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

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Hokuriku Electric Industry Co., Ltd.

(TSE/TYO:6989)

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Rating:69Neutral

Price Target:JPY 4,199.00▲(9.49% Upside)

Action:reiterated

Date:11/13/26

Overall score reflects strong technical momentum (price well above all key moving averages), partially offset by only mid-level financial quality due to cash flow volatility and recent weakening in 2026. Valuation is a modest headwind given the higher P/E, though the ~3.7% dividend yield provides some support.

Positive Factors

Revenue Stabilization and RecoveryRevenue recovery and stabilization around ¥43B indicate that the company has retained a meaningful operating base after earlier volatility. Sustained demand for its electronic components can support production planning, customer relationships, and more predictable earnings over the next several quarters.

Negative Factors

Structural Margin CompressionMulti-year margin deterioration indicates that revenue is currently converting into less profit, limiting earnings growth even when sales remain stable. If this pressure persists, the company may have less capacity for reinvestment and weaker protection against changes in product mix or operating costs.

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

Market Cap: JPY 32.64B
Dividend Yield: 3.72%
Average Volume (3M): 14.31K
Price to Earnings (P/E): 28.4
Beta (1Y): 0.59
Revenue Growth: 11.18%
EPS Growth: -56.26%
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

Income statement is decent with revenue stabilizing around ¥43B and positive profitability, but margins have compressed (net margin ~6.2% in 2024 to ~4.6% in 2026; EBITDA margin ~10.2% to ~8.0%). Balance sheet is a strength with improving leverage (debt-to-equity ~0.72 in 2021 to ~0.36 in 2026) and growing equity. The key drag is cash flow quality: volatile OCF/FCF with prior negative FCF (2022–2023) and a sharp weakening in 2026 (FCF ~¥0.6B; ~41% of net income).

Income Statement

66Positive

Balance Sheet

73Positive

Cash Flow

45Neutral

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 Price3835.00

Price Trends

50DMA2378.20Positive

100DMA2407.70Positive

200DMA2517.29Positive

Market Momentum

MACD204.77Negative

RSI90.88Negative

STOCH93.87Negative

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 3835.00 is above the 20-day moving average (MA) of 2452.40, above the 50-day MA of 2378.20, and above the 200-day MA of 2517.29, indicating a bullish trend. The MACD of 204.77 indicates Negative momentum. The RSI at 90.88 is Negative, neither overbought nor oversold. The STOCH value of 93.87 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	69Neutral	JPY 23.73B	28.38	―	3.72%	11.18%	-56.26%
JP:6981	64Neutral	JPY 10.06T	33.02	10.61%	1.34%	14.53%	24.27%
JP:6996	62Neutral	JPY 138.34B	13.44	―	1.96%	8.34%	187.11%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:6817	55Neutral	JPY 34.65B	15.80	―	4.99%	14.18%	9.84%
JP:6997	55Neutral	JPY 44.28B	16.96	3.56%	1.29%	18.67%	752.67%
JP:6768	53Neutral	JPY 59.72B	19.37	4.51%	2.26%	13.96%	37.70%

* 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.	3835.00	1431.18	59.54%
JP:6981	Murata Manufacturing Co	5224.00	2157.52	70.36%
JP:6768	Tamura Corporation	709.00	65.83	10.24%
JP:6997	Nippon Chemi-Con Corporation	1546.00	285.58	22.66%
JP:6817	Sumida Corporation	1063.00	-65.01	-5.76%
JP:6996	Nichicon Corporation	1941.00	666.70	52.32%

Hokuriku Electric Industry Co., Ltd. Corporate Events

Hokuriku Electric Industry Reports Higher Sales, Lower Profits in September 2026 Results

Nov 10, 2026

Hokuriku Electric Industry Co., Ltd. reported consolidated net sales of ¥24,642 million for September 2026, up 19.4% from ¥20,633 million a year earlier. Operating profit fell 42.0% to ¥764 million, ordinary profit declined 56.3% to ¥600 million, and...

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: Nov 13, 2026

Hokuriku Electric Industry Co., Ltd. AI Stock Analysis