Hayashikane Sangyo Co., Ltd. (2286) AI Stock Analysis

• Market Cap: ¥4.46B
• Dividend Yield: 2.97%
• Average Volume (3M): 28.81K
• Price to Earnings (P/E): 4.1
• Beta (1Y): 0.37
• Revenue Growth: 3.99%
• EPS Growth: 43.25%
• Country: JP
• Employees: 305
• Sector: Consumer Defensive
• Sector Strength: 77
• Industry: Packaged Foods
• EPS (TTM): 9.38
• Shares Outstanding: 8,910,000
• 10 Day Avg. Volume: 9,890
• 30 Day Avg. Volume: 28,813
• PEG Ratio: 0.09
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 73 Outperform
• Price Target: ¥555.00 ▲(9.90%Upside)

The most significant factor is the company's financial performance, which shows strong revenue and profitability margins but highlights concerns in cash flow management and leverage. Technical analysis supports a positive outlook with favorable price momentum. Valuation metrics indicate that the stock is undervalued with a compelling dividend yield, adding to the investment appeal.

Hayashikane Sangyo Co., Ltd. Business Overview & Revenue Model

Company Description

Hayashikane Sangyo Co., Ltd. (2286) is a Japanese company primarily engaged in the food processing industry. The company specializes in the production and distribution of a variety of marine-based food products, including processed seafood, canned goods, and frozen foods. With a focus on quality and innovation, Hayashikane Sangyo serves both domestic and international markets, catering to diverse consumer preferences and dietary needs.

How the Company Makes Money

Hayashikane Sangyo Co., Ltd. generates revenue through the sale of its processed marine food products. The company capitalizes on its expertise in seafood processing to produce a wide range of items such as canned seafood, frozen seafood dishes, and other value-added seafood products. Key revenue streams include domestic sales within Japan and exports to international markets, where there is a demand for high-quality Japanese seafood. The company may also benefit from strategic partnerships and collaborations with retailers, distributors, and other food industry players to enhance its market reach and distribution efficiency. Additionally, Hayashikane Sangyo may invest in research and development to innovate and expand its product offerings, further driving sales and profit margins.

Hayashikane Sangyo Co., Ltd. Financial Statement Overview

Summary

Hayashikane Sangyo Co., Ltd. shows promising revenue growth of 16.3%, but struggles with low profitability, as reflected by net profit and EBIT margins of 1.3% and 1.1%, respectively. The balance sheet is moderately leveraged with a debt-to-equity ratio of 0.75, but the cash flow is concerning, with no free cash flow, suggesting liquidity issues.

Income Statement

Hayashikane Sangyo Co., Ltd. has demonstrated a steady increase in revenue over the years, with a notable revenue growth rate of 16.3% from 2023 to 2024. The gross profit margin for TTM is 10.4%, indicating a relatively stable cost structure. However, the net profit margin for TTM stands at 1.3%, reflecting relatively low profitability. The EBIT and EBITDA margins are also moderate at 1.1% and 2.7%, respectively. Overall, the company exhibits revenue growth but faces challenges in improving profitability.

Balance Sheet

The balance sheet of Hayashikane Sangyo Co., Ltd. shows a moderate level of leverage, with a debt-to-equity ratio of 0.75 in TTM. The equity ratio is 35.7%, indicating a balanced capital structure. The return on equity (ROE) is relatively low at 5.5%, suggesting limited returns on shareholders' equity. While the company maintains a reasonable level of equity, its ability to generate returns needs improvement.

Cash Flow

The cash flow situation of Hayashikane Sangyo Co., Ltd. is concerning, with operating cash flow being zero in the TTM period. The lack of free cash flow growth is a significant issue, as evidenced by zero free cash flow in TTM. Historically, the free cash flow to net income ratio has been unstable. This indicates potential liquidity challenges and a need to enhance cash generation capabilities.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
49.39B	47.38B	42.54B	40.39B	44.37B	45.18B
	Gross Profit
5.14B	5.20B	4.74B	5.86B	6.67B	7.28B
	EBIT
533.55M	698.39M	351.80M	728.43M	615.93M	988.96M
	EBITDA
1.34B	1.87B	1.30B	2.05B	2.34B	2.01B
	Net Income Common Stockholders
651.84M	749.17M	333.19M	707.83M	1.29B	874.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.98B	2.51B	843.52M	1.95B	2.47B	1.92B
	Total Assets
32.88B	29.04B	26.76B	26.49B	28.66B	29.68B
	Total Debt
8.86B	9.28B	10.37B	10.47B	11.37B	13.97B
	Net Debt
5.87B	6.77B	9.52B	8.52B	8.90B	12.05B
	Total Liabilities
21.14B	17.95B	16.82B	16.72B	18.42B	21.08B
	Stockholders Equity
11.74B	11.09B	9.93B	9.77B	9.33B	7.79B
Cash Flow		Free Cash Flow
0.00	2.99B	-694.84M	291.51M	2.22B	-767.78M
	Operating Cash Flow
0.00	3.58B	-310.87M	683.76M	3.28B	115.44M
	Investing Cash Flow
0.00	-399.05M	-452.02M	18.81M	47.28M	-819.64M
	Financing Cash Flow
0.00	-1.24B	-615.68M	-737.50M	-2.90B	27.95M

Hayashikane Sangyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 505.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2286, the sentiment is Positive. The current price of 505 is below the 20-day moving average (MA) of 506.65, above the 50-day MA of 490.62, and above the 200-day MA of 465.76, indicating a bullish trend. The MACD of 1.73 indicates Positive momentum. The RSI at 55.04 is Neutral, neither overbought nor oversold. The STOCH value of 81.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2286.

Hayashikane Sangyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2286	73 Outperform	¥4.46B	4.11		2.97%	3.99%	43.25%
2872	70 Neutral	¥3.78B	27.65		0.76%	5.37%	116.23%
2894	69 Neutral	¥5.21B	17.89		1.29%	3.60%	-38.52%
2911	68 Neutral	¥4.19B	17.74		1.52%	-1.00%	2.29%
Sector *	65 Neutral	$8.91B	15.03	4.70%	203.30%	3.50%	-2.63%
2876	56 Neutral	¥3.67B	8.31		3.72%	-13.39%	-170.53%
2291	48 Neutral	¥3.55B	―		―	-2.27%	-526.69%