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

• Market Cap: ¥28.67B
• Dividend Yield: 3.9%
• Average Volume (3M): 13.49K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.84
• 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: ¥1,490.00 ▲(13.91% 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

The firm's core wholesale and regional logistics model supports recurring, contract-driven demand from contractors and installers. A dedicated stocking and delivery capability creates operational stickiness, reduces lead times, and fosters repeat orders, sustaining stable revenue flows over cycles.

Consistent Revenue Growth

Steady top-line growth, including a notable year-on-year increase, indicates resilient end-market demand and effective commercial execution. Persistent growth provides scale benefits for purchasing, inventory turnover, and margin leverage, supporting medium-term profitability stability.

Balance Sheet Resilience

A stable equity ratio implies a solid capital base to absorb construction-cycle volatility and fund working capital needs like inventory and receivables. This financial resilience supports consistent operations and gives management room to invest in logistics or inventory to capture demand.

Negative Factors

Rising Leverage

A rising debt-to-equity trend increases financial risk by heightening interest burdens and reducing flexibility for strategic investments. Higher leverage can strain cash flow buffers during construction slowdowns and limit the company's ability to fund inventory or respond to supplier pricing shifts.

Weakening Cash Generation

Declining and volatile free cash flow undermines the firm's ability to deleverage, sustain dividends, or invest in logistics and inventory. Persistent cash variability suggests working-capital inefficiencies or timing risks that could constrain strategic initiatives and financial resilience over months.

Pressure on Operating Margins

A slipping EBIT margin signals eroding operational efficiency or rising input costs that may compress long-term profitability if not addressed. For a wholesaler with typically thin margins, even modest margin pressure can materially reduce cash flow and limit reinvestment capacity.

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

The company makes money primarily by wholesaling building-equipment and construction-related materials: it purchases products from manufacturers and upstream suppliers and sells them to downstream customers such as plumbing/HVAC contractors, construction firms, installers, and other trade customers. Revenue is mainly generated as net sales from product shipments, with gross profit driven by the spread between procurement costs and selling prices, influenced by product mix, negotiated purchasing terms, and pricing discipline. Additional earnings may be supported by logistics and fulfillment capabilities (e.g., inventory holding, delivery, jobsite supply coordination) that help secure repeat purchasing and larger order volumes. Specific breakdowns of revenue by segment/product category, the contribution of any service fees, and details of significant partnerships or supplier/customer concentration are null.

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	2.91B	2.96B	2.72B	3.21B	2.91B	3.36B
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	15.06B	9.41B	9.54B	8.16B	9.06B
Total Liabilities	66.72B	53.18B	48.77B	43.83B	38.48B	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	2.82B	1.84B	1.00M	-2.80B
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	-1.66B
Financing Cash Flow	0.00	4.11B	-1.31B	618.00M	-1.57B	2.77B

HASHIMOTO SOGYO HOLDINGS CO., LTD. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7570, the sentiment is Neutral. The current price of 1308 is below the 20-day moving average (MA) of 1422.60, below the 50-day MA of 1380.26, and above the 200-day MA of 1287.03, indicating a neutral trend. The MACD of 4.80 indicates Positive momentum. The RSI at 46.18 is Neutral, neither overbought nor oversold. The STOCH value of 17.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
7971	79 Outperform	¥37.65B	7.75	―	3.59%	6.91%	13.17%
1979	76 Outperform	¥216.44B	14.34	8.53%	2.45%	5.14%	-10.92%
7943	66 Neutral	¥108.93B	13.03	―	3.53%	-0.58%	-46.15%
7570	66 Neutral	¥28.67B	7.72	―	3.90%	4.79%	13.71%
5930	66 Neutral	¥129.11B	10.42	12.89%	3.40%	2.98%	41.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5936	63 Neutral	¥6.13B	4.98	―	4.13%	2.76%	-10.23%