Hanshin Diesel Works, Ltd. (6018) AI Stock Analysis

• Market Cap: ¥10.38B
• Dividend Yield: 2.18%
• Average Volume (3M): 11.29K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 1.09
• Revenue Growth: 44.84%
• EPS Growth: -15.31%
• Country: JP
• Employees: 276
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 27.61
• Shares Outstanding: 3,248,548
• 10 Day Avg. Volume: 8,540
• 30 Day Avg. Volume: 11,293
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥3,299.00
• Price Target Upside: 2.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥3,299.00 ▲(2.93% Upside)

Hanshin Diesel Works, Ltd. has a solid financial foundation with strong revenue growth and low debt levels. However, declining profitability margins and neutral technical indicators suggest caution. The stock's valuation is moderate, providing some income potential through dividends.

Hanshin Diesel Works, Ltd. Business Overview & Revenue Model

Company Description

The Hanshin Diesel Works, Ltd. manufactures and sells engines and propulsion systems for ships worldwide. The company offers engines comprising low speed four-stroke engines, medium speed engines, and low speed two-stroke engines; and engine monitoring and support systems for ship administration. It also offers propulsion systems, such as controllable pitch propellers and side thrusters; remote control systems and integrated control systems; casting and metal machining; and auxiliary devices, including lubricating oil and fuel oil purifiers, fuel oil fine filters, and LG type lubricating oil filters. The company was formerly known as The Hanshin Ironworks Co., Ltd. and changed its name to The Hanshin Diesel Works, Ltd. in 1944. The Hanshin Diesel Works, Ltd. was incorporated in 1918 and is headquartered in Kobe, Japan.

How the Company Makes Money

Hanshin Diesel Works generates revenue through several key streams. The primary source of income comes from the sale of diesel engines and related machinery to the maritime and industrial sectors. This includes both new engine sales and aftermarket parts. Additionally, the company earns significant revenue from providing maintenance and repair services, which are essential for ensuring the longevity and performance of its products. Strategic partnerships with shipping companies and industrial manufacturers enhance its market presence and contribute to consistent sales. The company also benefits from contracts with government and military entities for specialized engine solutions, further diversifying its revenue base.

Hanshin Diesel Works, Ltd. Financial Statement Overview

Summary

Hanshin Diesel Works, Ltd. shows strong revenue growth and low leverage, indicating a solid financial position. However, declining profit margins and variability in cash flow management present challenges.

Income Statement

Hanshin Diesel Works, Ltd. has demonstrated strong revenue growth of 20.62% in the latest year, indicating a positive trajectory. However, the gross profit margin has decreased over the years, from 28.84% in 2020 to 18.15% in 2025, suggesting pressure on cost management. The net profit margin has remained relatively stable around 4-5%, which is modest. EBIT and EBITDA margins have also shown a slight decline, indicating potential challenges in operational efficiency.

Balance Sheet

The company maintains a very low debt-to-equity ratio, demonstrating strong financial stability and low leverage risk. Return on equity has been consistent, albeit modest, around 3-5%, reflecting steady profitability. The equity ratio is strong, indicating a solid capital structure with a high proportion of equity financing.

Cash Flow

Hanshin Diesel Works, Ltd. has shown significant improvement in free cash flow, with a notable growth rate. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to earnings. However, the free cash flow to net income ratio has fluctuated, suggesting some variability in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.34B	13.34B	9.64B	9.06B	10.14B	9.44B
Gross Profit	2.42B	2.42B	2.14B	2.18B	2.20B	2.58B
EBITDA	1.12B	1.12B	1.01B	884.49M	868.92M	816.47M
Net Income	535.53M	536.29M	456.10M	406.74M	394.04M	358.56M
Balance Sheet
Total Assets	25.00B	25.00B	22.75B	20.99B	19.79B	19.20B
Cash, Cash Equivalents and Short-Term Investments	5.57B	5.57B	5.00B	5.62B	5.35B	4.81B
Total Debt	29.80M	29.80M	31.73M	51.87M	10.10M	19.28M
Total Liabilities	10.20B	10.20B	8.34B	7.13B	6.32B	6.06B
Stockholders Equity	14.80B	14.80B	14.42B	13.85B	13.47B	13.14B
Cash Flow
Free Cash Flow	0.00	1.16B	211.29M	598.68M	560.73M	-456.48M
Operating Cash Flow	0.00	1.59B	1.10B	1.18B	892.58M	-140.32M
Investing Cash Flow	0.00	-6.56M	-2.25B	-777.75M	667.89M	-820.31M
Financing Cash Flow	0.00	-207.35M	-172.11M	-132.48M	-118.08M	-214.68M

Hanshin Diesel Works, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3205.00
• 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:6018, the sentiment is Positive. The current price of 3205 is above the 20-day moving average (MA) of 3143.00, above the 50-day MA of 3096.08, and above the 200-day MA of 2597.33, indicating a bullish trend. The MACD of 9.51 indicates Negative momentum. The RSI at 56.05 is Neutral, neither overbought nor oversold. The STOCH value of 63.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6018.

Hanshin Diesel Works, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6016	80 Outperform	87.98B	21.32	31.17%	0.69%	18.23%	3.26%
6490	77 Outperform	97.41B	11.56	11.24%	3.03%	-0.98%	-18.48%
6023	76 Outperform	75.59B	16.06	12.95%	1.68%	5.77%	-2.34%
6393	68 Neutral	12.21B	9.41	5.33%	5.04%	10.07%	41.45%
6018	66 Neutral	¥10.38B	22.63		2.18%	44.84%	-15.31%
6440	60 Neutral	12.30B	-11.38	-10.36%	―	-2.28%	85.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%