Hosoya Pyroengineering Co., Ltd. (4274) AI Stock Analysis

• Market Cap: ¥4.15B
• Dividend Yield: 0.96%
• Average Volume (3M): 17.84K
• Price to Earnings (P/E): 26.1
• Beta (1Y): 0.84
• Revenue Growth: 3.38%
• EPS Growth: -10.14%
• Country: JP
• Employees: 90
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -4.27
• Shares Outstanding: 4,032,000
• 10 Day Avg. Volume: 30,150
• 30 Day Avg. Volume: 17,843
• PEG Ratio: 0.33
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 2.08
• P/FCF Ratio: -31.75
• 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: 72 Outperform
• Price Target: ¥1,208.00 ▲(18.43% Upside)

The stock's overall score is driven by strong financial performance and positive technical indicators. However, the high valuation and cash flow challenges are notable risks. The absence of earnings call data and corporate events means these factors do not influence the score.

Hosoya Pyroengineering Co., Ltd. Business Overview & Revenue Model

Company Description

Hosoya Pyroengineering Co., Ltd. (4274) is a leading Japanese company specializing in the fields of pyroengineering and industrial furnace technology. The company focuses on providing high-efficiency thermal processing solutions, primarily for the steel, non-ferrous metals, and ceramics industries. Core products include advanced kilns, furnaces, and combustion systems designed to optimize energy use and enhance production quality.

How the Company Makes Money

Hosoya Pyroengineering generates revenue primarily through the sale of its industrial furnace systems and related services. The company's revenue model is built on a combination of product sales, installation services, and ongoing maintenance contracts. Key revenue streams include the design and manufacture of custom thermal processing equipment, spare parts sales, and consultancy services in pyroengineering. Additionally, Hosoya has established significant partnerships with major players in the manufacturing sector, which not only enhances its market reach but also contributes to consistent project-based income through long-term contracts. The company also benefits from technological innovations and energy efficiency trends in its target industries, allowing it to stay competitive and increase its earnings.

Hosoya Pyroengineering Co., Ltd. Financial Statement Overview

Summary

Hosoya Pyroengineering Co., Ltd. demonstrates strong revenue growth and profitability, supported by a solid balance sheet with low leverage. However, recent cash flow challenges highlight the need for better cash management to ensure long-term financial stability.

Income Statement

The company's income statement shows strong growth with a notable revenue increase of 11.3% from the previous year. Gross profit margin is solid at 32.3%, and the net profit margin improved to 10.8%, indicating enhanced profitability. The EBIT margin is 14.3%, and EBITDA margin stands at 18.0%, both reflecting operational efficiency. Overall, the income statement demonstrates positive trends in revenue and profitability, suggesting a well-managed cost structure.

Balance Sheet

The balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.20, indicating low leverage and prudent risk management. The company has a strong equity ratio of 71.3%, which signifies a robust capital structure. Return on equity is 6.9%, showing an adequate return to shareholders. Overall, the company maintains a healthy balance sheet with low financial risk and solid equity backing, although ROE could be improved.

Cash Flow

The cash flow statement shows a decrease in operating cash flow, resulting in a negative free cash flow of -133.7 million. The free cash flow to net income ratio is negative, indicating challenges in converting profits to cash. While past years showed positive free cash flow growth, recent figures suggest potential cash management issues. Improvements in cash generation and capital allocation are needed to strengthen liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.94B	2.04B	1.83B	1.76B	1.79B	1.56B
Gross Profit	575.79M	658.16M	535.90M	509.59M	524.53M	522.04M
EBITDA	279.77M	368.03M	271.40M	254.61M	252.22M	258.76M
Net Income	159.27M	219.80M	138.64M	132.32M	126.61M	143.31M
Balance Sheet
Total Assets	4.45B	4.48B	4.39B	4.28B	4.22B	4.11B
Cash, Cash Equivalents and Short-Term Investments	855.77M	725.35M	969.52M	1.20B	1.19B	868.19M
Total Debt	637.15M	635.01M	645.18M	769.75M	793.29M	818.71M
Total Liabilities	1.26B	1.29B	1.34B	1.35B	1.43B	1.38B
Stockholders Equity	3.19B	3.20B	3.05B	2.93B	2.79B	2.73B
Cash Flow
Free Cash Flow	0.00	-133.75M	-65.61M	69.64M	378.76M	-29.17M
Operating Cash Flow	0.00	-33.50M	19.08M	133.12M	440.93M	23.30M
Investing Cash Flow	0.00	-101.33M	-85.93M	-64.88M	-63.42M	-51.52M
Financing Cash Flow	0.00	-59.33M	-165.52M	-57.67M	-54.38M	-37.66M

Hosoya Pyroengineering Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1020.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4274, the sentiment is Neutral. The current price of 1020 is below the 20-day moving average (MA) of 1039.70, below the 50-day MA of 1020.94, and below the 200-day MA of 1029.97, indicating a neutral trend. The MACD of 13.50 indicates Positive momentum. The RSI at 49.89 is Neutral, neither overbought nor oversold. The STOCH value of 15.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4274.

Hosoya Pyroengineering Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4274	72 Outperform	¥4.15B	26.11	―	0.96%	3.38%	-10.14%
4885	70 Outperform	¥2.74B	12.94	―	3.40%	7.90%	-39.51%
4960	67 Neutral	¥5.72B	39.89	―	1.01%	-5.30%	-6.24%
4102	62 Neutral	¥3.13B	34.13	―	2.15%	-4.02%	-60.20%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4124	56 Neutral	¥2.70B	107.09	―	1.37%	19.50%	―
4360	46 Neutral	¥4.95B	-6.01	―	2.20%	1.73%	-914.83%