Hanwa Co., Ltd. (JP:8078)
:8078
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Hanwa Co., Ltd.
(8078)
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Rating:78Outperform
Price Target:
¥8,938.00
▲(24.66% Upside)
Action:ReiteratedDate:02/13/26
The score is driven primarily by solid financial performance (strong revenue/profitability and a stable balance sheet) and attractive valuation (low P/E with a healthy dividend). Technicals remain supportive due to a clear uptrend, but overbought readings (high RSI/Stoch) reduce the overall score due to near-term pullback risk.
Positive Factors
Diversified trading business model
Hanwa’s sogo shosha-style model spans steel, metals, minerals and supply‑chain services, creating diversified revenue streams and recurring service fees. That structural diversity reduces single-market exposure, supports steady transactional margins and fosters long-term customer relationships across industrial cycles.
Negative Factors
Weak cash conversion
Only a tiny fraction of reported net income converts to free cash flow, and operating cash flow covers a small portion of net income. For a trading business with material working‑capital needs, weak cash conversion constrains debt reduction, capital expenditures and dividend sustainability over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified trading business model
Hanwa’s sogo shosha-style model spans steel, metals, minerals and supply‑chain services, creating diversified revenue streams and recurring service fees. That structural diversity reduces single-market exposure, supports steady transactional margins and fosters long-term customer relationships across industrial cycles.
Read all positive factors
Hanwa Co., Ltd. (8078) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥344.98B
Dividend Yield3.38%
Average Volume (3M)84.03K
Price to Earnings (P/E)7.9
Beta (1Y)0.97
Revenue Growth3.44%
EPS Growth6.97%
CountryJP
Employees5,508
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)45.28
Shares Outstanding211,663,200
10 Day Avg. Volume85,930
30 Day Avg. Volume84,033
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)0.52
Price to Sales (P/S)0.08
P/FCF Ratio120.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)231.93
Revenue Forecast (FY)¥2.77T
Hanwa Co., Ltd. Business Overview & Revenue Model
Company Description
Hanwa Co., Ltd. trades in steel, metals and alloys, nonferrous metals, food products, petroleum and chemicals, lumber, machinery, and other products in Japan and internationally. The company's Steel Division sells steel bars, shapes, sheets, pipes...
How the Company Makes Money
Hanwa primarily makes money by acting as an intermediary and solution provider in physical supply chains—buying materials and products from upstream producers and selling them to downstream manufacturers, processors, and end users—earning gross pr...
Hanwa Co., Ltd. Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
75
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.58T | 2.55T | 2.43T | 2.67T | 2.16T | 1.75T |
| Gross Profit | 143.33B | 140.61B | 119.84B | 128.54B | 119.01B | 79.92B |
| EBITDA | 73.14B | 71.58B | 59.16B | 71.67B | 68.88B | 35.18B |
| Net Income | 46.25B | 45.48B | 38.42B | 51.51B | 43.62B | 19.62B |
Balance Sheet | ||||||
| Total Assets | 1.14T | 1.17T | 1.17T | 1.16T | 1.72T | 824.59B |
| Cash, Cash Equivalents and Short-Term Investments | 74.42B | 65.31B | 76.53B | 84.19B | 165.45B | 50.91B |
| Total Debt | 377.32B | 382.33B | 365.45B | 380.98B | 722.94B | 301.65B |
| Total Liabilities | 754.26B | 776.33B | 810.22B | 848.94B | 1.47T | 632.73B |
| Stockholders Equity | 381.43B | 383.06B | 351.21B | 303.13B | 237.12B | 189.22B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.64B | 8.56B | 271.37B | -287.04B | 12.67B |
| Operating Cash Flow | 0.00 | 10.13B | 18.19B | 284.23B | -280.75B | 19.00B |
| Investing Cash Flow | 0.00 | -21.84B | 1.01B | -6.54B | -14.99B | -4.19B |
| Financing Cash Flow | 0.00 | 293.00M | -26.32B | -351.83B | 406.82B | -34.22B |
Hanwa Co., Ltd. Technical Analysis
Positive
7170.00
Price Trends
1619.15
Negative
1510.54
Positive
1350.04
Positive
Market Momentum
-3.20
Negative
52.98
Neutral
88.45
Negative
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 7170 is above the 20-day moving average (MA) of 1572.38, above the 50-day MA of 1619.15, and above the 200-day MA of 1350.04, indicating a neutral trend. The MACD of -3.20 indicates Negative momentum. The RSI at 52.98 is Neutral, neither overbought nor oversold. The STOCH value of 88.45 is Negative, 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥344.98B | 7.92 | 11.34% | 3.38% | 3.44% | 6.97% | |
74 Outperform | ¥10.25T | 14.11 | 13.39% | 2.29% | 9.62% | 25.71% | |
71 Outperform | ¥16.32T | 16.87 | 15.23% | 2.11% | 0.93% | 15.80% | |
70 Outperform | ¥6.86T | 13.91 | 13.49% | 2.10% | 5.32% | 9.73% | |
67 Neutral | ¥17.89T | 17.68 | 11.47% | 2.28% | -1.33% | -7.40% | |
65 Neutral | ¥1.26T | 7.20 | 11.17% | 3.24% | 2.12% | 18.93% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
JP:8078
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Hanwa Co., Ltd. Corporate Events
Hanwa to Consolidate Growing U.S. Steel Subsidiary into Group Accounts
Mar 25, 2026
Hanwa Co., Ltd. has reclassified its U.S.-based unit SAN DIEGO VISTA STEEL SERVICE CORP., which processes and sells steel products in North America, from a non-consolidated to a consolidated subsidiary after determining its quantitative impact on ...
Hanwa Completes ¥5 Billion Share Buyback Tranche on Tokyo Stock Exchange
Feb 25, 2026
Hanwa Co., Ltd., a listed Japanese trading company, continues to use share repurchases as a tool to manage its capital structure and enhance shareholder value, acquiring its own common stock on the Tokyo Stock Exchange under a board-approved progr...
Hanwa Posts Higher Sales but Lower Profits, Keeps Dividend and Full-Year Outlook Intact
Feb 6, 2026
For the nine months ended December 31, 2025, Hanwa Co., Ltd. reported a slight 2.4% increase in consolidated net sales to ¥1,965.5 billion, but operating profit fell 12.5% to ¥41.5 billion and profit attributable to owners of parent decl...
Hanwa Continues Share Buyback, Repurchasing 187,600 Shares in January
Feb 2, 2026
Hanwa Co., Ltd. reported that it repurchased 187,600 shares of its common stock on the Tokyo Stock Exchange between January 1 and January 31, 2026, for a total consideration of approximately 1.45 billion yen, as part of a previously authorized sha...
Hanwa Announces Change in Representative Director as Part of Management Restructuring
Jan 27, 2026
Hanwa Co., Ltd. has announced a change in its top management structure, with Representative Director and Executive Vice President Hiromasa Yamamoto set to retire from his role as Representative Director. Effective April 1, 2026, Yamamoto will cont...
Hanwa Reports Progress on Ongoing Share Buyback Program
Jan 5, 2026
Hanwa Co., Ltd. has disclosed the progress of its share buyback program authorized by its board in November 2025. Between December 1 and December 31, 2025, the company repurchased 137,400 shares of its common stock on the Tokyo Stock Exchange at a...
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.