Hirata (6258) AI Stock Analysis

• Market Cap: ¥47.68B
• Dividend Yield: 2.77%
• Average Volume (3M): 254.06K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 1.55
• Revenue Growth: -0.14%
• EPS Growth: -53.58%
• Country: JP
• Employees: 1,967
• Sector: Industrials
• Sector Strength: 77
• Industry: Industrial - Machinery
• EPS (TTM): 36.69
• Shares Outstanding: 32,268,270
• 10 Day Avg. Volume: 115,470
• 30 Day Avg. Volume: 254,056
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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

Hirata's stock exhibits solid financial performance with strong revenue growth and a stable balance sheet. However, negative cash flows present a significant risk, which impacts the overall financial health. Technical indicators show mixed signals with a neutral RSI but a negative MACD and overbought stochastic, indicating potential short-term volatility. The stock's valuation is fair, supported by a reasonable P/E ratio and an attractive dividend yield. Addressing cash flow issues could enhance the company's financial flexibility and improve investor confidence.

Hirata Business Overview & Revenue Model

Company Description

Hirata Corporation manufactures and sells various manufacturing line systems, industrial robots, and logistic equipment in Japan and internationally. The company offers automotive related production equipment, such as engine assembly, cylinder head assembly, and piston assembly lines; transmission related equipment comprising CVT assembly, automatic transmission assembly, and DCT assembly lines; and engine and component related equipment. It also provides semiconductor related equipment, including equipment front end modules/sorters, wafer transfer robots, aligners, load ports, and SMIF openers; and panel manufacturing systems, such as coater systems, glass cutting systems, coating and lamination systems, and auto-loader systems. In addition, the company offers industrial robot equipment, including cartesian, SCARA-type, articulated, and wafer transfer robots, as well as 3D vision systems, robot controllers, teach pendants, and robot sumulators; electronics and electrical appliance production equipment comprising home electronics related automated assembly lines, and electronic components and others; and power modules consisting of mounters, vacuum reflow ovens, and ultrasonic welders. Further, it provides sorting/stocking systems, stacker cranes, and traceability systems for production management; and medical/chemistry and physics devices, such as pathological tissue specimen preparation devices, cell observation devices, cell destructive equipment, and membrane damage detection systems. Hirata Corporation was incorporated in 1920 and is headquartered in Kumamoto, Japan.

How the Company Makes Money

Hirata Corporation generates revenue through the sale of its automated production systems and related equipment. The company primarily earns money by designing and implementing customized automation solutions for its clients in industries such as automotive, electronics, and logistics. These solutions often involve a combination of robotics, assembly lines, and other automated systems tailored to specific production needs. Hirata also engages in after-sales services, providing maintenance and support for its installed systems, which constitutes an additional revenue stream. The company's ability to maintain strong relationships with key clients and adapt to technological advancements in automation plays a significant role in its financial performance.

Hirata Financial Statement Overview

Summary

Hirata exhibits strong revenue growth and stable margins in its income statement, underpinned by a solid balance sheet with manageable leverage. However, persistent negative cash flows pose a risk to liquidity and financial flexibility. Addressing cash flow issues could significantly improve the financial health and operational efficiency of the company.

Income Statement

The income statement reflects a solid performance with a consistent revenue growth trend, increasing from 65,212 million JPY in 2021 to 84,153 million JPY in TTM. Gross profit margin is strong at 20.37% in TTM, although slightly down from the previous year's 21.48%. The net profit margin in TTM stands at 3.13%, below the previous year's 5.24%, indicating some pressure on profitability. EBIT and EBITDA margins are stable, contributing positively to the overall income statement health.

Balance Sheet

The balance sheet shows a robust equity position with a debt-to-equity ratio of 0.61 in TTM, which is manageable. Return on equity (ROE) is modest at 3.99% in TTM, down from 6.68% in the previous year, suggesting room for improvement in generating returns on equity. The equity ratio remains healthy at 50.29%, indicating a stable financial structure with ample equity compared to total assets.

Cash Flow

The cash flow statement reveals challenges, particularly with negative free cash flow in TTM, similar to previous years. Operating cash flow has been negative, indicating difficulties in generating cash from core business operations. The free cash flow to net income ratio is unfavorable, highlighting potential liquidity constraints. Improvement in cash flow management is needed to enhance financial flexibility.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
82.84B	78.44B	67.09B	65.26B	65.61B
	Gross Profit
17.79B	15.84B	12.71B	13.66B	11.67B
	EBIT
6.05B	5.92B	3.86B	5.00B	2.74B
	EBITDA
8.70B	7.44B	5.81B	6.69B	4.16B
	Net Income Common Stockholders
4.34B	4.27B	2.68B	4.08B	1.74B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.65B	11.13B	12.94B	12.69B	10.97B
	Total Assets
130.79B	114.52B	99.49B	92.79B	85.41B
	Total Debt
37.03B	29.76B	23.74B	18.69B	14.54B
	Net Debt
26.38B	18.62B	10.80B	6.01B	3.56B
	Total Liabilities
65.49B	54.95B	44.55B	40.80B	38.42B
	Stockholders Equity
65.03B	59.18B	54.51B	51.61B	46.56B
Cash Flow		Free Cash Flow
-7.84B	-8.13B	-4.62B	-1.65B	5.39B
	Operating Cash Flow
-4.59B	-5.69B	-3.44B	690.07M	8.09B
	Investing Cash Flow
-2.23B	-2.06B	-1.08B	-2.38B	-2.63B
	Financing Cash Flow
5.87B	5.10B	4.15B	3.54B	-5.72B

