TipRanks
HPC Systems, Inc. (JP:6597)
:6597
Japanese Market
Want to see JP:6597 full AI Analyst Report?

HPC Systems, Inc. (6597) AI Stock Analysis

2 Followers

Top Page

JP:6597

HPC Systems, Inc.

(6597)

Select Model
Select Model
Select Model
Neutral 46 (OpenAI - Gpt-5.6Sol)
Rating:46Neutral
Price Target:
¥3,729.00
▲(121.04% 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
Strong Revenue Rebound
The sharp 2026 revenue rebound demonstrates that the business can recover demand after a weak period. If growth remains supported by customer adoption and industry demand, the larger revenue base can improve operating leverage and strengthen the company’s competitive position over the next several quarters.
Negative Factors
Sharp Leverage Increase
The substantial increase in leverage reduces financial flexibility and makes results more sensitive to any downturn in demand or margins. A debt-heavy balance sheet can also constrain investment and capital allocation while increasing the importance of sustained operating performance.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Rebound
The sharp 2026 revenue rebound demonstrates that the business can recover demand after a weak period. If growth remains supported by customer adoption and industry demand, the larger revenue base can improve operating leverage and strengthen the company’s competitive position over the next several quarters.
Read all positive factors

HPC Systems, Inc. (6597) vs. iShares MSCI Japan ETF (EWJ)

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
Profitability is respectable (gross margin ~29%, operating margin ~9%, net margin ~5–6% in 2025–2026) and revenue rebounded strongly in 2026, but financial risk is elevated: leverage rose sharply (debt-to-equity ~3.2x in 2026 vs. ~0.2x in 2025) and cash flow deteriorated materially with deeply negative operating/free cash flow in 2026 (around -7.8B).
Income Statement
63
Positive
Balance Sheet
34
Negative
Cash Flow
22
Negative
BreakdownJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue7.91B7.06B6.95B8.85B6.02B
Gross Profit2.30B2.10B1.90B1.67B1.86B
EBITDA771.66M711.42M521.40M377.33M694.34M
Net Income455.54M423.85M299.04M183.75M432.95M
Balance Sheet
Total Assets11.42B4.52B4.77B7.88B4.57B
Cash, Cash Equivalents and Short-Term Investments762.65M2.08B1.83B1.17B1.30B
Total Debt7.77B525.68M1.26B4.51B1.66B
Total Liabilities9.01B1.92B2.28B5.57B2.35B
Stockholders Equity2.41B2.60B2.49B2.31B2.22B
Cash Flow
Free Cash Flow-7.82B1.30B4.03B-2.92B-1.21B
Operating Cash Flow-7.78B1.34B4.08B-2.79B-1.16B
Investing Cash Flow20.99M-55.20M-8.66M-235.76M-126.19M
Financing Cash Flow6.51B-1.04B-3.36B2.75B829.54M

HPC Systems, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1687.00
Price Trends
50DMA
3522.30
Positive
100DMA
3824.53
Positive
200DMA
2890.35
Positive
Market Momentum
MACD
56.54
Negative
RSI
64.34
Neutral
STOCH
87.74
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6597, the sentiment is Positive. The current price of 1687 is below the 20-day moving average (MA) of 3570.75, below the 50-day MA of 3522.30, and below the 200-day MA of 2890.35, indicating a bullish trend. The MACD of 56.54 indicates Negative momentum. The RSI at 64.34 is Neutral, neither overbought nor oversold. The STOCH value of 87.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6597.

HPC Systems, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
86
Outperform
¥184.87B7.4820.97%2.42%15.44%115.43%
80
Outperform
¥129.72B15.543.47%5.48%127.51%
60
Neutral
¥1.01T41.002.90%2.35%8.34%-41.57%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
46
Neutral
¥17.36B35.540.79%11.92%11.55%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6597
HPC Systems, Inc.
4,040.00
1,786.40
79.27%
JP:6750
Elecom Co
2,029.00
206.45
11.33%
JP:6724
Seiko Epson
3,144.00
1,214.92
62.98%
JP:6737
EIZO Corp.
3,170.00
1,021.53
47.55%
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 19, 2026