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Hakudo Co., Ltd. (7637) AI Stock Analysis

JP:7637

Hakudo Co., Ltd.

(TSE/TYO:7637)

Select Model
Rating:74Outperform
Price Target:JPY 3,982.00â–²(17.99% Upside)
Action:reiterated
Date:09/09/26

The score is driven primarily by strong financial stability (near-zero leverage) and strong recent revenue growth. These positives are tempered by profitability/margin compression and uneven historical cash-flow consistency, while technicals are mixed with soft near-term momentum. Valuation is reasonable with a mid-teens P/E and a moderate dividend yield.

Positive Factors
Strong recent revenue growthThe sharp acceleration in revenue growth indicates stronger recent demand or distribution volume across Hakudo’s industrial customer base. Sustained top-line expansion can improve operating leverage, strengthen customer relationships, and provide a broader foundation for earnings growth over the next several quarters.
Negative Factors
Structural margin compressionLower gross, operating, and net margins indicate that recent revenue growth is producing less profit per unit of sales than in earlier years. Persistent pricing, cost, or product-mix pressure could limit earnings conversion, reduce returns on expanding assets, and make future profit growth more dependent on continued volume gains.

Hakudo Co., Ltd. (7637) vs. iShares MSCI Japan ETF (EWJ)

-20%0%20%40%60%80%100%JP:7637+58.58%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 38.28B
Dividend Yield
3.94%
Average Volume (3M)
37.58K
Price to Earnings (P/E)
13.3
Beta (1Y)
1.19
Revenue Growth
7.77%
EPS Growth
56.21%
Country
Japan
Employees
401
Sector
General
Sector Strength
55
Industry
Manufacturing - Metal Fabrication

Hakudo Co., Ltd. Business Overview & Revenue Model

Company Description

Hakudo Co., Ltd., a venerable materials company established in 1932 and headquartered in Tokyo, Japan, specializes in the processing and distribution of diverse metal and plastic materials. Operating across Japan, China, Thailand, and Vietnam, the fi...

How the Company Makes Money

Hakudo makes money primarily by selling non-ferrous metal products and related materials to business customers. Its core revenue model is product distribution/trading: it purchases materials (or procures them on behalf of customers) and generates rev...

Hakudo Co., Ltd. Financial Statement Overview

Summary

Strong recent revenue growth (+57% in FY2026 after +16% in FY2025) and a very conservative balance sheet with essentially no leverage support a solid financial profile. Offsetting factors are margin compression versus earlier years (FY2026 operating margin ~4.2% vs ~7.7% in FY2022) and historically volatile cash conversion despite a strong FY2026 free-cash-flow rebound.

Income Statement

72Positive

Balance Sheet

90Very Positive

Cash Flow

74Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue72.99B68.11B66.41B57.25B61.60B55.44B
Gross Profit11.83B10.30B10.57B9.27B10.15B10.31B
EBITDA5.02B4.03B4.41B3.94B4.62B5.10B
Net Income2.87B2.15B2.24B1.92B2.74B2.96B
Balance Sheet
Total Assets51.13B47.56B44.88B42.15B43.15B41.78B
Cash, Cash Equivalents and Short-Term Investments8.09B7.67B5.47B5.70B6.04B8.67B
Total Debt62.32M075.04M70.22M350.82M0
Total Liabilities24.96B22.10B21.12B19.67B21.92B21.95B
Stockholders Equity26.17B25.47B23.76B22.48B21.21B19.83B
Cash Flow
Free Cash Flow03.71B1.10B979.20M-374.37M3.89B
Operating Cash Flow04.49B1.78B2.53B321.45M4.56B
Investing Cash Flow0-1.37B-893.35M-1.61B-1.55B-677.06M
Financing Cash Flow0-1.05B-1.13B-1.33B-1.42B-1.20B

Hakudo Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price3375.00

Price Trends

50DMA3533.47Negative
100DMA3471.62Negative
200DMA3016.87Positive

Market Momentum

MACD-42.88Positive
RSI43.02Neutral
STOCH46.52Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7637, the sentiment is Negative. The current price of 3375.00 is below the 20-day moving average (MA) of 3469.25, below the 50-day MA of 3533.47, and above the 200-day MA of 3016.87, indicating a neutral trend. The MACD of -42.88 indicates Positive momentum. The RSI at 43.02 is Neutral, neither overbought nor oversold. The STOCH value of 46.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7637.

Hakudo Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7637 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:1787JP:178780OutperformJPY 13.68B11.32―6.04%-0.34%17.35%
JP:7637JP:763774OutperformJPY 38.29B13.32―3.94%7.77%56.21%
JP:5644JP:564472OutperformJPY 22.25B7.40―2.11%2.42%49.60%
JP:6998JP:699866NeutralJPY 14.50B21.91―2.92%12.13%-3.95%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:7414JP:741455NeutralJPY 33.44B-15.69―5.13%-3.86%-153.37%
JP:5852JP:585246NeutralJPY 14.80B7.50―6.15%-0.50%―

* General Sector Average

Performance Comparison

0%50%100%150%JP:7637JP:1787JP:5644JP:5852JP:6998JP:7414Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7637 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7637Hakudo Co., Ltd.3375.001248.5958.72%
JP:1787Nakabohtec Corrosion Protecting Co., Ltd.5550.00526.3410.48%
JP:5644Metalart Corporation7360.003364.6984.22%
JP:5852Ahresty Corporation585.00-182.47-23.78%
JP:6998Nippon Tungsten Co., Ltd.2907.001454.46100.13%
JP:7414Onoken Co., Ltd.1346.0033.202.53%

Hakudo Co., Ltd. Corporate Events

Hakudo Lifts Full-Year Forecasts on Strong Semiconductor-Linked Demand

Aug 7, 2026

Hakudo Co., Ltd. has sharply raised its consolidated and non-consolidated earnings forecasts for the fiscal year ending March 31, 2027, after first-quarter results outpaced expectations on stronger sales and profitability. The company now projects co...

Hakudo Posts Surging Quarterly Profit and Hikes Dividend, Upgrades Full-Year Outlook

Aug 7, 2026

Hakudo Co., Ltd. reported a strong rebound in earnings for the three months ended June 30, 2026, with net sales up 28.6% year-on-year to ¥21,934 million and profit attributable to owners of parent surging 250.1% to ¥1,017 million, lifting b...

Hakudo Completes Restricted Stock Issuance for Director and Employee Compensation

Jul 23, 2026

Hakudo Co., Ltd. announced it has completed payment procedures for a new issuance of 4,557 common shares as restricted stock compensation, following a Board of Directors resolution on June 24, 2026. The shares, priced at 3,520 yen each for a total of...

Hakudo Overhauls Director Pay, Introducing Restricted Share Plan and ESG-Linked Bonuses

Jun 24, 2026

Hakudo Co., Ltd. has secured shareholder approval at its 77th Annual General Meeting to introduce a restricted share-based remuneration plan for all directors, including audit and supervisory committee members and outside directors, and has according...

Hakudo Launches Restricted-Share Remuneration Plan for Directors and Employee

Jun 24, 2026

Hakudo Co., Ltd. has approved the issuance of 4,557 new common shares as restricted-share remuneration, valued at about ¥16 million, to three internal directors and one employee. The program ties a portion of bonuses to equity, with recipients c...

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 09, 2026