Hakuto Co., Ltd. (7433) AI Stock Analysis

• Market Cap: ¥71.32B
• Dividend Yield: 6.86%
• Average Volume (3M): 57.35K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.70
• Revenue Growth: 0.81%
• EPS Growth: -36.93%
• Country: JP
• Employees: 1,203
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 35.03
• Shares Outstanding: 21,137,213
• 10 Day Avg. Volume: 73,800
• 30 Day Avg. Volume: 57,350
• 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: ¥4,112.00
• Price Target Upside: 7.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ¥4,112.00 ▲(7.79% Upside)

Hakuto Co., Ltd. scores a 67, driven primarily by its strong valuation and financial performance. The high dividend yield and reasonable P/E ratio make it attractive for income investors. However, the stock faces challenges with declining revenue and profitability margins, as well as bearish technical indicators. Addressing these issues could improve the stock's outlook.

Hakuto Co., Ltd. Business Overview & Revenue Model

Company Description

Hakuto Co., Ltd. distributes electronic products in Japan and internationally. It provides semiconductor devices; and electronic components comprising photovoltaic panels, connectors, optical measurement and communication products, wireless communication testers, and cable solutions, as well as EMI, thermal, antenna and reception, and wireless M2M and telematics solutions. The company also offers electronic and electric equipment, including photovoltaic manufacturing equipment, semiconductor equipment, compound semiconductor equipment, equipment for FPD, nanotechnology equipment, vacuum systems and components, optical equipment, scientific equipment, physics and water equipment, equipment for PWB and PCB, measurement systems, storage device equipment, and air purifiers. In addition, it provides refinery chemicals, such as corrosion inhibitors, antifoulants, and emulsion breakers; petrochemicals that include polymerization inhibitors; pulp and paper chemicals comprising defoamers, deposit control aids/detergents, felt conditioners, biocides/preservatives, lime mud dewatering aids, and craping aids; cooling water treatment additives; boiler chemicals, such as oxygen scavengers, corrosion inhibitors, and boiler internal treatment chemicals; cosmetics, including alcasealan and smetics; and automotive chemicals comprising over-sprayed detackifiers. Further, the company manufactures and sells high precision plastics; provides administration and logistics services; and develops and sells cosmetic raw materials, and OEM products. Hakuto Co., Ltd. was founded in 1953 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Hakuto Co., Ltd. generates revenue through the distribution and sale of electronics and industrial products. The company's primary revenue streams include the sale of semiconductor devices, electronic components, and chemical products sourced from various manufacturers. By leveraging its extensive distribution network and industry expertise, Hakuto Co., Ltd. facilitates the procurement and delivery of these products to a broad customer base, including manufacturers, industrial firms, and other businesses. Strategic partnerships and long-standing relationships with suppliers and manufacturers play a significant role in its ability to offer competitive products and solutions, thereby driving its financial performance.

Hakuto Co., Ltd. Financial Statement Overview

Summary

Hakuto Co., Ltd. presents a mixed financial picture. The company maintains stable margins and a strong balance sheet, with a moderate debt-to-equity ratio and stable return on equity. However, recent declines in revenue and profitability margins pose challenges. The significant growth in free cash flow is a positive indicator of financial health, but the company needs to address revenue growth and operational efficiency to sustain long-term performance.

Income Statement

Hakuto Co., Ltd. shows a stable gross profit margin around 15%, indicating consistent cost management. However, the net profit margin has decreased slightly to 2.8% in the TTM, reflecting some pressure on profitability. Revenue growth has been negative recently, which is a concern for future earnings potential. The EBIT and EBITDA margins have also seen a decline, suggesting reduced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.54, indicating a balanced approach to leveraging. Return on equity is stable at approximately 7.8%, showing decent profitability relative to shareholder equity. The equity ratio is healthy, suggesting a solid capital structure with a good proportion of assets financed by equity.

