Hakudo Co., Ltd. (7637) AI Stock Analysis

• Market Cap: ¥30.44B
• Dividend Yield: 2.96%
• Average Volume (3M): 12.05K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.85
• Revenue Growth: 9.16%
• EPS Growth: -21.26%
• Country: JP
• Employees: 390
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 66.44
• Shares Outstanding: 11,343,300
• 10 Day Avg. Volume: 9,330
• 30 Day Avg. Volume: 12,050
• PEG Ratio: 0.67
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 22.72
• 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: 79 Outperform
• Price Target: ¥2,942.00 ▲(23.20% Upside)
• Action: Upgraded Date: 02/11/26
• Date: Action: Upgraded 02/11/26

The score is primarily supported by strong financial stability (low leverage and solid equity position) and a constructive technical uptrend with positive momentum. This is tempered by modest profitability/margin pressure and only moderate cash conversion, while valuation appears fair with a supportive dividend yield.

Positive Factors

Low leverage and strong equity base

Hakudo's very low debt-to-equity and robust equity ratio provide durable financial flexibility, reducing refinancing and interest-rate risk. A healthy 9.42% ROE shows the company efficiently uses shareholder capital, supporting reinvestment and resilience across business cycles.

Improving free cash flow generation

Rising free cash flow and an improving FCF-to-net-income ratio indicate stronger cash conversion ability over time. This supports capex, dividend sustainability and debt reduction, enabling strategic investments and cushioning against cyclical downturns in electronics demand.

Diversified end-markets and R&D focus

Serving multiple sectors (consumer, automotive, industrial) and emphasizing innovation diversifies revenue and reduces dependence on a single cycle. Ongoing R&D and collaboration potential with major tech firms support product differentiation and long-term market relevance.

Negative Factors

Compression in operating margins

Declining EBIT/EBITDA margins, alongside a modest 3.37% net margin, suggest rising cost or pricing pressures. Sustained margin erosion could impair reinvestment capacity and shareholder returns, making long-term profitability more vulnerable to competition and input-cost swings.

Weak operating cash conversion

A relatively low operating cash flow to net income ratio signals challenges converting accounting profits into cash. Persistently weak cash conversion can constrain working capital, limit funding for growth initiatives, and increase sensitivity to cyclical collections and inventory swings.

Negative EPS growth trend

A significant negative EPS growth rate indicates earnings per share have contracted materially. If sustained, this erosion undermines investor returns and may reflect margin pressure, product mix shifts, or competitive challenges that could impede long-term earnings recovery.

Hakudo Co., Ltd. Business Overview & Revenue Model

Company Description

Hakudo Co., Ltd. processes and sells metal and plastic materials in Japan, China, Thailand, and Vietnam. It offers aluminum, copper, and stainless steel plates, bars, and tubes; and elongated copper products, as well as special steel, titanium, and engineering plastics. The company was founded in 1932 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Hakudo Co., Ltd. generates revenue primarily through the sale of its electronic components, including semiconductors and PCBs, to various industries. The company's revenue model is built on both direct sales to manufacturers and long-term contracts with key clients, which provide a stable income stream. Additionally, Hakudo may engage in partnerships with major technology firms that require specialized components, allowing for collaborative product development and increased market reach. The company also invests in research and development to innovate and improve its product offerings, which can lead to new revenue opportunities as the demand for advanced electronic solutions grows.

Hakudo Co., Ltd. Financial Statement Overview

Summary

Solid overall fundamentals driven by a very strong balance sheet (low leverage, healthy ROE) and steady revenue growth. Profitability is modest and operating margins have shown some pressure, and cash conversion is weaker than ideal despite improving free cash flow.

Income Statement

Hakudo Co., Ltd. has shown consistent revenue growth with a 3% increase in the latest year, indicating a positive trajectory. The gross profit margin is stable around 16%, and the net profit margin is modest at 3.37%. However, the EBIT and EBITDA margins have slightly decreased over the years, suggesting some pressure on operational efficiency.

Balance Sheet

The company maintains a very low debt-to-equity ratio, indicating strong financial stability and low leverage risk. Return on equity is healthy at 9.42%, reflecting efficient use of equity capital. The equity ratio is robust, highlighting a solid financial foundation.

Cash Flow

Free cash flow has shown significant growth, but the operating cash flow to net income ratio is relatively low, suggesting potential challenges in converting income into cash. The free cash flow to net income ratio is improving, indicating better cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	67.72B	66.41B	57.25B	61.60B	55.44B	39.22B
Gross Profit	10.27B	10.57B	9.27B	10.15B	10.31B	6.67B
EBITDA	3.58B	4.41B	3.94B	4.62B	5.10B	2.82B
Net Income	1.84B	2.24B	1.92B	2.74B	2.96B	1.28B
Balance Sheet
Total Assets	43.21B	44.75B	42.02B	43.15B	41.78B	33.12B
Cash, Cash Equivalents and Short-Term Investments	3.69B	5.47B	5.70B	6.04B	8.67B	5.92B
Total Debt	36.16M	75.04M	137.83M	350.82M	0.00	0.00
Total Liabilities	19.96B	20.99B	19.53B	21.92B	21.95B	15.25B
Stockholders Equity	23.26B	23.76B	22.48B	21.21B	19.83B	17.87B
Cash Flow
Free Cash Flow	0.00	1.10B	979.20M	-374.37M	3.89B	1.58B
Operating Cash Flow	0.00	1.78B	2.53B	321.45M	4.56B	2.13B
Investing Cash Flow	0.00	-893.35M	-1.61B	-1.55B	-677.06M	-553.00M
Financing Cash Flow	0.00	-1.13B	-1.33B	-1.42B	-1.20B	-657.42M

Hakudo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2388.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7637, the sentiment is Positive. The current price of 2388 is below the 20-day moving average (MA) of 2529.20, below the 50-day MA of 2433.62, and above the 200-day MA of 2300.79, indicating a bullish trend. The MACD of 76.65 indicates Negative momentum. The RSI at 68.85 is Neutral, neither overbought nor oversold. The STOCH value of 83.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7637.

