Hakuten Corporation (2173) AI Stock Analysis

• Market Cap: ¥11.07B
• Dividend Yield: 3.11%
• Average Volume (3M): 33.89K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.95
• Revenue Growth: -5.34%
• EPS Growth: -21.28%
• Country: JP
• Employees: 545
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): N/A
• Shares Outstanding: 16,248,520
• 10 Day Avg. Volume: 22,120
• 30 Day Avg. Volume: 33,893
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥647.00
• Price Target Upside: -4.15% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 81 Outperform
• Price Target: ¥647.00 ▼(-4.15% Downside)

Hakuten Corporation's strong financial performance and attractive valuation are the main drivers of its high stock score. Although technical indicators suggest a potential pullback due to possible overbought conditions, the company's robust financial metrics and attractive valuation provide a solid foundation for future growth.

Hakuten Corporation Business Overview & Revenue Model

Company Description

Hakuten Corporation is a Japan-based company primarily engaged in the provision of marketing and communication services. The company specializes in offering integrated marketing solutions, including event planning, digital marketing, promotional campaigns, and branding services. With a focus on creativity and execution, Hakuten serves a diverse range of industries, helping businesses to enhance their brand presence and engage with their audience effectively.

How the Company Makes Money

Hakuten Corporation makes money by providing a variety of marketing and communication services to its clients. Its revenue model is primarily based on service fees for event management, digital marketing solutions, promotional campaign development, and branding consultancy. The company works with businesses across different sectors, offering tailored marketing strategies and execution plans to meet their specific needs. Revenue is generated through long-term contracts, project-based engagements, and repeat business from satisfied clients. Additionally, strategic partnerships with media and technology companies may enhance its service offerings and contribute to its earnings.

Hakuten Corporation Financial Statement Overview

Summary

Hakuten Corporation exhibits a strong financial standing with impressive revenue growth, healthy profit margins, and robust cash flow generation. The balance sheet is stable with moderate leverage, providing a solid foundation for future expansion. The company's financial performance is commendable, with a consistent upward trajectory in key financial metrics.

Income Statement

Hakuten Corporation has shown strong revenue growth with a 8.4% increase in 2024 compared to 2023. The gross profit margin stands at 30.2% and the net profit margin is 5.3%, both indicating healthy profitability for the industry. The EBIT margin at 7.4% and EBITDA margin at 8.1% further reflect efficient operations. Steady growth and robust margins highlight a solid financial performance.

Balance Sheet

The company maintains a balanced financial structure with a debt-to-equity ratio of 0.52, indicating moderate leverage. The return on equity (ROE) is 29.8%, showcasing effective use of equity to generate profits. An equity ratio of 42.5% suggests a stable foundation, although there's room for improvement in reducing liabilities. Overall, the balance sheet reflects financial stability with manageable debt levels.

Cash Flow

Hakuten Corporation's cash flow position is strong, with a positive free cash flow growth rate of 5.9%. The operating cash flow to net income ratio of 1.10 highlights effective conversion of earnings to cash. Additionally, the free cash flow to net income ratio of 1.00 indicates efficient cash utilization. These metrics demonstrate a solid cash generation ability, supporting future investments and growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.84B	17.39B	13.94B	10.63B	7.27B
Gross Profit	5.69B	5.13B	3.88B	3.13B	2.20B
EBITDA	1.53B	1.42B	845.81M	1.15B	-126.55M
Net Income	999.00M	866.00M	553.63M	760.81M	-189.85M
Balance Sheet
Total Assets	7.90B	7.67B	4.94B	4.78B	4.45B
Cash, Cash Equivalents and Short-Term Investments	2.64B	2.53B	1.03B	1.58B	2.01B
Total Debt	1.74B	2.21B	1.09B	1.05B	2.30B
Total Liabilities	4.54B	5.03B	2.95B	3.03B	3.47B
Stockholders Equity	3.35B	2.64B	1.99B	1.74B	973.66M
Cash Flow
Free Cash Flow	997.00M	941.33M	-56.88M	404.27M	88.06M
Operating Cash Flow	1.10B	1.45B	114.07M	487.78M	167.13M
Investing Cash Flow	-169.00M	-833.33M	-334.39M	513.70M	108.00M
Financing Cash Flow	-816.00M	1.03B	-328.90M	-1.44B	901.01M

Hakuten Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 675.00
• 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:2173, the sentiment is Positive. The current price of 675 is below the 20-day moving average (MA) of 678.95, above the 50-day MA of 612.92, and above the 200-day MA of 547.87, indicating a neutral trend. The MACD of 15.33 indicates Positive momentum. The RSI at 58.22 is Neutral, neither overbought nor oversold. The STOCH value of 25.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2173.

Hakuten Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2173	81 Outperform	¥11.07B	9.45		3.11%	-5.34%	-21.28%
7368	81 Outperform	8.25B	11.09	9.23%	3.43%	-1.21%	61.82%
7050	80 Outperform	10.46B	10.55	9.79%	4.28%	24.33%	117.29%
6533	68 Neutral	7.64B	40.26	5.84%	1.45%	15.68%	-64.57%
9235	39 Underperform	9.01B	-19.13	0.00%	―	107.15%	-30.89%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%