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

• Market Cap: ¥4.08B
• Dividend Yield: 0.97%
• Average Volume (3M): 50.50K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.85
• Revenue Growth: 11.25%
• EPS Growth: 58.54%
• Country: JP
• Employees: 90
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Chemicals
• EPS (TTM): -9.15
• Shares Outstanding: 4,032,000
• 10 Day Avg. Volume: 20,540
• 30 Day Avg. Volume: 50,496
• PEG Ratio: 0.30
• Price to Book (P/B): 1.28
• 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: 72 Outperform
• Price Target: ¥1,144.00 ▲(10.85%Upside)

The overall stock score is primarily influenced by strong financial performance, despite cash flow challenges. Technical analysis contributes moderately with mixed signals, while valuation suggests the stock is slightly overvalued. The absence of earnings call and corporate event data limits additional insights.

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

Company Description

Hosoya Pyroengineering Co., Ltd. (4274) is a Japanese company specializing in the development and manufacturing of pyrotechnic devices primarily for the automotive industry. The company focuses on producing automotive safety components, including airbag inflators, micro gas generators, and seatbelt pretensioners, which are critical for enhancing vehicle safety features. With a strong emphasis on research and innovation, Hosoya Pyroengineering leverages advanced technologies to deliver high-quality products that meet stringent safety standards.

How the Company Makes Money

Hosoya Pyroengineering Co., Ltd. generates revenue through the sale of its pyrotechnic devices to automotive manufacturers and suppliers. The company's key revenue streams include contracts and partnerships with major automotive companies that integrate its safety components into their vehicles. By maintaining a robust supply chain and focusing on innovation, Hosoya Pyroengineering is able to secure long-term agreements and expand its market presence. Additionally, the company invests in research and development to continuously enhance its product offerings, which helps in attracting new business and retaining existing clients. While specific financial details and partnership information are proprietary, the core of Hosoya Pyroengineering's earnings is driven by its role as a supplier of essential safety components in the automotive sector.

Hosoya Pyroengineering Co., Ltd. Financial Statement Overview

Summary

The company's financial performance is strong with an excellent income statement showing solid margins and revenue growth. The balance sheet is stable with low leverage and strong equity ratios. However, cash flow management is a concern, with recent negative free cash flow and zero operating cash flow for the trailing twelve months, highlighting issues in cash management.

Income Statement

The company shows strong performance with solid gross profit and net profit margins. Gross Profit Margin for TTM is approximately 37.3%, and Net Profit Margin is around 14.3%. Revenue growth is evident, with a growth rate of 12.9% from the previous year. These indicators reflect a robust profitability trajectory and efficient operational management.

Balance Sheet

The company maintains a stable financial position with a low Debt-to-Equity Ratio of about 0.19, indicating low leverage risk. The Return on Equity (ROE) is strong at approximately 9.1%, showcasing effective use of equity capital. The Equity Ratio stands at 73%, indicating a high proportion of assets financed by equity, which highlights financial stability but also suggests limited use of financial leverage.

Cash Flow

Cash flow metrics show some concerns with negative free cash flow in recent periods due to high capital expenditures. The Operating Cash Flow to Net Income Ratio is challenging to assess due to zero recorded operating cash flow for TTM. The Free Cash Flow to Net Income Ratio is also impacted, reflecting less effective cash management compared to profitability.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.07B	1.83B	1.76B	1.79B	1.56B	1.55B
	Gross Profit
772.07M	535.90M	509.59M	524.53M	522.04M	482.00M
	EBIT
425.95M	194.65M	177.86M	181.51M	198.03M	168.00M
	EBITDA
479.63M	271.40M	254.61M	252.22M	258.76M	228.00M
	Net Income Common Stockholders
296.39M	138.64M	132.32M	126.61M	143.31M	114.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
643.00M	969.52M	1.20B	1.19B	868.19M	934.07M
	Total Assets
4.47B	4.39B	4.28B	4.22B	4.11B	3.82B
	Total Debt
634.00M	645.18M	769.75M	793.29M	818.71M	836.53M
	Net Debt
-9.00M	-324.34M	-432.15M	-398.04M	-49.48M	-47.55M
	Total Liabilities
1.21B	1.34B	1.35B	1.43B	1.38B	1.34B
	Stockholders Equity
3.27B	3.05B	2.93B	2.79B	2.73B	2.48B
Cash Flow		Free Cash Flow
0.00	-65.61M	69.64M	378.76M	-29.17M	24.00M
	Operating Cash Flow
0.00	19.08M	133.12M	440.93M	23.30M	85.00M
	Investing Cash Flow
0.00	-85.93M	-64.88M	-63.42M	-51.52M	-63.00M
	Financing Cash Flow
0.00	-165.52M	-57.67M	-54.38M	-37.66M	-48.00M

Hosoya Pyroengineering Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1032.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4274, the sentiment is Positive. The current price of 1032 is above the 20-day moving average (MA) of 1014.90, above the 50-day MA of 1027.18, and below the 200-day MA of 1090.76, indicating a neutral trend. The MACD of -3.38 indicates Negative momentum. The RSI at 55.01 is Neutral, neither overbought nor oversold. The STOCH value of 85.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥4.08B	18.57		0.97%	11.25%	58.54%
4102	71 Outperform	¥3.06B	20.32		2.19%	-0.35%	-39.08%
4885	69 Neutral	¥3.18B	8.84		2.90%	10.31%	77.52%
4960	61 Neutral	¥4.40B	33.58		1.30%	5.14%	1.96%
4124	56 Neutral	¥2.57B	43,540.30		1.44%	4.98%	99.38%
Sector *	51 Neutral	$2.01B	-1.11	-21.16%	3.67%	2.69%	-30.65%
4360	46 Neutral	¥4.61B	521.41		2.34%	-3.17%	-21.99%