HAGIHARA INDUSTRIES INC. (7856) AI Stock Analysis

• Market Cap: ¥23.10B
• Dividend Yield: 4.08%
• Average Volume (3M): 119.47K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.60
• Revenue Growth: 1.04%
• EPS Growth: 15.65%
• Country: JP
• Employees: 1,299
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 24.69
• Shares Outstanding: 14,897,600
• 10 Day Avg. Volume: 52,570
• 30 Day Avg. Volume: 119,470
• PEG Ratio: -0.26
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 18.65
• 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): 20,040.49
• Revenue Forecast (FY): ¥5.56T

• Rating: 76 Outperform
• Price Target: ¥1,905.00 ▲(12.19% Upside)

Hagihara Industries Inc. demonstrates strong financial performance with solid revenue growth and a stable balance sheet. The technical analysis supports a positive trend, and the valuation is attractive with a reasonable P/E ratio and a good dividend yield. However, profitability concerns and cash flow alignment issues slightly temper the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, contributing to long-term business sustainability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth.

Cash Generation Ability

Robust cash flow generation supports ongoing operations and strategic initiatives, ensuring financial resilience and growth potential.

Negative Factors

Profitability Concerns

Declining profitability can impact long-term financial health, necessitating efficiency improvements to sustain competitive advantage.

Cash Flow Alignment Issues

Misalignment between cash flow and net income may signal operational inefficiencies, potentially affecting liquidity and investment capacity.

Return on Equity Decline

A declining return on equity may reduce investor confidence and indicates a need for strategic measures to enhance profitability.

HAGIHARA INDUSTRIES INC. Business Overview & Revenue Model

Company Description

HAGIHARA INDUSTRIES INC. (7856) is a prominent Japanese company specializing in the manufacturing and distribution of electronic components and materials, particularly focused on the semiconductor and electronic device sectors. The company is engaged in the production of various products, including electronic substrates, precision machinery, and special materials that cater to the evolving needs of technology and telecommunications industries. With a commitment to innovation and quality, HAGIHARA serves a diverse clientele, contributing to advancements in electronics and communication technologies.

How the Company Makes Money

HAGIHARA INDUSTRIES INC. generates revenue primarily through the sale of its electronic components and materials to manufacturers in the semiconductor and electronics industries. The company's revenue model is based on direct sales to clients, which include both domestic and international companies. Key revenue streams include the production of electronic substrates, which are critical for semiconductor devices, and precision machinery used in manufacturing processes. Additionally, HAGIHARA may engage in long-term contracts and partnerships with major technology firms, providing a stable income source. The company's focus on research and development helps maintain a competitive edge, allowing it to innovate and meet the demands of an ever-evolving market. Factors such as advancements in technology, the increasing demand for electronic products, and strategic collaborations with other industry leaders contribute significantly to its earnings.

HAGIHARA INDUSTRIES INC. Financial Statement Overview

Summary

Hagihara Industries Inc. shows strong revenue growth and a stable balance sheet with low leverage, which are positive indicators for long-term sustainability. However, profitability has declined, and there is room for improvement in cash flow alignment with net income.

Income Statement

Hagihara Industries Inc. shows a strong gross profit margin and consistent revenue growth over the years, with a 6% increase in revenue from 2023 to 2024. The EBIT margin is stable, but net profit margin decreased as net income fell from the previous year, affecting profitability. Overall, the company demonstrates solid revenue growth, but profitability could be improved.

Balance Sheet

The company maintains a healthy balance sheet with improving equity ratios, showing strong financial stability. The debt-to-equity ratio is relatively low, indicating conservative leverage. Return on equity shows a decrease, suggesting a need for improved profitability. Overall, the balance sheet reflects a stable financial position with low leverage.

