Handsman Co.,Ltd (7636) AI Stock Analysis

• Market Cap: ¥11.79B
• Dividend Yield: 3.63%
• Average Volume (3M): 3.42K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.31
• Revenue Growth: 2.27%
• EPS Growth: 34.02%
• Country: JP
• Employees: 179
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 26.05
• Shares Outstanding: 14,509,800
• 10 Day Avg. Volume: 2,170
• 30 Day Avg. Volume: 3,420
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥883.00
• Price Target Upside: 6.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: ¥883.00 ▲(6.77% Upside)

Handsman Co.,Ltd's stock score is primarily driven by its stable financial performance and attractive valuation. The company's solid revenue growth and strong balance sheet are significant strengths. However, the technical analysis indicates a short-term bearish trend, which slightly offsets the positive valuation metrics. The absence of earnings call data and corporate events means these factors did not influence the score.

Handsman Co.,Ltd Business Overview & Revenue Model

Company Description

Handsman Co., Ltd. (7636) is a Japanese company primarily engaged in the home improvement and DIY (Do-It-Yourself) retail industry. The company operates a chain of home centers across Japan, providing a wide range of products, including hardware, tools, building materials, garden supplies, and home furnishings. Handsman Co., Ltd. caters to both individual consumers and professional contractors, focusing on offering quality products and services that meet the diverse needs of its customer base.

How the Company Makes Money

Handsman Co., Ltd. generates revenue primarily through the sale of home improvement and DIY products at its retail locations. The company earns money by purchasing goods from manufacturers and suppliers and selling these products at a markup to consumers. Additionally, the company may offer services such as workshops or installation assistance, which provide supplementary income. Key factors contributing to its earnings include strategic store locations, a broad product assortment, and competitive pricing strategies. Handsman Co., Ltd. may also engage in partnerships with suppliers and brands to offer exclusive products or promotions, enhancing its revenue potential.

Handsman Co.,Ltd Financial Statement Overview

Summary

Handsman Co.,Ltd exhibits solid revenue growth and maintains a strong balance sheet with low leverage. While profitability margins are moderate, the company shows potential for improvement. Cash flow management is effective, though past negative free cash flow should be monitored. Overall, the financial health is stable with opportunities for enhanced profitability.

Income Statement

Handsman Co.,Ltd has shown consistent revenue growth with a 1.004% increase in the latest year. The gross profit margin stands at 28.96%, indicating efficient cost management. However, the net profit margin is relatively low at 2.94%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are 3.54% and 7.02%, respectively, reflecting moderate operational efficiency.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.18, indicating low leverage and financial stability. The return on equity is 5.67%, which is modest and suggests potential for better utilization of equity. The equity ratio is 70.53%, showing a strong equity base relative to total assets.

Cash Flow

Handsman Co.,Ltd has demonstrated strong free cash flow growth, although the previous negative free cash flow poses a concern. The operating cash flow to net income ratio is 1.78, indicating good cash generation relative to net income. The free cash flow to net income ratio is 1.55, suggesting efficient cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.55B	34.90B	34.12B	30.86B	30.86B	34.07B
Gross Profit	10.40B	10.11B	10.84B	10.01B	9.86B	10.76B
EBITDA	2.24B	2.45B	1.97B	2.29B	2.71B	3.31B
Net Income	932.00M	1.03B	789.00M	1.20B	1.52B	2.01B
Balance Sheet
Total Assets	25.99B	25.66B	26.19B	26.32B	20.74B	20.33B
Cash, Cash Equivalents and Short-Term Investments	1.47B	1.54B	1.63B	1.89B	3.36B	3.90B
Total Debt	3.98B	3.28B	4.05B	3.17B	353.00M	543.00M
Total Liabilities	8.26B	7.56B	8.33B	8.84B	4.25B	4.65B
Stockholders Equity	17.74B	18.10B	17.86B	17.48B	16.49B	15.68B
Cash Flow
Free Cash Flow	0.00	1.60B	-782.00M	-4.01B	509.00M	1.60B
Operating Cash Flow	0.00	1.83B	1.23B	408.00M	1.57B	2.09B
Investing Cash Flow	0.00	-176.00M	-1.94B	-4.34B	-1.22B	-430.00M
Financing Cash Flow	0.00	-1.75B	450.00M	2.47B	-887.00M	-785.00M

Handsman Co.,Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 827.00
• 50DMA: Positive
• 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:7636, the sentiment is Positive. The current price of 827 is above the 20-day moving average (MA) of 824.70, above the 50-day MA of 824.44, and above the 200-day MA of 799.03, indicating a bullish trend. The MACD of -1.76 indicates Positive momentum. The RSI at 52.73 is Neutral, neither overbought nor oversold. The STOCH value of 61.40 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7610	71 Outperform	¥8.94B	12.88	―	2.96%	7.21%	410.93%
7442	69 Neutral	¥8.14B	10.22	―	2.42%	6.03%	―
7636	65 Neutral	¥11.79B	11.14	―	3.63%	2.27%	34.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7514	53 Neutral	¥10.35B	946.26	―	3.07%	3.31%	-94.70%
8289	53 Neutral	¥9.17B	―	―	5.01%	3.14%	-183.07%
8165	44 Neutral	¥10.88B	―	―	―	-1.79%	-42.31%