 2007 is above the 20-day moving average (MA) of 2003.95, above the 50-day MA of 1989.94, and below the 200-day MA of 2011.22, indicating a neutral trend. The MACD of 4.54 indicates Negative momentum. The RSI at 55.32 is Neutral, neither overbought nor oversold. The STOCH value of 67.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7219.

HKS Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7219	76 Outperform	¥2.84B	7.95		3.24%	0.23%	-16.37%
7228	73 Outperform	¥8.59B	6.90		3.52%	8.63%	9.65%
7218	72 Outperform	¥10.29B	5.69		3.60%	-4.87%	-19.11%
7217	70 Outperform	¥3.70B	15.63		4.53%	9.25%	-45.39%
7284	66 Neutral	¥3.84B	8.48		4.56%	3.82%	―
Sector *	61 Neutral	C$5.19B	10.88	18.94%	3.83%	5.08%	6.52%
7215	60 Neutral	¥3.31B	10.09		―	-3.39%	―