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

• Market Cap: ¥10.37B
• Dividend Yield: 2.61%
• Average Volume (3M): 1.43K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.41
• Revenue Growth: -7.06%
• EPS Growth: 3.38%
• Country: JP
• Employees: 191
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 123.59
• Shares Outstanding: 5,441,568
• 10 Day Avg. Volume: 1,250
• 30 Day Avg. Volume: 1,430
• 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: 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: 70 Neutral
• Price Target: ¥2,091.00 ▲(10.11% Upside)

Harima-Kyowa Co., Ltd. has a strong financial foundation with a solid balance sheet and attractive valuation metrics. However, technical indicators suggest weak market momentum, which could impact short-term performance. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability, allowing the company to navigate economic fluctuations and invest in growth opportunities.

Improved Cash Generation

Improved operating cash flow indicates effective management of core business operations, providing the company with more resources to reinvest or reduce debt.

Consistent Revenue Growth

Steady revenue growth demonstrates the company's ability to maintain and expand its market position, supporting long-term business sustainability.

Negative Factors

Declining Net Profit Margin

A declining net profit margin suggests challenges in cost control or pricing power, which could impact profitability if not addressed.

Negative Free Cash Flow

Negative free cash flow may limit the company's ability to fund new projects or return capital to shareholders, potentially impacting growth.

Revenue Growth Decline

A decline in revenue growth can signal market saturation or increased competition, potentially affecting future earnings and market share.

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

Company Description

Harima-Kyowa Co., Ltd. (7444) is a prominent player in the manufacturing and supply of industrial chemicals and materials in Japan. The company operates in various sectors, including the production of specialty chemicals, adhesives, and other industrial products. Harima-Kyowa is known for its commitment to quality and innovation, providing solutions that cater to a wide range of industries such as automotive, electronics, and construction.

How the Company Makes Money

Harima-Kyowa generates revenue primarily through the sale of its specialty chemicals and industrial products. The company has established key revenue streams from both domestic and international markets, leveraging its strong R&D capabilities to develop innovative products that meet customer needs. Significant partnerships with major industrial players enhance its market reach and contribute to steady sales growth. Additionally, Harima-Kyowa benefits from economies of scale in production and strategic pricing strategies, which help maintain competitive margins.

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: Positive
• Last Price: 1899.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 1899 is above the 20-day moving average (MA) of 1898.70, below the 50-day MA of 1907.02, and below the 200-day MA of 1917.46, indicating a neutral trend. The MACD of 2.44 indicates Negative momentum. The RSI at 53.65 is Neutral, neither overbought nor oversold. The STOCH value of 42.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	70 Neutral	¥10.37B	6.87	―	2.61%	-7.06%	3.38%
8260	64 Neutral	¥4.82B	5.03	―	1.38%	-3.57%	33.78%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8247	60 Neutral	¥2.15B	9.65	―	―	-3.35%	-63.96%
7506	57 Neutral	¥6.49B	-219.69	―	1.81%	-2.58%	-8.24%
8254	56 Neutral	¥1.89B	17.16	―	―	-6.41%	51.66%
8217	45 Neutral	¥34.10B	―	―	3.07%	1.46%	-436.55%