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

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JP:6904

Harada Industry Co., Ltd.

(TSE/TYO:6904)

Select Model
Rating:60.2Neutral
Price Target:JPY 774.00▲(3.34% Upside)
Action:reiterated
Date:09/29/26

The overall score reflects a company that has significantly improved its cash generation and moved back to modest profitability, but still operates with thin margins and notable leverage, keeping financial risk elevated. The technical picture shows a strongly extended price with overbought signals, implying higher short-term downside risk after a rapid rally. Valuation is reasonably full relative to the company’s modest growth and low yield, limiting upside for value and income investors.

Positive Factors
Profitability RecoveryThe shift from multi-year losses to positive earnings indicates that the business has regained operating viability and can convert its manufacturing and engineering platform into profit. If maintained, this recovery provides a stronger base for reinvestment and resilience over the next several quarters.
Negative Factors
Revenue ContractionThe reversal from strong revenue growth to declines in two consecutive periods raises concern about demand, program volumes, or customer production activity. A shrinking top line can reduce operating leverage and make it harder for the recent earnings recovery to develop into durable growth.

Harada Industry Co., Ltd. (6904) vs. iShares MSCI Japan ETF (EWJ)

-25%0%25%50%75%100%125%150%JP:6904+63.28%EWJ+13.61%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 15.80B
Dividend Yield
1.00%
Average Volume (3M)
282.54K
Price to Earnings (P/E)
15.6
Beta (1Y)
0.43
Revenue Growth
6.85%
EPS Growth
70.85%
Country
Japan
Employees
4,000
Sector
General
Sector Strength
55
Industry
Communication Equipment

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

Company Description

Harada Industry Co., Ltd. operates globally, specializing in the complete lifecycle of automotive communication systems. Their expertise spans the planning, design, development, manufacturing, and distribution of a wide range of vehicle antennas, sup...

Harada Industry Co., Ltd. Financial Statement Overview

Summary

Financials show a clear recovery from past losses, with modest but improving profitability, reduced leverage, and strong recent operating and free cash flow. However, revenue is flat to slightly declining, margins remain thin, and the balance sheet is still meaningfully leveraged, leaving limited buffer if demand or financing conditions worsen.

Income Statement

62Positive

Balance Sheet

55Neutral

Cash Flow

72Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue43.46B42.19B44.82B46.99B42.11B35.81B
Gross Profit10.40B9.54B9.23B8.66B7.06B5.81B
EBITDA4.42B3.28B3.07B4.41B552.45M224.09M
Net Income1.01B433.73M166.22M885.67M-1.53B-1.11B
Balance Sheet
Total Assets36.24B35.84B39.14B37.75B40.30B36.02B
Cash, Cash Equivalents and Short-Term Investments7.75B6.98B6.45B5.14B5.97B3.75B
Total Debt13.95B14.93B17.79B16.00B20.70B17.97B
Total Liabilities21.06B22.13B25.76B25.83B29.13B24.82B
Stockholders Equity15.17B13.71B13.38B11.91B11.17B11.21B
Cash Flow
Free Cash Flow03.62B105.48M1.69B-97.12M-4.26B
Operating Cash Flow04.17B855.89M2.42B558.64M-3.57B
Investing Cash Flow0-569.54M-408.51M2.57B-569.39M-131.19M
Financing Cash Flow0-3.12B573.12M-6.00B2.00B2.50B

Harada Industry Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price749.00

Price Trends

50DMA757.80Negative
100DMA612.80Positive
200DMA540.36Positive

Market Momentum

MACD-14.84Positive
RSI43.46Neutral
STOCH45.93Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6904, the sentiment is Negative. The current price of 749.00 is below the 20-day moving average (MA) of 787.40, below the 50-day MA of 757.80, and above the 200-day MA of 540.36, indicating a neutral trend. The MACD of -14.84 indicates Positive momentum. The RSI at 43.46 is Neutral, neither overbought nor oversold. The STOCH value of 45.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6904.

Harada Industry Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:6904 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6718JP:671874OutperformJPY 42.84B13.72―4.75%-0.63%15.90%
JP:6771JP:677168NeutralJPY 3.96B11.26―2.42%8.65%177.02%
JP:6703JP:670367NeutralJPY 222.91B12.7910.39%2.53%-0.76%62.86%
JP:6675JP:667563NeutralJPY 33.12B1.94―4.72%-3.14%404.89%
JP:6820JP:682063NeutralJPY 51.74B13.84―2.07%8.11%61.38%
JP:6904JP:690460NeutralJPY 16.01B15.61―1.00%6.85%70.85%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%50%100%JP:6904JP:6703JP:6675JP:6718JP:6771JP:6820Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:6904 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6904Harada Industry Co., Ltd.749.00288.3162.58%
JP:6703OKI Electric Industry Company 2566.00703.3237.76%
JP:6675SAXA Holdings, Inc.1790.00193.3612.11%
JP:6718Aiphone Co., Ltd.2735.0075.922.86%
JP:6771Ikegami Tsushinki Co., Ltd.619.0033.155.66%
JP:6820Icom Incorporated3630.00887.6132.37%

Harada Industry Co., Ltd. Corporate Events

Harada Industry Reports Fiscal 2027 Interim Financial Results

Nov 12, 2026

Harada Industry Co., Ltd. reported consolidated net sales of ¥22,987 million for the April 1–September 30, 2026 interim period, up 13.1% from the previous year’s interim period. Operating profit rose 80.6% to ¥3,141 million, ordinary profit increased...

Harada Industry Posts Strong Q1 but Maintains Cautious Full-Year Outlook

Aug 13, 2026

Harada Industry Co., Ltd. reported strong first-quarter results for the fiscal year ending March 31, 2027, with net sales rising 12.5% year-on-year to ¥11.39 billion and operating profit surging 79.7% to ¥1.63 billion. Profit attributable to owners o...

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: Sep 29, 2026