HASHIMOTO SOGYO HOLDINGS CO., LTD. (7570) AI Stock Analysis

• Market Cap: ¥31.46B
• Dividend Yield: 3.9%
• Average Volume (3M): 13.49K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.89
• Revenue Growth: 4.79%
• EPS Growth: 13.71%
• Country: JP
• Employees: 903
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 42.37
• Shares Outstanding: 21,293,053
• 10 Day Avg. Volume: 17,160
• 30 Day Avg. Volume: 13,493
• PEG Ratio: 0.63
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.14
• P/FCF Ratio: -5.38
• 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: 66 Neutral
• Price Target: ¥1,558.00 ▲(19.11% Upside)
• Action: Downgraded Date: 10/02/25
• Date: Action: Downgraded 10/02/25

HASHIMOTO SOGYO HOLDINGS CO., LTD. scores well on valuation due to its low P/E ratio and strong dividend yield, making it attractive for value investors. However, technical indicators suggest bearish momentum, which could pose short-term risks. Financial performance is solid, but the increasing debt and cash flow variability warrant caution.

Positive Factors

Distribution & logistics network

Hashimoto's regional procurement, stocking and delivery network creates durable customer stickiness and service differentiation for plumbing and HVAC contractors. Local inventory and reliable logistics shorten lead times, enable larger order fulfilment and repeat business, stabilizing revenue and supporting steady margins over time.

Consistent revenue and gross margin

Sustained revenue growth and a solid gross profit margin indicate persistent end-market demand and disciplined purchasing. In distribution, gross-margin resilience reflects procurement leverage and product mix control, supporting long-term cash generation and the capacity to absorb input-cost swings without immediate erosion of core profitability.

Stable equity ratio & healthy ROE

A stable equity ratio and healthy ROE point to a resilient capital structure and efficient use of shareholder capital. This balance-sheet strength underpins the company’s ability to fund working capital needs, sustain dividend policy and absorb operational shocks, providing durable financial flexibility despite cyclical demand.

Negative Factors

Rising leverage

An increasing debt-to-equity ratio signals growing reliance on external financing, which elevates interest costs and reduces financial flexibility. For a working-capital intensive wholesale distributor, higher leverage increases refinancing and liquidity risk, potentially constraining investments in inventory, logistics upgrades, or strategic initiatives over the medium term.

Weaker free cash flow

A decline in free cash flow growth and volatile operating cash flow-to-net-income ratios point to weakening cash conversion and earnings quality. Reduced FCF capacity limits the company’s ability to pay down debt, invest in logistics or return capital to shareholders, increasing vulnerability to demand slowdowns and limiting strategic optionality.

Margin pressure on operations

A slight decline in EBIT margin suggests rising operating costs or falling operational leverage. In a low-margin distribution business, persistent EBIT erosion can materially reduce profitability and ROE; management may face tough trade-offs between raising prices, which can hurt competitiveness, and cutting costs, which may impair service levels and long-term customer relationships.

HASHIMOTO SOGYO HOLDINGS CO., LTD. Business Overview & Revenue Model

Company Description

Hashimoto Sogyo Holdings Co.,Ltd. sells pipe construction and housing equipment in Japan. It also provides information processing, money lending, guarantee, leasing, and non-life insurance agency services. The company was formerly known as Hashimoto Sogyo Co., Ltd. and changed its name to Hashimoto Sogyo Holdings Co.,Ltd. in April 2016. Hashimoto Sogyo Holdings Co.,Ltd. was incorporated in 1938 and is headquartered in Tokyo, Japan.

How the Company Makes Money

HASHIMOTO SOGYO HOLDINGS generates revenue through multiple streams primarily related to its construction and real estate operations. The company earns money from contracts for civil engineering projects, which include public infrastructure developments such as roads and bridges. Additionally, it profits from architectural services, offering design solutions for various building types. Revenue is also derived from the sale and leasing of residential and commercial properties, which is bolstered by its real estate development initiatives. Strategic partnerships with local governments and private entities for large-scale projects further enhance its revenue potential. Moreover, the company may benefit from maintenance and renovation contracts for existing structures, contributing to a stable income base.

HASHIMOTO SOGYO HOLDINGS CO., LTD. Financial Statement Overview

Summary

HASHIMOTO SOGYO HOLDINGS CO., LTD. demonstrates strong revenue growth and profitability, supported by effective cost management. The stable financial position is offset by increasing debt, indicating potential leverage risk. Cash flow metrics suggest variability, highlighting the need for improved cash generation strategies.

Income Statement

HASHIMOTO SOGYO HOLDINGS CO., LTD. has shown consistent revenue growth over the years, with a notable increase from 2024 to 2025. The company maintains a solid gross profit margin, indicating effective cost management. However, the EBIT margin has slightly declined, suggesting room for improving operational efficiency.

Balance Sheet

The company exhibits a stable equity ratio, indicating sound financial health. However, the increasing debt-to-equity ratio suggests a growing reliance on debt, which could pose a risk if not managed carefully. Return on equity remains healthy, showcasing profitability from shareholders' investments.

Cash Flow

The cash flow analysis reveals a decline in free cash flow growth, raising concerns about cash generation. The operating cash flow to net income ratio is fluctuating, indicating variability in cash earnings. Despite this, the company has managed to sustain operating cash flow over the years.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	166.99B	165.34B	155.63B	148.19B	137.61B	134.69B
Gross Profit	17.54B	17.44B	16.43B	15.77B	14.53B	14.33B
EBITDA	4.83B	4.80B	4.92B	4.31B	4.11B	3.76B
Net Income	2.91B	2.89B	2.61B	2.57B	2.41B	2.23B
Balance Sheet
Total Assets	99.95B	85.50B	80.00B	72.01B	64.42B	63.21B
Cash, Cash Equivalents and Short-Term Investments	5.98B	5.11B	5.50B	3.40B	3.31B	4.18B
Total Debt	29.93B	15.02B	9.39B	9.54B	8.15B	9.04B
Total Liabilities	66.72B	53.18B	48.78B	43.83B	38.49B	38.86B
Stockholders Equity	33.23B	32.32B	31.22B	28.16B	25.92B	24.33B
Cash Flow
Free Cash Flow	0.00	-4.43B	2.45B	1.44B	-179.00M	-2.94B
Operating Cash Flow	0.00	2.47B	3.68B	2.29B	1.94B	-939.00M
Investing Cash Flow	0.00	-7.27B	-316.00M	-2.80B	-710.00M	-1.67B
Financing Cash Flow	0.00	4.11B	-1.31B	618.00M	-1.57B	2.78B

HASHIMOTO SOGYO HOLDINGS CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1308.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7570, the sentiment is Positive. The current price of 1308 is below the 20-day moving average (MA) of 1399.40, below the 50-day MA of 1346.30, and above the 200-day MA of 1274.31, indicating a bullish trend. The MACD of 31.30 indicates Negative momentum. The RSI at 79.26 is Negative, neither overbought nor oversold. The STOCH value of 81.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7570.

HASHIMOTO SOGYO HOLDINGS CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6485	79 Outperform	¥36.06B	12.59	―	4.23%	-0.34%	50.73%
7971	79 Outperform	¥42.72B	10.59	―	3.59%	6.91%	13.17%
1972	74 Outperform	¥29.09B	10.69	―	7.56%	8.01%	13.19%
7570	66 Neutral	¥31.46B	9.15	―	3.90%	4.79%	13.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7820	55 Neutral	¥21.17B	-8.21	―	4.35%	-4.00%	-386.52%
5337	54 Neutral	¥21.27B	27.90	―	―	-5.45%	―