HEPHAIST CO.,LTD (6433) AI Stock Analysis

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HEPHAIST CO.,LTD

(TSE/TYO:6433)

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Rating:42Neutral

Price Target:JPY 895.00▲(1.13% Upside)

Action:reiterated

Date:11/06/26

The score is driven primarily by weak financial performance (multi-year losses, declining revenue, and negative operating/free cash flow), which outweighs the moderate leverage noted on the balance sheet. Technicals further pressure the score, with price below all key moving averages and negative MACD. Valuation does not provide support because the negative P/E reflects ongoing losses and no dividend yield is available in the provided data.

Positive Factors

Moderate leverageModerate leverage provides a relative balance-sheet cushion despite earnings pressure. Because debt-to-equity remained around 0.30–0.50, the company may retain more financial flexibility than a heavily indebted manufacturer to manage obligations and pursue a recovery.

Negative Factors

Sustained losses and revenue declineMulti-year losses combined with falling revenue indicate a broad deterioration in operating performance rather than a single weak period. The 2026 loss and approximately 25% revenue decline weaken earnings visibility, erode resilience, and make a near-term recovery more important to lasting value creation.

HEPHAIST CO.,LTD (6433) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 5.73B
Dividend Yield: ―
Average Volume (3M): 226.43K
Price to Earnings (P/E): -8.4
Beta (1Y): 2.15
Revenue Growth: -2.82%
EPS Growth: -38.48%
Country: Japan
Employees: 84
Sector: Industrials
Sector Strength: 63
Industry: Manufacturing - Metal Fabrication

HEPHAIST CO.,LTD Business Overview & Revenue Model

Company Description

Established in 1962 and headquartered in Kawagoe, Japan, HEPHAIST Co., Ltd. operates as a global enterprise. Collaborating with its subsidiary, Hefei (Shanghai) Bearing Trading Co., Ltd., the company specializes in the worldwide manufacturing and dis...

HEPHAIST CO.,LTD Financial Statement Overview

Summary

Financial performance is weak: profitability and revenue have deteriorated sharply since 2022, with sustained losses through 2023–2026 and a very large net loss in 2026. Cash flow adds risk, with negative operating cash flow in 2025–2026 and negative free cash flow from 2023–2026. The balance sheet is a partial offset (moderate leverage), but equity has fallen meaningfully and debt has risen, limiting flexibility.

Income Statement

22Negative

Balance Sheet

46Neutral

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	2.19B	1.64B	2.25B	2.31B	2.41B	2.74B
Gross Profit	342.90M	197.65M	333.89M	315.94M	477.90M	705.06M
EBITDA	73.84M	-71.73M	10.28M	85.75M	207.10M	409.71M
Net Income	-210.04M	-718.51M	-203.46M	-221.82M	-2.48M	217.71M
Balance Sheet
Total Assets	5.05B	4.14B	5.01B	5.39B	5.15B	4.90B
Cash, Cash Equivalents and Short-Term Investments	562.52M	402.95M	559.16M	884.91M	864.46M	973.46M
Total Debt	1.60B	1.58B	1.42B	1.36B	966.73M	529.37M
Total Liabilities	2.28B	2.04B	2.19B	2.37B	1.92B	1.66B
Stockholders Equity	2.76B	2.10B	2.82B	3.02B	3.23B	3.24B
Cash Flow
Free Cash Flow	0	-167.95M	-206.96M	-130.18M	-451.99M	226.16M
Operating Cash Flow	0	-162.81M	-183.39M	166.30M	-40.00M	417.36M
Investing Cash Flow	0	-25.92M	-51.72M	-322.71M	-430.90M	-207.56M
Financing Cash Flow	0	30.26M	-99.47M	171.66M	354.69M	-203.10M

HEPHAIST CO.,LTD Technical Analysis

Technical Analysis SentimentNegative

Last Price885.00

Price Trends

50DMA1114.66Negative

100DMA1072.34Negative

200DMA1268.38Negative

Market Momentum

MACD-64.57Positive

RSI37.56Neutral

STOCH33.80Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6433, the sentiment is Negative. The current price of 885.00 is below the 20-day moving average (MA) of 988.35, below the 50-day MA of 1114.66, and below the 200-day MA of 1268.38, indicating a bearish trend. The MACD of -64.57 indicates Positive momentum. The RSI at 37.56 is Neutral, neither overbought nor oversold. The STOCH value of 33.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6433.

HEPHAIST CO.,LTD Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:6433 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:1787	80Outperform	JPY 13.60B	13.24	―	6.20%	1.58%	8.83%
JP:5644	72Outperform	JPY 22.10B	7.74	―	2.13%	1.26%	47.10%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:5852	62Neutral	JPY 14.82B	7.38	―	6.30%	-0.50%	―
JP:6998	61Neutral	JPY 13.42B	21.87	―	3.10%	26.73%	99.36%
JP:6433	42Neutral	JPY 5.74B	-8.39	―	―	-2.82%	-38.48%
JP:5994	37Underperform	JPY 3.71B	-1.18	―	2.92%	3.08%	-260.66%

* Industrials Sector Average

Performance Comparison

JP:6433 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6433	HEPHAIST CO.,LTD	885.00	498.00	128.68%
JP:1787	Nakabohtec Corrosion Protecting Co., Ltd.	5400.00	376.34	7.49%
JP:5644	Metalart Corporation	7280.00	2982.60	69.40%
JP:5852	Ahresty Corporation	571.00	-145.88	-20.35%
JP:5994	Fine Sinter Co., Ltd.	855.00	-1075.57	-55.71%
JP:6998	Nippon Tungsten Co., Ltd.	2746.00	1430.73	108.78%

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 06, 2026

HEPHAIST CO.,LTD AI Stock Analysis