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

• Market Cap: ¥5.20B
• Dividend Yield: 3.32%
• Average Volume (3M): 2.18K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.31
• Revenue Growth: -9.72%
• EPS Growth: 22.17%
• Country: JP
• Employees: 493
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Steel
• EPS (TTM): 39.46
• Shares Outstanding: 3,994,000
• 10 Day Avg. Volume: 1,250
• 30 Day Avg. Volume: 2,183
• PEG Ratio: 0.45
• Price to Book (P/B): 0.29
• 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 ▲(5.54%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. demonstrates a mixed financial performance with signs of recovery in profitability and operational efficiency post-2022. The balance sheet is a strong point, reflecting low leverage and solid equity backing. However, cash flow management presents some challenges, with fluctuations in free cash flow generation. The company needs to maintain its operational improvements while addressing cash flow volatility to ensure sustained growth.

Income Statement

The company shows a mixed performance in its income statement metrics. Gross profit margin has been relatively stable, but net profit margins have been under pressure, especially with a significant dip in 2022 due to a negative net income. Revenue growth has been inconsistent, with a notable drop from 2024 to 2025. However, there is an improvement in EBIT and EBITDA margins since 2022, indicating some recovery in operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a strong equity base. Debt-to-equity ratio remains low, indicating conservative leverage practices. Return on equity shows improvement after a negative performance in 2022, suggesting enhanced profitability relative to shareholder equity. The equity ratio remains healthy, providing a solid foundation for future growth.

Cash Flow

Cash flow analysis reveals some concerns, particularly with free cash flow volatility. There was a negative free cash flow in 2022, but a recovery is evident in 2025. The operating cash flow to net income ratio indicates robust cash generation relative to accounting profits in recent years, although the free cash flow to net income ratio suggests some inefficiencies in capital expenditure management.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
30.38B	28.73B	31.82B	31.04B	27.36B	21.82B
	Gross Profit
3.76B	3.85B	3.67B	4.17B	2.14B	3.45B
	EBIT
567.08M	668.15M	528.52M	1.04B	-762.56M	549.75M
	EBITDA
1.44B	1.86B	1.77B	2.20B	243.67M	1.83B
	Net Income Common Stockholders
476.02M	572.17M	467.90M	1.01B	-967.69M	729.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.04B	2.24B	2.77B	2.25B	2.71B	6.19B
	Total Assets
28.28B	26.69B	28.76B	27.96B	26.54B	26.62B
	Total Debt
3.88B	2.71B	3.77B	3.81B	3.76B	2.71B
	Net Debt
1.84B	471.41M	997.40M	1.56B	1.05B	-3.48B
	Total Liabilities
10.73B	8.90B	11.79B	11.54B	11.17B	10.44B
	Stockholders Equity
17.54B	17.79B	16.97B	16.42B	15.37B	16.17B
Cash Flow		Free Cash Flow
0.00	611.88M	657.82M	-469.24M	-4.52B	87.68M
	Operating Cash Flow
0.00	1.62B	2.03B	898.68M	-2.47B	1.73B
	Investing Cash Flow
0.00	-1.03B	-1.13B	-1.28B	-2.02B	-1.49B
	Financing Cash Flow
0.00	-1.12B	-380.25M	-74.78M	1.00B	2.28B

Hokuetsu Metal Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1355.00
• 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 1355 is above the 20-day moving average (MA) of 1341.00, above the 50-day MA of 1339.40, and above the 200-day MA of 1309.44, indicating a bullish trend. The MACD of 5.98 indicates Negative momentum. The RSI at 55.01 is Neutral, neither overbought nor oversold. The STOCH value of 50.48 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	7.58		3.60%	-7.18%	15.81%
5986	73 Outperform	¥4.28B	12.99		2.09%	-0.54%	5.46%
5491	72 Outperform	¥4.73B	6.76		―	-0.22%	-54.50%
5609	68 Neutral	¥4.04B	17.12		3.58%	-10.51%	-63.75%
5446	65 Neutral	¥5.20B	9.12		3.32%	-9.72%	22.17%
5476	53 Neutral	¥5.79B	―		12.44%	0.44%	-217.03%
Sector *	51 Neutral	$2.02B	-1.19	-21.37%	3.64%	2.88%	-30.57%