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

• Market Cap: ¥78.09B
• Dividend Yield: 5.86%
• Average Volume (3M): 56.21K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.66
• Revenue Growth: -0.80%
• EPS Growth: -3.80%
• Country: JP
• Employees: 1,203
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 118.32
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥4,669.00 ▲(19.26% Upside)

The score is driven primarily by improved financial quality in TTM (notably strong free cash flow and healthier cash conversion) alongside a stable balance sheet, supported by a positive technical uptrend. Valuation adds support via a high dividend yield and a reasonable P/E, while thin margins and cooler ROE versus 2023 remain the key fundamental constraint.

Positive Factors

Strong cash generation (TTM)

Sustained positive operating and free cash flow, with FCF nearly matching net income, indicates high earnings quality and internal funding ability. Over months this supports capex, service investments, and dividends without heavy new borrowing, improving resilience versus peers.

Manageable leverage and capital structure

A moderate debt load (~0.55x equity) and sizable equity base provide financial flexibility and lower solvency risk. This stable capital structure helps fund distribution operations and small strategic investments, reducing refinancing pressure during industry cycles.

Material revenue rebound (TTM)

A pronounced revenue rebound signals restored end-market demand and improved distributor throughput. If sustained, higher volumes can enhance supplier leverage, support service upsells, and create scale benefits that strengthen core trading economics over the medium term.

Negative Factors

Thin net margins

Low net margins (~2.6%) leave limited room to absorb cost inflation or price pressure in distribution. Over several months this constrains retained earnings, limits reinvestment capacity, and heightens sensitivity of profits to small adverse changes in volume or input costs.

Weakened ROE

Mid-single-digit ROE indicates subdued efficiency converting equity into profits relative to prior years. Persistently low ROE can pressure shareholder returns and indicate structural limits in pricing power, asset utilization, or margin expansion across the trading business.

Earnings/cash-flow volatility from working capital

History of negative cash flow and working-capital swings highlights sensitivity to inventory and receivables cycles in distribution. This structural volatility can disrupt reinvestment timing and make near-term cash planning and reliable dividend policy harder to sustain.

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

Revenue rebounded strongly in TTM, and cash generation is a major positive with strong operating cash flow/free cash flow and good cash conversion versus net income. However, profitability remains thin (net margin ~2.6%) and below 2023 levels, and ROE has cooled to mid-single digits, tempering the quality of the recovery.

Income Statement

TTM (Trailing-Twelve-Months) revenue rebounded sharply (about +64%), but profitability remains moderate with gross margin around 15% and net margin around 2.6%. Compared with recent annual results, margins and earnings are below the stronger 2023 level (when net margin was near 3.8%), indicating the growth has not fully translated into peak profitability. Overall: solid recovery, but margin pressure and earnings volatility temper the quality of growth.

Balance Sheet

Leverage looks reasonable with debt at roughly 0.55x equity in TTM (Trailing-Twelve-Months), and equity is sizable versus total assets. Returns on equity are positive but mid-single-digit in TTM (about 7%), below the higher level seen in 2023, suggesting weaker efficiency in converting equity into profit recently. Overall: stable capital structure with manageable leverage, but returns have cooled.

Cash Flow

Cash generation is a clear strength in TTM (Trailing-Twelve-Months): operating cash flow and free cash flow are strongly positive, and free cash flow is close to net income (about 0.94x), supporting earnings quality. This is a notable improvement versus 2023 when operating and free cash flow were negative, highlighting past volatility likely tied to working-capital swings. Overall: strong current cash conversion, with a history of fluctuations to watch.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	178.28B	183.13B	182.05B	233.62B	191.50B	165.41B
Gross Profit	27.27B	27.88B	26.83B	32.38B	23.97B	18.66B
EBITDA	9.40B	9.27B	8.63B	13.27B	8.24B	5.37B
Net Income	5.08B	5.13B	5.17B	8.93B	4.97B	3.06B
Balance Sheet
Total Assets	139.00B	130.38B	137.76B	145.90B	131.49B	116.42B
Cash, Cash Equivalents and Short-Term Investments	18.35B	14.93B	15.57B	16.75B	18.62B	17.87B
Total Debt	38.18B	35.59B	36.48B	42.08B	33.13B	29.36B
Total Liabilities	71.24B	64.83B	71.83B	82.04B	69.82B	58.41B
Stockholders Equity	67.75B	65.55B	65.93B	63.86B	61.67B	58.02B
Cash Flow
Free Cash Flow	14.26B	9.78B	8.15B	-3.89B	401.00M	7.16B
Operating Cash Flow	14.88B	10.59B	8.71B	-3.38B	872.00M	7.42B
Investing Cash Flow	114.00M	-4.57B	876.00M	-300.00M	-527.00M	601.00M
Financing Cash Flow	-16.09B	-6.51B	-11.45B	1.31B	-379.00M	-5.28B

Hakuto Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3915.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 3915 is below the 20-day moving average (MA) of 3965.25, below the 50-day MA of 3915.30, and above the 200-day MA of 3790.05, indicating a bullish trend. The MACD of 27.91 indicates Negative momentum. The RSI at 66.19 is Neutral, neither overbought nor oversold. The STOCH value of 48.34 is Neutral, 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
6866	79 Outperform	¥84.06B	15.28	―	3.23%	7.28%	4.16%
6814	76 Outperform	¥224.89B	13.88	―	1.88%	6.56%	106.55%
7433	75 Outperform	¥78.09B	15.38	―	5.86%	-0.80%	-3.80%
8159	74 Outperform	¥73.80B	10.13	―	3.17%	-2.96%	6.43%
6908	70 Outperform	¥77.92B	19.74	―	3.05%	10.79%	12.28%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Hakuto Co., Ltd. Corporate Events

Hakuto Posts Profit Decline for Nine Months, Cuts Dividend Outlook Despite Stable Sales Forecast

Hakuto reported consolidated net sales of ¥136.0 billion for the nine months ended December 31, 2025, down 3.4% year on year, with operating profit falling 17.4% to ¥5.3 billion and ordinary profit declining 21.6%, while profit attributable to owners of parent slipped a milder 1.2% to ¥4.2 billion; despite weaker earnings, total assets and equity increased, lifting net assets to ¥67.8 billion and pushing comprehensive income sharply higher. For the full fiscal year to March 31, 2026, the company is maintaining its forecast of modest 1.6% sales growth to ¥186.0 billion but expects significant profit contraction, and it plans to lower annual dividends from ¥260 to ¥200 per share, signaling a more cautious stance on shareholder returns amid a tougher profitability environment.

The most recent analyst rating on (JP:7433) stock is a Buy with a Yen4568.00 price target. To see the full list of analyst forecasts on Hakuto Co., Ltd. stock, see the JP:7433 Stock Forecast page.