Hatsuho Shouji Co., Ltd. (JP:7425)
:7425
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Hatsuho Shouji Co., Ltd.
(7425)
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Rating:77Outperform
Price Target:
¥3,063.00
▲(52.16% Upside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by solid financial strength (low leverage, healthy ROE, rising revenue) and attractive valuation (low P/E and a ~3.35% dividend). This is tempered by signs of margin pressure in 2025 and historically uneven cash-flow consistency, while technicals remain moderately positive rather than strongly bullish.
Positive Factors
Conservative balance sheet
Low leverage and steadily rising equity provide durable financial flexibility: with ~0.13x debt/equity and consistent ROE, the company can fund capex, withstand downturns, support dividends or opportunistic M&A without needing large external financing, preserving long-term solvency.
Negative Factors
Margin pressure
Erosion of operating profitability and a drop in net income despite higher sales suggest structural cost or mix pressures. If persistent, margin compression reduces cash available for reinvestment and dividends, weakens ROI metrics and may require strategic cost or pricing actions to restore long-term profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage and steadily rising equity provide durable financial flexibility: with ~0.13x debt/equity and consistent ROE, the company can fund capex, withstand downturns, support dividends or opportunistic M&A without needing large external financing, preserving long-term solvency.
Read all positive factors
Hatsuho Shouji Co., Ltd. (7425) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥9.11B
Dividend Yield2.89%
Average Volume (3M)1.65K
Price to Earnings (P/E)8.0
Beta (1Y)0.47
Revenue Growth1.59%
EPS Growth-5.99%
CountryJP
Employees471
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)65.86
Shares Outstanding3,480,660
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. (7425) is a Japanese trading company that primarily operates in the textile and apparel sector. The company engages in the import and export of various textile products, including fabrics, garments, and related materials. ...
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 | 35.18B | 35.44B | 34.83B | 34.42B | 31.79B | 29.91B |
| Gross Profit | 6.26B | 6.08B | 6.04B | 6.06B | 5.68B | 4.84B |
| EBITDA | 1.45B | 1.37B | 1.45B | 1.57B | 1.44B | 916.90M |
| Net Income | 906.16M | 831.66M | 974.14M | 975.77M | 854.61M | 501.36M |
Balance Sheet | ||||||
| Total Assets | 20.94B | 22.38B | 21.87B | 22.73B | 21.11B | 18.97B |
| Cash, Cash Equivalents and Short-Term Investments | 7.01B | 7.60B | 6.16B | 6.50B | 5.95B | 5.42B |
| Total Debt | 1.06B | 857.57M | 1.27B | 1.72B | 1.01B | 1.40B |
| Total Liabilities | 10.13B | 11.09B | 11.28B | 13.04B | 12.34B | 11.01B |
| Stockholders Equity | 9.65B | 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
Positive
2013.00
Price Trends
2371.28
Positive
2225.47
Positive
2077.08
Positive
Market Momentum
58.99
Negative
70.77
Negative
84.06
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7425, the sentiment is Positive. The current price of 2013 is below the 20-day moving average (MA) of 2452.40, below the 50-day MA of 2371.28, and below the 200-day MA of 2077.08, indicating a bullish trend. The MACD of 58.99 indicates Negative momentum. The RSI at 70.77 is Negative, neither overbought nor oversold. The STOCH value of 84.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥63.78B | 7.59 | ― | 4.12% | -2.50% | -19.09% | |
79 Outperform | ¥19.08B | 8.47 | ― | 5.36% | -3.55% | 5.47% | |
77 Outperform | ¥9.11B | 8.01 | ― | 2.89% | 1.59% | -5.99% | |
77 Outperform | ¥52.26B | 7.80 | ― | 3.53% | 3.19% | -5.79% | |
69 Neutral | ¥23.04B | 11.22 | ― | 6.00% | -5.76% | 56.13% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | ¥74.23B | 53.99 | ― | 1.24% | -12.05% | -97.36% |
* Basic Materials Sector Average
JP:7425
Hatsuho Shouji Co., Ltd.
2,699.00
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59.62%
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32.73%
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.