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HPC Systems, Inc.
(6597)
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Rating:46Neutral
Price Target:
¥3,352.00
▲(98.70% Upside)
Action:Reiterated
Date:08/19/26
The score is held back primarily by increased financial risk from the sharp rise in leverage and the severe 2026 cash flow reversal, despite still-positive profitability. Technicals add caution given a weak intermediate-term trend (below key moving averages and negative MACD). Valuation is only neutral-to-slightly negative, as a ~33 P/E is not well supported by a modest ~0.94% dividend yield.
Positive Factors
Revenue Recovery and Growth
The strong 2026 rebound and positive underlying growth indicate continued demand for HPC Systems' products. Sustained recovery can improve operating leverage and reinforce the company’s market position, although execution must maintain momentum across future cycles.
Negative Factors
Sharp Leverage Increase
The dramatic increase in leverage materially reduces financial flexibility and raises sensitivity to weaker demand, margin pressure, or higher financing costs. Debt service obligations could constrain investment and amplify downside during a business downturn.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery and Growth
The strong 2026 rebound and positive underlying growth indicate continued demand for HPC Systems' products. Sustained recovery can improve operating leverage and reinforce the company’s market position, although execution must maintain momentum across future cycles.
Read all positive factors
HPC Systems, Inc. (6597) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥14.76B
Dividend Yield0.96%
Average Volume (3M)92.52K
Price to Earnings (P/E)29.3
Beta (1Y)1.35
Revenue Growth11.92%
EPS Growth11.55%
CountryJP
Employees123
SectorGeneral
Sector StrengthN/A
IndustryComputer Hardware
Share Statistics
EPS (TTM)134.31
Shares Outstanding4,375,500
10 Day Avg. Volume120,110
30 Day Avg. Volume92,520
Financial Highlights & Ratios
PEG Ratio1.99
Price to Book (P/B)6.64
Price to Sales (P/S)2.03
P/FCF Ratio-2.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)168.1
Revenue Forecast (FY)¥10.20B
HPC Systems, Inc. Business Overview & Revenue Model
Company Description
HPC SYSTEMS Inc., headquartered in Tokyo, Japan, was established in 2006 and focuses on the design, production, and distribution of advanced high-performance and embedded computing systems within the Japanese market. Their core product portfolio c...
HPC Systems, Inc. Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
34
Negative
Cash Flow
22
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.83B | 7.91B | 7.06B | 6.95B | 8.85B | 6.02B |
| Gross Profit | 2.30B | 2.30B | 2.10B | 1.90B | 1.67B | 1.86B |
| EBITDA | 815.66M | 771.66M | 711.42M | 521.40M | 377.33M | 694.34M |
| Net Income | 534.10M | 455.54M | 423.85M | 299.04M | 183.75M | 432.95M |
Balance Sheet | ||||||
| Total Assets | 5.66B | 11.42B | 4.52B | 4.77B | 7.88B | 4.57B |
| Cash, Cash Equivalents and Short-Term Investments | 1.44B | 762.65M | 2.08B | 1.83B | 1.17B | 1.30B |
| Total Debt | 1.68B | 7.77B | 525.68M | 1.26B | 4.51B | 1.66B |
| Total Liabilities | 3.20B | 9.01B | 1.92B | 2.28B | 5.57B | 2.35B |
| Stockholders Equity | 2.46B | 2.41B | 2.60B | 2.49B | 2.31B | 2.22B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -7.82B | 1.30B | 4.03B | -2.92B | -1.21B |
| Operating Cash Flow | 0.00 | -7.78B | 1.34B | 4.08B | -2.79B | -1.16B |
| Investing Cash Flow | 0.00 | 20.99M | -55.20M | -8.66M | -235.76M | -126.19M |
| Financing Cash Flow | 0.00 | 6.51B | -1.04B | -3.36B | 2.75B | 829.54M |
HPC Systems, Inc. Technical Analysis
Negative
1687.00
Price Trends
3830.97
Negative
3649.10
Negative
2737.23
Positive
Market Momentum
-86.85
Negative
43.54
Neutral
32.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6597, the sentiment is Negative. The current price of 1687 is below the 20-day moving average (MA) of 3403.00, below the 50-day MA of 3830.97, and below the 200-day MA of 2737.23, indicating a neutral trend. The MACD of -86.85 indicates Negative momentum. The RSI at 43.54 is Neutral, neither overbought nor oversold. The STOCH value of 32.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6597.
HPC Systems, Inc. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | ¥180.87B | 7.16 | 21.39% | 2.84% | 15.44% | 115.43% | |
80 Outperform | ¥123.99B | 15.32 | ― | 4.76% | 5.48% | 127.51% | |
60 Neutral | ¥997.65B | 41.35 | 2.19% | 2.39% | 8.34% | -41.57% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
46 Neutral | ¥14.76B | 29.33 | ― | 1.65% | 11.92% | 11.55% |
* General Sector Average
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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.