Hirata Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1495.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6258, the sentiment is Positive. The current price of 1495 is above the 20-day moving average (MA) of 1343.25, above the 50-day MA of 1479.33, and below the 200-day MA of 1654.67, indicating a neutral trend. The MACD of 3.68 indicates Negative momentum. The RSI at 57.11 is Neutral, neither overbought nor oversold. The STOCH value of 95.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6258.

Hirata Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6113	78 Outperform	$460.19B	14.63	6.28%	4.05%	0.28%	-10.20%
6305	75 Outperform	$915.89B	11.25	9.99%	3.85%	-2.46%	-12.73%
6146	73 Outperform	$3.08T	24.86	27.22%	1.35%	27.88%	47.09%
6258	66 Neutral	¥47.68B	17.62	3.93%	2.77%	-0.14%	-53.58%
Sector *	64 Neutral	$4.25B	11.69	5.23%	249.83%	4.04%	-9.46%
6141	56 Neutral	$364.76B	59.00	8.94%	3.61%	-4.91%	-16.52%
6471	52 Neutral	¥289.83B	39.80		5.41%	-3.42%	-35.09%

Hirata Corporate Events

Hirata Corporation to Dissolve European Subsidiary Amid Market Changes

Hirata Corporation has decided to dissolve and liquidate its subsidiary, Hirata Engineering Europe GmbH, as part of a business structural reform due to changes in the market environment. The impact on the company’s consolidated performance for the fiscal year ending March 2026 is expected to be minimal, and the liquidation process will begin on May 1, 2025.

Hirata Corporation Announces Leadership Changes

Hirata Corporation has announced significant changes in its leadership structure, with new appointments and reappointments of directors and executive officers. These changes, effective April 1, 2025, are expected to influence the company’s strategic direction and enhance its operational capabilities, potentially impacting its market positioning and stakeholder relations.

Hirata Corporation Reports Decline in Profits Despite Sales Growth

Hirata Corporation reported a slight increase in net sales for the nine months ending December 31, 2024, compared to the previous year, but experienced a significant decline in profits. The company’s operating profit fell by 20.5%, ordinary profit by 26.2%, and profit attributable to owners of the parent by 36.7%. The equity-to-asset ratio improved slightly to 50.3%. Despite the drop in profits, Hirata plans to increase its annual dividend, illustrating a commitment to returning value to shareholders amidst challenging financial results.

Hirata Corporation Revises Earnings Forecast Amid Investment Delays

Hirata Corporation has revised its earnings forecast for the fiscal year ending March 2025, citing delays in customer capital investment plans and postponed revenue recognition. The revised forecast shows a decrease in expected net sales and profits due to these delays and a decline in profit margins, impacting the company’s financial performance and market expectations.

Hirata Corporation Announces Share Split to Boost Liquidity

Hirata Corporation announced a share split with the aim of improving liquidity and expanding its investor base by reducing the investment unit per share. Effective April 1, 2025, the share split will increase the total number of issued shares from 10,756,090 to 32,268,270, with authorized shares rising to 111,000,000. Additionally, amendments to the Articles of Incorporation will reflect these changes. The capital amount remains unchanged, and the year-end dividend will be paid based on pre-split shares, maintaining the forecasted dividend per share of 120 yen.

Hirata Corporation Reports Declined Profits Despite Sales Growth

Hirata Corporation reported its consolidated financial results for the nine months ending December 31, 2024, showing a slight increase in net sales by 2.2% compared to the previous year. However, the company experienced a decline in several key profitability metrics, with operating profit down by 20.5% and profit attributable to owners of the parent decreasing by 36.7%. This downturn in profitability metrics despite an increase in sales indicates potential operational challenges. The company has revised its earnings forecasts, reflecting a cautious outlook for the fiscal year ending March 31, 2025.

Hirata Corporation Revises Earnings Forecast Amid Project Delays

Hirata Corporation has revised its full-year earnings forecast for the fiscal year ending March 2025, citing delays in customer capital investments and postponed revenue recognition for certain projects. The updated forecast reflects an anticipated decrease in net sales and profits, attributed to insufficient sales to cover fixed costs and deteriorating cost ratios, impacting the company’s short-term financial performance and market positioning.

Hirata Corporation Announces Share Split to Enhance Market Accessibility

Hirata Corporation announced a share split to improve share liquidity and attract a wider investor base. The split, effective April 1, 2025, will triple the number of issued shares, prompting amendments to the company’s Articles of Incorporation. This move is expected to positively influence Hirata’s market positioning by making its shares more accessible while maintaining its capital amount and dividend forecasts.