HAGIHARA INDUSTRIES INC. (7856) AI Stock Analysis

• Market Cap: ¥24.80B
• Dividend Yield: 3.89%
• Average Volume (3M): 80.44K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.58
• Revenue Growth: -3.57%
• EPS Growth: 16.90%
• Country: JP
• Employees: 1,299
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 16.81
• Shares Outstanding: 14,897,600
• 10 Day Avg. Volume: 139,860
• 30 Day Avg. Volume: 80,440
• PEG Ratio: 0.78
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 11.03
• 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: 72 Outperform
• Price Target: ¥1,883.00 ▲(10.90% Upside)

HAGIHARA INDUSTRIES INC. is financially stable with attractive valuation metrics. However, challenges in profitability and potential overbought technical indicators temper the overall outlook. The stock's valuation and financial stability are its strongest points, while technical analysis suggests caution due to possible overbought conditions.

Positive Factors

Financial Stability

Low leverage enhances financial stability, providing flexibility to invest in growth opportunities and weather economic downturns.

Operational Efficiency

Improved operational efficiency can lead to better profitability and competitive positioning, enhancing long-term business prospects.

Product Innovation

Commitment to R&D fosters innovation, allowing the company to adapt to market changes and sustain growth in the tech sector.

Negative Factors

Declining Profit Margins

Decreasing profit margins indicate challenges in maintaining profitability, which could impact future earnings and investment capacity.

Negative Revenue Growth

Negative revenue growth suggests potential market share loss or demand issues, which could hinder long-term business expansion.

Cash Flow Management Challenges

Volatile cash flow growth can affect the company's ability to fund operations and investments, posing risks to financial health.

HAGIHARA INDUSTRIES INC. Business Overview & Revenue Model

Company Description

Hagihara Industries Inc. manufactures and sells flat yarns and relevant machinery in Japan. Its Plastics Business division offers PE tarpaulin, blue sheet, insulation fabrics, transparent fabrics, flame retardant fabrics, mesh products, soundproof clothing, water tank lining, heavy duty shelter fabric, radon and methane prevent fabric, ground barrier clothing, sandbags, adhesive tapes, meltac clothing, and monofilaments and yarns. The company's Engineering Products division offers duplex, sectional drive, narrow width, paper, and other slitter rewinders, as well as slitter rewinders with laminating units; inspection rewinders; yarn winders, such as automatic yarn changeover, take-up, traverse, and roving winders; and plastic recycling machines and water ring type hot cut pelletizers. Hagihara Industries Inc. was founded in 1962 and is headquartered in Kurashiki, Japan.

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 stable gross profit margins and low leverage, indicating financial stability. However, declining net profit margins and negative revenue growth are concerns for future profitability. Cash flow management needs improvement despite operational efficiency gains.

Income Statement

HAGIHARA INDUSTRIES INC. shows a stable gross profit margin around 26%, indicating consistent cost management. However, the net profit margin has declined from 9.98% in 2023 to 5.62% in 2025, reflecting reduced profitability. Revenue growth has been negative in the latest year at -2.5%, a concern for future earnings potential. Despite this, EBIT and EBITDA margins have improved slightly, suggesting operational efficiency gains.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.15, indicating conservative leverage and financial stability. The equity ratio is strong, with stockholders' equity comprising a significant portion of total assets. However, the return on equity has decreased over the years, from 11.18% in 2023 to 5.22% in 2024, suggesting declining efficiency in generating returns from equity.

Cash Flow

Operating cash flow has been stable, but the free cash flow to net income ratio is moderate at 0.45, indicating room for improvement in cash generation relative to earnings. The free cash flow growth rate has been volatile, with a significant increase in 2024, but a decline in 2025, highlighting potential cash flow management challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	32.76B	31.94B	33.12B	31.25B	29.95B	27.71B
Gross Profit	8.66B	8.38B	8.86B	8.32B	7.80B	8.10B
EBITDA	4.38B	4.80B	3.98B	6.14B	2.84B	3.78B
Net Income	1.79B	1.79B	1.52B	3.12B	943.03M	1.62B
Balance Sheet
Total Assets	42.37B	42.73B	42.58B	42.43B	38.45B	34.79B
Cash, Cash Equivalents and Short-Term Investments	5.57B	5.86B	5.60B	6.14B	5.31B	7.44B
Total Debt	4.94B	4.52B	5.45B	6.69B	4.49B	2.40B
Total Liabilities	12.53B	11.77B	13.48B	14.53B	12.50B	9.55B
Stockholders Equity	29.82B	30.94B	29.08B	28.10B	25.94B	25.24B
Cash Flow
Free Cash Flow	0.00	2.04B	1.08B	169.51M	-3.66B	149.40M
Operating Cash Flow	0.00	4.49B	4.42B	4.58B	1.05B	1.59B
Investing Cash Flow	0.00	-2.77B	-3.15B	-4.65B	-4.17B	-1.61B
Financing Cash Flow	0.00	-1.68B	-1.73B	1.04B	706.53M	-311.02M

HAGIHARA INDUSTRIES INC. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1698.00
• 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 1698 is below the 20-day moving average (MA) of 1706.15, above the 50-day MA of 1676.04, and above the 200-day MA of 1574.94, indicating a bullish trend. The MACD of 6.93 indicates Positive momentum. The RSI at 60.16 is Neutral, neither overbought nor oversold. The STOCH value of 79.40 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
7460	77 Outperform	¥28.44B	7.87	―	4.12%	3.07%	67.53%
3611	74 Outperform	¥26.25B	9.28	―	3.75%	6.29%	22.08%
7856	72 Outperform	¥24.80B	13.25	―	3.89%	-3.57%	16.90%
3501	68 Neutral	¥18.43B	24.80	―	3.46%	1.50%	241.33%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3205	60 Neutral	¥34.72B	-14.88	―	8.83%	-0.88%	-609.34%
3529	57 Neutral	¥17.90B	-9.52	―	―	4.15%	-289.87%

HAGIHARA INDUSTRIES INC. Corporate Events

Hagihara Industries Unveils Three-Year Strategic Plan ‘LINK THE LEAP’

Hagihara Industries Inc. has announced a new medium-term management plan spanning three years from 2026 to 2028, under the tagline ‘LINK THE LEAP.’ The plan focuses on strengthening business partnerships, enhancing environmental initiatives, and fostering employee growth to achieve mutual development. The company has set quantitative targets for net sales and operating profit, aiming for a total performance target of 40 billion yen in net sales and 3 billion yen in operating profit by 2028. This strategic plan is expected to position Hagihara Industries for future growth and strengthen its ties with stakeholders.

The most recent analyst rating on (JP:7856) stock is a Buy with a Yen1905.00 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 FY 2025

Hagihara Industries Inc. reported a decline in net sales and operating profit for the fiscal year ending October 31, 2025, with net sales down by 3.6% and operating profit falling by 30%. Despite these declines, the company saw a significant increase in comprehensive income, which rose by 79.4% year-on-year. The company plans to increase its dividend payout for the next fiscal year, reflecting confidence in future performance.

The most recent analyst rating on (JP:7856) stock is a Buy with a Yen1905.00 price target. To see the full list of analyst forecasts on HAGIHARA INDUSTRIES INC. stock, see the JP:7856 Stock Forecast page.