tiprankstipranks
Trending News
More News >
Hokushin Co., Ltd. (JP:7897)
:7897
Japanese Market
Advertisement

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

Compare
0 Followers

Top Page

JP:7897

Hokushin Co., Ltd.

(7897)

Rating:61Neutral
Price Target:
¥138.00
▲(15.00% Upside)
Hokushin Co., Ltd. exhibits stable financial footing but faces significant challenges with its revenue and profitability, weighing down its financial performance score. Despite positive technical indicators suggesting short-term bullish momentum, the high valuation raises concerns about the stock's long-term attractiveness. Investors should be cautious given the potential overvaluation and liquidity pressures.

Hokushin Co., Ltd. (7897) vs. iShares MSCI Japan ETF (EWJ)

Hokushin Co., Ltd. Business Overview & Revenue Model

Company DescriptionHokushin Co., Ltd. (7897) is a Japanese company primarily engaged in the manufacturing and sale of construction materials. The company specializes in producing a range of building supplies, including plywood and other wood-based products, catering to both domestic and international markets. Hokushin Co., Ltd. operates through several business segments, focusing on providing high-quality, sustainable materials for the construction industry.
How the Company Makes MoneyHokushin Co., Ltd. generates revenue primarily through the sale of its construction materials, with plywood and wood-based products being its main offerings. The company leverages its manufacturing capabilities to produce high-quality building supplies, which are sold to construction companies, wholesalers, and retailers. Additionally, Hokushin Co., Ltd. may engage in partnerships with distributors and other industry players to expand its market reach and enhance sales. The company benefits from its focus on sustainability and quality, which helps in maintaining a competitive edge in the construction materials sector.

Hokushin Co., Ltd. Financial Statement Overview

Summary
Hokushin Co., Ltd. faces challenges in sustaining revenue and profitability, with declining margins and negative revenue growth. However, the balance sheet is stable, suggesting manageable leverage. Cash flow pressures are evident, pointing to potential liquidity challenges.
Income Statement
56
Neutral
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
72
Positive
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
64
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue10.22B10.98B12.89B10.78B9.11B
Gross Profit1.35B1.54B1.99B1.75B1.25B
EBITDA378.94M549.17M767.65M850.02M595.21M
Net Income20.34M158.74M332.41M377.34M148.88M
Balance Sheet
Total Assets13.73B14.34B14.38B13.60B12.68B
Cash, Cash Equivalents and Short-Term Investments1.68B1.71B1.67B1.67B1.81B
Total Debt5.02B5.05B5.08B5.10B5.13B
Total Liabilities7.91B8.40B8.59B8.07B7.43B
Stockholders Equity5.82B5.94B5.79B5.54B5.25B
Cash Flow
Free Cash Flow-60.37M127.14M143.36M-59.58M-406.21M
Operating Cash Flow268.67M259.55M463.70M176.16M244.21M
Investing Cash Flow-199.89M-80.74M-329.76M-243.59M-572.15M
Financing Cash Flow-93.31M-144.74M-134.40M-71.94M421.79M

Hokushin Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price120.00
Price Trends
50DMA
120.28
Positive
100DMA
114.81
Positive
200DMA
108.01
Positive
Market Momentum
MACD
0.85
Negative
RSI
49.61
Neutral
STOCH
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7897, the sentiment is Neutral. The current price of 120 is below the 20-day moving average (MA) of 121.05, below the 50-day MA of 120.28, and above the 200-day MA of 108.01, indicating a neutral trend. The MACD of 0.85 indicates Negative momentum. The RSI at 49.61 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7897.

Hokushin Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (70)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥3.84B6.69
3.78%-11.17%-48.56%
70
Outperform
¥175.77B10.406.15%3.18%3.61%-0.10%
70
Outperform
¥6.10B5.27
2.52%-4.73%-29.66%
65
Neutral
¥1.64B5.60
8.38%
61
Neutral
¥3.99B110.73
6.26%-31.63%
61
Neutral
¥3.46B175.61
1.65%-2.77%-112.57%
55
Neutral
¥1.46B
2.28%-7.63%-843.16%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7897
Hokushin Co., Ltd.
122.00
20.82
20.58%
JP:3896
AWA PAPER & TECHNOLOGICAL COMPANY, Inc.
393.00
-75.00
-16.03%
JP:6342
Taihei Machinery Works, Ltd.
2,760.00
60.31
2.23%
JP:7426
Yamadai Corporation
1,288.00
38.27
3.06%
JP:7808
C.S. LUMBER CO.,INC
3,300.00
419.49
14.56%
JP:7815
Tokyo Board Industries Co., Ltd.
633.00
91.00
16.79%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 29, 2025