Heiwa (6412) AI Stock Analysis

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Heiwa

(TSE/TYO:6412)

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Rating:68Neutral

Price Target:JPY 2,293.00▲(8.98% Upside)

Action:reiterated

Date:11/14/26

Heiwa's moderate overall score is anchored by its strong top-line revenue expansion, solid technical momentum, and a highly attractive 3.8% dividend yield. The most significant risks holding the score back are the heavily leveraged balance sheet and deteriorating bottom-line profitability, though the company's impressive free cash flow generation provides a vital buffer to manage its debt obligations.

Positive Factors

Strong Revenue GrowthThe sharp increase in revenue indicates strong recent demand for Heiwa’s products and provides a larger base from which to build future earnings. If supported by continued machine adoption and replacement activity, this growth can strengthen operating scale and competitive standing over the next several quarters.

Negative Factors

Very High LeverageDebt is high relative to equity, making Heiwa more sensitive to earnings volatility and refinancing conditions. Elevated leverage can limit financial flexibility, increase financing pressure, and constrain the company’s ability to invest or withstand weaker machine demand during the next several quarters.

Heiwa (6412) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 208.31B
Dividend Yield: 3.80%
Average Volume (3M): 312.41K
Price to Earnings (P/E): 19.6
Beta (1Y): 0.28
Revenue Growth: 29.85%
EPS Growth: -15.13%
Country: Japan
Employees: 9,512
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Leisure

Heiwa Business Overview & Revenue Model

Company Description

Established in 1949, Heiwa Corporation, previously named Heiwa Kogyo Co., Ltd., operates out of Tokyo, Japan. The company primarily engages in the design, manufacturing, and distribution of pachinko and pachislot gaming machines across Japan, and it...

How the Company Makes Money

Heiwa makes money mainly by selling pachinko and pachislot machines to pachinko hall operators. Revenue is generated when halls purchase new machines for installations and replacements, which creates demand tied to product launch cycles and hall capi...

Heiwa Financial Statement Overview

Summary

Heiwa demonstrates explosive revenue growth and robust cash flows, which provide excellent liquidity (FCF up 58.8% TTM). However, the score is heavily weighed down by a massive accumulation of debt pushing the D/E ratio to 2.25, alongside severely contracting net profit margins.

Income Statement

60Neutral

Balance Sheet

45Neutral

Cash Flow

82Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	266.90B	258.11B	145.87B	136.38B	142.29B	121.56B
Gross Profit	82.42B	85.48B	52.49B	46.80B	49.31B	33.40B
EBITDA	75.39B	74.36B	32.33B	32.14B	35.82B	18.68B
Net Income	10.57B	11.67B	13.06B	16.61B	20.68B	2.19B
Balance Sheet
Total Assets	1.05T	1.08T	1.05T	428.03B	423.73B	417.07B
Cash, Cash Equivalents and Short-Term Investments	36.29B	61.33B	92.25B	57.75B	67.76B	67.10B
Total Debt	571.17B	593.57B	641.55B	106.84B	108.64B	114.42B
Total Liabilities	792.67B	828.66B	807.28B	188.84B	192.72B	199.88B
Stockholders Equity	253.48B	248.68B	244.12B	239.19B	231.00B	217.19B
Cash Flow
Free Cash Flow	15.20B	9.97B	6.13B	2.67B	17.90B	13.43B
Operating Cash Flow	44.57B	41.21B	24.93B	13.93B	25.59B	20.44B
Investing Cash Flow	-1.08B	-20.63B	-500.03B	2.71B	-15.22B	2.04B
Financing Cash Flow	-61.77B	-46.00B	509.94B	-11.22B	-14.50B	-17.36B

Heiwa Technical Analysis

Technical Analysis SentimentPositive

Last Price2104.00

Price Trends

50DMA2100.53Positive

100DMA2077.01Positive

200DMA1989.69Positive

Market Momentum

MACD8.21Negative

RSI52.19Neutral

STOCH49.13Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6412, the sentiment is Positive. The current price of 2104.00 is above the 20-day moving average (MA) of 2078.80, above the 50-day MA of 2100.53, and above the 200-day MA of 1989.69, indicating a bullish trend. The MACD of 8.21 indicates Negative momentum. The RSI at 52.19 is Neutral, neither overbought nor oversold. The STOCH value of 49.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6412.

Heiwa Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:6412 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7832	85Outperform	JPY 4.34T	27.52	18.24%	1.09%	12.48%	27.81%
JP:9166	71Outperform	JPY 127.61B	40.89	―	0.59%	47.16%	21.05%
JP:6412	68Neutral	JPY 208.31B	19.63	4.55%	3.80%	29.85%	-15.13%
JP:4680	65Neutral	JPY 417.40B	21.48	20.75%	1.23%	―	―
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JP:4343	57Neutral	JPY 57.69B	18.57	―	0.86%	10.11%	―
JP:6425	41Neutral	JPY 51.06B	-0.23	-120.77%	―	8.21%	-3157.44%

* Consumer Cyclical Sector Average

Performance Comparison

JP:6412 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6412	Heiwa Corporation	2104.00	215.39	11.40%
JP:7832	BANDAI NAMCO Holdings	6900.00	2448.41	55.00%
JP:4680	ROUND ONE Corporation	1459.00	489.14	50.43%
JP:6425	Universal Entertainment Corporation	648.00	-129.00	-16.60%
JP:4343	AEON Fantasy Co., Ltd.	2902.00	43.74	1.53%
JP:9166	GENDA Inc.	673.00	69.14	11.45%

Heiwa Corporate Events

HEIWA Holdings Reports Six-Month Sales Increase, Ordinary Profit Decline

Nov 12, 2026

HEIWA Holdings reported consolidated net sales of ¥140,268 million for the six months ended September 30, 2026, up 6.7% year on year, while EBITDA increased 3.0% to ¥39,202 million; operating profit declined 1.0% to ¥22,865 million, ordinary profit f...

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: Nov 14, 2026

Heiwa AI Stock Analysis