Hi-Lex Corporation (7279) AI Stock Analysis

• Market Cap: ¥107.71B
• Dividend Yield: 1.6%
• Average Volume (3M): 52.71K
• Price to Earnings (P/E): 74.9
• Beta (1Y): 1.03
• Revenue Growth: -4.42%
• EPS Growth: N/A
• Country: JP
• Employees: 12,092
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 43.25
• Shares Outstanding: 38,216,760
• 10 Day Avg. Volume: 68,710
• 30 Day Avg. Volume: 52,713
• PEG Ratio: -0.18
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 69.65
• 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: 67 Neutral
• Price Target: ¥3,155.00 ▲(12.20% Upside)

Hi-Lex Corporation's stock score is primarily driven by strong technical analysis indicators, suggesting positive market momentum. However, the high P/E ratio raises concerns about valuation, and financial performance shows areas for improvement in profitability and cash flow stability. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Strong Market Position

Hi-Lex's strong market position with major OEMs ensures stable demand and long-term contracts, supporting consistent revenue streams.

Solid Balance Sheet

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

Operational Recovery

Operational recovery and revenue growth indicate effective management strategies and resilience, positioning the company for future success.

Negative Factors

Profitability Volatility

Volatile profitability can undermine investor confidence and affect the company's ability to reinvest in its business, impacting long-term growth.

Cash Flow Instability

Inconsistent cash flow can hinder the company's ability to fund operations and investments, posing a risk to sustaining long-term growth.

Revenue Decline

A decline in revenue growth suggests potential challenges in market demand or competitive pressures, which could impact future performance.

Hi-Lex Corporation Business Overview & Revenue Model

Company Description

Hi-Lex Corporation operates in automobiles, marine vessels, construction and industrial equipment, welfare and home related, and medical related equipment businesses in Japan and internationally. It provides control cables, including general (pull), small-bending radius automotive manual transmission, push-pull, and seat cables; and system products comprising window regulators, sliding window systems, door modules, power sliding door systems, Spi-Rax direct systems, direct window openers, and power lift gate systems. The company also offers control boxes, steering systems, and control cables for marine vessels; construction and industrial equipment, such as accelerator actuators, PTO Hi-Lex (push-pull) systems, accelerator levers, and assist cables; and welfare and home related products consisting of air conditioner grill raising and lowering systems, and bathing aid device. In addition, it provides PCTA guide wires to guide a balloon catheter to the ailing area for treatment of the heart's coronary artery for a cardiac infarction, etc.; and indwelling subcutaneous catheter sets. Hi-Lex Corporation was founded in 1946 and is headquartered in Takarazuka, Japan.

How the Company Makes Money

Hi-Lex Corporation generates revenue primarily through the sale of its automotive components to major OEMs (original equipment manufacturers) in the automotive industry. The company’s revenue model is based on long-term contracts with these manufacturers, which allows for consistent income from bulk orders. Key revenue streams include the production of specialized components that are integrated into various vehicle models, as well as the provision of aftermarket products. Significant partnerships with leading automotive brands enhance Hi-Lex's market presence and drive sales, while their focus on research and development allows them to innovate and meet evolving industry demands, thus securing additional contracts and revenue opportunities.

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	300.55B	308.38B	298.62B	255.62B	217.75B	195.78B
Gross Profit	33.24B	30.97B	31.50B	19.96B	23.60B	20.19B
EBITDA	12.72B	16.70B	9.19B	4.34B	17.07B	6.59B
Net Income	1.44B	1.97B	-2.99B	-7.12B	4.90B	-3.51B
Balance Sheet
Total Assets	270.73B	270.26B	280.99B	270.31B	248.03B	240.51B
Cash, Cash Equivalents and Short-Term Investments	53.74B	57.52B	56.31B	49.48B	51.37B	53.00B
Total Debt	8.71B	11.13B	11.77B	11.76B	6.86B	7.25B
Total Liabilities	81.63B	85.67B	89.82B	81.54B	67.49B	67.74B
Stockholders Equity	173.27B	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: Neutral
• Last Price: 2812.00
• 50DMA: Positive
• 100DMA: Positive
• 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:7279, the sentiment is Neutral. The current price of 2812 is below the 20-day moving average (MA) of 2881.45, below the 50-day MA of 2824.81, and above the 200-day MA of 2168.61, indicating a neutral trend. The MACD of 16.86 indicates Positive momentum. The RSI at 50.34 is Neutral, neither overbought nor oversold. The STOCH value of 50.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	78 Outperform	¥106.20B	15.84	―	4.68%	3.99%	-28.28%
7279	67 Neutral	¥107.71B	74.89	―	1.60%	-4.42%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5195	62 Neutral	¥85.74B	27.38	―	3.92%	3.68%	-46.19%
6210	57 Neutral	¥13.60B	-28.46	―	5.46%	1.46%	89.88%
6203	53 Neutral	¥13.56B	42.77	―	1.67%	26.09%	―
6293	46 Neutral	¥16.54B	80.85	―	4.33%	2.79%	-281.15%