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

• Market Cap: ¥73.39B
• Dividend Yield: 5.86%
• Average Volume (3M): 56.21K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.72
• Revenue Growth: -0.80%
• EPS Growth: -3.80%
• Country: JP
• Employees: 1,203
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 71.67
• Shares Outstanding: 21,137,213
• 10 Day Avg. Volume: 49,960
• 30 Day Avg. Volume: 56,206
• PEG Ratio: -12.15
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 7.92
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥4,340.00 ▲(11.28% Upside)

Hakuto Co., Ltd. scores well due to its solid valuation metrics, including a strong dividend yield and reasonable P/E ratio. Technical analysis supports a positive outlook with bullish momentum, although caution is advised due to potential overbought conditions. Financial performance is mixed, with stable margins but concerns over declining revenue growth and cash flow challenges.

Positive Factors

Stable Profit Margins

Stable profit margins indicate effective cost management and pricing strategies, supporting long-term profitability despite revenue challenges.

Solid Balance Sheet

A solid balance sheet with manageable leverage provides financial stability and flexibility for future investments and growth opportunities.

Strong Free Cash Flow Management

Efficient cash management, despite declining growth, ensures the company can sustain operations and invest in strategic initiatives.

Negative Factors

Declining Revenue Growth

Declining revenue growth may indicate challenges in market demand or competitive pressures, potentially impacting long-term expansion and profitability.

Cash Flow Challenges

Challenges in cash generation can limit the company's ability to fund operations and growth initiatives, affecting financial health over time.

Decreased Return on Equity

A decrease in return on equity suggests reduced profitability and efficiency in using shareholder funds, potentially impacting investor confidence.

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 production and sale of automotive components, which are supplied to major automobile manufacturers. The company's revenue model is largely based on long-term contracts and partnerships with key clients in the automotive industry, ensuring a stable income stream. Additional revenue sources may include the provision of engineering services, research and development contracts, and aftermarket support. The company also benefits from economies of scale and efficiency in its manufacturing processes, which contribute to higher profit margins. Strategic alliances with technology firms and participation in automotive innovation projects further enhance Hakuto's market position and revenue potential.

Hakuto Co., Ltd. Financial Statement Overview

Summary

Hakuto Co., Ltd. presents a mixed financial picture. Stable gross profit margins and a strong balance sheet are positives, but recent declines in revenue and profitability margins pose challenges. Significant growth in free cash flow is a positive indicator of financial health.

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	177.15B	183.13B	182.05B	233.62B	191.50B	165.41B
Gross Profit	26.67B	27.88B	26.83B	32.38B	23.97B	18.66B
EBITDA	8.41B	9.27B	8.63B	13.27B	8.24B	5.37B
Net Income	4.56B	5.13B	5.17B	8.93B	4.97B	3.06B
Balance Sheet
Total Assets	133.99B	130.38B	137.76B	145.90B	131.49B	116.42B
Cash, Cash Equivalents and Short-Term Investments	17.89B	14.93B	15.57B	16.75B	18.62B	17.87B
Total Debt	36.48B	35.59B	36.48B	42.08B	33.13B	29.36B
Total Liabilities	67.68B	64.83B	71.83B	82.04B	69.82B	58.41B
Stockholders Equity	66.32B	65.55B	65.93B	63.86B	61.67B	58.02B
Cash Flow
Free Cash Flow	13.44B	9.78B	8.15B	-3.89B	401.00M	7.16B
Operating Cash Flow	14.25B	10.59B	8.71B	-3.38B	872.00M	7.42B
Investing Cash Flow	-15.00M	-4.57B	876.00M	-300.00M	-527.00M	601.00M
Financing Cash Flow	-12.49B	-6.51B	-11.45B	1.31B	-379.00M	-5.28B

Hakuto Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3900.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7433, the sentiment is Positive. The current price of 3900 is above the 20-day moving average (MA) of 3880.75, above the 50-day MA of 3840.00, and above the 200-day MA of 3802.45, indicating a bullish trend. The MACD of 15.95 indicates Negative momentum. The RSI at 56.32 is Neutral, neither overbought nor oversold. The STOCH value of 81.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	76 Outperform	¥254.54B	15.38	―	1.88%	6.56%	106.55%
6957	75 Outperform	¥109.67B	33.69	―	2.12%	3.95%	-32.30%
8159	74 Outperform	¥73.68B	10.12	―	3.17%	-2.96%	6.43%
7433	72 Outperform	¥73.39B	16.09	―	5.86%	-0.80%	-3.80%
6908	70 Outperform	¥76.17B	19.30	―	3.05%	10.79%	12.28%
6866	68 Neutral	¥83.65B	14.51	―	3.23%	7.28%	4.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Hakuto Co., Ltd. Corporate Events

Hakuto Co., Ltd. Announces Dividend Payout for Fiscal Year 2025

Hakuto Co., Ltd. has announced a resolution to pay dividends of surplus with a record date of September 30, 2025. This decision aligns with their medium-term management plan, ‘Hakuto 2028,’ which aims to balance growth investments and shareholder returns. The company has set a dividend payout ratio of approximately 70% and plans to pay an ordinary dividend of 100 yen per share at the end of the fiscal year, maintaining stable dividends as part of its shareholder return policy.

Hakuto Co., Ltd. Reports Decline in Semi-Annual Financial Results

Hakuto Co., Ltd. reported a decline in its consolidated financial results for the six months ending September 30, 2025, with net sales and profits showing a year-on-year decrease. Despite the downturn, the company maintains its earnings forecast for the fiscal year ending March 31, 2026, indicating a slight increase in net sales but a decrease in operating and ordinary profits. The company’s financial position remains stable with a slight increase in total assets and net assets compared to the previous fiscal year.

Hakuto Co., Ltd. Reports Decline in Semi-Annual Financial Performance

Hakuto Co., Ltd. reported a decline in its financial performance for the six months ended September 30, 2025, with net sales decreasing by 6.7% and operating profit falling by 41.5% compared to the previous year. Despite the decline in profits, the company maintained a stable equity-to-asset ratio and announced a forecasted increase in comprehensive income, indicating potential resilience and strategic adjustments in its operations.