Hasegawa Co., Ltd. (8230) AI Stock Analysis

• Market Cap: ¥6.13B
• Dividend Yield: 4.7%
• Average Volume (3M): 12.25K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.09
• Revenue Growth: 3.92%
• EPS Growth: -25.93%
• Country: JP
• Employees: 748
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -5.31
• Shares Outstanding: 18,646,376
• 10 Day Avg. Volume: 10,580
• 30 Day Avg. Volume: 12,253
• PEG Ratio: -0.43
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -5.95
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥364.00 ▲(14.11% Upside)
• Action: Reiterated Date: 07/15/25
• Date: Action: Reiterated 07/15/25

Hasegawa Co., Ltd. has a strong valuation due to its low P/E ratio and high dividend yield, which is a significant positive factor. However, the company's financial performance is held back by cash flow challenges and pressured profitability. Technical indicators show a neutral trend, indicating no strong momentum in either direction.

Positive Factors

High Gross Margin

A sustained ~60% gross margin indicates lasting product or cost advantages that protect core profitability. This level of gross margin gives management room to invest in store operations, merchandising and customer service while helping absorb SG&A noise, supporting durable cash generation potential.

Solid Balance Sheet

Decreasing leverage and a strong equity ratio materially reduce refinancing and solvency risk, increasing financial flexibility. This solid balance sheet supports sustainable capex and dividend payments and buffers the business through demand cycles over multiple quarters to years.

Stable Revenue Base

A generally stable top line suggests predictable customer demand and resilience in the specialty retail niche. Predictability in revenue aids planning, supports steady inventory and staffing models, and makes multi-quarter margin recovery or operational improvements more achievable.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow undermines the firm's ability to fund dividends, capital expenditure, or debt repayment from operations. Over several quarters, this reduces strategic optionality and increases reliance on external financing or asset sales, raising medium-term liquidity risk.

Pressure on Net and Operating Margins

Declining EBIT/EBITDA indicates erosion in operational efficiency or rising non-production costs. If sustained, margin compression will limit the firm’s ability to convert high gross margins into bottom-line profits, impairing reinvestment capacity and dividend sustainability across quarters.

Weak EPS Growth

A sharp negative EPS growth rate signals deteriorating profitability per share, which may reflect margin pressure, one-offs, or operational setbacks. Continued EPS decline over several reporting periods can constrain strategic initiatives and weaken investor confidence in long-term earnings power.

Hasegawa Co., Ltd. Business Overview & Revenue Model

Company Description

Hasegawa Co., Ltd. sells Buddhist altars and altar fittings in Japan. The company is also involved in tombstone and indoor graveyard businesses; and the restoration of main halls. It operates a total of 132 stores, which include 26 stores in West Japan area, 96 stores in Kanto area, and 10 stores in Tokai area. Hasegawa Co., Ltd. was founded in 1929 and is headquartered in Fukuoka City, Japan.

How the Company Makes Money

Hasegawa Co., Ltd. generates revenue primarily through the sale of its retail products across multiple categories, including home goods and office supplies. The company's revenue model is driven by direct sales from its physical stores and e-commerce platforms, allowing it to reach a broad customer base. Key revenue streams include seasonal promotions, exclusive product lines, and partnerships with manufacturers for branded merchandise. Additionally, the company may benefit from strategic alliances with suppliers and distributors to optimize its supply chain and reduce costs, further contributing to its profitability.

Hasegawa Co., Ltd. Financial Statement Overview

Summary

Hasegawa Co., Ltd. demonstrates a strong gross profit margin and a solid balance sheet, indicating financial stability. However, profitability is under pressure, and cash flow management is challenging, with negative free cash flow and low conversion of profits into cash.

Income Statement

Hasegawa Co., Ltd. has shown stable revenue figures with slight fluctuations over the years. The gross profit margin has been consistently strong, around 60%, indicating efficient cost management. However, the net profit margin has been under pressure, reflecting challenges in translating revenue into profit. Recent years show a slight decline in EBIT and EBITDA margins, suggesting operational efficiency issues.

Balance Sheet

The company's debt-to-equity ratio is manageable, showing a decrease over time, which indicates a reduction in leverage risk. Return on equity has been positive, though it has shown some volatility. The equity ratio remains strong, suggesting financial stability. Overall, the balance sheet reflects a solid financial position with moderate leverage.

Cash Flow

Hasegawa Co., Ltd. faces challenges in cash flow management, as evidenced by negative free cash flow in recent years. The operating cash flow to net income ratio is low, indicating difficulties in converting profits into cash. The free cash flow to net income ratio is also concerning, suggesting potential liquidity issues. Improvement in cash flow generation is necessary.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	21.23B	21.30B	21.61B	19.79B	17.84B
Gross Profit	13.19B	13.30B	13.74B	12.60B	11.50B
EBITDA	1.60B	1.84B	1.96B	1.40B	762.34M
Net Income	905.00M	1.06B	1.15B	697.42M	215.56M
Balance Sheet
Total Assets	19.92B	18.07B	18.22B	18.36B	17.74B
Cash, Cash Equivalents and Short-Term Investments	1.46B	2.05B	2.94B	3.79B	3.64B
Total Debt	3.62B	2.36B	2.90B	4.38B	3.68B
Total Liabilities	7.37B	6.17B	7.27B	8.47B	8.53B
Stockholders Equity	12.54B	11.90B	10.95B	9.89B	9.22B
Cash Flow
Free Cash Flow	-945.00M	305.00M	491.29M	-872.35M	2.58B
Operating Cash Flow	150.00M	640.00M	1.04B	-62.34M	3.20B
Investing Cash Flow	-1.72B	-716.00M	-313.04M	-365.64M	-482.64M
Financing Cash Flow	972.00M	-811.00M	-1.60B	573.70M	-1.52B

Hasegawa Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 319.00
• 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:8230, the sentiment is Positive. The current price of 319 is below the 20-day moving average (MA) of 334.10, below the 50-day MA of 327.42, and above the 200-day MA of 314.28, indicating a bullish trend. The MACD of 2.51 indicates Positive momentum. The RSI at 65.55 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8230.

Hasegawa Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3172	70 Outperform	¥4.99B	14.82	―	3.47%	-11.32%	1.10%
8230	66 Neutral	¥6.13B	13.27	―	4.70%	3.92%	-25.93%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3396	60 Neutral	¥5.71B	10.64	―	1.76%	2.24%	―
7695	59 Neutral	¥6.12B	-259.24	―	―	22.39%	-83.33%
3058	53 Neutral	¥5.01B	13.53	―	―	-1.88%	679.68%
3059	44 Neutral	¥4.06B	-3.84	―	2.40%	-3.69%	-11429.88%