Hokuetsu Metal Co., Ltd. (5446) AI Stock Analysis

• Market Cap: ¥5.28B
• Dividend Yield: 3.27%
• Average Volume (3M): 2.18K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.31
• Revenue Growth: -9.72%
• EPS Growth: 22.17%
• Country: JP
• Employees: 493
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Steel
• EPS (TTM): 39.46
• Shares Outstanding: 3,994,000
• 10 Day Avg. Volume: 1,150
• 30 Day Avg. Volume: 2,176
• PEG Ratio: 1.84
• Price to Book (P/B): 0.30
• 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: 65 Neutral
• Price Target: ¥1,430.00 ▲(3.92%Upside)

The overall score is driven primarily by the company's financial performance and valuation. While financials show mixed results with areas of improvement, the valuation suggests the stock is potentially undervalued. Technical analysis indicates some bearish tendencies, but this is balanced by the strong valuation metrics. The absence of recent earnings call data and corporate events leaves these areas unassessed.

Hokuetsu Metal Co., Ltd. Business Overview & Revenue Model

Company Description

Hokuetsu Metal Co., Ltd. is a Japanese company listed on the Tokyo Stock Exchange under the code 5446. The company operates in the manufacturing sector, specializing in the production and distribution of metal products. Its core offerings include various steel products, which are utilized in multiple industries including construction, automotive, and industrial machinery. Hokuetsu Metal Co., Ltd. is known for its commitment to quality and innovation in metal processing and fabrication.

How the Company Makes Money

Hokuetsu Metal Co., Ltd. generates revenue primarily through the sale of its metal products. The company's key revenue streams include the supply of steel products to construction companies, automotive manufacturers, and industrial machinery producers. It leverages its expertise in metal fabrication and processing to offer customized solutions to meet the specific needs of its clients. Additionally, the company may engage in strategic partnerships with other firms in the metal industry to enhance its market reach and optimize its production capabilities. Factors such as efficient production processes, strong client relationships, and adherence to industry standards contribute to its earnings.

Hokuetsu Metal Co., Ltd. Financial Statement Overview

Summary

Hokuetsu Metal Co., Ltd. shows a mixed financial performance. The income statement reflects steady profitability despite revenue challenges, while the balance sheet indicates strong financial health with manageable debt levels. However, negative cash flows raise concerns about liquidity management, necessitating strategic actions to enhance cash generation. Overall, while the company is stable, addressing cash flow issues will be crucial for future growth.

Income Statement

The company's gross profit margin for the TTM is approximately 12.39%, with a net profit margin of about 1.57%. These margins indicate a modest profitability level in the competitive steel industry. Revenue growth from 2023 to TTM showed a slight decline, suggesting challenges in maintaining sales momentum. However, the company managed to remain profitable, showing resilience in its operations.

Balance Sheet

Hokuetsu Metal exhibits a solid balance sheet with a debt-to-equity ratio of 0.22 for the TTM, indicating conservative leverage levels. The equity ratio stands at around 62.04%, signifying strong equity financing. Return on equity is modest at 2.71%, reflecting moderate efficiency in using equity to generate profits. The overall balance sheet suggests financial stability and prudent management of debt levels.

Cash Flow

Cash flow analysis reveals challenges, with operating and free cash flows turning negative in the TTM, indicating potential liquidity issues. The company had no positive free cash flow, impacting its ability to fund operations and growth without external financing. This situation highlights the need for improved cash flow management to ensure sustainability.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
30.38B	31.82B	31.04B	27.36B	21.82B	22.56B
	Gross Profit
3.76B	3.67B	4.17B	2.14B	3.45B	4.23B
	EBIT
567.08M	528.52M	1.04B	-762.56M	549.75M	1.43B
	EBITDA
1.18B	1.77B	2.20B	243.67M	1.83B	2.21B
	Net Income Common Stockholders
476.02M	467.90M	1.01B	-967.69M	729.41M	962.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.04B	2.77B	2.25B	2.71B	6.19B	3.67B
	Total Assets
28.28B	28.76B	27.96B	26.54B	26.62B	21.74B
	Total Debt
3.88B	3.77B	3.81B	3.76B	2.71B	101.75M
	Net Debt
1.84B	997.40M	1.56B	1.05B	-3.48B	-3.57B
	Total Liabilities
10.73B	11.79B	11.54B	11.17B	10.44B	6.07B
	Stockholders Equity
17.54B	16.97B	16.42B	15.37B	16.17B	15.67B
Cash Flow		Free Cash Flow
0.00	657.82M	-469.24M	-4.52B	87.68M	407.55M
	Operating Cash Flow
0.00	2.03B	898.68M	-2.47B	1.73B	1.79B
	Investing Cash Flow
0.00	-1.13B	-1.28B	-2.02B	-1.49B	-1.43B
	Financing Cash Flow
0.00	-380.25M	-74.78M	1.00B	2.28B	-70.42M

Hokuetsu Metal Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1376.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5446, the sentiment is Positive. The current price of 1376 is above the 20-day moving average (MA) of 1339.35, above the 50-day MA of 1340.08, and above the 200-day MA of 1309.05, indicating a bullish trend. The MACD of 5.23 indicates Negative momentum. The RSI at 52.11 is Neutral, neither overbought nor oversold. The STOCH value of 52.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5446.

Hokuetsu Metal Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5542	78 Outperform	¥4.76B	7.60		3.59%	-7.18%	15.81%
5986	73 Outperform	¥4.26B	12.92		2.10%	-0.54%	5.46%
5491	72 Outperform	¥4.76B	6.73		―	-0.22%	-54.50%
5609	68 Neutral	¥3.96B	16.77		3.65%	-10.51%	-63.75%
5446	65 Neutral	¥5.28B	9.26		3.27%	-9.72%	22.17%
5476	53 Neutral	¥5.83B	―		12.44%	0.44%	-217.03%
Sector *	51 Neutral	$2.03B	-1.13	-21.36%	3.65%	2.87%	-30.54%