Hakuyosha Company,Ltd. (9731) AI Stock Analysis

• Market Cap: ¥12.08B
• Dividend Yield: 1.75%
• Average Volume (3M): 5.68K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.47
• 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): 151.38
• Shares Outstanding: 3,900,000
• 10 Day Avg. Volume: 5,680
• 30 Day Avg. Volume: 5,683
• PEG Ratio: 0.28
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 3.85
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥3,396.00 ▲(6.79% Upside)

Hakuyosha Company, Ltd. demonstrates strong financial performance with improved profitability and cash flow management, contributing significantly to its score. The valuation is attractive due to a low P/E ratio and reasonable dividend yield. However, technical indicators suggest bearish momentum, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Revenue Growth

Steady revenue growth indicates strong market demand and effective business strategies, supporting long-term business sustainability.

Improved Profitability

Enhanced profitability reflects operational efficiency and cost management, crucial for maintaining competitive advantage and shareholder value.

Cash Flow Management

Strong cash flow management enhances financial flexibility and supports investment in growth opportunities, ensuring long-term stability.

Negative Factors

Moderate Equity Ratio

A moderate equity ratio indicates potential vulnerability to financial instability, necessitating careful debt management to avoid risk.

Earnings Decline

Declining earnings per share suggest challenges in maintaining profitability, which could impact investor confidence and future growth.

Leverage Concerns

While leverage has improved, continued focus on reducing debt is essential to enhance financial health and reduce interest burden.

Hakuyosha Company,Ltd. Business Overview & Revenue Model

Company Description

Hakuyosha Company, Ltd. (9731) is a prominent player in the Japanese cleaning and facilities management sector. Established in 1965, the company specializes in a range of services including general cleaning, specialized cleaning, and facility management for various commercial and residential properties. Hakuyosha leverages advanced cleaning technologies and a skilled workforce to deliver high-quality services, catering to diverse clients including offices, hospitals, and educational institutions.

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

Hakuyosha Company, Ltd. has shown commendable recovery and growth in recent years, with strong improvements in revenue and profitability. The reduction in leverage and improved cash flow management are positive signs of financial health. However, maintaining these improvements and further strengthening its capital structure will be essential for long-term sustainability.

Income Statement

Hakuyosha Company, Ltd. has demonstrated consistent revenue growth over recent years with a notable increase from JPY 35,131 million in 2021 to JPY 43,580 million in 2024. Gross Profit Margin improved significantly from a low of 2.5% in 2020 to 15.3% in 2024, indicating enhanced operational efficiency. Net Profit Margin also improved from negative values in 2020 and 2021 to 5.1% in 2024. The company has successfully turned around from previous losses, but sustaining these margins will be crucial for future profitability.

Balance Sheet

The Debt-to-Equity Ratio has decreased from 2.68 in 2020 to 1.11 in 2024, reflecting reduced leverage and an improved capital structure. Return on Equity has improved from negative to 21.2% in 2024, indicating strong shareholder returns. However, the Equity Ratio remains moderate at 31.9%, suggesting the company still relies significantly on debt.

Cash Flow

Operating Cash Flow and Free Cash Flow have shown strong improvement, with the Operating Cash Flow to Net Income Ratio rising to 1.32 in 2024. The Free Cash Flow to Net Income Ratio is positive, reflecting a healthy cash generation relative to earnings. These improvements highlight enhanced cash flow management, although maintaining this trend will be key to future financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.90B	43.58B	43.27B	39.18B	35.13B	39.15B
Gross Profit	6.66B	6.66B	6.63B	5.07B	2.17B	890.00M
EBITDA	3.94B	3.50B	3.48B	3.89B	866.00M	-1.29B
Net Income	2.04B	2.21B	1.95B	1.69B	-1.25B	-3.16B
Balance Sheet
Total Assets	33.03B	32.75B	33.15B	31.37B	31.41B	34.86B
Cash, Cash Equivalents and Short-Term Investments	1.46B	1.31B	1.43B	1.11B	1.04B	1.07B
Total Debt	9.40B	11.65B	13.66B	13.48B	15.48B	17.17B
Total Liabilities	21.79B	22.21B	24.78B	25.23B	27.04B	28.80B
Stockholders Equity	11.12B	10.45B	8.32B	6.07B	4.22B	5.74B
Cash Flow
Free Cash Flow	0.00	2.16B	937.00M	870.00M	-517.00M	-1.93B
Operating Cash Flow	0.00	2.92B	1.57B	1.31B	-29.00M	-1.31B
Investing Cash Flow	0.00	-89.00M	-597.00M	815.00M	1.76B	932.00M
Financing Cash Flow	0.00	-2.88B	-657.00M	-2.12B	-1.77B	780.00M

Hakuyosha Company,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3180.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 3180 is above the 20-day moving average (MA) of 3164.75, below the 50-day MA of 3197.60, and above the 200-day MA of 3145.11, indicating a neutral trend. The MACD of -15.12 indicates Negative momentum. The RSI at 52.22 is Neutral, neither overbought nor oversold. The STOCH value of 94.79 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
6571	77 Outperform	¥18.18B	17.64	―	2.62%	4.71%	-0.41%
9262	75 Outperform	¥9.36B	13.27	―	1.92%	10.06%	4.96%
7358	74 Outperform	¥14.05B	15.42	―	2.75%	7.95%	13.67%
7523	73 Outperform	¥17.70B	15.33	―	2.55%	1.90%	7.25%
9731	67 Neutral	¥12.08B	5.93	―	1.75%	0.71%	-14.82%
9251	66 Neutral	¥16.31B	15.05	―	5.40%	6.21%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%