Hi-Lex Corporation (7279) AI Stock Analysis

• Market Cap: ¥106.77B
• Dividend Yield: 1.51%
• Average Volume (3M): 75.14K
• Price to Earnings (P/E): 74.2
• Beta (1Y): 0.92
• Revenue Growth: -4.42%
• EPS Growth: N/A
• Country: JP
• Employees: 12,092
• Sector: Industrials
• Sector Strength: 73
• Industry: Industrial - Machinery
• EPS (TTM): 43.25
• Shares Outstanding: 38,216,760
• 10 Day Avg. Volume: 118,740
• 30 Day Avg. Volume: 75,143
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,798.00
• Price Target Upside: -1.79% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥2,798.00 ▼(-1.79% Downside)

Hi-Lex Corporation's overall stock score is driven by strong technical indicators showing bullish momentum, despite being in an overbought state. The financial performance reflects solid growth and recovery, although profitability and cash flow remain volatile. Valuation appears high, limiting the attractiveness of the stock based on earnings. The absence of recent earnings call insights and corporate events does not impact the overall score.

Hi-Lex Corporation Business Overview & Revenue Model

Company Description

Hi-Lex Corporation (7279) is a leading manufacturer specializing in the production of control cables and related products for the automotive and industrial sectors. The company is renowned for its expertise in designing and manufacturing cables for a wide array of applications, including window regulators, door modules, and sunroof systems, primarily serving the automotive industry.

How the Company Makes Money

Hi-Lex Corporation generates revenue primarily through the sale of its control cable products and systems to automotive manufacturers and suppliers globally. The company has established strong partnerships with major automotive brands, providing them with high-quality components required for vehicle assembly and operation. Revenue streams include direct sales of products to OEMs (Original Equipment Manufacturers), aftermarket sales, and potentially licensing agreements for proprietary technologies. The company's earnings are significantly influenced by automotive industry trends, production volumes, and its ability to innovate and meet evolving customer needs.

Hi-Lex Corporation Financial Statement Overview

Summary

Hi-Lex Corporation exhibits strong revenue growth and operational recovery in recent years, supported by a solid balance sheet with low leverage. However, profitability volatility and cash flow instability indicate areas for improvement. The company is on a positive trajectory, but consistent profitability and cash flow generation are essential for sustained financial health.

Income Statement

Hi-Lex Corporation has demonstrated substantial revenue growth from 2020 to 2024, with a notable rebound after a dip in 2022. The gross profit margin remains relatively stable, indicating efficient cost management. However, fluctuations in net income, particularly the negative net income in 2022, highlight volatility in profitability. The recovery in EBIT and EBITDA margins in 2024 shows improved operational efficiency.

Balance Sheet

The company's debt-to-equity ratio remains low, showcasing prudent debt management. The equity ratio is strong, indicating financial stability with a high proportion of assets funded by equity. Return on equity shows improvement over time, although it faced setbacks during less profitable years. Overall, the balance sheet displays a solid financial position with manageable leverage.

Cash Flow

Operating cash flow has been erratic, with significant fluctuations across the years. Free cash flow experienced growth in 2024, recovering from previous negative figures. The operating cash flow to net income ratio is positive, reflecting adequate cash generation relative to net income, albeit with some inconsistencies. The company needs to stabilize cash flow to support long-term investments and operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	307.52B	308.38B	298.62B	255.62B	217.75B	195.78B
Gross Profit	32.37B	30.97B	31.50B	19.96B	23.60B	20.19B
EBITDA	11.11B	16.70B	9.19B	4.34B	17.07B	6.59B
Net Income	2.23B	1.97B	-2.99B	-7.12B	4.90B	-3.51B
Balance Sheet
Total Assets	278.29B	270.26B	280.99B	270.31B	248.03B	240.51B
Cash, Cash Equivalents and Short-Term Investments	54.61B	57.52B	56.31B	49.48B	51.37B	53.00B
Total Debt	9.39B	11.13B	11.77B	11.76B	6.86B	7.25B
Total Liabilities	84.61B	85.67B	89.82B	81.54B	67.49B	67.74B
Stockholders Equity	176.99B	168.99B	175.43B	172.35B	165.55B	157.88B
Cash Flow
Free Cash Flow	0.00	836.00M	7.37B	-9.07B	-5.77B	4.43B
Operating Cash Flow	0.00	11.81B	16.91B	489.00M	2.21B	12.78B
Investing Cash Flow	0.00	445.00M	-11.35B	-8.47B	-788.00M	-8.63B
Financing Cash Flow	0.00	-4.52B	-4.26B	1.24B	-5.38B	-1.69B

Hi-Lex Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2849.00
• 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:7279, the sentiment is Positive. The current price of 2849 is above the 20-day moving average (MA) of 2718.70, above the 50-day MA of 2478.92, and above the 200-day MA of 1800.28, indicating a bullish trend. The MACD of 103.32 indicates Negative momentum. The RSI at 71.87 is Negative, neither overbought nor oversold. The STOCH value of 74.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7279.

Hi-Lex Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5192	80 Outperform	¥105.10B	16.07		4.72%	5.22%	-28.13%
7279	73 Outperform	¥106.77B	74.24		1.51%	-4.42%	―
6203	72 Outperform	¥16.86B	18.33		1.47%	29.02%	―
Sector *	64 Neutral	$10.75B	15.58	7.62%	2.01%	2.80%	-14.32%
5195	62 Neutral	¥85.66B	38.83		3.73%	3.85%	-63.62%
6210	54 Neutral	¥13.64B	―		5.26%	-1.14%	68.17%
6293	49 Neutral	¥17.24B	84.28		3.96%	2.85%	―

Hi-Lex Corporation Corporate Events

Hi-Lex Corporation Reports Strong Profit Growth Amid Slight Sales Decline

Hi-Lex Corporation reported its consolidated financial results for the six months ending April 30, 2025, showing a slight decrease in net sales by 1.3% compared to the previous year. Despite this, the company achieved a significant increase in ordinary profit by 62.9% and a substantial rise in profit attributable to owners of the parent by 823.8%. The company also announced an increase in annual dividends per share, reflecting its commitment to returning value to shareholders.