Hokushin Co., Ltd. (7897) AI Stock Analysis

• Market Cap: ¥3.40B
• Dividend Yield: 1.67%
• Average Volume (3M): 853.01K
• Price to Earnings (P/E): 167.2
• Beta (1Y): 0.67
• Revenue Growth: -6.88%
• EPS Growth: -87.18%
• Country: JP
• Employees: 183
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.72
• Shares Outstanding: 28,373,005
• 10 Day Avg. Volume: 1,388,830
• 30 Day Avg. Volume: 853,006
• PEG Ratio: -2.97
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.62
• 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: 61 Neutral
• Price Target: ¥133.00 ▲(10.83%Upside)

Hokushin Co., Ltd. faces significant valuation challenges with a high P/E ratio, suggesting potential overvaluation. Financial performance shows declining profitability and cash flow pressures, though the balance sheet remains stable. Technical indicators provide some positive momentum, but investors should be cautious due to high valuation metrics.

Hokushin Co., Ltd. Business Overview & Revenue Model

Company Description

Hokushin Co., Ltd. is a Japanese company listed on the Tokyo Stock Exchange, primarily engaged in the manufacturing and sale of building materials. The company specializes in wood-based products, including plywood, laminated wood, and other processed wood materials. Hokushin's operations are focused on providing high-quality, sustainable materials for construction and industrial applications, catering to both domestic and international markets.

How the Company Makes Money

Hokushin Co., Ltd. generates revenue through the sale of its wood-based building materials. The company's key revenue streams include the production and distribution of plywood, laminated wood, and other related products. Hokushin benefits from its vertically integrated operations, which allow it to control the entire manufacturing process from raw material procurement to the final product. The company also leverages strategic partnerships and collaborations to expand its market reach and enhance its product offerings, thereby contributing to its overall earnings. Additionally, Hokushin's focus on sustainability and quality helps it maintain a competitive edge in the building materials industry.

Hokushin Co., Ltd. Financial Statement Overview

Summary

Hokushin Co., Ltd. faces challenges in sustaining revenue and profitability, with declining margins and negative revenue growth. The balance sheet is stable, but cash flow pressures could limit financial flexibility. The company needs to focus on profitability and cash flow management.

Income Statement

The income statement reveals a challenging revenue environment with a negative revenue growth rate over the last year. The company also experienced a significant decline in profitability as indicated by the negative EBIT margin for the most recent period. Gross profit margin remains moderate, but the net profit margin has decreased considerably. This suggests pressure on cost management and pricing strategies.

Balance Sheet

The balance sheet indicates a stable financial position with a reasonable debt-to-equity ratio, suggesting manageable leverage. The equity ratio is healthy, indicating a strong equity base relative to total assets. However, the return on equity has decreased, likely due to declining profitability, which could impact future growth.

Cash Flow

Cash flow analysis shows some strain, with free cash flow turning negative in the most recent year, indicating potential liquidity challenges. The operating cash flow to net income ratio remains positive, suggesting that the company generates cash from operations effectively. However, a decline in free cash flow growth rate highlights potential issues in sustaining capital expenditures.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
11.24B	10.22B	10.98B	12.89B	10.78B	9.11B
	Gross Profit
1.38B	1.35B	1.54B	1.99B	1.75B	1.25B
	EBIT
-24.41M	-68.36M	126.90M	489.47M	436.91M	129.47M
	EBITDA
321.12M	378.94M	549.17M	767.65M	850.02M	595.21M
	Net Income Common Stockholders
17.64M	20.34M	158.74M	332.41M	377.34M	148.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.81B	1.68B	1.71B	1.67B	1.67B	1.81B
	Total Assets
14.45B	13.73B	14.34B	14.38B	13.60B	12.68B
	Total Debt
5.97B	5.02B	5.05B	5.08B	5.10B	5.13B
	Net Debt
4.16B	3.33B	4.04B	3.41B	3.43B	3.33B
	Total Liabilities
8.99B	7.91B	8.40B	8.59B	8.07B	7.43B
	Stockholders Equity
5.46B	5.82B	5.94B	5.79B	5.54B	5.25B
Cash Flow		Free Cash Flow
609.82M	-60.37M	127.14M	143.36M	-59.58M	-406.21M
	Operating Cash Flow
609.82M	268.67M	259.55M	463.70M	176.16M	244.21M
	Investing Cash Flow
0.00	-199.89M	-80.74M	-329.76M	-243.59M	-572.15M
	Financing Cash Flow
0.00	-93.31M	-144.74M	-134.40M	-71.94M	421.79M

Hokushin Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 120.00
• 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:7897, the sentiment is Positive. The current price of 120 is above the 20-day moving average (MA) of 119.25, above the 50-day MA of 114.06, and above the 200-day MA of 105.42, indicating a bullish trend. The MACD of 1.79 indicates Positive momentum. The RSI at 56.87 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7897.

Hokushin Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7808	74 Outperform	¥5.05B	4.57		2.93%	-4.73%	-29.66%
6342	67 Neutral	¥3.59B	6.26		4.65%	-11.17%	-45.92%
7897	61 Neutral	¥3.40B	167.25		1.67%	-6.88%	-87.18%
7815	53 Neutral	¥1.54B	5.26		―	8.38%	―
7426	52 Neutral	¥1.23B	―		2.72%	-7.63%	-843.16%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	4.14%	2.90%	-30.49%
3896	49 Neutral	¥3.91B	109.06		―	6.26%	-31.63%