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

• Market Cap: ¥26.09B
• Dividend Yield: 3.45%
• Average Volume (3M): 6.82K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.92
• Revenue Growth: 12.81%
• EPS Growth: 0.30%
• Country: JP
• Employees: 390
• Sector: Industrials
• Sector Strength: 91
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 60.01
• Shares Outstanding: 11,343,300
• 10 Day Avg. Volume: 9,000
• 30 Day Avg. Volume: 6,816
• PEG Ratio: 0.83
• Price to Book (P/B): 1.09
• 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: 68 Neutral
• Price Target: ―

Hakudo Co., Ltd. has a strong financial foundation with notable revenue growth and a debt-free balance sheet, which are key strengths. However, the limited cash generation capacity and mixed technical indicators suggest caution. The valuation is fair, supported by a reasonable P/E ratio and an attractive dividend yield. Overall, the stock is positioned for stability, but attention to cash flow management and market trends is necessary for future growth.

Hakudo Co., Ltd. Business Overview & Revenue Model

Company Description

Hakudo Co., Ltd. is a Japan-based company engaged in the processing and distribution of non-ferrous metal products, primarily focusing on aluminum and copper alloys. The company caters to various sectors, including automotive, electronics, and construction, by providing high-quality metal materials and components that meet diverse industrial needs.

How the Company Makes Money

Hakudo Co., Ltd. generates revenue through the sale of processed non-ferrous metal products, with aluminum and copper alloys being the primary contributors. The company sources raw materials, which are then processed into semi-finished and finished products such as sheets, plates, rods, and tubes. These products are distributed to a wide range of industries, including automotive, electronics, and construction, where they are used in manufacturing and infrastructure projects. Key revenue streams include direct sales to manufacturers and distributors who rely on Hakudo's expertise in metal processing for high-quality materials. The company may also engage in strategic partnerships with other firms to expand its market reach and enhance its product offerings. Additionally, factors such as market demand, metal prices, and the efficiency of production processes significantly impact Hakudo's earnings.

Hakudo Co., Ltd. Financial Statement Overview

Summary

Hakudo Co., Ltd. shows a strong financial position with robust revenue growth and profitability metrics. The income statement is solid, with a 12.62% revenue increase and healthy margins, despite a slight decline in Gross Profit Margin. The balance sheet is exceptional, as the company operates with no debt and a strong equity position. However, the cash flow statement reveals limited cash generation capacity, necessitating improved cash management strategies.

Income Statement

Hakudo Co., Ltd. demonstrated a solid performance in its income statement, with a consistent revenue growth rate of 12.62% in TTM (Trailing-Twelve-Months) from the previous annual report. The company maintained a healthy Gross Profit Margin of 15.75% and a Net Profit Margin of 3.04% in TTM, indicating stable profitability. The EBIT Margin stood at 4.42%, and the EBITDA Margin was 6.19%, showcasing efficient operational management. However, the decline in Gross Profit Margin from 2023 indicates potential cost pressures.

Balance Sheet

The balance sheet of Hakudo Co., Ltd. is robust, with a Debt-to-Equity Ratio of 0, showcasing no debt burden, which is exceptional for leveraging stability. The Return on Equity (ROE) was 8.47% in TTM, reflecting effective equity utilization. The Equity Ratio of 49.29% denotes a strong capital structure. The increase in Stockholders' Equity over time signals financial strength and operational success.

Cash Flow

The cash flow statement reflects a mixed performance. Although no Free Cash Flow was reported in TTM, the company had previously managed positive Free Cash Flow with a notable Operating Cash Flow to Net Income Ratio of 1.32 in the last annual report. The absence of significant capital expenditures indicates conservative cash management, but the lack of Free Cash Flow growth may suggest limited cash generation capabilities in the current period.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	66.41B	57.25B	61.60B	55.44B	39.22B
Gross Profit	10.30B	9.27B	10.15B	10.31B	6.67B
EBITDA	4.41B	3.94B	4.62B	5.10B	2.72B
Net Income	2.24B	1.92B	2.74B	2.96B	1.28B
Balance Sheet
Total Assets	44.75B	42.02B	43.15B	41.78B	33.12B
Cash, Cash Equivalents and Short-Term Investments	5.47B	5.70B	6.04B	8.67B	5.92B
Total Debt	0.00	137.83M	350.82M	0.00	0.00
Total Liabilities	20.99B	19.53B	21.92B	21.95B	15.25B
Stockholders Equity	23.76B	22.48B	21.21B	19.83B	17.87B
Cash Flow
Free Cash Flow	1.10B	979.20M	-374.37M	3.89B	1.58B
Operating Cash Flow	1.78B	2.53B	321.45M	4.56B	2.13B
Investing Cash Flow	-893.35M	-1.61B	-1.55B	-677.06M	-553.00M
Financing Cash Flow	-1.13B	-1.33B	-1.42B	-1.20B	-657.42M

Hakudo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2319.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 2319 is above the 20-day moving average (MA) of 2264.70, above the 50-day MA of 2240.68, and above the 200-day MA of 2274.59, indicating a bullish trend. The MACD of 19.95 indicates Negative momentum. The RSI at 62.94 is Neutral, neither overbought nor oversold. The STOCH value of 66.27 is Neutral, 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
5471	77 Outperform	€215.36B	7.40	6.56%	5.22%	-1.09%	-42.47%
5463	73 Outperform	¥261.08B	10.73		4.19%	-3.56%	3.19%
Sector *	71 Outperform	¥254.21B	13.40	8.49%	3.03%	6.33%	12.89%
5401	70 Outperform	$2.93T	7.98	6.77%	5.61%	-1.95%	-40.26%
7637	68 Neutral	¥26.09B	11.66		3.45%	12.81%	0.30%
5411	66 Neutral	$1.06T	12.27	3.62%	5.64%	-6.09%	-55.53%
5541	48 Neutral	¥34.25B	―		15.42%	-25.73%	84.97%

Hakudo Co., Ltd. Corporate Events

Hakudo Co., Ltd. Reports Strong Nine-Month Financial Performance

Hakudo Co., Ltd. has reported its consolidated financial results for the nine months ending December 31, 2024, indicating a positive growth trajectory. The company achieved a notable increase in net sales and operating profit compared to the previous year, demonstrating a robust performance. The improvement in financial metrics suggests strengthened operational efficiency and enhanced profitability, though the equity-to-asset ratio slightly declined. Despite fluctuations in economic conditions, Hakudo remains committed to delivering shareholder value, as reflected in its consistent dividend strategy.