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Hammock Corporation (173A) AI Stock Analysis

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JP:173A

Hammock Corporation

(TSE/TYO:173A)

Select Model
Rating:87Outperform
Price Target:JPY 1,937.00â–²(17.61% Upside)
Action:reiterated
Date:10/09/26

Hammock Corporation achieves a strong overall score primarily driven by its fortress balance sheet, exceptional cash flow conversion, and a highly attractive valuation for a software company. While technical indicators confirm robust bullish momentum across all moving averages, investors should be mindful of the heavily overbought RSI, which introduces near-term consolidation risks. Overall, the company offers a compelling blend of fundamental resilience and value.

Positive Factors
Accelerating Revenue GrowthRevenue growth across four annual periods, followed by a sharp 2026 acceleration, indicates expanding business activity and stronger scale. If sustained, this trajectory can support greater operating leverage, broaden the company’s earnings base, and provide resources for continued investment over the next several quarters.
Negative Factors
Margin VolatilityThe variation in operating and net margins shows that revenue growth has not produced consistently stable profitability. Margin swings can make future earnings less predictable and may limit the extent to which the company can convert additional sales into durable operating profit as it continues to scale.

Hammock Corporation (173A) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%40%50%JP:173A+7.37%EWJ+17.54%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 6.78B
Dividend Yield
3.64%
Average Volume (3M)
37.52K
Price to Earnings (P/E)
9.6
Beta (1Y)
0.26
Revenue Growth
3.59%
EPS Growth
19.96%
Country
Japan
Employees
218
Sector
Technology
Sector Strength
61
Industry
Software - Application

Hammock Corporation Business Overview & Revenue Model

Company Description

Hammock Corp. delivers a range of proprietary software and cloud-based services aimed at resolving corporate challenges related to security, sales effectiveness, and operational enhancement. Their offerings include tools for network infrastructure, c...

Hammock Corporation Financial Statement Overview

Summary

Top-tier financial health supported by a pristine, virtually debt-free balance sheet with a microscopic debt-to-equity ratio of 0.0005. The company exhibits robust top-line stability, expanding EBITDA margins of 30.2%, and highly efficient free cash flow generation converting at roughly 98% of net income.

Income Statement

82Very Positive

Balance Sheet

96Very Positive

Cash Flow

90Very Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2026Mar 2025Mar 2024Mar 2022
Income Statement
Total Revenue4.79B4.71B4.89B4.28B3.99B3.65B
Gross Profit2.08B2.05B2.12B1.98B1.76B1.65B
EBITDA1.38B1.36B1.69B1.16B690.24M1.39B
Net Income586.82M618.08M685.53M648.48M417.14M931.57M
Balance Sheet
Total Assets6.22B6.18B7.12B5.62B4.60B4.76B
Cash, Cash Equivalents and Short-Term Investments3.41B3.23B4.74B2.85B2.14B3.19B
Total Debt2.40M2.63M1.68M3.59M4.55M0
Total Liabilities3.57B3.45B3.90B3.46B3.10B3.53B
Stockholders Equity2.65B2.73B3.21B2.16B1.51B1.22B
Cash Flow
Free Cash Flow0907.59M1.59B1.05B-264.77M1.02B
Operating Cash Flow0923.33M1.62B1.06B-252.42M1.06B
Investing Cash Flow0-366.65M58.46M-404.05M-731.43M750.71M
Financing Cash Flow0-37.38M-123.95M-76.81M-127.37M73.99M

Hammock Corporation Technical Analysis

Technical Analysis SentimentNeutral
Last Price1647.00

Price Trends

50DMA1641.23Positive
100DMA1527.74Positive
200DMA1464.83Positive

Market Momentum

MACD12.46Positive
RSI46.58Neutral
STOCH12.02Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:173A, the sentiment is Neutral. The current price of 1647.00 is below the 20-day moving average (MA) of 1777.30, above the 50-day MA of 1641.23, and above the 200-day MA of 1464.83, indicating a neutral trend. The MACD of 12.46 indicates Positive momentum. The RSI at 46.58 is Neutral, neither overbought nor oversold. The STOCH value of 12.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:173A.

Hammock Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:173A against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:173AJP:173A87OutperformJPY 6.98B9.58―3.64%3.59%19.96%
JP:4374JP:437475OutperformJPY 9.10B14.65―1.19%15.31%40.40%
JP:3623JP:362368NeutralJPY 7.46B14.27―2.22%13.25%35.07%
JP:4496JP:449667NeutralJPY 5.63B19.94―2.68%6.91%94.01%
JP:7351JP:735162NeutralJPY 4.21B11.01―2.23%2.20%-12.53%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
JP:3680JP:368046NeutralJPY 2.87B-1.70―3.35%3.59%-65.47%

* Technology Sector Average

Performance Comparison

-20%0%20%40%JP:173AJP:3623JP:3680JP:4374JP:4496JP:7351Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:173A and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:173AHammock Corporation1647.00134.198.87%
JP:3623Billing System Corporation1164.00134.3813.05%
JP:3680Hotto Link, Inc.182.00-69.09-27.51%
JP:4374ROBOT PAYMENT INC.1156.00-226.54-16.39%
JP:4496Commerce One Holdings, Inc.761.00-15.52-2.00%
JP:7351Goodpatch, Inc.448.00-157.54-26.02%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 09, 2026