Harada Industry Co., Ltd. (6904) AI Stock Analysis

• Market Cap: ¥10.16B
• Dividend Yield: 1.61%
• Average Volume (3M): 7.68K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.39
• Revenue Growth: -7.72%
• EPS Growth: N/A
• Country: JP
• Employees: 4,352
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 31.75
• Shares Outstanding: 21,758,000
• 10 Day Avg. Volume: 10,370
• 30 Day Avg. Volume: 7,680
• PEG Ratio: -0.79
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 101.14
• 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

• Rating: 59 Neutral
• Price Target: ¥486.00 ▲(4.97% Upside)

Harada Industry's stock score reflects a moderate financial recovery with stable profitability and cash flow improvements. Technical indicators suggest a neutral market position, while valuation metrics indicate fair pricing. The absence of earnings call and corporate events data limits further insights.

Harada Industry Co., Ltd. Business Overview & Revenue Model

Company Description

Harada Industry Co., Ltd. (6904) is a leading Japanese manufacturer specializing in the production of automotive components, particularly focusing on advanced electronic products and systems. The company operates primarily in the automotive sector, providing a wide range of products such as electronic control units, sensors, and other essential automotive parts. With a strong commitment to innovation, Harada Industry aims to enhance vehicle performance and safety through its high-quality offerings.

How the Company Makes Money

Harada Industry Co., Ltd. generates revenue primarily through the sale of its automotive components to major automobile manufacturers. The company's revenue model is based on direct sales, long-term contracts, and partnerships with automotive brands, which provide a steady stream of income. Key revenue streams include the production of electronic control units and sensors that are integral to vehicle operation and safety systems. Additionally, Harada benefits from research and development collaborations with industry partners, which can lead to new product innovations and enhanced market offerings, further contributing to its earnings.

Harada Industry Co., Ltd. Financial Statement Overview

Summary

Harada Industry shows a gradual recovery in financial performance with improved profitability margins and cash flow generation. However, inconsistent revenue growth and moderate leverage suggest a cautious growth approach.

Income Statement

Harada Industry has shown a mixed performance in its income statement. The gross profit margin has improved over the years, indicating an enhancement in cost management. However, the net profit margin has been volatile, with recent recovery from previous losses. The revenue growth rate has been inconsistent, with a recent decline in 2025. The company has improved its EBIT and EBITDA margins over the years, though they remain below industry benchmarks.

Balance Sheet

The company's balance sheet is stable but shows potential risks. The debt-to-equity ratio is moderate, indicating a balanced leverage. Return on equity has recovered from negative values, showing a positive trend in 2025. The equity ratio is healthy, reflecting a reasonable proportion of equity financing. However, the overall asset base has not significantly grown, indicating potential constraints on expansion.

Cash Flow

Harada Industry's cash flow statement indicates recovery in operating cash flow and free cash flow, showing a positive trend in recent years. The free cash flow growth has been substantial from negative figures in earlier years, reflecting improved cash management. The operating cash flow to net income ratio indicates efficient cash generation relative to earnings. However, past negative free cash flows highlight historical cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.76B	44.82B	46.99B	42.11B	35.81B	34.71B
Gross Profit	9.39B	9.23B	8.66B	7.06B	5.81B	6.40B
EBITDA	3.22B	3.07B	4.41B	552.45M	224.09M	-19.93M
Net Income	502.19M	166.22M	885.67M	-1.53B	-1.11B	-1.29B
Balance Sheet
Total Assets	35.79B	38.93B	37.60B	40.13B	35.94B	32.79B
Cash, Cash Equivalents and Short-Term Investments	6.16B	6.45B	5.14B	5.97B	3.75B	4.66B
Total Debt	17.42B	16.53B	14.87B	19.72B	16.59B	13.20B
Total Liabilities	22.82B	25.55B	25.68B	28.97B	24.74B	21.21B
Stockholders Equity	12.97B	13.38B	11.91B	11.17B	11.21B	11.59B
Cash Flow
Free Cash Flow	0.00	105.48M	1.69B	-97.12M	-4.26B	-772.32M
Operating Cash Flow	0.00	855.89M	2.42B	558.64M	-3.57B	-152.22M
Investing Cash Flow	0.00	-408.51M	2.57B	-569.39M	-131.19M	-702.29M
Financing Cash Flow	0.00	573.12M	-6.00B	2.00B	2.50B	-168.32M

Harada Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 463.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6904, the sentiment is Neutral. The current price of 463 is below the 20-day moving average (MA) of 465.75, below the 50-day MA of 467.66, and below the 200-day MA of 464.29, indicating a neutral trend. The MACD of 1.68 indicates Negative momentum. The RSI at 49.74 is Neutral, neither overbought nor oversold. The STOCH value of 61.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6904.

Harada Industry Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6778	―	¥5.72B	41.59	―	3.24%	-4.92%	―
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6904	―	¥10.16B	20.38	―	1.61%	-7.72%	―
6771	―	¥3.86B	30.49	―	1.99%	0.35%	―
6634	―	¥4.79B	―	―	―	165.52%	17.61%

Harada Industry Co., Ltd. Corporate Events

Harada Industry Reports Q1 Financial Results with Mixed Performance

Harada Industry Co., Ltd. reported a decline in net sales for the first quarter of fiscal year 2025, with a 9.4% decrease compared to the previous year. Despite the drop in sales, the company achieved significant growth in operating profit and ordinary profit, indicating improved operational efficiency. The company’s financial forecast for the full year anticipates further declines in net sales and profits, suggesting potential challenges in market conditions or operational hurdles.