Hanwa Co., Ltd. (8078) AI Stock Analysis

• Market Cap: €249.51B
• Dividend Yield: 3.45%
• Average Volume (3M): 95.95K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.94
• Revenue Growth: 5.04%
• EPS Growth: 19.14%
• Country: JP
• Employees: 5,508
• Sector: Industrials
• Sector Strength: 93
• Industry: Conglomerates
• EPS (TTM): 338.91
• Shares Outstanding: 42,332,640
• 10 Day Avg. Volume: 97,230
• 30 Day Avg. Volume: 95,953
• PEG Ratio: 0.34
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €5,976.22
• Price Target Upside: -1.87% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥6,769.00 ▲(11.15%Upside)

Hanwa Co., Ltd. receives a strong score due to its solid financial performance and attractive valuation. The positive technical momentum supports the outlook, although potential short-term volatility due to overbought conditions should be considered. Continued monitoring of cash flow management and leverage is advised.

Hanwa Co., Ltd. Business Overview & Revenue Model

Company Description

Hanwa Co., Ltd. (8078) is a diversified trading company headquartered in Japan. The company operates across several sectors, including steel, metals, food products, petroleum, chemicals, and machinery. Hanwa engages in the import and export of a wide range of industrial and consumer goods, providing value-added services such as processing, logistics, and supply chain management to enhance its offerings.

How the Company Makes Money

Hanwa Co., Ltd. generates revenue through its trading operations, primarily in the steel and metals industries. The company earns money by buying and selling goods, both domestically and internationally, leveraging its extensive supply chain network. Key revenue streams include the trading of steel products, non-ferrous metals, and other industrial materials. Additionally, the company engages in the trading of petroleum, chemicals, food products, and machinery. Hanwa's earnings are supported by its strategic partnerships with suppliers and customers, which enable it to secure competitive pricing and access to a broad market. The company also adds value through processing and logistics services, which enhance its trading activities and contribute to its overall profitability.

Hanwa Co., Ltd. Financial Statement Overview

Summary

Hanwa Co., Ltd. demonstrates strong revenue growth and profitability, with a solid balance sheet showcasing a strong equity position. However, the high debt level requires monitoring and cash flow management needs improvement.

Income Statement

Hanwa Co., Ltd. has demonstrated strong revenue growth with a consistent increase in total revenue over the past years, culminating in a TTM revenue of ¥2,554.51 billion. The gross profit margin is solid at 5.50%, and the net profit margin is healthy at 1.78%. The EBIT margin of 2.41% and EBITDA margin of 3.30% indicate efficient operational performance. The company has shown resilience and stability in its income generation, with consistent profitability metrics.

Balance Sheet

The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.99, indicating balanced leverage. The equity ratio stands at 32.86%, showcasing a strong equity base compared to total assets. The return on equity (ROE) is impressive at 11.88%, highlighting efficient utilization of equity capital. However, the total debt level remains significant, which could pose a risk if not managed carefully.

Cash Flow

Hanwa Co., Ltd.'s operating cash flow is positive at ¥10.13 billion, but there is a decline in free cash flow from the previous year, indicating a need for better cash flow management. The free cash flow to net income ratio is 0.04, suggesting that only a small portion of net income is being converted into free cash flow. The operating cash flow to net income ratio of 0.22 indicates less efficient cash generation from operations compared to net income.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.55T	2.43T	2.67T	2.16T	1.75T
Gross Profit	140.61B	119.84B	128.54B	119.01B	79.92B
EBITDA	84.25B	72.08B	71.67B	68.88B	35.18B
Net Income	45.48B	38.42B	51.51B	43.62B	19.62B
Balance Sheet
Total Assets	1.17T	1.17T	1.16T	1.72T	824.59B
Cash, Cash Equivalents and Short-Term Investments	65.31B	76.53B	84.19B	165.45B	50.91B
Total Debt	377.64B	362.04B	377.97B	719.87B	299.87B
Total Liabilities	776.33B	810.22B	848.94B	1.47T	632.73B
Stockholders Equity	383.06B	351.21B	303.13B	237.12B	189.21B
Cash Flow
Free Cash Flow	1.64B	8.56B	271.37B	-287.04B	12.67B
Operating Cash Flow	10.13B	18.19B	284.23B	-280.75B	19.00B
Investing Cash Flow	-21.84B	1.01B	-6.54B	-14.99B	-4.19B
Financing Cash Flow	293.00M	-26.32B	-351.83B	406.82B	-34.22B

Hanwa Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6090.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8078, the sentiment is Positive. The current price of 6090 is above the 20-day moving average (MA) of 5846.00, above the 50-day MA of 5491.40, and above the 200-day MA of 4986.63, indicating a bullish trend. The MACD of 209.18 indicates Negative momentum. The RSI at 68.46 is Neutral, neither overbought nor oversold. The STOCH value of 70.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8078.