Cash Flow

Hakuto Co., Ltd. has demonstrated strong free cash flow growth of 59.4% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is low, suggesting potential issues in converting income into cash. However, the free cash flow to net income ratio is robust, reflecting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	181.09B	183.13B	182.05B	233.62B	191.50B	165.41B
Gross Profit	27.32B	27.88B	26.83B	32.38B	23.97B	18.66B
EBITDA	8.69B	9.27B	8.63B	13.27B	8.24B	5.37B
Net Income	4.25B	5.13B	5.17B	8.93B	4.97B	3.06B
Balance Sheet
Total Assets	130.79B	130.38B	137.76B	145.90B	131.49B	116.42B
Cash, Cash Equivalents and Short-Term Investments	15.89B	14.93B	15.57B	16.75B	18.62B	17.87B
Total Debt	33.94B	35.28B	36.48B	42.08B	33.13B	29.36B
Total Liabilities	66.14B	64.83B	71.83B	82.04B	69.82B	58.41B
Stockholders Equity	64.65B	65.55B	65.93B	63.86B	61.67B	58.02B
Cash Flow
Free Cash Flow	15.59B	9.78B	8.15B	-3.89B	401.00M	7.16B
Operating Cash Flow	16.23B	10.59B	8.71B	-3.38B	872.00M	7.42B
Investing Cash Flow	-3.94B	-4.57B	876.00M	-300.00M	-527.00M	601.00M
Financing Cash Flow	-9.41B	-6.51B	-11.45B	1.31B	-379.00M	-5.28B

Hakuto Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3815.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7433, the sentiment is Negative. The current price of 3815 is below the 20-day moving average (MA) of 3925.42, below the 50-day MA of 3823.09, and below the 200-day MA of 3889.21, indicating a bearish trend. The MACD of 4.12 indicates Positive momentum. The RSI at 42.03 is Neutral, neither overbought nor oversold. The STOCH value of 7.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7433.

Hakuto Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6814	75 Outperform	¥176.63B	12.91	15.87%	1.96%	9.11%	114.88%
6957	75 Outperform	¥109.67B	36.46	10.16%	2.12%	4.48%	-39.40%
8159	74 Outperform	¥68.06B	10.16	7.42%	3.57%	-4.57%	-11.79%
6866	68 Neutral	¥82.84B	13.76	―	3.29%	7.11%	7.49%
7433	67 Neutral	¥71.32B	16.79	―	6.86%	0.81%	-36.93%
6908	61 Neutral	¥66.20B	22.44	3.77%	3.53%	6.60%	-36.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Hakuto Co., Ltd. Corporate Events

Hakuto Co., Ltd. Reports Decline in Q1 Financial Performance

Hakuto Co., Ltd. reported a decline in its financial performance for the three months ended June 30, 2025, with net sales down by 4.8% and significant drops in operating and ordinary profits. The company also announced a reduction in its annual dividend forecast for the fiscal year ending March 31, 2026, reflecting cautious financial management amid challenging market conditions.

Hakuto Co., Ltd. Completes Treasury Stock Disposal for Compensation

Hakuto Co., Ltd. has completed the disposal of 9,600 shares of its treasury stock as restricted stock compensation, following a resolution by its Board of Directors. This move is part of the company’s strategic financial management, potentially impacting its equity structure and aligning executive incentives with shareholder interests.

Hakuto Co., Ltd. Announces Disposal of Treasury Stock for Director Compensation

Hakuto Co., Ltd. has announced the disposal of 9,600 shares of treasury stock as part of a restricted stock compensation system for certain directors. This initiative is designed to align directors’ interests with shareholder value and enhance corporate value, with a total disposal value of 33,984,000 yen. The plan includes conditions for transfer restrictions and aims to motivate directors by linking compensation to company performance.

Hakuto Co., Ltd. Completes Treasury Stock Disposal for Compensation

Hakuto Co., Ltd. has completed the disposal of 1,200 shares of its treasury stock as restricted stock compensation, following a resolution by its Board of Directors. This move involves a total value of 4,590,000 yen and is aimed at compensating its Vice President & Managing Officer, potentially impacting the company’s financial strategy and stakeholder interests.

Hakuto Co., Ltd. Announces Treasury Stock Disposal for Compensation

Hakuto Co., Ltd. has announced the disposal of 1,200 shares of treasury stock as part of a performance-linked restricted stock compensation system aimed at increasing corporate value and aligning management interests with those of shareholders. This initiative is designed to enhance participation in management among Vice Presidents and Managing Officers, with restrictions on stock transfer to ensure alignment with company goals.

Hakuto Co., Ltd. Unveils Hakuto 2028 Management Plan and 2030 Vision

Hakuto Co., Ltd. has announced its new medium-term management plan, Hakuto 2028, and its 2030 Vision, aiming to become an irreplaceable enabler for client success by enhancing its role in the electronics and chemicals industries. The plan focuses on long-term growth and value creation amidst global uncertainties, with a strategic emphasis on building trust with customers and adapting to the evolving role of trading companies in the industry.