Hakudo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7637	79 Outperform	¥30.44B	14.38	―	2.96%	9.16%	-21.26%
5922	76 Outperform	¥23.75B	10.47	―	2.78%	2.63%	-3.96%
3449	73 Outperform	¥46.36B	14.91	―	2.40%	14.37%	93.86%
5757	71 Outperform	¥39.75B	25.98	―	2.25%	12.79%	-15.37%
7414	66 Neutral	¥37.15B	10.66	―	4.92%	-7.06%	-31.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5852	54 Neutral	¥23.85B	10.25	―	4.33%	5.12%	―

Hakudo Co., Ltd. Corporate Events

Hakudo Names Tetsuya Yamada President as Long-Serving Chief Tsunoda Becomes Chairman

Hakudo Co., Ltd. has announced a leadership transition, appointing Senior Managing Director Tetsuya Yamada as President and Representative Director effective April 1, 2026, while long-serving President Koji Tsunoda will move to the role of Chairman of the Board. The company says the change is aimed at building a new management structure that can respond more quickly to market changes, bring in fresh perspectives, and support sustainable growth and enhanced corporate value, with Tsunoda continuing to reinforce oversight and governance.

Yamada, born in 1969, joined Hakudo in 1998 after starting his career at Dai-Ichi Kangyo Bank, and has since held key roles including Director in charge of the Administration Division and head of the Standard Products Sales Division. He also serves as Director of AQR Co., Ltd. and CEO of Hakudo USA Inc., indicating that the new leadership is expected to leverage both domestic operational expertise and international experience to steer the company’s next phase of development.

The most recent analyst rating on (JP:7637) stock is a Hold with a Yen2666.00 price target. To see the full list of analyst forecasts on Hakudo Co., Ltd. stock, see the JP:7637 Stock Forecast page.

Hakudo Lifts Full-Year Earnings Outlook on AI-Driven Semiconductor Demand

Hakudo Co., Ltd. has raised its full-year consolidated forecast for the fiscal year ending March 31, 2026, reflecting improved profitability from new product launches, new processing methods, and enhancements to its Hakudo Net Service. The company now expects net sales of ¥68.0 billion, operating profit of ¥2.69 billion, ordinary profit of ¥3.0 billion, and profit attributable to owners of parent of ¥1.96 billion, marking increases of up to 16.3% versus its previous outlook.

Non-consolidated guidance was also revised upward, with net sales projected at ¥58.6 billion and net profit at ¥1.92 billion, representing gains of around 2% to nearly 18% over prior forecasts. Management cited rising demand from the semiconductor manufacturing equipment industry driven by generative AI-related memory products, successful pass-through of higher costs, favorable inventory valuation effects from higher raw material prices, and a weaker yen as key drivers supporting the improved earnings view.

The most recent analyst rating on (JP:7637) stock is a Hold with a Yen2666.00 price target. To see the full list of analyst forecasts on Hakudo Co., Ltd. stock, see the JP:7637 Stock Forecast page.

Hakudo’s Nine-Month Profit Slips as It Lowers Full-Year Outlook but Maintains Dividend Plan

Hakudo reported consolidated net sales of ¥49.68 billion for the nine months ended December 31, 2025, down 0.9% year on year, with operating profit falling 11.7% to ¥1.95 billion and profit attributable to owners of parent dropping 7.7% to ¥1.44 billion. Despite the earnings decline, total assets remained broadly flat at ¥44.42 billion and equity rose to ¥24.39 billion, lifting the equity-to-asset ratio to 54.9% and underscoring a strengthened balance sheet.

The company kept its dividend forecast unchanged, planning a full-year payout of ¥80 per share for the year ending March 31, 2026, compared with ¥89 in the previous fiscal year. Hakudo also revised its full-year earnings outlook, now projecting modest sales growth to ¥68 billion but expecting lower operating profit of ¥2.69 billion and a 12.4% drop in net profit to ¥1.96 billion, signaling pressure on profitability even as it maintains shareholder returns.

The most recent analyst rating on (JP:7637) stock is a Hold with a Yen2666.00 price target. To see the full list of analyst forecasts on Hakudo Co., Ltd. stock, see the JP:7637 Stock Forecast page.

Hakudo Co., Ltd. Revises Dividend Forecasts for Fiscal Year 2026

Hakudo Co., Ltd. announced a resolution by its Board of Directors to pay an interim dividend and revise its year-end dividend forecasts for the fiscal year ending in 2026. The company aims to maintain a strong financial structure and ensure that dividends reflect business performance, with a policy to pay dividends based on a full-year payout ratio of 45% or an annual dividend of 80 yen per share. Despite the revision, the total annual dividend amount remains unchanged.

The most recent analyst rating on (JP:7637) stock is a Hold with a Yen2457.00 price target. To see the full list of analyst forecasts on Hakudo Co., Ltd. stock, see the JP:7637 Stock Forecast page.

Hakudo Co., Ltd. Reports Decline in Profits Despite Increased Sales

Hakudo Co., Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing a slight increase in net sales by 0.7% to ¥32,699 million. However, the company experienced significant declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 36.0%, 38.8%, and 44.1% respectively. This downturn is attributed to various market challenges, impacting the company’s financial performance and stakeholder expectations.

The most recent analyst rating on (JP:7637) stock is a Hold with a Yen2457.00 price target. To see the full list of analyst forecasts on Hakudo Co., Ltd. stock, see the JP:7637 Stock Forecast page.