Handsman Co.,Ltd (7636) AI Stock Analysis

• Market Cap: ¥11.89B
• Dividend Yield: 3.6%
• Average Volume (3M): 3.88K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.30
• Revenue Growth: 4.17%
• EPS Growth: 28.46%
• Country: JP
• Employees: 179
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Specialty Retail
• EPS (TTM): 11.62
• Shares Outstanding: 14,509,800
• 10 Day Avg. Volume: 3,270
• 30 Day Avg. Volume: 3,880
• PEG Ratio: -4.49
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 66 Neutral
• Price Target: ¥873.00 ▲(4.68%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 Business Overview & Revenue Model

Company Description

Handsman 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 Money

Handsman 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

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

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

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
35.02B	34.12B	30.86B	30.86B	34.07B	31.16B
	Gross Profit
10.57B	10.84B	10.01B	9.86B	10.76B	9.68B
	EBIT
1.11B	869.00M	1.55B	2.01B	2.57B	2.18B
	EBITDA
2.07B	1.97B	2.08B	2.71B	3.04B	2.66B
	Net Income Common Stockholders
964.00M	789.00M	1.20B	1.52B	2.01B	1.64B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.35B	1.63B	1.89B	3.36B	3.90B	3.03B
	Total Assets
23.65B	26.19B	26.32B	20.74B	20.33B	19.05B
	Total Debt
2.48B	4.05B	3.17B	353.00M	543.00M	1.01B
	Net Debt
1.13B	2.42B	1.28B	-3.00B	-3.36B	-2.02B
	Total Liabilities
6.41B	8.33B	8.84B	4.25B	4.65B	5.02B
	Stockholders Equity
17.24B	17.86B	17.48B	16.49B	15.68B	14.04B
Cash Flow		Free Cash Flow
0.00	-782.00M	-4.01B	509.00M	1.60B	2.37B
	Operating Cash Flow
0.00	1.23B	408.00M	1.57B	2.09B	2.54B
	Investing Cash Flow
0.00	-1.94B	-4.34B	-1.22B	-430.00M	-113.00M
	Financing Cash Flow
0.00	450.00M	2.47B	-887.00M	-785.00M	-1.09B

Handsman Co.,Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 834.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 834 is above the 20-day moving average (MA) of 826.70, above the 50-day MA of 807.62, and above the 200-day MA of 818.03, indicating a bullish trend. The MACD of 6.56 indicates Positive momentum. The RSI at 63.28 is Neutral, neither overbought nor oversold. The STOCH value of 86.30 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7610	75 Outperform	¥9.47B	18.01		2.80%	3.64%	-9.17%
7636	66 Neutral	¥11.89B	12.47		3.60%	4.17%	28.46%
7514	65 Neutral	¥10.28B	68.15		3.09%	0.68%	―
Sector *	63 Neutral	$6.94B	11.34	2.80%	4.26%	2.68%	-24.70%
7442	62 Neutral	¥7.98B	14.90		2.46%	6.11%	3541.59%
8289	57 Neutral	¥9.69B	―		4.74%	8.47%	85.95%
8165	43 Neutral	¥12.24B	―		―	-4.20%	-14.64%