Hirakawa Hewtech Corp. (5821) AI Stock Analysis

Hirakawa Hewtech Corp.

(TSE/TYO:5821)

Select Model

Rating:69Neutral

Price Target:JPY 3,756.00▲(20.38% Upside)

Action:downgraded

Date:08/19/26

The overall score reflects solid revenue growth, better operating margins, and a strong low-leverage balance sheet as key strengths, tempered by uneven earnings and cash flows, a rich valuation, and a technically neutral but volatile trading profile.

Positive Factors

Balance Sheet StrengthVery low and improving leverage, alongside equity growth, gives the company substantial financial flexibility. A stronger capital base can help absorb operating volatility and fund equipment, systems, or other growth needs without heavy reliance on debt.

Negative Factors

Bottom-Line Profit VolatilityNet margin fell to about 4.3% from 6.6% and remains below the 9.2% peak in 2023. This volatility means strong sales and operating performance have not translated consistently into bottom-line earnings, making profit durability less certain.

Hirakawa Hewtech Corp. (5821) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 48.27B
Dividend Yield: 1.67%
Average Volume (3M): 67.96K
Price to Earnings (P/E): 25.0
Beta (1Y): 1.48
Revenue Growth: 38.60%
EPS Growth: -21.06%
Country: Japan
Employees: 2,321
Sector: General
Sector Strength: 55
Industry: Conglomerates

Hirakawa Hewtech Corp. Business Overview & Revenue Model

Company Description

Hirakawa Hewtech Corp., headquartered in Tokyo, Japan, was established in 1948, operating initially as Hirakawa Electric Wire Corporation before adopting its current name in October 1990. The company engages in the global manufacturing and distributi...

How the Company Makes Money

The company primarily makes money by selling manufactured electrical/industrial components and related systems to business customers (B2B), with revenue recognized from product shipments and project/system deliveries. Additional monetization can incl...

Hirakawa Hewtech Corp. Financial Statement Overview

Summary

Revenue and operating profit are trending up, margins have improved, and leverage is low, but net earnings and free cash flow are volatile with modest returns on equity.

Income Statement

73Positive

Balance Sheet

85Very Positive

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	42.72B	38.42B	30.80B	29.33B	32.22B	27.80B
Gross Profit	10.79B	9.93B	7.26B	6.29B	7.61B	5.78B
EBITDA	6.59B	6.04B	3.75B	3.18B	4.57B	3.33B
Net Income	1.72B	1.64B	2.03B	1.44B	2.96B	1.50B
Balance Sheet
Total Assets	58.88B	56.66B	47.11B	47.03B	45.00B	41.57B
Cash, Cash Equivalents and Short-Term Investments	16.11B	18.06B	13.94B	12.69B	9.32B	8.78B
Total Debt	4.78B	5.23B	3.08B	3.35B	3.31B	4.56B
Total Liabilities	13.21B	13.00B	8.38B	9.54B	10.86B	11.15B
Stockholders Equity	44.36B	42.41B	38.72B	37.48B	34.13B	30.42B
Cash Flow
Free Cash Flow	0	2.00B	2.28B	3.12B	-273.00M	-118.00M
Operating Cash Flow	0	3.65B	3.89B	4.20B	1.60B	968.00M
Investing Cash Flow	0	-1.93B	-2.24B	-1.35B	-677.00M	-284.00M
Financing Cash Flow	0	1.54B	-912.00M	-763.00M	-1.68B	-305.00M

Hirakawa Hewtech Corp. Technical Analysis

Technical Analysis SentimentNegative

Last Price3120.00

Price Trends

50DMA3149.02Negative

100DMA3292.58Negative

200DMA3468.08Negative

Market Momentum

MACD-19.44Positive

RSI46.84Neutral

STOCH64.55Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5821, the sentiment is Negative. The current price of 3120.00 is below the 20-day moving average (MA) of 3170.75, below the 50-day MA of 3149.02, and below the 200-day MA of 3468.08, indicating a bearish trend. The MACD of -19.44 indicates Positive momentum. The RSI at 46.84 is Neutral, neither overbought nor oversold. The STOCH value of 64.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5821.

Hirakawa Hewtech Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:5821 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4206	85Outperform	JPY 277.01B	14.61	―	3.29%	4.67%	9.51%
JP:8057	82Outperform	JPY 124.95B	9.59	―	3.13%	26.31%	26.96%
JP:8081	82Outperform	JPY 52.04B	13.63	―	3.42%	10.47%	9.16%
JP:5331	72Outperform	JPY 179.67B	11.40	9.48%	3.42%	9.01%	33.08%
JP:5821	69Neutral	JPY 49.23B	25.02	―	1.67%	38.60%	-21.06%
JP:3105	67Neutral	JPY 352.94B	14.60	8.13%	1.60%	2.09%	95.69%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:5821 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5821	Hirakawa Hewtech Corp.	3105.00	454.78	17.16%
JP:3105	Nisshinbo Holdings	2244.00	1050.59	88.03%
JP:5331	Noritake Co.,Limited	3220.00	876.13	37.38%
JP:4206	Aica Kogyo Company, Limited	4377.00	871.36	24.86%
JP:8057	Uchida Yoko Co., Ltd.	2427.00	424.39	21.19%
JP:8081	Kanaden Corporation	2515.00	443.61	21.42%

Hirakawa Hewtech Corp. Corporate Events

Hirakawa Hewtech Discloses Delay as Axium Capital Becomes Largest Shareholder

Oct 29, 2026

Hirakawa Hewtech Corp. has announced that Singapore-based investment manager Axium Capital Pte. Ltd. has become its largest major shareholder following a share purchase on May 29, 2026. Axium increased its stake from 9.75% to 10.34% of voting rights,...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 17, 2026

Hirakawa Hewtech Corp. AI Stock Analysis