Hanwa Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8020	80 Outperform	¥235.31B	8.57		3.63%	6.59%	18.36%
8081	78 Outperform	¥40.20B	11.48		3.60%	8.08%	14.92%
8088	78 Outperform	¥366.71B	8.95		2.07%	4.14%	-14.61%
8078	76 Outperform	€249.51B	5.45	12.33%	3.45%	5.04%	19.14%
8057	76 Outperform	¥99.52B	11.51		2.17%	15.78%	20.79%
8070	76 Outperform	¥21.39B	9.63		4.45%	8.75%	―
Sector *	65 Neutral	$11.14B	16.13	4.60%	2.08%	3.17%	-25.97%

Hanwa Co., Ltd. Corporate Events

Hanwa Completes Treasury Stock Disposal for Executive Remuneration

Hanwa Co., Ltd. has completed the payment procedure for the disposal of treasury shares as restricted stock remuneration for its directors and executive officers. This move, resolved in a board meeting on June 26, 2025, involved the disposal of 26,487 common shares at a price of 5,320 yen per share, totaling 140,910,840 yen, and is part of Hanwa’s strategic approach to align executive incentives with company performance.

The most recent analyst rating on (JP:8078) stock is a Buy with a Yen6750.00 price target. To see the full list of analyst forecasts on Hanwa Co., Ltd. stock, see the JP:8078 Stock Forecast page.

Hanwa Co., Ltd. Announces Share Buyback Progress

Hanwa Co., Ltd. announced the acquisition of its own shares, acquiring 107,800 shares worth 562,918,000 yen from June 2 to June 30, 2025, as part of a broader plan approved by the Board of Directors on May 9, 2025. This move is part of a strategic initiative to purchase up to 1,250,000 shares, representing 3.10% of the total issued shares, with a budget of up to 5.0 billion yen, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:8078) stock is a Buy with a Yen6750.00 price target. To see the full list of analyst forecasts on Hanwa Co., Ltd. stock, see the JP:8078 Stock Forecast page.

Hanwa Co., Ltd. Announces Disposal of Treasury Stock for Executive Remuneration

Hanwa Co., Ltd. has announced the disposal of 26,487 shares of its treasury stock as restricted stock remuneration for its Executive Directors and Officers. This move is part of a plan to align the interests of its directors with those of shareholders and incentivize sustainable growth in corporate value. The plan allows for monetary remuneration claims to be converted into stock, with a total disposal price of 140,910,840 yen. This strategic decision reflects Hanwa’s commitment to enhancing governance and aligning executive incentives with company performance.

The most recent analyst rating on (JP:8078) stock is a Buy with a Yen6750.00 price target. To see the full list of analyst forecasts on Hanwa Co., Ltd. stock, see the JP:8078 Stock Forecast page.

Hanwa Co., Ltd. Corrects Financial Results Disclosure

Hanwa Co., Ltd. has announced corrections to its previously released ‘Outline of Financial Results for the Fiscal Year ended March 31, 2025’ due to tabulation errors. The corrections affect sections on quantitative targets, shareholder returns, investment updates, and overseas sales subsidiaries. The revised document is available on the company’s website.

The most recent analyst rating on (JP:8078) stock is a Buy with a Yen6750.00 price target. To see the full list of analyst forecasts on Hanwa Co., Ltd. stock, see the JP:8078 Stock Forecast page.

Hanwa Co., Ltd. Proposes Amendments to Articles of Incorporation

Hanwa Co., Ltd. has announced a proposal for partial amendments to its Articles of Incorporation, which will be presented at the upcoming 78th Ordinary General Shareholders Meeting. The proposed changes are part of Hanwa’s transition to a company with an audit and supervisory committee, which involves establishing new provisions for directors who are audit and supervisory committee members and removing provisions related to auditors and the board of auditors. These amendments are intended to align the company’s governance structure with its strategic direction.

Hanwa Co., Ltd. Announces Share Buyback to Enhance Shareholder Returns

Hanwa Co., Ltd. has announced a decision by its Board of Directors to acquire up to 1,250,000 of its own shares, representing 3.10% of the total issued shares, as part of a strategy to enhance shareholder returns and improve capital efficiency. The acquisition, valued at up to 5.0 billion yen, will be conducted through purchases on the Tokyo Stock Exchange between May 12, 2025, and March 31, 2026, reflecting the company’s commitment to optimizing its capital structure.

Hanwa Co., Ltd. Increases Year-End Dividend to 120 Yen Per Share

Hanwa Co., Ltd. announced an increase in its year-end dividend to 120 yen per share, reflecting a 15 yen rise from previous forecasts. This decision aligns with Hanwa’s policy of providing stable and progressive dividends, supported by a strong financial performance and strategic management plans. The increase is part of Hanwa’s broader strategy to enhance shareholder returns and strengthen its management foundation.