HAGIHARA INDUSTRIES INC. (7856) AI Stock Analysis

• Market Cap: ¥24.40B
• Dividend Yield: 3.89%
• Average Volume (3M): 118.28K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.58
• 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: 105,400
• 30 Day Avg. Volume: 118,280
• 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: ¥1,615.00
• Price Target Upside: -4.21% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥1,615.00 ▼(-4.21% Downside)

Hagihara Industries Inc. demonstrates strong financial stability and attractive valuation, making it a solid investment choice. However, neutral technical indicators and a need for improved profitability slightly temper the overall outlook. The absence of earnings call data and corporate events leaves potential future developments unaccounted for in this analysis.

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. However, profitability has declined, and there is room for improvement in cash flow alignment with net income. The company is in a strong position to capitalize on its growth trajectory with a continued focus on enhancing profitability.

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: 1686.00
• 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:7856, the sentiment is Positive. The current price of 1686 is below the 20-day moving average (MA) of 1687.85, above the 50-day MA of 1661.56, and above the 200-day MA of 1527.28, indicating a neutral trend. The MACD of 3.92 indicates Positive momentum. The RSI at 52.94 is Neutral, neither overbought nor oversold. The STOCH value of 53.59 is Neutral, 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
3611	75 Outperform	¥22.33B	10.19	―	4.14%	17.07%	-18.86%
7856	72 Outperform	¥24.40B	13.13	―	3.89%	1.04%	15.65%
7460	70 Outperform	¥25.71B	9.37	―	4.50%	0.69%	29.02%
3501	68 Neutral	¥16.89B	13.53	―	2.49%	1.50%	241.33%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3205	49 Neutral	¥26.10B	20.34	―	9.85%	-0.47%	-908.83%
3529	49 Neutral	¥17.63B	20.09	―	―	3.72%	-160.46%

HAGIHARA INDUSTRIES INC. Corporate Events

Hagihara Industries Reports Mixed Financial Results with Increased Profit

Hagihara Industries Inc. reported its consolidated financial results for the six months ended April 30, 2025, showing a slight increase in net sales by 0.2% compared to the previous year. Despite a decrease in operating and ordinary profit by over 30%, the company saw a significant rise in profit attributable to owners of the parent by 23.6%, indicating potential improvements in cost management or other operational efficiencies. The equity-to-asset ratio improved to 70.7%, reflecting a stronger financial position. The company also announced a forecasted increase in annual dividends per share, suggesting confidence in future performance.