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Handsman Co.,Ltd (JP:7636)
:7636
Japanese Market

Handsman Co.,Ltd (7636) AI Stock Analysis

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JP

Handsman Co.,Ltd

(7636)

Rating:66Neutral
Price Target:
¥873.00
▲(4.80%Upside)
Handsman Co.,Ltd has a solid financial structure with stable revenue growth and a strong balance sheet. However, profitability and cash flow concerns pose risks. The technical indicators suggest neutral market sentiment, while the valuation metrics indicate potential undervaluation with a favorable dividend yield. These factors combined result in a moderate overall stock score.

Handsman Co.,Ltd (7636) vs. iShares MSCI Japan ETF (EWJ)

Handsman Co.,Ltd Business Overview & Revenue Model

Company DescriptionHandsman Co., Ltd (7636) is a Japanese company that operates primarily in the home improvement retail sector. The company specializes in providing a wide range of hardware, DIY products, gardening supplies, and home improvement materials to both consumers and professional contractors. Handsman Co., Ltd is known for its comprehensive selection of products, catering to various home renovation and maintenance needs.
How the Company Makes MoneyHandsman Co., Ltd generates revenue primarily through the sale of home improvement and DIY products in its retail stores. The company's key revenue streams include the direct sale of hardware, tools, construction materials, gardening supplies, and household items. By maintaining a diverse product range and competitive pricing, Handsman Co., Ltd attracts a broad customer base, including DIY enthusiasts and professional contractors. Additionally, strategic store locations and effective marketing campaigns contribute to its revenue generation. The company may also engage in partnerships with suppliers and manufacturers to enhance product offerings and secure favorable pricing, further supporting its profitability.

Handsman Co.,Ltd Financial Statement Overview

Summary
Handsman Co.,Ltd demonstrates stable revenue growth and maintains a strong balance sheet with a solid equity base. However, profitability margins are under pressure, and cash flow poses potential challenges due to negative free cash flow. Despite these concerns, the company's financial health remains relatively sound due to its low leverage and strong equity position.
Income Statement
68
Positive
The company shows a stable gross profit margin of around 30%, reflecting good cost control relative to revenues. However, the net profit margin has decreased over the recent periods, moving from 5.2% to 2.8% in TTM, indicating pressure on profitability. Revenue growth is present but modest, with a 2.6% increase from the last annual report to TTM. The EBIT and EBITDA margins are declining, suggesting potential challenges in operating efficiency.
Balance Sheet
75
Positive
Handsman Co.,Ltd maintains a solid equity base with an improving equity ratio of around 65.7% in TTM, indicating a strong financial structure. The debt-to-equity ratio has risen slightly but remains manageable. ROE has decreased, reflecting the pressure on net income, yet it remains positive, showcasing the company's ability to generate returns on equity.
Cash Flow
45
Neutral
The cash flow statement highlights some concerns, with free cash flow turning negative in recent periods, primarily due to capital expenditures. Operating cash flow has shown volatility, and the lack of positive free cash flow growth suggests potential liquidity risks.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
35.02B34.12B30.86B30.86B34.07B31.16B
Gross Profit
10.57B10.84B10.01B9.86B10.76B9.68B
EBIT
1.11B869.00M1.55B2.01B2.57B2.18B
EBITDA
2.07B1.97B2.08B2.71B3.04B2.66B
Net Income Common Stockholders
964.00M789.00M1.20B1.52B2.01B1.64B
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.35B1.63B1.89B3.36B3.90B3.03B
Total Assets
23.65B26.19B26.32B20.74B20.33B19.05B
Total Debt
2.48B4.05B3.17B353.00M543.00M1.01B
Net Debt
1.13B2.42B1.28B-3.00B-3.36B-2.02B
Total Liabilities
6.41B8.33B8.84B4.25B4.65B5.02B
Stockholders Equity
17.24B17.86B17.48B16.49B15.68B14.04B
Cash FlowFree Cash Flow
0.00-782.00M-4.01B509.00M1.60B2.37B
Operating Cash Flow
0.001.23B408.00M1.57B2.09B2.54B
Investing Cash Flow
0.00-1.94B-4.34B-1.22B-430.00M-113.00M
Financing Cash Flow
0.00450.00M2.47B-887.00M-785.00M-1.09B

Handsman Co.,Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price833.00
Price Trends
50DMA
805.38
Positive
100DMA
814.46
Positive
200DMA
817.24
Positive
Market Momentum
MACD
6.87
Negative
RSI
62.48
Neutral
STOCH
74.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7636, the sentiment is Positive. The current price of 833 is above the 20-day moving average (MA) of 822.35, above the 50-day MA of 805.38, and above the 200-day MA of 817.24, indicating a bullish trend. The MACD of 6.87 indicates Negative momentum. The RSI at 62.48 is Neutral, neither overbought nor oversold. The STOCH value of 74.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7636.

Handsman Co.,Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥10.33B19.65
2.56%3.64%-9.17%
66
Neutral
¥11.87B12.45
3.60%4.17%28.46%
65
Neutral
¥10.27B68.07
3.10%0.68%
63
Neutral
$6.96B11.512.80%3.85%2.70%-24.43%
62
Neutral
¥7.98B14.90
3.01%6.11%3541.59%
57
Neutral
¥9.72B
4.73%8.47%85.95%
43
Neutral
¥12.33B
-4.20%-14.64%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7636
Handsman Co.,Ltd
833.00
-35.13
-4.05%
JP:7442
Nakayamafuku Co., Ltd.
406.00
40.35
11.04%
JP:7514
Himaraya Co., Ltd.
844.00
-43.55
-4.91%
JP:7610
Tay Two Co., Ltd.
143.00
27.48
23.79%
JP:8165
Senshukai Co., Ltd.
261.00
-73.00
-21.86%
JP:8289
Olympic Group Corporation
428.00
-93.30
-17.90%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.