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

• Market Cap: ¥6.06B
• Dividend Yield: 4.7%
• Average Volume (3M): 12.25K
• Price to Earnings (P/E): ―
• 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: ¥360.00 ▲(12.85% 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 profit margin

A sustained ~60% gross margin indicates durable cost control or pricing power in its specialty retail niche. That margin cushion supports operating leverage, funds reinvestment or dividend maintenance, and helps the company withstand moderate revenue volatility over months.

Solid balance sheet

Declining leverage and a strong equity ratio reduce solvency risk and preserve strategic optionality. This financial flexibility supports capital spending, cushions cyclical retail shocks, and lowers refinancing risk over the medium term for sustained operations.

Stable revenue trend

Modest positive revenue growth and stable top-line trends signal a consistent customer base and steady demand. When combined with high gross margins, this steady revenue provides a foundation for predictable cash generation if cash conversion issues are addressed.

Negative Factors

Weak cash conversion

Persistent negative free cash flow and poor operating cash conversion limit the company's ability to self-fund investments, sustain dividends, or build reserves. Over several months this can force external financing, constrain strategic moves, and raise liquidity risk despite healthy accounting margins.

Pressure on net margins

Eroding EBIT/EBITDA and pressured net margins point to rising operating costs or weaker pricing power. If persistent, margin compression will reduce free cash flow potential and weaken the payoff from stable revenue, making long-term profitability and capital allocation less robust.

Earnings deterioration

A steep ~42% decline in EPS signals material earnings volatility or impairment of profit drivers. Continued EPS deterioration over months would erode retained earnings, limit internal funding, and may reflect structural issues in cost control or revenue mix that hinder durable earnings recovery.

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

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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	18.32B	18.36B	18.48B	17.88B
Cash, Cash Equivalents and Short-Term Investments	1.46B	2.05B	2.94B	3.78B	3.64B
Total Debt	3.62B	2.36B	2.90B	4.31B	3.68B
Total Liabilities	7.37B	6.42B	7.41B	8.61B	8.67B
Stockholders Equity	12.54B	11.90B	10.95B	9.87B	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 334.25, below the 50-day MA of 331.42, and above the 200-day MA of 316.48, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 49.89 is Neutral, neither overbought nor oversold. The STOCH value of 43.94 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
9997	71 Outperform	¥86.82B	5.42	6.96%	2.98%	1.15%	86.72%
8230	66 Neutral	¥6.06B	-15.11	―	4.70%	3.92%	-25.93%
7442	64 Neutral	¥9.14B	15.62	―	2.33%	3.93%	3458.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3396	60 Neutral	¥5.79B	13.21	―	1.76%	2.24%	―
2769	45 Neutral	¥7.54B	-28.99	―	―	-4.54%	-261.55%
8165	45 Neutral	¥5.77B	2.43	―	―	-4.10%	―