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

• Market Cap: ¥4.01B
• Dividend Yield: 1%
• Average Volume (3M): 19.80K
• Price to Earnings (P/E): 25.2
• 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: 11,910
• 30 Day Avg. Volume: 19,796
• 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: ¥1,087.00
• Price Target Upside: 8.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: ¥1,087.00 ▲(8.37% Upside)

The overall stock score reflects strong financial performance with robust revenue growth and profitability, but is tempered by cash flow challenges. Technical indicators suggest potential short-term weakness, and valuation metrics indicate the stock may be overvalued. The absence of earnings call and corporate events data limits further insights.

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

Company Description

Hosoya Pyro-Engineering Co., Ltd. researches, develops, manufactures, tests, evaluates, and sells pyrotechnic products for leisure and space industries in Japan. The company offers smoke canisters, signal bullets, inflators, and wire cutters products. It is also involved in the combustion disposal of explosives; and research and development of liquid energy substances for space and defense. The company was formerly known as Hosoya Bussan Co., Ltd. and changed its name to Hosoya Pyro-Engineering Co., Ltd. in January 1954. Hosoya Pyro-Engineering Co., Ltd. was founded in 1906 and is headquartered in Akiruno, Japan.

How the Company Makes Money

Hosoya Pyroengineering Co., Ltd. generates revenue through the production and sale of pyrotechnic devices that are integral to automotive safety systems. These devices are sold to car manufacturers and automotive parts suppliers who incorporate them into airbag and seatbelt mechanisms. The company's earnings are significantly influenced by its relationships with major automotive manufacturers and the overall demand for new vehicles, which drives the need for advanced safety systems. Additionally, Hosoya Pyroengineering's revenue is impacted by regulatory requirements for vehicle safety, necessitating the inclusion of advanced safety features in automobiles.

Hosoya Pyroengineering Co., Ltd. Financial Statement Overview

Summary

The company demonstrates strong revenue growth and profitability with a solid balance sheet, but faces cash flow challenges. The income statement shows robust growth and profitability, while the balance sheet reflects low leverage and a strong equity position. However, negative free cash flow indicates potential cash management issues.

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	2.04B	2.04B	1.83B	1.76B	1.79B	1.56B
Gross Profit	662.00M	658.16M	535.90M	509.59M	524.53M	522.04M
EBITDA	368.03M	368.03M	271.40M	254.61M	252.22M	258.76M
Net Income	219.97M	219.80M	138.64M	132.32M	126.61M	143.31M
Balance Sheet
Total Assets	4.48B	4.48B	4.39B	4.28B	4.22B	4.11B
Cash, Cash Equivalents and Short-Term Investments	725.35M	725.35M	969.52M	1.20B	1.19B	868.19M
Total Debt	635.01M	635.01M	645.18M	769.75M	793.29M	818.71M
Total Liabilities	1.29B	1.29B	1.34B	1.35B	1.43B	1.38B
Stockholders Equity	3.20B	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: Negative
• Last Price: 1003.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4274, the sentiment is Negative. The current price of 1003 is below the 20-day moving average (MA) of 1009.75, below the 50-day MA of 1011.72, and below the 200-day MA of 1036.41, indicating a bearish trend. The MACD of -2.22 indicates Positive momentum. The RSI at 43.20 is Neutral, neither overbought nor oversold. The STOCH value of 22.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
4960	69 Neutral	4.78B	33.36	2.68%	1.20%	-5.30%	-6.24%
4102	68 Neutral	3.09B	33.77	1.52%	2.17%	-4.02%	-60.20%
4885	66 Neutral	2.77B	12.43	9.84%	3.33%	4.46%	-27.46%
4274	64 Neutral	¥4.01B	25.23		1.00%	3.38%	-10.14%
4124	56 Neutral	3.21B	127.17	0.00%	1.15%	19.50%	0.00%
4360	46 Neutral	5.05B	-6.18	0.00%	2.56%	1.73%	-914.83%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%