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Hatsuho Shouji Co., Ltd.
(7425)
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Rating:77Outperform
Price Target:
¥2,900.00
▲(44.06% Upside)
Action:Reiterated
Date:06/29/26
The score is driven primarily by strong financial positioning (low leverage, healthy ROE, and revenue growth) and constructive technicals (price above key moving averages with positive MACD). Valuation also supports the rating with a moderate P/E and ~3% dividend yield. The main constraint is recent margin/earnings softening and historically uneven cash flow despite the 2025 improvement.
Positive Factors
Conservative balance sheet
Low leverage and steadily building equity provide lasting financial flexibility through steel-cycle volatility. A conservative balance sheet reduces refinancing and solvency risk, supports capital allocation (dividends, capex) and preserves optionality for strategic investments over the next several quarters.
Negative Factors
Operating profitability softened
Erosion in operating profitability from 2023 into 2024–2025 suggests rising costs or weaker leverage on incremental sales. Persistent margin pressure would limit earnings leverage from revenue growth, compress ROE and constrain free cash flow generation unless cost structure is restored.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage and steadily building equity provide lasting financial flexibility through steel-cycle volatility. A conservative balance sheet reduces refinancing and solvency risk, supports capital allocation (dividends, capex) and preserves optionality for strategic investments over the next several quarters.
Read all positive factors
Hatsuho Shouji Co., Ltd. (7425) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥8.06B
Dividend Yield3.28%
Average Volume (3M)1.65K
Price to Earnings (P/E)9.6
Beta (1Y)0.33
Revenue Growth0.59%
EPS Growth-7.53%
CountryJP
Employees485
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)116.08
Shares Outstanding6,961,320
10 Day Avg. Volume1,080
30 Day Avg. Volume1,653
Financial Highlights & Ratios
PEG Ratio-0.56
Price to Book (P/B)0.69
Price to Sales (P/S)0.20
P/FCF Ratio3.47
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Hatsuho Shouji Co., Ltd. Business Overview & Revenue Model
Company Description
Hatsuho Shouji Co.,Ltd., founded in 1946 and headquartered in Nagoya, Japan, operates as a multifaceted Japanese enterprise primarily focused on building materials and construction. The company supplies a broad range of products, including various...
How the Company Makes Money
null...
Hatsuho Shouji Co., Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
84
Very Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 34.86B | 35.44B | 34.83B | 34.42B | 31.79B | 29.91B |
| Gross Profit | 6.02B | 6.08B | 6.04B | 6.06B | 5.68B | 4.84B |
| EBITDA | 1.23B | 1.37B | 1.45B | 1.57B | 1.44B | 916.90M |
| Net Income | 765.96M | 831.66M | 974.14M | 975.77M | 854.61M | 501.36M |
Balance Sheet | ||||||
| Total Assets | 21.27B | 22.38B | 21.87B | 22.73B | 21.11B | 18.97B |
| Cash, Cash Equivalents and Short-Term Investments | 7.08B | 7.60B | 6.16B | 6.50B | 5.95B | 5.42B |
| Total Debt | 763.41M | 857.57M | 1.27B | 1.72B | 1.01B | 1.40B |
| Total Liabilities | 10.02B | 11.09B | 11.28B | 13.04B | 12.34B | 11.01B |
| Stockholders Equity | 10.05B | 10.10B | 9.46B | 8.64B | 7.78B | 7.04B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 2.01B | 239.25M | 44.28M | 1.02B | 1.19B |
| Operating Cash Flow | 0.00 | 2.17B | 628.24M | 692.93M | 1.30B | 1.22B |
| Investing Cash Flow | 0.00 | -1.10B | -313.20M | -679.25M | -220.90M | 201.02M |
| Financing Cash Flow | 0.00 | -676.83M | -657.51M | 543.11M | -549.08M | -627.78M |
Hatsuho Shouji Co., Ltd. Technical Analysis
Negative
2013.00
Price Trends
1217.17
Negative
1233.94
Negative
1149.87
Positive
Market Momentum
-9.56
Positive
43.23
Neutral
25.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7425, the sentiment is Negative. The current price of 2013 is above the 20-day moving average (MA) of 1211.10, above the 50-day MA of 1217.17, and above the 200-day MA of 1149.87, indicating a neutral trend. The MACD of -9.56 indicates Positive momentum. The RSI at 43.23 is Neutral, neither overbought nor oversold. The STOCH value of 25.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7425.
Hatsuho Shouji Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥8.06B | 9.58 | ― | 2.89% | 0.59% | -7.53% | |
68 Neutral | ¥24.55B | 14.89 | ― | 6.00% | -2.96% | -9.61% | |
67 Neutral | ¥79.04B | 8.87 | ― | 4.12% | 4.06% | 15.85% | |
65 Neutral | ¥72.75B | 11.70 | ― | 3.53% | 4.78% | 7.27% | |
62 Neutral | ¥19.56B | 9.45 | ― | 5.36% | -5.75% | 4.32% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
50 Neutral | ¥79.67B | -6.11 | ― | 1.24% | -16.39% | -2377.63% |
* Basic Materials Sector Average
JP:7425
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.