HKS Co., Ltd. (7219) AI Stock Analysis

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HKS Co., Ltd.

(TSE/TYO:7219)

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Rating:83Outperform

Price Target:JPY 3,035.00▲(26.41% Upside)

Action:reiterated

Date:10/14/26

The overall score of 83 is primarily driven by the company's exceptional, near-debt-free balance sheet and highly attractive valuation metrics. With a low P/E ratio and strong free cash flow generation, fundamental risks are significantly minimized. Furthermore, the stock's robust bullish technical trends and reliable dividend yield provide a compelling case for sustained performance.

Positive Factors

Conservative balance sheetExtremely low leverage gives HKS substantial financial flexibility and reduces refinancing risk. A steadily growing equity base strengthens resilience, allowing the company to fund operations, pursue opportunities, and withstand weaker market conditions without depending heavily on debt.

Negative Factors

Choppy revenue trendThe recent return to growth is encouraging, but the preceding two-year contraction shows that demand has not followed a consistently durable upward path. Uneven revenue performance can make planning harder and limit operating leverage, leaving earnings more sensitive to changes in sales.

HKS Co., Ltd. (7219) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 3.40B
Dividend Yield: 4.46%
Average Volume (3M): 1,787
Price to Earnings (P/E): 5.6
Beta (1Y): 0.16
Revenue Growth: 10.16%
EPS Growth: 66.99%
Country: Japan
Employees: 383
Sector: General
Sector Strength: 55
Industry: Auto - Parts

HKS Co., Ltd. Business Overview & Revenue Model

Company Description

HKS Co., Ltd. operates as an international producer and vendor of automotive aftermarket parts, serving both Japanese and global markets. Its diverse product portfolio includes high-performance exhaust systems, turbochargers, advanced suspension setu...

HKS Co., Ltd. Financial Statement Overview

Summary

Anchored by an outstanding balance sheet with near-zero debt and consistent equity accumulation. Recent revenue recovery, surging net income, and stabilized positive free cash flow further support a strong financial profile despite modest industry-typical profit margins.

Income Statement

75Positive

Balance Sheet

92Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Aug 2026	Aug 2025	Aug 2024	Aug 2023	Aug 2022
Income Statement
Total Revenue	9.89B	9.89B	8.98B	9.00B	9.24B	8.63B
Gross Profit	4.06B	3.83B	3.62B	3.65B	3.78B	3.50B
EBITDA	1.29B	580.33M	1.18B	1.20B	1.30B	1.27B
Net Income	603.56M	603.56M	361.00M	347.75M	451.06M	496.20M
Balance Sheet
Total Assets	13.76B	13.76B	13.31B	13.39B	13.40B	13.14B
Cash, Cash Equivalents and Short-Term Investments	2.97B	2.97B	2.50B	2.42B	2.17B	2.55B
Total Debt	438.65M	438.65M	536.85M	764.02M	877.26M	1.14B
Total Liabilities	2.40B	2.40B	2.66B	3.08B	3.40B	3.62B
Stockholders Equity	11.35B	11.35B	10.65B	10.32B	9.96B	9.51B
Cash Flow
Free Cash Flow	0	371.02M	346.21M	-234.87M	-39.98M	204.22M
Operating Cash Flow	0	841.82M	991.39M	380.97M	694.14M	658.80M
Investing Cash Flow	0	-556.12M	-611.90M	-12.23M	-822.18M	-946.25M
Financing Cash Flow	0	-189.96M	-319.19M	-243.95M	-329.26M	-166.39M

HKS Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price2401.00

Price Trends

50DMA2467.30Negative

100DMA2445.15Negative

200DMA2332.71Positive

Market Momentum

MACD-17.27Positive

RSI42.20Neutral

STOCH25.37Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7219, the sentiment is Negative. The current price of 2401.00 is below the 20-day moving average (MA) of 2436.05, below the 50-day MA of 2467.30, and above the 200-day MA of 2332.71, indicating a neutral trend. The MACD of -17.27 indicates Positive momentum. The RSI at 42.20 is Neutral, neither overbought nor oversold. The STOCH value of 25.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7219.

HKS Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7219 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7219	83Outperform	JPY 3.42B	5.58	―	4.46%	10.16%	66.99%
JP:7217	71Outperform	JPY 4.35B	8.30	―	3.52%	10.57%	148.78%
JP:7551	66Neutral	JPY 10.52B	11.09	―	4.16%	3.08%	-30.94%
JP:7242	64Neutral	JPY 187.73B	8.10	10.55%	10.50%	10.28%	3.78%
JP:7247	63Neutral	JPY 11.51B	8.62	―	4.41%	7.94%	-52.23%
JP:7297	58Neutral	JPY 5.94B	11.80	―	3.91%	1.24%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:7219 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7219	HKS Co., Ltd.	2401.00	252.91	11.77%
JP:7242	KYB Corporation	1543.00	44.30	2.96%
JP:7217	Tein, Inc.	455.00	86.52	23.48%
JP:7247	Mikuni Corporation	340.00	-0.41	-0.12%
JP:7297	Car Mate Mfg. Co Ltd	843.00	26.84	3.29%
JP:7551	Weds Co., Ltd.	649.00	41.34	6.80%

HKS Co., Ltd. Corporate Events

HKS Delivers Strong FY2026 Profit Growth and Hikes Dividend, But Guides Cautiously for FY2027

Oct 13, 2026

HKS reported consolidated net sales of ¥9,888 million for the fiscal year ended Aug. 31, 2026, up 10.2% year on year, with operating profit surging 47.0% to ¥580 million and profit attributable to owners of parent jumping 67.0% to ¥603 million. Earni...

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: Oct 14, 2026

HKS Co., Ltd. AI Stock Analysis