Hakuyosha Company,Ltd. (9731) AI Stock Analysis

• Market Cap: ¥14.05B
• Dividend Yield: 1.7%
• Average Volume (3M): 5.68K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.60
• Revenue Growth: 0.71%
• EPS Growth: -14.82%
• Country: JP
• Employees: 1,742
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 210.44
• Shares Outstanding: 3,900,000
• 10 Day Avg. Volume: 5,680
• 30 Day Avg. Volume: 5,683
• PEG Ratio: -1.50
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 6.00
• 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: 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: 74 Outperform
• Price Target: ¥3,892.00 ▲(22.01% Upside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

The score is driven primarily by improved and stable financial performance (profitable post-2021 with consistent positive free cash flow and reduced leverage) and very attractive valuation (low P/E with a dividend). These positives are tempered by technical indicators showing an overbought setup despite the broader uptrend.

Positive Factors

Sustained profitability & recovery

The company moved from losses in 2020–2021 to consistent profitability from 2022 onward, producing positive free cash flow. This durable earnings and cash generation profile reduces insolvency risk, supports reinvestment and dividend capacity, and underpins resilience over the next 2–6 months.

Materially improved leverage and strong ROE

A meaningful reduction in leverage combined with high ROE indicates stronger capital structure and efficient use of equity. Lower relative leverage enhances financial flexibility for capex, working-capital needs or distributions, and reduces interest-sensitivity during economic headwinds, a lasting structural improvement.

Consistent operating and free cash flow

Steady OCF and positive FCF across recent years provide durable internal funding for maintenance capex, working-capital cycles, and debt servicing. Reliable cash generation supports strategic options and reduces dependence on external financing over the medium term.

Negative Factors

Low revenue growth

Sub-par top-line growth indicates a mature business with limited organic expansion. Over the medium term this constrains earnings upside, makes margin improvement critical for EPS growth, and increases reliance on operational efficiencies or M&A to materially raise returns.

Margins stagnant

Margins show limited expansion despite revenue growth, signaling weak operating leverage or pricing power. Without structural margin improvement, sustained earnings growth will be difficult, leaving profits sensitive to cost inflation or competitive pricing pressure over the coming months.

Meaningful absolute debt and cash volatility risk

Despite improved ratios, sizable absolute debt raises refinancing and interest-cost risk if conditions tighten. Past negative cash-flow periods show vulnerability to cyclical swings. Together these factors can constrain strategic flexibility and increase downside risk in weaker months.

Hakuyosha Company,Ltd. Business Overview & Revenue Model

Company Description

Hakuyosha Company, Ltd. engages in cleaning, rental, and other businesses in Japan. It provides cleaning services, including clothes cleaning, cleaning related, pick-up and delivery, easy courier, and house cleaning and remodeling services. The company also offers uniform and linen supply services. In addition, it provides office shop cleaning, leather sofa furniture, and blind cleaning services; stone cleaning/stone polishing services; stage curtain, tapestry, and theater chair cleaning services; office/shop interior construction services; and comprehensive building management services. Further, the company offers dust-free clothing/sterile clothing services. Hakuyosha Company, Ltd. was founded in 1897 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Hakuyosha generates revenue primarily through its cleaning and facility management services. The company's business model is based on contracts with a variety of clients, which can be structured as one-time jobs or ongoing service agreements. Key revenue streams include regular cleaning services, specialized cleaning for sensitive environments, and comprehensive facility management solutions. Additionally, the company benefits from partnerships with local businesses and government entities that require consistent cleaning services. Seasonal demands and the ability to scale services up or down based on client needs also contribute positively to its earnings.

Hakuyosha Company,Ltd. Financial Statement Overview

Summary

Strong recovery and sustained profitability since 2022 with stable-to-modest revenue growth and steady positive free cash flow. Balance sheet leverage has improved materially, but debt remains meaningful relative to equity, and margins show limited expansion.

Income Statement

Operations have clearly recovered from the 2020–2021 loss period, with sustained profitability in 2022–2025. Revenue has been broadly stable to modestly growing (2024: ~0.7% growth; 2025: ~1.6% growth), while profitability is healthy for the business, with 2024 net profit margin around 5.1% and EBIT margin around 5.3%. The main weakness is that margins are not expanding meaningfully (gross profit roughly flat vs. 2024 despite higher revenue), suggesting limited operating leverage and a more mature growth profile.

Balance Sheet

Leverage has improved materially versus prior years: debt-to-equity fell from ~3.7x (2021) to ~1.1x (2024), helped by rising equity and lower debt levels versus the peak. Returns on equity were strong in 2023–2024 (~21–23%), indicating good profitability on the capital base. However, absolute debt remains meaningful (2025 total debt ~11.9B vs. equity ~12.8B), so the balance sheet is improved but still moderately levered, leaving some sensitivity to downturns.

Cash Flow

Cash generation is solid and consistent in the last several years, with operating cash flow around 2.9B in both 2024 and 2025, and free cash flow remaining positive (2024: ~2.16B; 2025: ~2.02B). Free cash flow has generally covered a substantial portion of earnings (2024 free cash flow to net income ~0.74), supporting financial flexibility. The key risk is historical volatility (negative operating and free cash flow in 2020–2021), and cash conversion is not exceptionally high, implying working-capital or reinvestment needs can pressure free cash flow in weaker periods.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	43.90B	44.63B	43.58B	43.27B	39.18B	35.13B
Gross Profit	6.66B	6.65B	6.66B	6.63B	5.07B	2.17B
EBITDA	3.94B	3.63B	3.50B	3.48B	3.89B	866.00M
Net Income	2.04B	2.13B	2.21B	1.95B	1.69B	-1.25B
Balance Sheet
Total Assets	33.03B	35.30B	32.75B	33.15B	31.37B	31.41B
Cash, Cash Equivalents and Short-Term Investments	1.46B	1.54B	1.31B	1.43B	1.11B	1.04B
Total Debt	9.40B	11.95B	11.65B	13.66B	13.48B	15.48B
Total Liabilities	21.79B	22.41B	22.21B	24.78B	25.23B	27.04B
Stockholders Equity	11.12B	12.76B	10.45B	8.32B	6.07B	4.22B
Cash Flow
Free Cash Flow	0.00	2.02B	2.16B	937.00M	870.00M	-517.00M
Operating Cash Flow	0.00	2.95B	2.92B	1.57B	1.31B	-29.00M
Investing Cash Flow	0.00	-1.01B	-89.00M	-597.00M	815.00M	1.76B
Financing Cash Flow	0.00	-1.72B	-2.88B	-657.00M	-2.12B	-1.77B

Hakuyosha Company,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3190.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9731, the sentiment is Positive. The current price of 3190 is below the 20-day moving average (MA) of 3355.25, below the 50-day MA of 3242.94, and below the 200-day MA of 3261.33, indicating a bullish trend. The MACD of 135.17 indicates Negative momentum. The RSI at 81.93 is Negative, neither overbought nor oversold. The STOCH value of 97.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9731.

Hakuyosha Company,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9251	77 Outperform	¥19.44B	20.28	―	5.16%	6.58%	―
9731	74 Outperform	¥14.05B	6.58	―	1.70%	0.71%	-14.82%
7523	73 Outperform	¥14.86B	10.35	―	2.67%	1.90%	7.25%
7358	68 Neutral	¥14.12B	12.43	―	2.82%	7.95%	13.67%
6571	62 Neutral	¥18.02B	16.16	―	2.53%	4.71%	-0.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9262	61 Neutral	¥9.03B	12.60	―	2.04%	10.87%	14.80%