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

• Market Cap: ¥3.19B
• Dividend Yield: 2.92%
• Average Volume (3M): 1.90K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.23
• Revenue Growth: -0.31%
• EPS Growth: 3.93%
• Country: JP
• Employees: 384
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 20.61
• Shares Outstanding: 1,600,000
• 10 Day Avg. Volume: 1,120
• 30 Day Avg. Volume: 1,896
• PEG Ratio: 2.22
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 8.82
• 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: 70 Neutral
• Price Target: ¥2,443.00 ▲(9.90% Upside)
• Action: Downgraded Date: 12/20/25
• Date: Action: Downgraded 12/20/25

HKS Co., Ltd. demonstrates a stable financial foundation with strong profitability and a solid balance sheet. The technical indicators suggest a neutral to slightly positive trend, while the valuation metrics indicate the stock is undervalued with an attractive dividend yield. The absence of earnings call data and corporate events does not impact the score significantly.

Positive Factors

Strong Brand Reputation

HKS Co., Ltd.'s strong brand reputation allows it to command premium prices for its products, supporting long-term revenue stability and customer loyalty.

Solid Balance Sheet

A solid balance sheet with low leverage provides financial stability and flexibility, enabling HKS Co., Ltd. to invest in growth opportunities and withstand economic downturns.

Operational Efficiency

High gross profit margins indicate effective cost management and pricing power, which are crucial for sustaining profitability in a competitive industry.

Negative Factors

Revenue Decline

A decline in revenue growth can signal challenges in market demand or competitive pressures, potentially impacting future profitability and market position.

Negative Free Cash Flow Growth

Negative free cash flow growth suggests difficulties in generating cash after capital expenditures, which can limit investment in new projects and innovation.

Modest Return on Equity

A modest return on equity indicates limited efficiency in generating profits from shareholders' equity, which may affect investor confidence and capital raising ability.

HKS Co., Ltd. Business Overview & Revenue Model

Company Description

HKS Co., Ltd. engages in the manufacture and sale of automobile aftermarket parts in Japan and internationally. It offers exhaust systems, turbochargers, suspensions, electronic parts, original goods, NGV parts, and others; race engines; and conversion kits for converting a gasoline vehicle into compressed natural gas and gasoline Bi-fuel vehicle. The company is also involved in developing and selling light sport aircraft engines; and contract and original equipment manufacturing business. HKS Co., Ltd. was founded in 1970 and is headquartered in Fujinomiya, Japan.

How the Company Makes Money

HKS Co., Ltd. generates revenue through the sale of its aftermarket automotive performance parts and components. The company's key revenue streams include direct sales to consumers through its retail outlets and online platforms, as well as wholesale distribution to automotive shops and dealerships. Additionally, HKS collaborates with automotive manufacturers for co-development projects and may engage in licensing agreements for its technologies. The company's strong brand reputation and innovation in performance parts significantly contribute to its earnings.

HKS Co., Ltd. Financial Statement Overview

Summary

HKS Co., Ltd. presents a stable financial position with strong profitability margins and a solid balance sheet. However, the decline in revenue and negative free cash flow growth highlight areas for improvement. The company should focus on reversing the revenue decline and enhancing free cash flow generation to strengthen its financial health further.

Income Statement

HKS Co., Ltd. has shown a slight decline in revenue over the past year, with a revenue growth rate of -1.47%. However, the company maintains a healthy gross profit margin of approximately 40.3% and a net profit margin of 4.02%. The EBIT and EBITDA margins are also stable at 4.44% and 11.82%, respectively, indicating operational efficiency despite the revenue dip.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio of 0.05, reflecting conservative leverage. The return on equity stands at 3.39%, which is modest but stable. The equity ratio is robust, indicating a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

HKS Co., Ltd. has demonstrated a significant increase in operating cash flow, but free cash flow growth is negative, indicating potential challenges in generating cash after capital expenditures. The operating cash flow to net income ratio is strong at 2.75, suggesting good cash generation relative to net income.

Breakdown	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	8.98B	9.00B	9.24B	8.63B	7.97B
Gross Profit	3.62B	3.65B	3.78B	3.50B	3.11B
EBITDA	1.18B	1.20B	1.30B	1.27B	1.11B
Net Income	361.00M	347.75M	451.06M	496.20M	352.25M
Balance Sheet
Total Assets	13.23B	13.34B	13.35B	13.09B	12.48B
Cash, Cash Equivalents and Short-Term Investments	2.50B	2.42B	2.17B	2.55B	3.06B
Total Debt	536.00M	764.02M	877.26M	1.14B	1.25B
Total Liabilities	2.58B	3.02B	3.36B	3.57B	3.51B
Stockholders Equity	10.65B	10.32B	9.96B	9.51B	8.98B
Cash Flow
Free Cash Flow	346.21M	-234.87M	-39.98M	204.22M	973.87M
Operating Cash Flow	991.39M	380.97M	694.14M	658.80M	1.21B
Investing Cash Flow	-611.90M	-12.23M	-822.18M	-946.25M	-277.10M
Financing Cash Flow	-319.19M	-243.95M	-329.26M	-166.39M	-312.64M

HKS Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2223.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 2223 is below the 20-day moving average (MA) of 2234.15, below the 50-day MA of 2229.54, and above the 200-day MA of 2150.33, indicating a bullish trend. The MACD of 9.97 indicates Negative momentum. The RSI at 55.08 is Neutral, neither overbought nor oversold. The STOCH value of 71.47 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
7218	74 Outperform	¥12.39B	7.26	―	2.91%	-3.24%	-26.11%
7228	74 Outperform	¥9.14B	8.07	―	3.19%	5.38%	5.29%
7284	71 Outperform	¥4.27B	8.29	―	4.08%	3.46%	―
7219	70 Neutral	¥3.19B	10.36	―	2.92%	-0.31%	3.93%
7217	68 Neutral	¥4.11B	19.34	―	4.39%	9.38%	0.07%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7215	59 Neutral	¥3.78B	-31.23	―	―	-9.58%	―