Hokuriku Gas Co., Ltd. (9537) AI Stock Analysis

• Market Cap: ¥17.28B
• Dividend Yield: 2.23%
• Average Volume (3M): 1.74K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.18
• Revenue Growth: 6.66%
• EPS Growth: N/A
• Country: JP
• Employees: 640
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): -35.74
• Shares Outstanding: 4,800,000
• 10 Day Avg. Volume: 1,350
• 30 Day Avg. Volume: 1,743
• PEG Ratio: -0.04
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 4.40
• 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: 69 Neutral
• Price Target: ¥3,997.00 ▲(10.87% Upside)

The overall stock score is primarily driven by the company's strong financial performance and attractive valuation. However, technical indicators suggest a bearish trend, which tempers the overall score. The absence of recent earnings call insights or notable corporate events means these factors did not influence the score.

Positive Factors

Financial Stability

A low Debt-to-Equity Ratio indicates that the company is not heavily reliant on debt financing, which enhances its financial stability and reduces risk.

Cash Flow Generation

Improved Free Cash Flow suggests efficient cash generation, providing the company with the flexibility to invest in growth opportunities and withstand economic fluctuations.

Revenue Growth

Consistent revenue growth indicates a strong market position and the ability to capture demand, which is crucial for long-term sustainability.

Negative Factors

Operational Efficiency

Weak EBIT margins suggest potential inefficiencies in operations, which could limit profitability and competitiveness if not addressed.

Cash Flow Variability

Variability in cash flow can signal instability in financial performance, potentially impacting the company's ability to fund operations consistently.

Technical Indicators

While technical indicators suggest a bearish trend, this could reflect broader market sentiment rather than fundamental weaknesses, potentially affecting investor perception.

Hokuriku Gas Co., Ltd. Business Overview & Revenue Model

Company Description

Hokuriku Gas Co.,Ltd. operates gas business in Japan. The company produces, sells, and supplies gas to customers in Niigata, Nagaoka, Sanjo, Kashiwazaki, and Kamo cities, as well as in Tagami town and Kariwa village. It also undertakes gas construction contracts; and sells gas appliances. The company was incorporated in 1913 and is headquartered in Niigata, Japan.

How the Company Makes Money

Hokuriku Gas generates revenue primarily through the sale and distribution of natural gas to its customer base, which includes residential, commercial, and industrial sectors. The company’s revenue model is based on a tariff system, where customers are charged for the volume of gas consumed. Additionally, Hokuriku Gas earns income from service fees related to the installation and maintenance of gas appliances, as well as energy consulting services that assist customers in optimizing their energy consumption. Significant partnerships with local businesses and government entities also contribute to its earnings, as these collaborations often lead to extended service contracts and community projects that enhance the company's market presence.

Hokuriku Gas Co., Ltd. Financial Statement Overview

Summary

Hokuriku Gas Co., Ltd. demonstrates a robust financial position with recovering profitability and stable balance sheet metrics. While operational efficiency needs attention, the company maintains a healthy cash flow and low leverage, supporting its resilience in the regulated gas industry.

Income Statement

The company has shown a positive revenue growth trajectory with a recovery in profitability. The Gross Profit Margin has remained relatively strong, and there is a notable improvement in Net Profit Margin from the previous year's loss. However, the EBIT margin remains weak, indicating potential operational challenges.

Balance Sheet

The balance sheet is solid with a low Debt-to-Equity Ratio, highlighting financial stability. The Equity Ratio is strong, indicating that a significant portion of the company's assets is financed by equity, reducing financial risk. Return on Equity has improved, reflecting better profitability.

Cash Flow

Cash flow indicators show positive trends with significant improvements in Free Cash Flow. The Operating Cash Flow to Net Income Ratio suggests efficient cash generation relative to profitability. However, fluctuations in Free Cash Flow to Net Income Ratio indicate variability in cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	63.39B	61.77B	61.41B	69.63B	52.36B	48.33B
Gross Profit	23.20B	22.07B	19.38B	20.66B	21.89B	22.16B
EBITDA	8.66B	8.07B	5.11B	6.86B	7.79B	8.87B
Net Income	2.40B	1.95B	-1.76B	420.15M	953.81M	1.61B
Balance Sheet
Total Assets	64.56B	65.19B	63.03B	63.65B	63.63B	61.90B
Cash, Cash Equivalents and Short-Term Investments	6.78B	8.75B	7.19B	6.97B	6.75B	6.33B
Total Debt	103.92M	109.67M	1.15B	188.00M	661.00M	1.35B
Total Liabilities	11.48B	13.04B	13.32B	12.51B	12.91B	11.62B
Stockholders Equity	49.75B	48.83B	46.44B	47.90B	47.51B	47.11B
Cash Flow
Free Cash Flow	0.00	3.64B	-252.65M	624.80M	2.82B	3.25B
Operating Cash Flow	0.00	7.76B	4.75B	5.54B	7.96B	7.83B
Investing Cash Flow	0.00	-4.94B	-5.06B	-4.09B	-4.97B	-8.67B
Financing Cash Flow	0.00	-1.40B	299.84M	-1.05B	-1.09B	-127.37M

Hokuriku Gas Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3605.00
• 50DMA: Negative
• 100DMA: Negative
• 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:9537, the sentiment is Positive. The current price of 3605 is below the 20-day moving average (MA) of 3626.75, below the 50-day MA of 3664.10, and above the 200-day MA of 3587.65, indicating a neutral trend. The MACD of -3.58 indicates Negative momentum. The RSI at 54.13 is Neutral, neither overbought nor oversold. The STOCH value of 64.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9537.

Hokuriku Gas Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9534	81 Outperform	¥65.09B	5.48	―	2.93%	2.77%	10.64%
1663	78 Outperform	¥84.74B	11.50	―	1.30%	-3.37%	19.40%
9543	70 Outperform	€88.48B	9.02	8.29%	4.06%	1.08%	37.11%
9537	69 Neutral	¥17.28B	5.74	―	2.23%	6.66%	―
9536	68 Neutral	€69.16B	7.71	9.07%	3.69%	9.39%	77.24%
9539	68 Neutral	¥38.10B	11.69	―	1.82%	0.93%	1212.45%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%