Hokuriku Electric Industry Co., Ltd. (6989) AI Stock Analysis

Hokuriku Electric Industry Co., Ltd.

(TSE/TYO:6989)

Select Model

Rating:66Neutral

Price Target:JPY 2,468.00▲(0.45% Upside)

Action:reiterated

Date:08/17/26

The stock scores 66, reflecting a mixed outlook. Strengths include a solid balance sheet with low debt and an attractive valuation (low P/E, high dividend yield). These are offset by weakening cash flow, declining profitability, and neutral-to-bearish technical indicators. The company's financial flexibility provides a cushion, but cash flow trends warrant monitoring.

Positive Factors

Improving Balance SheetFalling leverage and a larger equity base strengthen financial resilience and reduce balance-sheet pressure. This gives Hokuriku Electric greater capacity to withstand operating volatility, maintain investment, and fund customer-related production needs without relying as heavily on debt.

Negative Factors

Compressed Profit MarginsRecent margin compression reduces the earnings generated from each yen of sales and leaves less room to absorb cost increases or weaker product mix. Unless profitability stabilizes, continued revenue alone may produce limited earnings improvement and constrain returns on the growing equity base.

Hokuriku Electric Industry Co., Ltd. (6989) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 18.73B
Dividend Yield: 5.97%
Average Volume (3M): 11.06K
Price to Earnings (P/E): 9.8
Beta (1Y): 0.70
Revenue Growth: 4.15%
EPS Growth: 14.94%
Country: Japan
Employees: 1,833
Sector: Technology
Sector Strength: 61
Industry: Hardware, Equipment & Parts

Hokuriku Electric Industry Co., Ltd. Business Overview & Revenue Model

Company Description

Hokuriku Electric Industry Co.,Ltd., established in 1943 and headquartered in Toyama, Japan, specializes in the design, production, and global distribution of a wide array of electronic parts and devices. Its extensive product line includes a variety...

How the Company Makes Money

The company primarily makes money by selling the electronic components and products it manufactures to business customers (B2B), recognizing revenue when products are shipped/delivered under customer purchase orders. Key revenue streams generally inc...

Hokuriku Electric Industry Co., Ltd. Financial Statement Overview

Summary

Revenue growth has plateaued and net profit margins have declined, though gross margins improved. Balance sheet is strong with low debt and growing equity. Cash flow dropped sharply, raising concerns. Mixed financial health results in a moderate score.

Income Statement

62Positive

Balance Sheet

85Very Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	44.53B	43.13B	43.19B	40.81B	45.46B	40.45B
Gross Profit	8.41B	8.51B	8.33B	7.29B	7.63B	6.72B
EBITDA	3.99B	4.04B	3.87B	4.19B	2.68B	3.65B
Net Income	1.90B	1.99B	2.19B	2.54B	647.00M	1.95B
Balance Sheet
Total Assets	47.31B	46.18B	43.20B	41.65B	42.98B	40.96B
Cash, Cash Equivalents and Short-Term Investments	13.28B	13.08B	11.93B	10.11B	8.05B	7.01B
Total Debt	9.55B	9.36B	9.01B	9.88B	11.46B	10.16B
Total Liabilities	21.32B	20.36B	20.48B	21.54B	25.87B	25.00B
Stockholders Equity	25.99B	25.82B	22.71B	20.11B	17.11B	15.95B
Cash Flow
Free Cash Flow	0	572.00M	3.11B	3.82B	-128.00M	-2.06B
Operating Cash Flow	0	1.40B	4.12B	4.52B	629.00M	-909.00M
Investing Cash Flow	0	-134.00M	-1.47B	-737.00M	-1.04B	-1.06B
Financing Cash Flow	0	-644.00M	-1.91B	-2.48B	773.00M	23.00M

Hokuriku Electric Industry Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price2457.00

Price Trends

50DMA2334.99Positive

100DMA2370.27Positive

200DMA2517.42Negative

Market Momentum

MACD5.00Negative

RSI61.67Neutral

STOCH89.55Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6989, the sentiment is Positive. The current price of 2457.00 is above the 20-day moving average (MA) of 2273.70, above the 50-day MA of 2334.99, and below the 200-day MA of 2517.42, indicating a neutral trend. The MACD of 5.00 indicates Negative momentum. The RSI at 61.67 is Neutral, neither overbought nor oversold. The STOCH value of 89.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6989.

Hokuriku Electric Industry Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:6989 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6989	66Neutral	JPY 18.07B	9.84	―	5.97%	4.15%	14.94%
JP:6981	62Neutral	JPY 11.73T	40.19	10.61%	1.10%	14.53%	24.27%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:6817	57Neutral	JPY 36.49B	16.73	―	4.78%	9.71%	23.67%
JP:6996	54Neutral	JPY 144.58B	18.86	―	1.78%	0.36%	45.02%
JP:6997	53Neutral	JPY 46.49B	11.54	5.80%	1.20%	15.81%	―
JP:6768	49Neutral	JPY 66.45B	45.04	2.26%	1.98%	7.59%	-34.90%

* Technology Sector Average

Performance Comparison

JP:6989 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6989	Hokuriku Electric Industry Co., Ltd.	2387.00	231.43	10.74%
JP:6981	Murata Manufacturing Co	6358.00	2947.30	86.41%
JP:6768	Tamura Corporation	809.00	276.45	51.91%
JP:6997	Nippon Chemi-Con Corporation	1663.00	112.62	7.26%
JP:6817	Sumida Corporation	1109.00	23.20	2.14%
JP:6996	Nichicon Corporation	2133.00	619.95	40.97%

Hokuriku Electric Industry Co., Ltd. Corporate Events

Hokuriku Electric Industry Posts Higher Sales but Weaker Profits in June Quarter

Aug 7, 2026

Hokuriku Electric Industry reported consolidated net sales of ¥11.5 billion for the quarter ended June 2026, up 13.9% year on year, while operating profit fell 35.2% to ¥420 million and profit attributable to owners of parent declined 32.0%...

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 17, 2026

Hokuriku Electric Industry Co., Ltd. AI Stock Analysis