H-One Co., Ltd. (5989) AI Stock Analysis

H-One Co., Ltd.

(TSE/TYO:5989)

Select Model

Rating:64Neutral

Price Target:JPY 1,676.00▲(26.11% Upside)

Action:downgraded

Date:08/09/26

The score is supported by improved profitability and a strengthened (more moderate) balance sheet, plus very attractive valuation (low P/E and solid dividend yield). Offsetting this, free cash flow has recently turned negative and technical signals remain weak with the stock trading below key moving averages and a negative MACD.

Positive Factors

Profitability RecoveryThe return to consistent profitability after losses in FY2023–FY2024 indicates improved operating execution and healthier margins. Sustaining these gains would strengthen internal funding capacity and provide resilience across vehicle-program cycles.

Negative Factors

Volatile Revenue TrendUneven revenue performance indicates exposure to automaker production schedules, vehicle mix and pricing or cost conditions. Persistent volatility can make capacity planning harder and limit confidence that the recent profitability recovery will endure.

H-One Co., Ltd. (5989) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 37.23B
Dividend Yield: 5.04%
Average Volume (3M): 164.55K
Price to Earnings (P/E): 3.5
Beta (1Y): 1.10
Revenue Growth: -5.02%
EPS Growth: 11.35%
Country: Japan
Employees: 4,584
Sector: General
Sector Strength: 55
Industry: Auto - Parts

H-One Co., Ltd. Business Overview & Revenue Model

Company Description

H-One Co.,Ltd. is an international manufacturer and supplier specializing in components for the automotive and motorcycle sectors, along with dies and welding apparatus. Their automotive portfolio features essential frame constituents, including fron...

How the Company Makes Money

H-One makes money primarily by manufacturing and selling stamped metal automotive components and welded/assembled modules to automobile manufacturers and, in some cases, to tier-one suppliers. Revenue is generated through (1) mass-production supply c...

H-One Co., Ltd. Financial Statement Overview

Summary

Income statement is solid (score 72) with meaningful profitability recovery and healthy TTM margins, and the balance sheet is improved with manageable leverage (score 63). However, cash flow is a key weakness (score 45) as free cash flow is negative despite positive operating cash flow, raising questions about earnings-to-cash conversion and the durability of the rebound.

Income Statement

72Positive

Balance Sheet

63Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	209.84B	209.66B	228.15B	232.73B	225.51B	170.59B
Gross Profit	31.48B	32.79B	31.70B	22.23B	15.63B	13.72B
EBITDA	25.07B	26.22B	22.61B	-3.91B	15.46B	11.45B
Net Income	10.81B	10.97B	10.73B	-21.66B	-6.99B	-1.39B
Balance Sheet
Total Assets	219.01B	205.41B	178.53B	181.60B	187.31B	193.98B
Cash, Cash Equivalents and Short-Term Investments	24.57B	22.34B	19.31B	18.89B	10.42B	7.19B
Total Debt	79.55B	67.38B	66.57B	73.09B	66.97B	67.00B
Total Liabilities	133.10B	122.48B	112.99B	126.04B	118.39B	118.37B
Stockholders Equity	81.97B	79.39B	64.00B	55.18B	68.58B	72.92B
Cash Flow
Free Cash Flow	-5.11B	2.68B	4.90B	4.63B	7.66B	-16.67B
Operating Cash Flow	23.52B	28.60B	21.08B	19.49B	21.96B	5.71B
Investing Cash Flow	-25.57B	-23.85B	-13.15B	-13.26B	-15.19B	-19.27B
Financing Cash Flow	3.93B	-4.85B	-7.34B	1.28B	-3.51B	14.89B

H-One Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1329.00

Price Trends

50DMA1427.85Negative

100DMA1462.96Negative

200DMA1409.76Negative

Market Momentum

MACD-25.91Positive

RSI33.58Neutral

STOCH12.94Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5989, the sentiment is Negative. The current price of 1329.00 is below the 20-day moving average (MA) of 1376.15, below the 50-day MA of 1427.85, and below the 200-day MA of 1409.76, indicating a bearish trend. The MACD of -25.91 indicates Positive momentum. The RSI at 33.58 is Neutral, neither overbought nor oversold. The STOCH value of 12.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5989.

H-One Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:5989 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7244	76Outperform	JPY 49.31B	6.69	9.38%	3.12%	2.02%	29.47%
JP:7280	75Outperform	JPY 56.07B	4.95	―	2.02%	2.52%	-4.94%
JP:5989	64Neutral	JPY 37.36B	3.46	―	5.04%	-5.02%	11.35%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:7238	52Neutral	JPY 27.14B	13.40	4.13%	―	-2.70%	―
JP:5988	50Neutral	JPY 38.30B	5677.78	―	6.00%	<0.01%	-103.48%
JP:6584	39Underperform	JPY 24.93B	29.60	―	4.06%	0.78%	98.79%

* General Sector Average

Performance Comparison

JP:5989 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5989	H-One Co., Ltd.	1329.00	53.30	4.18%
JP:7238	AKEBONO BRAKE INDUSTRY CO	100.00	-15.00	-13.04%
JP:7244	Ichikoh Industries,Ltd.	512.00	56.53	12.41%
JP:5988	PIOLAX, Inc.	1533.00	-94.91	-5.83%
JP:6584	Sanoh Industrial Co., Ltd.	690.00	-195.62	-22.09%
JP:7280	Mitsuba Corporation	1237.00	315.03	34.17%

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 09, 2026

H-One Co., Ltd. AI Stock Analysis