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

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Hanshin Diesel Works, Ltd.

(TSE/TYO:6018)

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Rating:63Neutral

Price Target:JPY 5,432.00▲(8.86% Upside)

Action:downgraded

Date:08/20/26

The company's fortress-like, debt-free balance sheet and improving profitability are the primary strengths supporting the score. However, these are significantly offset by weak technical momentum, with the stock trading below key moving averages and exhibiting bearish signals. A moderate valuation and recent negative free cash flow further constrain the overall rating.

Positive Factors

Very conservative balance sheetMinimal leverage materially reduces financial risk and interest burden, giving Hanshin Diesel Works greater resilience through marine-industry cycles. The steadily rising equity base, from about ¥13.1 billion in 2021 to ¥15.6 billion in 2026, also supports long-term investment and operational stability.

Negative Factors

Volatile cash generationThe sharp latest-year decline in operating cash flow and renewed negative free cash flow weaken confidence that accounting earnings will convert consistently into cash. Continued volatility could constrain internally funded investment, dividends, or working-capital flexibility even with a debt-light balance sheet.

Hanshin Diesel Works, Ltd. (6018) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 16.18B
Dividend Yield: 1.82%
Average Volume (3M): 1,417
Price to Earnings (P/E): 18.2
Beta (1Y): 1.20
Revenue Growth: 6.90%
EPS Growth: 30.47%
Country: Japan
Employees: 302
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Hanshin Diesel Works, Ltd. Business Overview & Revenue Model

Company Description

Operating globally from its headquarters in Kobe, Japan, The Hanshin Diesel Works, Ltd. specializes in the production and distribution of marine engines and propulsion systems. The company's diverse engine portfolio encompasses low-speed four-stroke,...

How the Company Makes Money

Hanshin Diesel Works makes money primarily by selling marine diesel engines and related marine machinery to customers in the shipbuilding and maritime operations markets. Revenue is generated from (1) new equipment sales, where the company supplies p...

Hanshin Diesel Works, Ltd. Financial Statement Overview

Summary

Solid revenue growth and record net margins are offset by declining gross margins and volatile cash flows. The pristine, debt-free balance sheet provides a strong foundation, but negative free cash flow in the latest year tempers the overall financial picture.

Income Statement

78Positive

Balance Sheet

92Very Positive

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	13.96B	14.03B	13.34B	9.64B	9.06B	10.14B
Gross Profit	3.11B	2.93B	2.38B	2.11B	2.15B	2.17B
EBITDA	1.56B	1.40B	1.04B	911.43M	848.56M	818.41M
Net Income	808.29M	736.03M	536.29M	456.10M	406.74M	394.04M
Balance Sheet
Total Assets	24.94B	25.80B	25.00B	22.75B	21.17B	19.93B
Cash, Cash Equivalents and Short-Term Investments	4.36B	4.84B	5.57B	5.00B	5.62B	5.35B
Total Debt	281.42M	21.88M	29.80M	31.73M	31.73M	10.10M
Total Liabilities	9.24B	10.17B	10.20B	8.34B	7.32B	6.46B
Stockholders Equity	15.70B	15.63B	14.80B	14.42B	13.85B	13.47B
Cash Flow
Free Cash Flow	0	-136.80M	1.16B	261.84M	677.43M	645.28M
Operating Cash Flow	0	414.18M	1.59B	1.10B	1.18B	892.58M
Investing Cash Flow	0	-682.80M	-6.56M	-2.25B	-777.75M	667.89M
Financing Cash Flow	0	-353.10M	-207.35M	-172.11M	-132.48M	-118.08M

Hanshin Diesel Works, Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price4990.00

Price Trends

50DMA5897.25Negative

100DMA5936.26Negative

200DMA5550.41Negative

Market Momentum

MACD-228.46Positive

RSI31.63Neutral

STOCH12.12Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6018, the sentiment is Negative. The current price of 4990.00 is below the 20-day moving average (MA) of 5696.50, below the 50-day MA of 5897.25, and below the 200-day MA of 5550.41, indicating a bearish trend. The MACD of -228.46 indicates Positive momentum. The RSI at 31.63 is Neutral, neither overbought nor oversold. The STOCH value of 12.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6018.

Hanshin Diesel Works, Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6018 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6016	76Outperform	JPY 100.24B	18.75	―	0.85%	-0.25%	20.72%
JP:6363	76Outperform	JPY 68.44B	9.12	―	2.50%	-1.87%	215.99%
JP:6376	72Outperform	JPY 175.64B	11.15	10.59%	1.81%	10.77%	147.98%
JP:6517	71Outperform	JPY 71.42B	10.22	―	4.08%	9.85%	33.61%
JP:6023	63Neutral	JPY 64.39B	9.74	13.32%	4.08%	10.53%	30.30%
JP:6018	63Neutral	JPY 16.53B	18.18	―	1.82%	6.90%	30.47%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:6018 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6018	Hanshin Diesel Works, Ltd.	4990.00	1257.86	33.70%
JP:6023	Daihatsu Diesel Mfg Co	2497.00	-227.65	-8.36%
JP:6376	Nikkiso Co., Ltd.	2880.00	1468.27	104.00%
JP:6016	Japan Engine Corp	11550.00	-706.97	-5.77%
JP:6363	Torishima Pump Mfg.Co., Ltd.	2644.00	776.14	41.55%
JP:6517	Denyo Co., Ltd.	3430.00	445.77	14.94%

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 20, 2026

Hanshin Diesel Works, Ltd. AI Stock Analysis