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

• Market Cap: ¥10.96B
• Dividend Yield: 2.6%
• Average Volume (3M): 1.56K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.43
• Revenue Growth: -7.06%
• EPS Growth: 3.38%
• Country: JP
• Employees: 191
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 40.01
• Shares Outstanding: 5,441,568
• 10 Day Avg. Volume: 1,530
• 30 Day Avg. Volume: 1,560
• PEG Ratio: -0.96
• 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: ¥2,345.00 ▲(23.49% Upside)
• Action: Downgraded Date: 10/09/25
• Date: Action: Downgraded 10/09/25

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

Balance sheet strength

A conservatively financed balance sheet with low leverage and a robust equity ratio provides durable financial flexibility. This supports investment capacity, resilience in downturns, and the ability to fund strategic initiatives without stressing liquidity or needing urgent external financing.

Improving operating cash flow

Sustained improvement in operating cash flow indicates stronger cash conversion from core operations, underpinning working capital needs and potential reinvestment. Even with negative free cash flow, better OCF reduces reliance on financing and signals operational improvements.

Stable gross margins & revenue base

A stable gross margin and an expanding revenue base suggest durable demand and effective cost control at the gross level. This supports long-term EBITDA sustainability and provides management scope to address SG&A or other operating pressures without eroding core profitability.

Negative Factors

Negative free cash flow

Persistent negative free cash flow driven by high capex weakens the firm’s ability to self-fund growth and dividends over time. It can force reliance on external funding, constrain strategic flexibility, and increase vulnerability if operating cash generation falters or credit conditions tighten.

Net profit margin decline

A falling net margin, even if modest, signals rising cost pressure or weaker operational leverage below the gross line. Over months, this erodes retained earnings and return on capital, requiring sustained margin recovery or higher revenue growth to preserve profitability and ROE.

Recent revenue & EPS deterioration

Negative recent revenue and EPS growth point to cyclical or structural headwinds in demand or pricing. If these trends persist, they undermine reinvestment capacity and profitability, making it harder to restore margins and cash flow without either operational fixes or market share gains.

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 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	60.32B	61.82B	61.58B	60.16B	57.78B	54.48B
Gross Profit	7.19B	6.95B	6.85B	6.66B	6.12B	6.28B
EBITDA	2.45B	2.35B	2.39B	2.38B	2.24B	2.16B
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	-1.35B	1.58B	-91.04M	1.23B
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: Negative
• Last Price: 1899.00
• 50DMA: Negative
• 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 Negative. The current price of 1899 is below the 20-day moving average (MA) of 2074.80, below the 50-day MA of 2068.18, and below the 200-day MA of 1948.56, indicating a neutral trend. The MACD of -7.69 indicates Positive momentum. The RSI at 43.86 is Neutral, neither overbought nor oversold. The STOCH value of 54.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
9956	79 Outperform	¥193.59B	7.25	―	2.18%	6.30%	27.88%
7444	70 Neutral	¥10.96B	12.05	―	2.60%	-7.06%	3.38%
8273	63 Neutral	¥216.74B	17.32	―	3.01%	18.89%	-34.43%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8278	61 Neutral	¥174.15B	100.03	―	1.44%	1.48%	-33.32%
3222	53 Neutral	¥178.09B	-65.24	―	1.77%	30.67%	―
8217	45 Neutral	¥33.05B	-145.82	―	3.11%	1.46%	-436.55%