HIRAGA CO., LTD. (7863) AI Stock Analysis

• Market Cap: ¥2.98B
• Dividend Yield: 4%
• Average Volume (3M): 4.26K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.23
• Revenue Growth: -2.33%
• EPS Growth: -68.46%
• Country: JP
• Employees: 346
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 9.06
• Shares Outstanding: 4,015,585
• 10 Day Avg. Volume: 710
• 30 Day Avg. Volume: 4,256
• PEG Ratio: -0.22
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 117.74
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥1,153.00 ▲(16.23% Upside)

The overall stock score is primarily driven by the company's strong financial performance and attractive valuation. The solid balance sheet and profitability metrics provide stability, while the low P/E ratio and high dividend yield enhance investor appeal. Technical analysis suggests a neutral market sentiment, with no immediate risks or opportunities highlighted.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low debt enhances the company's financial stability and ability to invest in growth opportunities without incurring high financial risk.

Profitability

Improving profit margins indicate effective cost management and operational efficiency, which can lead to sustained profitability and competitive advantage.

Cash Generation

Efficient cash generation supports the company's ability to fund operations, invest in growth, and return capital to shareholders, ensuring long-term financial health.

Negative Factors

Revenue Decline

A decline in revenue could indicate challenges in market demand or competitive pressures, potentially impacting future growth and profitability.

Free Cash Flow Variability

Fluctuating free cash flow can hinder the company's ability to consistently invest in growth initiatives and manage financial obligations, affecting long-term planning.

EPS Decline

A substantial decline in EPS growth suggests potential issues with profitability or cost management, which could impact investor confidence and future earnings potential.

HIRAGA CO., LTD. Business Overview & Revenue Model

Company Description

HIRAGA CO., LTD. (7863) is a Japanese company primarily engaged in the manufacturing and distribution of precision machinery and components, focusing on sectors such as automotive, aerospace, and industrial machinery. The company is recognized for its innovative technology and high-quality products, which include a range of mechanical parts and systems designed to enhance operational efficiency in various industrial applications.

How the Company Makes Money

HIRAGA CO., LTD. generates revenue through the sale of its precision machinery and components to various industries, including automotive and aerospace. Key revenue streams include direct sales of manufactured products, long-term contracts with major clients, and after-sales services such as maintenance and repairs. The company also benefits from strategic partnerships with leading corporations in the industrial sector, which help to expand its market reach and enhance product development. Additionally, HIRAGA may engage in research and development projects funded through government grants or industry collaborations, further contributing to its earnings.

HIRAGA CO., LTD. Financial Statement Overview

Summary

HIRAGA CO., LTD. demonstrates a solid financial position with strong profitability and a healthy balance sheet. While revenue growth has slowed, the company maintains low financial leverage, supporting stability. Cash flow management shows efficiency, but the variability in free cash flow suggests areas for improvement in financial planning.

Income Statement

The company shows a stable gross profit margin and an improving net profit margin over the years, indicating growing profitability. However, there is a slight decline in revenue from 2024 to 2025, which may need monitoring. The EBIT and EBITDA margins are healthy, reflecting effective cost management.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio, suggesting low financial risk. The company has a high equity ratio, indicating a strong capital structure. However, the return on equity has experienced some volatility, which could be a risk factor.

Cash Flow

The operating cash flow to net income ratio remains robust, highlighting efficient cash generation from operations. However, the free cash flow has fluctuated significantly, which could indicate potential challenges in sustaining capital expenditures and financing activities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.79B	9.95B	9.01B	8.51B	6.77B
Gross Profit	1.89B	2.08B	1.92B	2.00B	1.38B
EBITDA	740.58M	806.96M	734.71M	758.36M	245.38M
Net Income	311.89M	565.05M	395.85M	386.13M	50.27M
Balance Sheet
Total Assets	7.20B	7.98B	6.59B	7.10B	7.04B
Cash, Cash Equivalents and Short-Term Investments	2.26B	2.45B	2.32B	2.69B	3.12B
Total Debt	592.44M	682.95M	723.46M	1.44B	1.58B
Total Liabilities	3.06B	3.85B	3.22B	4.05B	4.35B
Stockholders Equity	4.14B	4.14B	3.37B	3.06B	2.69B
Cash Flow
Free Cash Flow	25.91M	216.53M	333.44M	-274.57M	342.37M
Operating Cash Flow	548.50M	600.11M	470.33M	238.41M	760.36M
Investing Cash Flow	-532.85M	-343.05M	-93.23M	-518.27M	-422.69M
Financing Cash Flow	-205.73M	-126.17M	-755.31M	-145.11M	916.31M

HIRAGA CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 992.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7863, the sentiment is Negative. The current price of 992 is below the 20-day moving average (MA) of 1007.35, below the 50-day MA of 1008.68, and below the 200-day MA of 1017.48, indicating a bearish trend. The MACD of -3.79 indicates Positive momentum. The RSI at 42.11 is Neutral, neither overbought nor oversold. The STOCH value of 40.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7863.

HIRAGA CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7863	76 Outperform	¥2.98B	11.85	―	4.00%	-2.33%	-68.46%
7919	68 Neutral	¥3.28B	7.11	―	3.89%	0.62%	-24.08%
7793	66 Neutral	¥4.31B	14.41	―	1.97%	―	―
7805	64 Neutral	¥3.30B	7.41	―	1.95%	-1.00%	105.56%
7939	64 Neutral	¥2.06B	9.64	―	3.87%	9.08%	40.91%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.21B	9.59	―	2.99%	-1.30%	―