Cash Flow

Operating cash flow remains robust, and free cash flow has grown significantly, indicating strong cash generation capabilities. However, the free cash flow to net income ratio suggests that cash flow is not fully aligned with net income, which may indicate inefficiencies. Overall, cash flow is solid, but there are opportunities for optimization in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.76B	33.12B	31.25B	29.95B	27.71B	27.23B
Gross Profit	8.66B	8.86B	8.32B	7.80B	8.10B	7.95B
EBITDA	4.38B	3.98B	6.14B	2.84B	3.78B	4.17B
Net Income	1.79B	1.52B	3.12B	943.03M	1.62B	1.89B
Balance Sheet
Total Assets	42.37B	42.58B	42.43B	38.45B	34.79B	32.80B
Cash, Cash Equivalents and Short-Term Investments	5.57B	5.60B	6.14B	5.31B	7.44B	7.67B
Total Debt	4.94B	5.45B	6.69B	4.49B	2.40B	2.15B
Total Liabilities	12.53B	13.48B	14.53B	12.50B	9.55B	9.28B
Stockholders Equity	29.82B	29.08B	28.10B	25.94B	25.24B	23.52B
Cash Flow
Free Cash Flow	0.00	1.08B	169.51M	-3.66B	149.40M	2.02B
Operating Cash Flow	0.00	4.42B	4.58B	1.05B	1.59B	3.32B
Investing Cash Flow	0.00	-3.15B	-4.65B	-4.17B	-1.61B	-670.64M
Financing Cash Flow	0.00	-1.73B	1.04B	706.53M	-311.02M	-1.23B

HAGIHARA INDUSTRIES INC. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1698.00
• 50DMA: Negative
• 100DMA: Negative
• 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:7856, the sentiment is Positive. The current price of 1698 is above the 20-day moving average (MA) of 1576.20, above the 50-day MA of 1623.37, and above the 200-day MA of 1517.99, indicating a neutral trend. The MACD of -8.01 indicates Negative momentum. The RSI at 50.15 is Neutral, neither overbought nor oversold. The STOCH value of 85.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7856.

HAGIHARA INDUSTRIES INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7460	77 Outperform	¥26.20B	7.42	―	4.08%	3.07%	67.53%
7856	76 Outperform	¥23.10B	12.43	―	4.08%	1.04%	15.65%
3611	74 Outperform	¥22.90B	10.45	―	3.81%	6.29%	22.08%
3501	68 Neutral	¥17.41B	13.94	―	3.39%	1.50%	241.33%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3205	60 Neutral	¥28.73B	―	―	9.35%	-0.88%	-609.34%
3529	49 Neutral	¥19.82B	―	―	―	4.15%	-289.87%

HAGIHARA INDUSTRIES INC. Corporate Events

Hagihara Industries Revises Financial Forecasts Amid Market Challenges

Hagihara Industries Inc. has revised its financial forecasts for the fiscal year ending October 31, 2025, due to weakened demand for its products. The company attributes the downturn to construction delays caused by rising material costs, labor shortages, and extreme weather, as well as reduced capital investment influenced by U.S. tariff policies. The plastic products segment faces challenges from sluggish construction material sales and competition in the overseas mining market, while the engineering products segment is impacted by a global oversupply of rechargeable batteries and increased food and beverage prices. Despite these challenges, the company aims to boost performance by focusing on products with enhanced functionality and exploring new business opportunities.

The most recent analyst rating on (JP:7856) stock is a Buy with a Yen1615.00 price target. To see the full list of analyst forecasts on HAGIHARA INDUSTRIES INC. stock, see the JP:7856 Stock Forecast page.

Hagihara Industries Announces Shareholder Benefits Program Details

Hagihara Industries Inc. has announced the details of its shareholder benefits program, effective for shareholders holding 100 or more shares as of October 31, 2025. The program offers a range of products or donations as benefits, with the value increasing based on the number of shares held and the duration of holding. However, the company has also announced that this program will be discontinued after the fiscal year ending October 2026.

The most recent analyst rating on (JP:7856) stock is a Buy with a Yen1615.00 price target. To see the full list of analyst forecasts on HAGIHARA INDUSTRIES INC. stock, see the JP:7856 Stock Forecast page.

Hagihara Industries Reports Mixed Financial Results for Nine Months Ending July 2025

Hagihara Industries Inc. reported a slight decline in net sales by 1.5% for the nine months ending July 31, 2025, compared to the previous year. Despite this, the company saw a significant increase in profit attributable to owners of the parent by 20.8%. The financial results indicate a challenging period with reduced operating and ordinary profits, yet the company remains optimistic with a forecasted growth in net sales and profits for the fiscal year ending October 31, 2025.

The most recent analyst rating on (JP:7856) stock is a Buy with a Yen1615.00 price target. To see the full list of analyst forecasts on HAGIHARA INDUSTRIES INC. stock, see the JP:7856 Stock Forecast page.