Harima-Kyowa Co., Ltd. (7444) AI Stock Analysis

• Market Cap: ¥10.31B
• Dividend Yield: 2.59%
• Average Volume (3M): 2.44K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.44
• Revenue Growth: -3.81%
• EPS Growth: -18.49%
• Country: JP
• Employees: 191
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 60.29
• Shares Outstanding: 5,441,568
• 10 Day Avg. Volume: 2,610
• 30 Day Avg. Volume: 2,436
• PEG Ratio: -0.97
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -9.99
• 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: ¥2,173.00
• Price Target Upside: 13.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥2,173.00 ▲(13.30% Upside)

Harima-Kyowa Co., Ltd. receives a strong overall score due to its solid financial performance and attractive valuation. The company's robust balance sheet and revenue growth are significant strengths, though improvements in profit margins and cash flow management are needed. Technical indicators suggest stable market sentiment, supporting the stock's potential for appreciation.

Harima-Kyowa Co., Ltd. Business Overview & Revenue Model

Company Description

Harima-Kyowa Co.,LTD. engages in the wholesale of daily necessities, cosmetics, and toiletries in Japan. The company offers detergent-related, home product, household paper, and hygiene products. It also provides logistics services for daily necessities, cosmetics, apparel, room temperature food, bedding, pet supplies, etc. The company distributes its products to stores, including drug stores, supermarkets, and home improvement stores. In addition, it is involved in the leasing of real estate properties. Harima-Kyowa Co.,LTD. was founded in 1907 and is headquartered in Himeji, Japan.

How the Company Makes Money

Harima-Kyowa Co., Ltd. generates revenue primarily through the distribution and sale of industrial materials and equipment. The company's key revenue streams include the wholesale of electrical machinery and components, mechanical parts, and construction materials to businesses in the manufacturing and construction sectors. It leverages strong relationships with manufacturers and suppliers to source high-quality products at competitive prices, which it then sells to its clients, ensuring a steady flow of income. Additionally, the company may engage in strategic partnerships and collaborations that enhance its product offerings and expand its market reach, further contributing to its earnings.

Harima-Kyowa Co., Ltd. Financial Statement Overview

Summary

Harima-Kyowa Co., Ltd. shows a positive growth trajectory with strong revenue performance and a solid balance sheet. However, there is room for improvement in profit margins and cash flow management to ensure sustainable long-term growth.

Income Statement

Harima-Kyowa Co., Ltd. has demonstrated consistent revenue growth over the past years, with a notable increase from ¥61.58 billion to ¥62.04 billion in the most recent period. The gross profit margin is stable, reflecting effective cost management. However, the slight decline in net profit margin from 2.28% to 2.08% indicates a need for better control over expenses or pricing strategies.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio reflecting prudent leverage management. The equity ratio is robust, supporting financial stability. Return on equity is relatively healthy, showcasing efficient use of shareholder investments to generate profit.

Cash Flow

Operating cash flow has improved significantly, highlighting better cash generation capabilities. However, free cash flow is negative, indicating high capital expenditures. The cash flow to net income ratios suggest a need for better alignment between reported profits and cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	60.53B	62.04B	61.58B	60.16B	57.78B	54.48B
Gross Profit	7.39B	7.16B	7.13B	6.96B	6.43B	6.63B
EBITDA	2.49B	2.48B	2.62B	2.62B	2.36B	2.33B
Net Income	1.21B	1.29B	1.41B	1.39B	1.20B	1.16B
Balance Sheet
Total Assets	36.90B	36.30B	33.14B	31.35B	30.11B	28.44B
Cash, Cash Equivalents and Short-Term Investments	4.27B	3.58B	2.75B	4.18B	3.01B	3.21B
Total Debt	3.30B	2.46B	320.00M	190.00M	360.00M	290.00M
Total Liabilities	11.91B	11.49B	8.98B	9.13B	9.10B	8.30B
Stockholders Equity	24.96B	24.78B	24.13B	22.19B	20.99B	20.12B
Cash Flow
Free Cash Flow	0.00	-1.05B	-1.38B	1.53B	-118.93M	1.21B
Operating Cash Flow	0.00	2.47B	120.46M	1.95B	746.81M	1.40B
Investing Cash Flow	0.00	-3.53B	-1.46B	-387.12M	-817.73M	-505.43M
Financing Cash Flow	0.00	1.90B	-89.69M	-385.62M	-137.30M	-290.85M

Harima-Kyowa Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1918.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7444, the sentiment is Neutral. The current price of 1918 is below the 20-day moving average (MA) of 1924.00, above the 50-day MA of 1917.06, and above the 200-day MA of 1910.02, indicating a neutral trend. The MACD of 2.58 indicates Positive momentum. The RSI at 48.89 is Neutral, neither overbought nor oversold. The STOCH value of 50.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7444.

Harima-Kyowa Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7444	76 Outperform	¥10.31B	8.56	―	2.59%	-3.81%	-18.49%
8260	64 Neutral	¥4.91B	5.33	8.38%	1.40%	-2.12%	8.28%
7506	61 Neutral	¥6.54B	-221.28	1.41%	1.80%	-3.92%	-129.57%
8247	60 Neutral	¥2.22B	8.89	3.61%	―	-2.19%	-58.67%
8254	56 Neutral	¥2.55B	20.62	11.78%	―	-10.22%	-23.30%
8217	46 Neutral	¥36.13B	-16.77	-3.21%	2.80%	1.46%	-436.55%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%